Topic: Economic Education

“Let Them Eat Chips” – O’Driscoll

– February 25, 2011

“Unfortunately for defenders of Fed policy, today’s paper is filled with stories of rising inflation. In Singapore, consumer price inflation is running at 5.5%. In Vietnam, consumer price inflation is running at over 12%. There are food riots in India. …

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The Crime Known as Quantitative Easing – Cobden Centre

– February 23, 2011

“Rather helpfully, on the Bank’s website there is an explanation of how Quantitative Easing was supposed to improve the economy. Quite clearly, the Bank explains that they purchased British Government bonds (gilts) and high quality (investment grade) b …

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“Bill Gross Cuts Government Bond Holdings Again” – WSJ

– February 14, 2011

“The Pimco Total Return Fund is the world’s largest bond fund, so Bill Gross’ market moves and musings can carry a lot of weight in the markets. Gross is founder and co-chief investment officer of Newport Beach, Calif.-based Pimco. Billy has been gripi …

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“Bond Market Flashes Inflation Warning” – WSJ

– February 7, 2011

“The U.S. bond market has begun sending a message that inflation risks are rising and the Federal Reserve may be too slow to act, potentially marking a significant turning point in the economic recovery. In the past week, Treasury-bond yields have jump …

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“The Untold Inflation Story: Investor Risks and Opportunities” – Lombardi

– January 21, 2011

“This morning, the yield on the 90-day U.S. T-bills is up to 0.155%. Not a big deal, but let’s look at it a little closer. When the credit crisis arrived in 2008, there was a run to the safety of short-term U.S. Treasuries, which sent down yields sharp …

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“Foreigners Shun Europe’s Bonds, and Debt Piles Up” – NYT

– January 13, 2011

“Greece. Ireland. And now, it seems, Portugal. While the circumstances that have driven these debt-ridden members ofthe euro zone to the brink differ, they share one common characteristic: all three countries aggressively tapped their domestic banking …

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“M&S Warns of Rising Inflation” – WSJ

– January 12, 2011

“Marks & Spencer Group PLC is facing the specter of rising inflation as it fights for market share in the fiercely competitive U.K. grocery and clothing market, just as the government’s austerity cuts start to bite. The U.K. high street bellwether …

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“ECB Intervenes As Debt Crisis Deepens” – Financial Times

– January 11, 2011

“The European Central Bank intervened to prop up the eurozone bond markets on Monday as political leaders and bankers warned the debt crisis was deepening amid fears Portugal was edging closer to an international bail-out. Although European Union offic …

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“Cameron Sees Threat From Rising Inflation” – Financial Times

– January 11, 2011

“David Cameron has warned that rising inflation poses a threat to Britain amid warnings from economists that the Bank of England has failed to tackle the worrying trend. The prime minister insisted he did not want the country to go back to the days whe …

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Is QE2 Good for CRE?

– January 5, 2011

“In spite of their security purchase plans, the Fed has not been successful in keeping long-term Treasury yields low. As the yield chart above indicates, 10-year prices have been falling in spite of the Fed’s buying spree (remember, yields go up when p …

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“Rising Rates Reveal Debt Reality” – Pento

– January 3, 2011

“The Fed’s lucky streak of luring bond investors with low interest rates may be drawing to a close. Nevertheless, the extended period of low borrowing costs has bred a new breed of investor. To the bulls and bears, we can now add the ostriches – those …

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“Inflation and Interest Rate Trends Look Positively for Gold in 2011”

– December 28, 2010

“Gold prices generally rise during times of actual or projected inflation because of gold’s traditional status as a “safe haven” asset. Gold buyers seeking an asset which reacts favorable to inflation or currency devaluation often move from the falling …

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