In the western world the consciousness of the catastrophic effect of any tragedy similar to Fukushima usually fades fast. A few months, half a year is usually all it takes. However this time is different– those famous 4 words. Or maybe not? The 1…
Previously was discussed that Chinese economy depends mostly on real estate and infrastructure development for its 10% GDP growth, while the export cannot growth that fast. The real estate shows all signs of a major bubble, however more research is nee…
In the previous part I discussed the balance sheet of the People Bank of China. Relative to GDP, PBC book is about 4x times bigger than Federal Reserve, with most of the assets in dollars and most of the liabilities in Yuan. In Spring 2010 one of the B…
In the part 2 I was discussing the dollar peg. Today the topic is the dollar sterilization. How does sterilization work? In order to avoid excessive inflation Chinese dollar asset purchases must be sterilized. It is done by increasing bank reserve requ…
In part 1 of this article I wrote that I believe in strong monetary cooperation between all three reserve currency stakeholders: the USA, Europe and Japan. As Japan is suffering the most from deflation it got carte blanche from other two to engage in…
Nobody knows what will happen. The discrepancies of economic predictions are at a record high. From deflation to hyperinflation, from the Euro getting destroyed to the dollar death cross, from idiotic “new normal” to idiotic Ken Fisher. But…
The question being asked again and again to almost every guest on Bloomberg radio in the past few weeks is: should we turn toward fiscal prudence or should we stimulate the economy no matter how large the deficit will be? The answers split, though it…
I don’t want to repeat Dylan Ratigan’s description of the financial sector as a “con job”, or something I wrote, as a “financial ring“. Instead, I want to describe the warfare that Obama is undertaking with t…
Greece is virtually falling apart but nobody’s watching. Today I’ve spent 15 minutes listening the Jim Cramer show, (which was quite an accomplishment). He did not mention Greece in the first 15 minutes (he later answered to my tweet and c…
Please don’t take this prediction too seriously but I think the “Phrase of the Year” will be something like– “… is struggling to hedge its exposure” and hence the “Word of the Year” will be some…
