Posts Tagged ‘BRIC’

Notes From Underground: Economy to Ben Bernanke … It’s Not You, It’s Me

September 21, 2011

THERE WAS CERTAINLY NO SURPRISE FROM THE FED TODAY EXCEPT THAT THE FOMC STRESSED THAT THERE ARE SIGNIFICANT DOWNSIDE RISKS TO THE ECONOMY. It appears that this phrase caused the markets to sell everything after the release of the most important outlook for U.S. economic policy. The market’s response must have left Mr. Bernanke wondering just what the FED could actually do to lift the “animal spirits” of the investor and business community.


Notes From Underground: From Russia WITHOUT Love–Mikhail Khodorkovsky

December 27, 2010

A few stories from Russia today. First, the Russian Judicial System rendered a totalitarian decision as the oligarch Khodorkovsky was again found guilty of some type of misappropriation of funds when he controlled YUKOS, the Russian energy giant. This is another black eye for the RULE OF LAW in Russia as the verdict appeared to be predetermined with the heavy influence of Prime Minister Putin. I don’t doubt for a moment the tragic shortage of justice in Russia, but the question is: Do the markets truly care, or as I continually remind, is MONEY FASCIST? Global investors will set aside criticism of a nation’s societal and legal injustices if the investment returns are high enough and the government is stable.


Notes From Underground: Pimco calls for some of the PIIGS to leave the STRAW HOUSE AND HIT THE BRICS

December 20, 2010

A note from Andrew Bosomworth, head of Pimco’s European Portfolio, suggests that Greece, Ireland and Portugal would be better off leaving the euro currency until they get their houses in order. Bosomworth wrote it will be difficult but it can be done and the currency devaluations that will be part of exit will aid the PIG in its attempt at economic recovery.


Notes From Underground: G-20 is waste of time and energy; finreg is just a waste

June 27, 2010

Germany added liquidity but it was all directed at the British goalie David James–nothing austere about their World Cup peformance. The news from the G-20 was as expected: Nothing short of a waste of time and the resulting communique will be the paradigm of vacuousness. The Chinese took center stage in that they spoke up for the developing nations, stating they wanted input in the discussions about global problems. We agree with the Chinese that the G-8 is an atavistic appendage of a past colonial world and is merely the delusional forum for those wishing to hold onto a past that left the arena long ago. Yes, we are sure that Russia, Brazil and the others that make up the most robust members of the emerging world want to advise the likes of Italy, Spain and France who have certainly failed to get their own economic houses in order.


Notes From Underground: Chinese exports increase dramatically and Schumer sets off fireworks

June 10, 2010

Yesterday’s release of Chinese trade data was just what Senator Schumer needed to refresh the populist agenda on Reminbi revaluation. Treasury Secretary Tim Geithner made an appearance before the Senate Finance Committee where Schumer exhibited his credentials as a fighter for American jobs. Remember that the senior senator from New York is vying for Senate leader just in case Harry Reid should lose his election in November. Geithner was challenged as to why the Treasury Department did not name China a currency manipulator and even stated that the Treasury maay in fact be contravening U.S. law.


Notes From Underground: Brazil goes; New Zealand goes; and the ECB and England will hold steady tomorrow

June 9, 2010

Tonight, we got word that the Central Bank of Brazil raised their lending rate another 75 basis points to 10.25 percent. This was widely anticipated, especially after yesterday’s strong GDP numbers. Furthermore, the RBNZ raised rates another 25 basis points to 2.75 percent in a move that was not widely anticipated, which put a bid to the Kiwi dollar. The global growth story is definitely favoring the Asian and BRIC countries, while the developed economies are struggling to overcome the tremendous debt loads that carried their economies following the economic downturn from 2001-2003.