Financial Sense

Potential for Deflation Is Becoming a Big Threat for 2015
Sy Harding's picture

The fears after 2001 were that the Fed’s easy money policies to pull the economy out of the 2001 recession, followed by even more easing, including the near-zero Fed Funds rate instituted after the 2008 financial meltdown...

Q4 GDP Advance Estimate at 2.6% Disappoints Expectations
Doug Short's picture

The Advance Estimate for Q4 GDP, to one decimal, came in at 2.6 percent, a decline from 5.0 percent in Q3. Today's number disappointed mainstream economists' estimates, which were for a a smaller decline.

Weakening Currencies Put Developing Countries’ Debt at Risk
Global Risk Insights's picture

Debts issued in foreign currencies, some of which are not counted in official statistics, are a rising risk to developing economies as the U.K. and U.S. get closer to raising rates. With the Swiss National Bank abandoning...

Will Greece & Falling Oil Issues Stay “Contained”? – Investors on High Alert
Chris Puplava's picture

We are currently witnessing building financial stress across the globe, which is likely stemming from concerns over Greece’s recent election results as well as turmoil in both commodity and currency markets. While credit markets are deteriorating we’ve yet to see this spillover...

Dollar Is Wandering Off Track
Tom McClellan's picture

It is widely believed among economists and currency analysts that currency values follow the relative interest rates. We are told, “Money goes where it is treated best”, and so the currency which offers the best...

Gold Falls on Deflation Concerns
Adrian Ash's picture

Gold prices fell near 2-week lows for U.S. and U.K. investors on Thursday and slid almost 2% against the Euro as Western stock markets recovered earlier losses following news of deflation in German consumer prices.

The Raging “Currency Wars” Across Europe
Gary Dorsch's picture

The theater of the absurd became even more bizarre on Jan 22nd, when the European Central bank (ECB), desperate to extract the Euro-zone’s economy from the quagmire of deflation and stagnation, decided...

Asset Price Deflation Coming Up?
Michael Shedlock's picture

When inflation alarmists want to convince everyone the dollar is about to become worthless, they post this chart of the CPI. Inflationists claim that is a trend to oblivion. And actually it is. But it's a slow trend towards...

Greece’s Fight Against “Fiscal Waterboarding” Will Halt Economic Recovery
Sober Look's picture

We are about to witness a historic showdown between the major euro area institutions and Greece. Greece's newly appointed finance minister Yanis Varoufakis, a staunch bailout critic, will lead the negotiations on debt haircuts.

Will Draghi’s QE work?
Global Risk Insights's picture

The ECB finally launched a larger-than-expected QE programme last week, despite German opposition and Greek elections. President Mario Draghi hopes that it will revive the eurozone and rebut deflation. Several questions are...