Deeper Analysis
The Illusion of U.S. Inflation
May 9, 2012
The battle cry for the past decade of the critics of U.S. fiscal and monetary policy has been “inflation is coming, inflation is coming!!” Never mind that their warning lacks empirical support and includes serious contra-indications when compared with the historical trends of inflation compared to trends of growth in real GDP, jobs, and population, […] More
Central Bank Watch
Bank of England Preview: Between a Rock and a Hard Place
May 9, 2012
The term stagflation applies to Britain much more accurately than to any other major industrial economy. The U.K. economy’s second recession in five years has been confirmed after GDP contracted in both 4Q11 and the first quarter of 2012, the latter by 0.8% at an annualized rate. Only half of the calendar year GDP declines […] More
Central Bank Watch
A Rate Hike in Poland
May 9, 2012
The National Bank of Poland, also known as Narodowy Bank, has raised its key reference interest rate to 4.75% from 4.5%. This was the first change since a 25 basis point increase in June 2011 and caught a majority of analysts by surprise, not that central bank officials didn’t leave clues that they might tighten. […] More
New Overnight Developments Abroad - Daily Update
Gloom about Europe Overshadowing Everything Else
May 9, 2012
The view is gaining support that Greece will soon abandon the euro, triggering a chain reaction that will spread to Spain and beyond. IMF/EU/ECB aid monitors have scrapped plans to visit Greece this month pending clarification of that nation’s political situation. It seems Greece may hold new elections on June 17, the same day as […] More
