The Daily Reckoning

The Yen is Back!

Fri, 09 May 2008 20:40:17 GMT

By Chuck Butler. "I warned then that the stock market rally was a house of cards, that would collapse, and thus leaving those who sold yen and bought dollars holding on to losses. That's what we're seeing folks."

The Casualties of 'Flation

Fri, 09 May 2008 16:20:56 GMT

By Bill Bonner. "But what about the kind of inflation people worry about? What about consumer price inflation? How come consumer prices have not gone up more? Give it time...dear reader...give it time."

The Dollar Swings a Mighty Hammer

Thu, 08 May 2008 18:16:09 GMT

By Chuck Butler. "The euro lost more ground yesterday than it has since the dollar propping days of 2005. So, with the Big Dog getting whipped, all the little dogs were in line for their whipping too..."

Goin on a Tax Holiday

Wed, 07 May 2008 16:39:44 GMT

By Bill Bonner. "All these measures are designed to do the same thing - make people feel richer than they really are. Thanks to the Fed's emergency low interest rates, they can borrow more money and pay less for it."

Hoenig Talks Inflation

Wed, 07 May 2008 15:31:11 GMT

By Chuck Butler. "Fed Head Hoenig has thrown a cat among the pigeons this morning by stating that 'inflation pressures may spur a rate rise by the Fed.' Hmmm, is he serious, or just blabbering some currency intervention..."

Aussie Trade Deficit Narrows

Tue, 06 May 2008 17:52:34 GMT

By Chuck Butler. "The Reserve Bank of Australia (RBA) met last night and left rates unchanged, which was good... But they tried to throw cold water on the Aussie dollar's rise...by saying they thought that 'demand growth will remain moderate this year'."

An Empty Belly is a Dangerous Thing

Tue, 06 May 2008 16:38:03 GMT

By Bill Bonner. "It is the worst of times for people with big appetites and little money. Many of them will go hungry. And an empty belly is a dangerous thing. First, people develop a 'lean and hungry look.' Then, they stab you in back."

Poverty Time Bomb

Mon, 05 May 2008 20:04:14 GMT

By Bill Bonner. "Reuters tells us that 20% of Asians live on less than a dollar a day. Many are farmers with their own local supplies of cheap food. But more and more of them live in cities and pay global prices for their daily bread."

Cinco de Mayo!

Mon, 05 May 2008 16:01:15 GMT

By Chuck Butler. "With the carry trade back on the books and the low yielders getting sold again, the high yielders don't seem to be getting the same love this time around. Does that mean the carry trade is buying something else these days?"

A Jobs Jamboree Friday!

Fri, 02 May 2008 18:45:20 GMT

By Chuck Butler. "The dollar is a bit softer this morning going into the Jobs Jamboree, and rightly so, given the forecast. However, the dollar is still swinging a mighty hammer and I'm a bit perplexed by this."

The Fed Follows Through

Thu, 01 May 2008 15:48:23 GMT

By Chris Gaffney. "The Fed decided to leave out some language that had the markets thinking they had figured out the Fed... But in reality they know nothing more than they did earlier in the day!"

FOMC Day

Wed, 30 Apr 2008 17:15:29 GMT

By Chuck Butler. "The Fed will cut interest rates 25 BPS this afternoon - that's a given as far as I'm concerned. And I know that I'm out there on a limb on this one, but I still believe they have more rate cuts in their quiver to use at future meetings."

A Transparent Fed?

Tue, 29 Apr 2008 17:01:44 GMT

By Chuck Butler. "I'm seeing more and more talk/speculation of the Fed announcing an end to this rate cut cycle after cutting rates 25 BPS. Hmmm... Interesting, don't you think? I mean, come on, when has the Fed ever been that transparent?"

Whatever Happened to Monetary Integrity?

Tue, 29 Apr 2008 15:21:51 GMT

By Bill Bonner. "Do you see Paul Volcker at the Fed? Nope. Volcker is still alive - warning that there is a painful adjustment coming. But at the Fed itself, there is only Ben Bernanke, promising to drop dollars from helicopters..."

A Big Data Week!

Mon, 28 Apr 2008 16:30:27 GMT

By Chuck Butler. "With the dollar weakness overnight, gold has bounced back over $5. Oil has pushed back to within spittin' distance of $119. Could this be the beginning of the next leg up for the commodities against the dollar?"