Posts Tagged ‘transitory’
July 17, 2011
For all those who have ever been involved with American Youth Soccer Organization (AYSO), it is easy to see the similarity between the EBA‘s “stress tests” and a youth soccer game. Like AYSO, the Euro STRESS TESTS meant that everyone who plays gets a trophy for showing up. The philosophy is that every participant is a WINNER. Also, there is no keeping score for that would be bad sportsmanship. So, the EURO STRESS TESTS are treated in the same light.
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Tags:Aussie, Australian dollar, AYSO, bear flattener, Bunds, Canada, carbon tax, China, corn-based ethanol, Debt, Dollar, EU, Euro stress tests, Europe, food chain, Italian curve, Julia Gillard, Maquiladoras, Mexico, oil, stress, tar sands, transitory, two-year notes, U.S. EPA, U.S. Gulf, Waha Hub
Posted in Australia, Commodities, Europe, Oil | 7 Comments »
May 19, 2011
Let us hope that the FED and Chairman Bernanke are not following Shakespeare’s most famous stage direction. Today, the FOMC released the minutes from the last meeting and as widely expected the predominant interest was in the discussion of the FED‘s exit strategies from the QE2 program. It seems that FED BOARD members were pushing the idea of raising rates prior to the unloading of assets that have accumulated on the FED‘s balance sheet. There were many opinions about the significance of the various proposals that the FED is considering, but it seems that the FED itself is very uncertain about which procedure will produce what impact.
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Tags:Aussie, Commodities, Dodd-Frank, Dollar, energy, Equities, Fed, FOMC, Gold, grains, inflation, OTC, QE2, regulated exchanges, sugar, Swiss Franc, transitory
Posted in Commodities, Federal Reserve, FOMC | 2 Comments »
May 11, 2011
If the prices of commodities are falling because of increased margin requirements on ENERGY and PRECIOUS METALS, WHY DOESN’T THE FED JUST ASK FOR EMERGENCY POWERS TO CONTROL MARGINS FOR ALL INVESTMENTS? Chairman Bernanke is on the record as believing that INFLATIONARY PRESSURES ARE TRANSITORY. Well, it seems that the power to make higher commodity prices transitory is to raise margins and force the speculators to disgorge their positions. The increase in MARGINS and the RESULTING LIQUIDATION WOULD ALLOW THE FED TO MAINTAIN QE POLICIES WITHOUT THE FEAR OF TRANSITORY PRICE INCREASES.
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Tags:Axel Weber, Bernanke, bonds, BRICS, central banks, Chinese, Commodities, Dollar, ECB, energy, Equities, Euro, Eurocrats, Fed, inflation, margin requirements, Mario Draghi, PPI, precious metals, real estate, retail sales, transitory, Trichet
Posted in Commodities, ECB, Europe | 4 Comments »