<Click on chart for larger image> The Telegraph (UK) – Eurozone debt crisis could prove ‘very costly’ for the world, warns IMF Europe’s policymakers must press on with deeper economic integration to “stay the course”, the global lender said ahead of Thursday’s crunch summit of eurozone leaders. “To put the crisis behind, we need more… Continue reading The European Debt Crisis
MarketWatch.com – Will the Fed’s last bullet be pointed inward? If the last bullet in the Federal Reserve arsenal is indeed pointed inward, wouldn’t that be triggered by a crisis of confidence?And wouldn’t that start with a negative market reaction to intentionally placed “positive” news, be it resolution surrounding the debt ceiling or an unveiling… Continue reading Bernanke’s Put
Bloomberg.com – Joke Is on China as U.S.’s AAA Becomes Laughable No one played that game with greater skill and alacrity than China. An undervalued yuan is the glue that powers the world’s No. 2 economy. But it’s getting harder to keep it up as Federal Reserve Chairman Ben S. Bernanke flirts with another round… Continue reading China And U.S. Treasuries
MarketWatch.com – How to make sense of the gold-to-silver ratio Silver’s recent climb has significantly outpaced gains made by gold. But a closely watched ratio based on the two prices suggests silver has even more catching up to do, analysts say. The so-called gold-to-silver ratio, the price of gold divided by the price of silver,… Continue reading The Gold-to-Silver Ratio
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Real Time Economics (WSJ Blog) – Weak Growth Is Not Only in Rear-View Mirror The lethargy isn’t over. The U.S. economy’s weak growth rate was supposed to end with the first half. After all, temporary drags, particularly high energy costs and disruptions related to the Japanese disaster, were key headwinds last quarter. Recent reports, however,… Continue reading The Soft Patch
<Click on graphic for larger image> The New York Times – China’s Treasury Holdings Make U.S. Woes Its Own One reason the United States would want to avoid defaulting on its debt is that such a move could alienate China, which is a steady purchaser of Treasury bonds. Beijing, meanwhile, already has too much invested… Continue reading Chinese Holdings Of U.S. Debt
The Financial Times – Conditions for the next crisis are firmly in place Financial crises occur when debt levels are excessive and asset prices fall. The severity of the recession that ensues can then be mitigated by large increases in government deficits and large cuts in interest rates. Today the conditions for the next financial… Continue reading The Next Financial Crisis
The Wall Street Journal – Debt Deal Search Intensifies Top White House officials and congressional leaders are racing against the clock to devise a scaled-down deficit-reduction proposal that would get both President Barack Obama’s signature and enough Republican votes to pass the House in time to avert a government default. Mr. Obama held a secret… Continue reading The Latest On The Debt Deal
MSN/Money – Jim Juback: Would a US default mean disaster? Failure to raise the debt ceiling would inflict immediate pain on many Americans and long-term damage to the nation’s finances. But there’s a chance the fallout could be far worse Frankly I think the catastrophe claim is justified — but not on the evidence that… Continue reading U.S. Default
<Click on chart for larger image> The Wall Street Journal – Debt Fears Catapult Gold over $1,600 Worries about government debt on both sides of the Atlantic pushed gold above $1,600 a troy ounce for the first time as investors looked to the metal as a safe place to park cash. Gold futures have marched… Continue reading Gold Reaches Nominal Highs, Still Well Off Its Inflation-Adjusted Highs
Forbes – How Bernanke’s Fed Triggered the Great Recession As usual, when Fed chairman Ben Bernanke testified before Congress this week not a single Congressman asked him why he deliberately and transparently triggered the Great Recession of 2007-2009, which was accompanied by a frightening financial crisis, gargantuan bailouts and huge fiscal deficits. Nor has Bernanke… Continue reading Blame The Federal Reserve