Posts Tagged ‘Canadian Dollar’

Notes From Underground: Why Is The FED Being Disingenuous???

October 14, 2013

Last year the FED turned over $ 88.9 billion in profit to the U.S. Treasury, which was the “earned income” from the Fed’s QE program, for Bernanke’s Fed is the world’s largest coupon clipper. The Fed’s earnings are supposed to be turned over to the Treasury at regular intervals so why isn’t the Fed forwarding its gains to help the Treasury have more income to pay off the governments immediate expenses. If last year’s profits totaled $88.9 billion, this year’s gains should be larger as the balance sheet has grown by almost $850 BILLION. So where is the money, Ben?

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Notes From Underground: Schaeuble Proves Why 2+2=5

July 25, 2012

In the realm of loving and promoting the irrational over the rational expectations of the MODEL BUILDERS, there is no better poster child than German Finance Minister Wolfgang Schaeuble. As I warned Mario Draghi to unpack his speedo, today BLOOMBERG NEWS ran an article, “SCHAEUBLE DECLARES MARKETS WRONG AS EUROPE COASTS INTO VACATION.” This is the German finance minister who has the audacity to proclaim that the markets are wrong and head off for vacation. It seems that the German hierarchy is convinced that all is well because the BUND market is healthy. Is Schaeuble so naive as to think that strong BUNDS reflect the health of Europe? Don’t German policymakers understand that the BUNDS and SCHATZ are at absurdly low levels because many other Europeans are “packing their suitcases” with EUROS so as to transfer their wealth to the perceived safety of the German financial system and thus for its haven status? It is astounding that the EUROCRATS believe that the markets will wait for the decision makers to return before any further market action will take place.

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Notes From Underground: Did I miss anything while I was away???

September 7, 2011

The unemployment report on Friday was much weaker than expected as zero net jobs were created. More disheartening was that average hourly earnings produced a negative number, which failed to confirm and support the earlier released personal consumption data. The equity markets went into risk-off mode as the economy went into the Labor Day weekend in a very fragile state.

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Notes From Underground: From the Eve Of Destruction to Days of Exhaustion

August 11, 2011

Yesterday the screen watching and the trading became so exhaustive that my eyes glazed over and all of the quote boxes began melting together as if Salvador Dali was painting what I was analyzing and trading. Trading fatigue has definitely set in as the world moves from crisis to crisis and back again. The amount of news that gathers on my screen every hour reminds me of being back in graduate school, except that the tension now and the speed at which it arises overwhelms the mind. Not complaining as this is the way I have chosen to make my living.

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Notes From Underground: Larry Summers and His Discontent

July 19, 2011

In Monday’s Financial Times there is a column by Lawrence Summers, the GODFATHER of U.S. economic policy. Mr. Summers offers the Europeans a great deal of advice on “HOW TO SAVE THE EUROZONE IN THE COMING CRITICAL WEEKS.” The article is actually a good policy prospective if there was not the issue of politics that play a large and important role in the EU‘s inability to resolve its fiscal difficulties. Summers wants to believe that the EUROCRATS have the political mandate to negotiate Brussel’s desire for a peaceful, state-supported EDEN of entitlements.

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Notes From Underground: The Weekend’s Top News is, Surprise, Surprise, GREECE

May 30, 2011

Notes is going to REPOST an old piece just to remind our readers and the financial world that the games surrounding the GREEK DEBT situation has turned into a marathon of concern and an Ironman competition of lies and deceit. The European policy makers are attempting to delay what the markets have deemed to be inevitable and pretend that a Greek restructuring will not take place. The fact that the market has driven two-year GREEK RATES to more than 25% is of no consequence to the EUROCRATS of Brussels for, as usual, the political elite will continue the facade of “ALL CLEAR” as the PIIGS move from crisis to crisis.

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Notes From Underground: Canada’s government is a fallen angel while Merkel’s CDU suffers a severe setback

March 27, 2011

The weekend news was not economic but political as governments all over the globe suffered major setbacks. The Liberals secured a “NO CONFIDENCE” vote in the Canadian Parliament and bring down the Harper Government. I know that Michael Ignatieff will claim that he is perserving the democratic basis of Canada as the ruling party was brought down on an issue of CONTEMPT. The only thing that appears contemptuous is the ego of Ignatieff. He claims that the TORIES are out of touch and out of control. The election is called for May 2 and then the electors will have the final say on who is out of touch. This will be the fourth general election in seven years and let’s hope the citizens of Canada show their anger and elect an outright majority so Canada can get on governing itself.

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Notes From Underground: The Unemployme​nt Data (A Tale of Two Numbers)

February 6, 2011

As all the media reported, the U.S. unemployment numbers clouded and befuddled the markets as the non-farm payroll (NFP) was much lower than expected, yet the unemployment rate dropped to 9.o percent to 9.4 percent. This is the second consecutive month that the headline unemployment rate dropped 0.4 percent. However, both reporting periods showed very anemic JOBS GROWTH. Ben Bernanke and other FED officials have said it would take jobs growth of more than 200,000 a month to begin to bring the rate down. Even though the rate dropped 0.4 percent on a NFP number of 36,000-plus, it raises more questions than answers. (more…)

Notes From Underground: The Success of any EU DEBT Relief program Rotates on a German Axel

January 17, 2011

Some housekeeping weekend news: British Petroleum returned to the Russian market as it announced that it was swapping $16 billion shares of its stock for an equivalent amount of ROSNEFT, rendering the Kremlin the largest BP shareholder. BP management has determined that its future is better off in developing large Russian oil reserves than depending on the capriciousness of U.S. ENERGY POLICY. This is not an easy issue as some previous aggrieved parties are going to slow this agreement down until they receive compensation for past illegal moves by the PUTIN clique. More importantly, it says that serious business people are beginning to see a change in Russia and want to be part of the early movers into the “great potential.’

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Notes From Underground: Where are the jobs? Recent employment report doesn’t jive

December 5, 2010

Friday’s U.S. unemployment report was far less robust than anticipated. This consensus miss led to a selloff in the DOLLAR and a rally in commodities as the weak number gave rise to the need for more aggressive FED action. At first blush the GOLD was sold and other commodities also were falling but that didn’t last long as the risk-on trade gained the upper hand on the full execution of QE2. The worst part of the unemployment data was that the RATE INCREASED TO 9.8 PERCENT and this is what drives the FED at this juncture.

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