Law Of Bad Ideas Strikes Again: Reverse Wage And Price Controls
It was bound to happen. Even more radical ideas to produce inflation in a deflationary world have surfaced. The latest absurd ideas come from Olivier Blanchard, former chief economist at the IMF, and Adam Posen, president of the Peterson Institute for International Economics. Their ideas? Wage and price controls in reverse, effectively demanding wages and […]
Gold Jumps As Dollar Declines After Fed’s Decision
Gold rallied nearly 2.5% on Wednesday as the dollar plunged after the U.S. Federal Reserve opted to leave interest rates unchanged and cut its expectations for rate rises this year. The Federal Open Market Committee said “A range of recent indicators, including strong job gains, points to additional strengthening of the labor market. Inflation picked […]
How To Escape The Purgatory Of Minimum Wage/Part-Time Jobs
In the age of automation, what’s scarce are problem-solving skills. Readers responded positively to my recent essay on the emerging economy and jobs: A Teachable Moment: to the Young Person Who Complained About Her Job/Pay at Yelp and Was Promptly Fired Many young people are stuck in the purgatory of minimum wage and/or part-time jobs: that raises […]
Daily Market Analysis – March 17, 2016
Video Length: 00:01:52 During the day on Thursday, we get a plethora of announcements coming out of various parts of the world. The most important one will of course be the unemployment numbers coming out of the United Kingdom, and any accompanying statement. Ultimately though, we believe that the market is very technically driven at […]
Fed Gives Dollar A Smack
Yesterday’s Trading: The USD on Wednesday weakened throughout the market. The Fed decided to keep their interest rate at 0.25-0.50%. It was announced that the rate is to be raised twice this year, and not four times as was said earlier. It is this that caused a sharp fall of the dollar. The Kansas Fed […]
Japanese Exports To U.S. Plunge Most Since 2011 As Weak Yen Tailwind Evaporates
Japan just posted its largest trade surplus in 5 years (+JPY243bn) as exports dropped 4% YoY (worse than expected) but imports fell 14.2% (better than expected). However, the biggest standout was the ongoing deterioration in Japanese exports to the US which dropped by the most since 2011 as the ‘advantages’ of a devalued currency appear to have hit […]
Crude Oil Aiming For $40, Remains Bullish
Crude Oil prices rallied yesterday as US commercial stockpiles show a slower pace of inventory build up The weekly Crude Oil inventories report released by the U.S. Energy Information Administration yesterday showed that U.S. commercial crude inventories increased by 1.3 million barrels last week which were lower than the forecasted 2.9 million barrels. As of […]
EUR/USD Elliot Waves Analysis – 17 March 2016
Wave Analysis: EUR/USD is currently trading with a bullish bias. During the previous trading day, Euro traded long and is still pretty much bullish. From the ongoing price action, the demand for Euro by far out weighs its supply, thus, during this intraday, we wait for minor pullbacks towards 1.1178 for us to go long […]
Gaps Intact
This evening, I got my latest Short-Term Update from Elliott Wave International, and this graph jumped out at me: We seem to be back in “real soon now” mode (e.g. “this insane countertrend rally will stop and we will get sinking prices again…real soon now.”) That’s all well and good, but it just doesn’t seem to […]
Yellen Gives Bulls What They Want
(I’m back in the turret briefly, but my hands are failing me limiting my typing, so this report is shortened.) There’s a lot of spin (um, lying?) going on with the Fed’s announcement Wednesday. It’s consistent with past comments and runs as follows: Consumer Confidence has improved—no it hasn’t. Economic Growth is growing at “moderate” […]
