The Japanese economy remains on a course to stabilize its inflation. For the last few months, the Bank of Japan (BOJ) has been repeating its plan to continue QQE until the 2% inflation is stable and on Thursday, BOJ Kuroda reiterated this intention. Kuroda pointed to evidence that the easing was having intended effect and…
(Video length 00:01:33) During the session on Friday, there are a couple of announcements they can move the marketplace, both coming out of the United States. We have the University of Michigan Consumer Sentiment, and of course the Industrial Production numbers. With this, we see a very US centric type session forming, and as a…
Most people believe the Fed can print money. Caught on tape, former Fed chair Ben Bernanke once admitted the Fed prints money. However, in Hoisington’s Third Quarter 2015 Review, economist Lacy Hunt makes the claim the Fed cannot print money. Let’s take a look, emphasis mine. Despite the unprecedented increase in the Federal Reserve’s balance sheet,…
If you’d asked me about “volatility” when I went through business school 40 years ago (I specialized in finance), I would’ve replied with nothing but a quizzical stare. Beta, the first measure of volatility, was only just beginning to be used. In those days, the simple-minded view was that high-beta stocks just tracked the market, though…
Here is a table showing the annualized change in Headline and Core CPI, not seasonally adjusted, for each of the past six months. Also included are the eight components of Headline CPI and a separate entry for Energy, which is a collection of sub-indexes in Housing and Transportation. We can make some inferences about how…
Adair Turner was interviewed by INET about his new book which I have to buy and read. The book came out this week. It is called, Between Debt and the Devil. Here is the interview. (link) He lays out an exquisite analysis of economics on many layers. How the crisis was not expected due to economic…
No matter what actions the U.S. takes to lessen its oil production, and there have been several of late, its stockpiles of crude oil refuse to diminish, preventing oil prices from turning around. Oil fell to under $49 per barrel on Thursday, after reports of existing U.S. accumulations were announced the day before. Data from…
Late last month, India surprised 51 out of 52 economists when the RBI cut rates by 50bps. Although economists have a reputation for being terrible when it comes to making predictions (getting it wrong perpetually is almost a job requirement), it’s difficult to understand how 51 of them failed to see a cut of that…
USD/JPY: USD/JPY lost its downside momentum to close higher on a long-tailed candle on Thursday. This development leaves risk higher with a possible run at the 119.50 level. Above here will clear the way for more strength build up towards the 120.00 level with a break targeting the 120.50 level. Further out, resistance comes in…
As we have seen so many times, the nature of a chart formation is revealed at key moments when the chart action approaches a critical decision point, especially after a sustained move higher or lower. In this case gold is struggling hard to break a multi-year bear market and form a successful bottom off the…
