Tag Archives: Featured

Creating money may soon look entirely different in the digital age. (Keystone / Lm Otero) Central banks are contemplating a response to alternative money systems, such as bitcoin or Libra, with new digital versions of their own currencies. They go by the name of Central Bank Digital Currencies, or CBDCs. Libra’s stablecoin project launched in Geneva last year was a “watershed” moment that “kicked everyone in the pants”, Michael Sung, a professor at Fudan University,...

Risk-off sentiment intensified last week; the dollar continues to climb This is another big data week for the US; the US economy remains strong Fed Chair Powell testifies before the House Tuesday and the Senate Wednesday; the Senate holds confirmation hearings for Fed nominees Shelton and Waller Thursday President Trump will unveil his budget proposal for FY2021 beginning October 1 this Monday Eurozone and UK have heavy data weeks Riksbank meets Wednesday and is...

CHF struggles to find demand as a safe-haven on Friday. US Dollar Index pushes higher above the 98.50 mark. Nonfarm Payrolls in US is expected to come in at 160K in January.  The USD/CHF pair closed the last four trading days in the positive territory and continued to edge higher on Friday to touch its best level since December 27th at 0.9772. As of writing, the pair was up 0.2% on the day at 0.9763. The sour market mood fails to help the CHF find demand as a...

The current monetary environment in Switzerland is as far from ordinary as can be imagined: negative interest rates (from -0.75% in the short term to -0.25% for 50Y govt bonds) and oceans of liquidity (M0 has grown to 50% of M3 from pre-crises levels of around 8%). The Swiss National Bank faces criticism because it is seen as contributing to this state of affairs. Both the critique and the counter-arguments have many facets. Let us pick just one of them: is the SNB...

A primary school class in Aargau, northern Switzerland (Keystone) Switzerland’s public finances rose by 1.7% in 2018 to CHF232.6 billion ($238.8 billion) compared with 2017. As a percentage of the total, Switzerland spent more on education and less on defence than the European Union. The largest budget item remained social protection, costing almost CHF92 billion or 39.4% of the total, the Federal Statistical Office (FSO) said on Thursdayexternal link. This is...

Thiam lost out in a Credit Suisse power battle, much to the surprise of many observers. (Keystone / Walter Bieri) Credit Suisse’s board has defied the wishes of several major shareholders with the surprise axing of chief executive Tidjane Thiam. He has been replaced with Swiss national, and current head of the bank’s domestic operations, Thomas Gottstein. The bank appears to be going back to its Swiss roots in a bid to re-stabilise its business and reputation...

I wrote a few months ago that Germany’s factories have been the perfect example of the eurodollar squeeze. The disinflationary tendency that even central bankers can’t ignore once it shows up in the global economy as obvious headwinds. What made and still makes German industry noteworthy is the way it has unfolded and continues to unfold. The downtrend just won’t stop. According to Germany’s deStatis, factory orders in December 2019 were down sharply yet again....

Bob Murphy first explains a standard progressive viewpoint when it comes to dealing with issues like virus outbreaks, underage drinking, and prostitution. Yet, when it comes to dealing with people whose views they abhor, the progressives suddenly are “zero tolerance” and ignore the mechanisms they point to for the other issues. For more information, see BobMurphyShow.com. The Bob Murphy Show is also available on iTunes, Stitcher, Spotify, and via RSS....

USD/CHF created a strong bullish recovery while nearing the 2020 highs.  The level to beat for bulls is the 0.9770 resistance.   USD/CHF daily chart USD/CHF is attempting to form a base near multi-month lows while trading below the main daily simple moving averages. USD/CHF daily chart(see more posts on USD/CHF, ) - Click to enlarge USD/CHF four-hour chart The market is nearing the January highs while trading above the main SMAs. Bulls want a break above the...

« La création de monnaie est un processus à deux volets: le premier consiste en la création de monnaie centrale (billets de banque ainsi qu’avoirs en comptes de virement auprès de la banque centrale) par la banque centrale en application du monopole d’émission des billets de banque. Le second est constitué par la monnaie scripturale c réée par les banques commerciales lorsqu’elles accordent des crédits au public (ménages, entreprises » Masse monétaire et prix....