<Click on chart for larger image> Comment Last month we discussed Russian inflation, concluding with: Russia’s sizeable foreign exchange reserves of just under $450 billion free it from dependence on external financing and carry trades. The logical step would be for Russia to become a significant creditor in the tradition of other oil exporters such… Continue reading The Russian Ruble
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The Financial Times – China holds $1,160bn of US debt The US Treasury has dramatically revised data on foreign holdings of US government debt, estimating that China owns more Treasuries than previously thought while the UK holds only about half as much. The figures released on Monday suggest fears that China has been reducing its… Continue reading TIC Revisions: What’s $268 Billion Amongst Friends?
<Click on chart for larger image> Bloomberg.com – U.S. Backs Libya Rebels as Qaddafi Says `My People Love Me’ Libya’s opposition gained fresh support from the U.S. and European nations, who promised humanitarian aid and began planning for a no-fly zone, as leader Muammar Qaddafi declared that “my people love me” and sent forces to… Continue reading Libya
Zero Hedge (blog) – Jim Rogers: “Saudi Arabia Is Lying About Being Able To Increase Its Oil Production” Jim Rogers joins Zero Hedge in being highly skeptical about just how credible Saudi’s call for a 1MM + boost in its oil supply is: “Saudi Arabia has been lying about the reserves for decades. Saudi Arabia… Continue reading Saudi Oil Production, The Big Lie?
<Click on chart for larger image> The Financial Times – Don’t expect autocratic oil to flow smoothly Oil prices rose again on Monday, as unrest in Oman compounded worries over the crisis in Libya. This seems a simple story. Regimes in major oil producing countries are crumbling, disrupting production. Speculation then pushes prices up until… Continue reading Crude Oil
<Click on chart for larger image> Bloomberg.com – Matthew Lynn: Euro Saviors Balk at Spot in History’s Dustbin The euro wasn’t just meant to provide economic harmony. It was supposed to ensure political stability as well. Neither has happened and a generation of politicians will pay for it. Parties win and lose elections all the… Continue reading The Euro
The Wall Street Journal – Fannie, Freddie Stuck In a Dividends Circle For the first time since the financial crisis, Fannie Mae and Freddie Mac are showing glimmers of profitability. But the two mortgage behemoths still ask the Treasury Department every quarter for billions of dollars in cash, most of it going right back out… Continue reading Fannie & Freddie
Real Time Economics (WSJ Blog) – Dudley and Bullard Complicate QE2 Outlook Two Federal Reserve officials on Monday made separate comments complicating the outlook for the central bank’s bond-buying program. Federal Reserve Bank of New York President William Dudley spoke at New York University and Federal Reserve Bank of St. Louis President James Bullard made… Continue reading Hawks & Doves Continue To Argue QE2
Bloomberg.com – Terrence Keeley: Bill Gross Gets `A’ for Effort on Trader Greed It’s not every day you get to peer into a billionaire bond trader’s soul, but Bill Gross affords everyone that rare opportunity in his latest investment outlook, Devil’s Bargain. In addition to his usual, trenchant market analysis, the monthly newsletter is part… Continue reading Bill Gross On Greed
The Financial Times – Peter Peterson: Don’t wait for the bubble to burst The Congressional Budget Office recently announced that this year’s US budget deficit will be $1,500bn – a grim figure that is dominating the attention of policymakers. Frequently overlooked, however, are our long-term structural deficits and debts; these are the biggest threat to… Continue reading The Debt Bubble
Bloomberg.com – `Big Short’ Author Lewis Is Sued for Defamation by Harding Advisory’s Chau Author Michael Lewis was sued by Wing Chau, president and principal of Harding Advisory LLC, who accused the writer of defaming him in his 2010 book “The Big Short: Inside the Doomsday Machine.” Chau, a manager of collateralized debt obligations, according… Continue reading The Big Short