While yields on shorter maturity treasury notes have risen over the past month, money markets yields remain suppressed. The three-month treasury bills still hover around 5 basis points.
There is a new reality various governments still dreaming of imposing 'windfall taxes' and other measures of this type on companies involved in the extraction of resources will have to face.
Everyday I see articles claiming that Fed policy is going to cause massive hyperinflation. Of course the policy we are talking about is Quantitative Easing, which we are currently in the third round of.
The S&P 500 was off for the third straight day of trading. The average closed lower by 0.84% and the Dow was lower by the same amount. Semiconductors, media, biotech, and regional banks were laggards today while leadership came from semiconductor equipment makers, telecom, and homebuilders.
Felix Zulauf: Japan Will Be the Root Cause of the Next Global Crisis
Also, if consensus is correct, bond markets are at serious risk
Felix Zulauf, a member of the Barron’s Roundtable for over 20 years and a former global strategist at UBS, joins Financial Sense Newshour to cover a wide range of global macro issues, including today’s deflationary environment versus the inflationary 1970’s, Japan as the likely catalyst of the next global crisis, why the bond market is in trouble, and that gold could decline before another buying opportunity. Felix also does not believe that the Fed will ease off its QE program in 2013.
U.S. equity sector performance suggests that a re-pricing of Fed expectations is slowly developing.
As kids, not knowing that we were being politically incorrect on so many levels, we would shout “Geronimo!” when we were playing war or getting ready to do something reckless.
Japan spent US$75.4 billion on LNG last year, paying an average price of US$16.60 per million BTU—while gas prices in the United States averaged just US$2.75. No Japanese politician, economist, or grocer thinks that makes sense.
Last Friday was one of those days when so many markets move so dramatically that it’s hard to know what to focus on.
Curve Watchers Anonymous has its eye on the Australian dollar. As expected, it has taken a big dive in conjunction with a housing bust and a slowdown in China that impacts the demand for commodities.
Sponsored
