Can the ECB Keep Going?
Markets are taking the ECB’s promise of 18 months’ worth of consistent QE related bond purchases at face value but through its actions the ECB risks creating a highly damaging speculative boom and bust in the Euro Zone debt markets;…
The Dollar
A dollar deleveraging cycle. Evidence is rapidly emerging that an intense dollar deleveraging cycle has begun within the Emerging Markets. Following what had in effect been a 15 year long dollar based credit boom in the EM and Southern Hemisphere…
Yellen’s Dilemma
The Federal Reserve is facing a difficult year. Despite the recent strong gains in employment, household income trends remain decidedly soft and the deflation of goods prices in the retail sector has caused an evaporation of sales growth in the…
Japan to save not spend?
Having ‘lost’ Y12 trillion of their savings last year to a tax hike, will Japan’s households now simply save the lower commodity price windfall?
US liquidity is booming
Despite all the fears around the EM and over a possible rate hike in the USA, actual liquidity growth in the US is booming. M3 growth on a three month annualized basis is now running at 10% – a post…