It is getting more difficult to understand the logic underlying current monetary policy in the U.S. There are two main channels by which economists think monetary policy can influence growth and employment. The first is to lower interest rates to spur investment and consumption spending. The second is to induce inflation so real wages drop, spurring output and…
Risers: Serco Group. +3.3% The international service company, announced Monday that it secured a six-month extension to its contract with the Australian Government Department of Immigration and Border Protection to provide detention services at centres on mainland Australia and Christmas Island. TomCo, +30% Shares in the oil shale exploration and development company focused on using…
Asian markets crept cautiously higher to start the week in positive territory following last week’s record highs in the US. After a nine day losing streak, Chinese banks and drug makers led the gains as investors risk appetite improved. However, gains in China might be limited after it emerged Chinese banks continued to hoard cash…
A report out last week from the Commodity Futures Trading Commission (CFTC) certainly raised my eyebrows when they stated that they had underestimated the size of all the outstanding swap contracts on its data repositories. According to CFTC officials familiar with the case and cited by the Wall Street Journal, the discrepancy may be as…
As gold looks to close out 2013 at its year lows and despondency and despair amongst the bulls is all encompassing, we think the graph below is worth a cursory glance. It shows that the private sectors in the US are actually starting to build debt again and this is most likely the reason why…
Step right up and try your luck…spin the wheel and watch where she lands…everybody’s a winner” Sometimes if you listen hard enough you can almost hear the Carney coaxing unwary investors to step up and try their luck in a game that has been rigged against them. During the last two decades, I have been…
With Gold closing at a multi year low last night in the wake of the Federal Reserve tapering – now known as “Taper Lite”, it may be the case that some regard it as high time to finally capitulate on precious metals and any asset classes which are remotely related to it! However, there may…
