Tag Archives: Bank of Japan

[unable to retrieve full-text content]Shifting intermarket relationships pose challenge for investors. The market is convinced the Fed will not raise rates. Greater uncertainty surrounds the BOJ; there seems less willingness to shock and awe.

[unable to retrieve full-text content]n honest capitalism, you do what you can to get other people to voluntarily give you money. This usually involves providing goods or services they think are worth the price. You may get a little wild and crazy from time to time, but you are always called to order by your customers.

Swiss Franc The EUR/CHF retreated today together with falling stock prices. Later during the European day, U.S. stocks recovered. When investors sell their stocks and move into cash, then the Swiss Franc very often appreciates. This is the safe haven effect: cash in Swiss Franc is perceived as more secure. Click to enlarge. FX Rates Stocks and bonds have begun the new week much like last week ended. Sharp losses...

Submitted by Nicole Foss via The Automatic Earth blog, Part 1 Here. History teaches us that central authorities dislike escape routes, at least for the majority, and are therefore prone to closing them, so that control of a limited money supply can remain in the hands of the very few. In the 1930s, gold was the escape route, so gold was confiscated. As Alan Greenspan wrote in 1966: In the absence of the gold...

[unable to retrieve full-text content]As momentum builds in the developing deflationary spiral, we are seeing increasingly desperate measures to keep the global credit ponzi scheme from its inevitable conclusion. Credit bubbles are dynamic — they must grow continually or implode — hence they require ever more money to be lent into existence.

Lastly, a brief word about next week.  I will not post my usual piece on macro considerations on Sunday.  Here, though, is a brief thumbnail sketch of the top five things I will be watching:   1.  Yellen at Jackson Hole at the end of next week:  To the extent that she shares her assessment of the economy, I would expect to largely echo the broad sentiment expressed by NY Fed President Dudley. Click to enlarge. 2....

Summary: Major central banks and many economists are calling for higher wages. However, they are reluctant to offer proposals to strengthen those institutions who’s goal is to boost labor’s share of national income. The advocates are more interested in boosting prices than in lifting aggregate demand or addressing the disparity of income and wealth. Charlie Chaplin All that is solid is melting. After...

Annual population and labour force growth in Japan Which country, the United States or Japan, have had the fastest GDP growth rate since the financial crisis? Due to Japan’s bad reputation as a stagnant, debt ridden, central bank dependent, demographic basket case the question appears superfluous. The answer seemed so obvious to us that we haven’t really bothered looking into it until one day we started thinking...

Swiss Franc The Swiss Franc was nearly unchanged against the euro. Click to enlarge. FX Rates The US dollar closed the pre-weekend session well off its lows that were seen in response to the disappointing retail sales report. It has been unable to sustain the upside momentum, and as North American dealers prepare to return to their posts, it is trading lower against most of the major currencies. The notable...

Summary: The GDP deflator may be just as important as overall growth for BOJ considerations and the possibility of fresh action next month. Falling UK rates and a weaker pound are desirable from a policy point of view. Dudley’s press conference may be more important than FOMC minutes. Two German state elections that will be held next month comes as Merkel’s popularity has waned. Japan Japan’s Q2 GDP: The...