Commodity Trader’s Almanac observes that coffee prices have a seasonal pattern of peaking in May. This weakness provides a seasonal tradable short opportunity in coffee futures in May. Being an agricultural crop, coffee is affected by the global production. Latin America – mostly Columbia and Brazil – is a major producer of coffee. If the weather there stays good…
Minneapolis Federal Reserve Bank President Narayana Kocherlakota is an inflation hawk, who thinks that the US economy is close to maximum employment. Kocherlakota said that, for him, the inflation rate is key to determining how close the Fed is to the maximum achievable level of employment or the minimum achievable level of unemployment. And the signals are…
Here is what I am reading on Wednesday morning: Germany rules out common euro bonds (Financial Times) The world’s ‘New Tigers’ lie ready to pounce (Market Watch) Merkel Faces Hollande Pleas to Shed Taboos at Crisis Summit (Bloomberg) BOJ Shirakawa Says No Change to Powerful Easing Stance (The New York Times) Nick Clegg announces ‘massive’…
Rex Nutting of Market Watch made an interesting discovery – President Obama is not a big spender as the popular folklore says. Over Obama’s four budget years, federal spending is on track to rise from $3.52 trillion to $3.58 trillion, an annualized increase of just 0.4%. After adjusting for inflation, spending under Obama is falling at a…
Greece is stuck between a rock and a hard place. Next month it will go to poll – again – to determine who will govern it. The choices are not easy and it is quite likely that the result may be another hung parliament just like the one after the last election on May 6th. Things are not…
This is what i am reading: ECB Increasingly Concerned Over Aid to Greek Banks (Spiegel Online) Swift European unity could spur epic rally (Market Watch) The not-so-creeping process of de-euroisation (FT/Alphaville) Japan Rating Cut by Fitch on ‘Leisurely’ Efforts to Tame Debt (Bloomberg) Eurozone crisis live: IMF warns UK may need fiscal stimulus (Guardian) So,…
Here is what I am reading: Today Germany is the Big Loser, Not Greece (New Economic Perspectives) Wen hints at more monetary easing (South China Morning Post) We Are Condemned to Work with Each Other (Spiegel Online) Fed Proves More Bullish Than Wall Street Forecasting U.S. Growth (Bloomberg) Lockhart: Conditions Not Right Now for QE3…
William K. Black of New Economic Perspectives writes that ex-President of ECB, Trichet is suggesting that EU give Greece a treatment that Governor Rick Snyder of Michigan gave to Benton Harbor: Michigan Governor Rick Snyder secured passage of “Public Act 4, the Local Government and School District Fiscal Accountability Act. The Act allows the Governor to appoint…
Economist Nouriel Roubini believes that the Greek euro tragedy is nearing its final act and the country will exit the euro either this year or next year. He says that Greece is stuck in a vicious cycle of insolvency, lost competitiveness, external deficits, and ever-deepening depression and the all the solutions that might improve Greece’s competitiveness require…
Jean Paul Trichet has a bold idea to save the euro. He wants to give European politicians the power to declare a sovereign state – read Greece – bankrupt and take over its fiscal policy. No, this is not a news from Onion. Ex-President of ECB unfurled his plan ahead of the G8 summit at Camp David this weekend. According…
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