Posts Tagged ‘Rousseff’

When It Comes to ECB PRESIDENT TRICHET, THE MARKETS NEED TO USE ‘EXTREME VIGILANCE’

July 6, 2011

Tomorrow the Bank of England and the European Central Bank announce their interest rate decisions. It is a foregone conclusion that the BOE will hold the overnight lending rate at 0.50% as the U.K. economy is fragile and struggling to gain some upward momentum in the face of budget austerity. The BOE will also hold its QE program at 200 billion pounds and not look to increase the liquidity add as the POUND is relatively weak against most of the world’s currencies. Mervyn King is not worried about the inflationary impact of high food and energy costs, for he is more concerned about higher prices being a severe headwind for the average wage earner, which places him in the Bernanke camp.

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Notes From Underground: Bernanke sings with Huey Lewis–Your Cash Ain’t Nothing But Trash

November 4, 2010

In day one of the world held hostage, the FED‘s QE2 program proved a great success. The dollar declined. Commodities soared. Metals shined. The equity markets took its newfound wealth effect in full stride. And the Treasury market rallied. Even though the 30-year bond is not a major component of the FED‘s purchasing program, it too rallied strongly as the sub 2.5 percent yield on the 10-year note sent investors further down the curve looking for a little more yield. The FED got all the bang out of the “wealth effect” that it could as investors around the world have realized that their  “cash was nothing but trash”–exactly the outcome the FED is looking to achieve.

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Notes From Underground: U.S. and Japan look to new sources of Rare Earth as they” Get Ready ” to China’s I am “Losing You”

November 1, 2010

The weekend news brought further acrimony between China and the developed nations as the Chinese have threatened to curtail the export of several import elements that are needed to manufacture high-tech products. The Chinese export 97 percent of the rare earth elements that go into military and electronic equipment. It will take some time for the world to find alternative locals and substitutes so China is able to flex its muscles and show how important it is to the developed world.

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