

I had projected a bloodbath in the US Treasury bond market since late 2016, when it was obvious that Trump’s tax reform would double the US budget deficit at the same time as the Federal Reserve prepared to ‘normalize’ or shrink its balance sheet by $470...
The spike in three month LIBOR is bad news for borrowers

The end of easy money
2017 has been a wonderful year for major emerging markets, thanks to a 7% fall in the US Dollar Index, no hard landing in China, the end of recessions in Brazil and Russia, falls in inflation that enabled central bank easing and stimulated domestic demand, even a...
The end of easy money

The anatomy of a British pound collapse
It took a North Korean ballistic missile launch and Hurricane Harvey’s devastation of the $500 billion Houston/Galveston/Corpus Christi economy to push sterling higher to 1.2950 against the US dollar. While the British pound is the most undervalued G-10 currency on...
The anatomy of a British pound collapse

The US dollar plunge and emerging market currencies
The US dollar plunged after Janet Yellen did not talk about Fed monetary tightening and Mario Draghi did not protest 1.19 Euro at the Jackson Hole central banking symposium. This is a green light for the carry trade in emerging market currencies. The Brazil real has...
The US dollar plunge and emerging market currencies

Wall Street: a hawkish Federal Reserve and the US dollar comeback
Dr Janet Yellen surprised the financial markets with her hawkish take on interest rate policy and inflation even as the FOMC raised the Fed Funds rate for the fourth time since December 2015. Despite successive weak CPI and auto/retail sales data, Dr Yellen asserted...
Wall Street: a hawkish Federal Reserve and the US dollar comeback