Forex

January 16 2013 5:03 AM

The birth, and the apparent death, of the trillion dollar platinum coin idea may one day be recalled as a mere footnote in the current debt crisis drama. The ultimate rejection of the idea (which was to use a loophole in commemorative coinage law to mint a platinum coin of any denomination) by both the the President and the Federal Reserve seems to offer some relief that our economic policy is not being run by out-of-touch academics and irresponsible congressmen. In reality, our government has been creating more than one trillion dollars out of thin air every year for the past five. The only difference is that the blatant dishonesty of a trillion-dollar platinum coin is so easy to understand that the public simply couldn't be expected to swallow it. The American people are more than willing to be fooled, but they won't tolerate so simple a ruse.

January 14 2013 7:35 PM

Ben Bernanke attempted to reassure investors and economists this afternoon that the Federal Reserve’s money-printing programs will not lead to higher inflation. In a speech at the University of Michigan, the Fed Chairman stated that “I don’t believe significant inflation is going to be the result” of the central bank’s quantitative easing measures.

January 11 2013 8:40 AM

Heading into the weekend, the euro touched just below $1.33 on Friday morning after a positive press conference following the European Central Bank's monthly meeting. The euro traded at 1.3266 on Friday, as confidence returned to the eurozone.

January 10 2013 8:38 AM

Economists who hold the popular view that expanding the money supply will provide the best medicine for our ailing economy dismiss the inflationary concerns of monetary hawks, like me, by pointing to the supposedly low inflation that has occurred during the current period of rampant Fed activism. In a recent blog post aimed specifically at me, Paul Krugman noted that the sub 2.5% increases in the Consumer Price Index (CPI) over the past few years are all that is needed to prove me wrong. In fact, Krugman and others have even suggested that the CPI itself overstates inflation and that the Fed would be better able to help the economy if less strict methodologies were used. However, there is plenty of evidence to suggest that the CPI is essentially meaningless as it woefully under reports rising prices.

January 09 2013 9:46 AM

It is an unfortunate truth that Keynesian counterfeiters with their Kamikaze monetary and fiscal policies have taken over the developed world. Politicians and central banks in the United States and Europe have decided to cement firmly in place their addictions to debt, inflation and artificially produced low interest rates. But Japan has now leapfrogged into the lead of those nations that believe prosperity can be brought about by loading up on government debt and increasing the number of zeros being printed by their central bank.

January 08 2013 9:03 AM

The euro gained momentum on Tuesday morning after beginning to rise on Monday afternoon. On Monday, the common currency was trading at 1.3127. Ahead of the European Central Bank meeting, many investors are speculating that the current interest rate will remain unchanged. Although the 17 country bloc is still struggling to find its footing after years of financial crisis, most believe the rates will go unchanged, at least in December. Most investors believe eventually, the rate will be cut again sometime in 2013.

January 07 2013 8:37 AM

The euro dropped closer to $1.30 on Monday morning, reflecting predictions that 2013 was going to be a difficult year. The European Central Bank is set to meet on January 10th to discuss, among other things, the bloc's interest rate. The current rate is already at a record low of 0.75, but some are speculating the rate will be cut even lower at the January meeting. Businessweek reported that most analysts are betting the other way, saying that the ECB won't cut rates because it would do more harm than good.

January 04 2013 12:45 PM

Non-Farm Payrolls were reported at 155,000 jobs added in December as job growth continued to improve at a lackluster rate. Economists had been expecting a gain of 150,000 jobs in the month, more than the 146,000 jobs added in November. Also, the unemployment rate was flat in December at 7.8 percent from an upwardly revised 7.8 percent in November. Economists had been expecting a flat reading from the initial November reading of 7.7 percent for the unemployment rate.

January 04 2013 8:59 AM

The euro slid on Friday morning as investors worried about the U.S. upcoming budget battle and approaching debt-ceiling. The common currency traded at 1.3013 on Friday. After a huge jump following the U.S. fiscal cliff deal, the markets calmed and the euro began to sink. It's no secret that the region is in for a difficult year, and although recent progress gave the currency a lift, the bloc still has quite a bit of work to do.