The American (AEI) – Yellen’s Wishful Thinking The new head of the Federal Reserve is basing Fed policy on wishful thinking, imprudently dismissing concerns that recent international economic developments should be a major concern. If U.S. long-term interest rates increase by 1 percentage point as a result of Fed tapering, capital flows to emerging markets could… Continue reading About Yellen
<Click on chart for larger image> Bloomberg.com – China Digs Itself Deeper Into Dollar Trap China’s $3.8 trillion of currency reserves are the largest stockpile ever amassed. Economists have long seen that money as a strength — the ultimate rainy-day fund should China’s shadow-banking system blow up. Trouble is, the value of those holdings depends… Continue reading China
Zero Hedge – “Soros Put” Hits Record As Billionaire’s Downside Hedge Rises By 154% in Q4 To $1.3 Billion A curious finding emerged in the latest 13F by Soros Fund Management, the family office investment vehicle managing the personal wealth of George Soros. Actually, two curious findings: the first was that the disclosed Assets Under… Continue reading Is Soros Bearish?
The Financial Times – ECB governing council member attacks German court ruling on OMT A member of the European Central Bank’s governing council has attacked Germany’s highest court for intruding into European-wide monetary policy. Ewald Nowotny, the head of the Austrian central bank, described aspects of the German constitutional court’s ruling on ECB bond buying… Continue reading The ECB And The German Court
National Geographic – Could California’s Drought Last 200 Years? Clues from the past suggest the ocean’s temperature may be a driver. California is experiencing its worst drought since record-keeping began in the mid 19th century, and scientists say this may be just the beginning. B. Lynn Ingram, a paleoclimatologist at the University of California at… Continue reading More On The Weather
Bloomberg – Jobless Claims in U.S. Increased to 339,000 Last Week Jobless claims increased by 8,000 to 339,000 in the week ended Feb. 8 from 331,000 in the prior period, a Labor Department report showed today in Washington. The median forecast of 52 economists surveyed by Bloomberg called for a decrease to 330,000. Fewer dismissals… Continue reading Is The Downtrend In Initial Claims Over?
Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/newsclips/2014/02/0212 bianco.mp3|titles=Conference Call ] Comment Jim Bianco was on Bloomberg radio with Tom Keene and Mike McKee talking about Yellen’s testimony and the economy. To listen, click on the player above. CNN Money – Janet Yellen’s big fumble Stock markets cheered Janet Yellen’s performance in front of the House Financial Services Committee Tuesday, with… Continue reading Talking Yellen
Value Walk – S&P 500: How Good is the Earnings Picture? We are entering the final phase of the 2013 Q4 earnings season, with results from two-thirds of the S&P 500 (.INX) members already out. What this means is that the broad trends seen thus far are unlikely to change in any meaningful way through… Continue reading Earnings Update
Zero Hedge (Blog) – Gold Soars After 200 DMA Breach, As ETFs Finally Resume Buying Recall what we said first thing this week when we remarked the latest surge in Chinese physical gold buying: “As we have said before: keep an eye on the “gold holdings” of the GLD and other US paper gold ETFs,… Continue reading ETF Holdings Of Gold Turn Positive
<Click on chart for larger image> Real Time Economics (WSJ Blog) – It’s Not Just Weather Holding Back Shopping The 0.4% drop in January retail sales is being blamed on weather. Automakers have already said harsh conditions kept consumers from car dealerships, and the 0.6% drop in sales at restaurants and bars also suggests consumers… Continue reading Online Retail Sales
The Manhattan Institute – Allan H. Meltzer: QE is a Mistake—a Big One Continuing QE is a big mistake. Not only is it likely to roil world financial markets when it eventually unwinds, but it finances the massive federal budget deficit at low interest rates. Holders of bonds cannot all be nimble as rates rise.… Continue reading QE Is A Mistake