$50bn hole appears in New York financial markets – Fed is “looking into it”

Most people would quickly notice if $50 went missing from their purse or wallet. They would certainly notice if $50k suddenly disappeared from their bank account. But a fortnight ago, it took the New York Federal Reserve more than a day to notice that $50bn was missing from the money markets it was supposed to

US Federal Reserve aims to devalue the dollar, again

What we “assume” can make an “ass of u and me“, as the proverb says.  And that is certainly true of the way central banks have manipulated the major currencies since the financial crisis began in 2008, as the chart shows of the US$’s movements versus the Japanese yen and the euro: It shows the change […]

“Deflation fears spark shock ECB rate cut”

The mention of deflation in the above front page headline of Friday’s Financial Times will not have surprised blog readers.  But it appears that not enough people in the European Central Bank read the blog, as the FT went on to report the ECB’s sense of ”shock” at the thought that deflation could now be just around the corner. This highlights the enormous […]

Crude oil and commodities decline as dollar rises

Friday provided a good test of the blog’s analysis that Japan’s aggressive policy of devaluing the yen could result in major downward pressure on crude oil prices:

• The yen crashed through the $1: ¥100 level, ending at a 4-year low of $1: ¥101.6