Central banking is built on an outdated idea that could prove to be the undoing of the global economy.
Disastrous models are built on simple assumptions.
That idea in central banking is to target inflation in goods and services. The consumer price index is the holy grail of inflation watchers.
Here is the assumption, here [...]
The bond market flashed warning signals on Friday and we look at what it could mean for FX. Last week, the pound was the top performer while the Canadian dollar lagged badly on 5 consecutive days of declines. The Asia-Pacific calendar is light to start the week.
USD/CAD continued to move higher in early-week trading, [...]
Trader XP has made their way to England where they are offering their wide range of services related to the binary stock option trading system in English. With a comprehensive platform and a wide variety of educational tools in English local investors and seasoned investors can each learn something new and make informed investment decisions. [...]
On Nov 1, St Louise Fed President James Bullard lauded the US labor market and said the decline in labor force participation that has improved unemployment is a result of natural demographic changes. That simply isn’t the case.
Economists don’t care about rising prices
If your gas or grocery bill is higher, it doesn’t matter to central bankers. What they dread is a wage-price spiral. That’s a fancy way of saying they don’t care about inflation as long as it doesn’t mean higher wages. If prices rise without corresponding demands for higher wages, it’s a [...]
The most misunderstood phenomenon in macro economics in the past decade has been deflation
It’s a story that has been missed by almost everyone.
My belief that we are in a long-term cycle of disinflation and deflation is one of the things that sets me apart. I have written about this theme frequently and wanted to preserve some of my commentary here. This was originally published Dec [...]
Chinese officials are trying to curb pollution without hurting economic growth but those goals may be incompatible.
People are always asking me to recommend books about markets and trading. I have read many and there are many more on my list but for inspiration, readability and insight, few books can match the Market Wizards series by Jack D Schwager.
The latest is Hedge Fund Market Wizards, published on May 29, [...]
Thursday’s Bank of Canada rate decision will be rightly overshadowed by Greece and the pending US and Canadian jobs reports on Friday but once the short-term smoke clears, the central bank will have outlined the case for a long-term CAD rally.
Economists and the market see no chance of a rate hike on Thursday, leaving [...]
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