Global Macro

15

Spiralling into the moussaka

From the morning links: Explosive growth of unemployment recorded in Greece, with a total number of unemployed is at 733,645, according to data from the Greek Statistical Authority (ELSTAT) that were released Wednesday. The percentage of registered unemployed reached 14.8% in December 2010 an increase of one percentage point compared with November. The number of

0

Revenge of the PIIGS

Overnight, markets received a boost from OPEC member’s declaration that they’ll fill any existing or potential supply gap. Later, there was some doubt about the veracity of the claim. The energy complex nonetheless┬áretreated a little, as did gold, and equities jumped. Metals were sold off early then bounced to be even. However, other markets remain

5

Gold, Silver and Oil Ratio

As part of my “Crashlist” I regularly follow the spot price (in USD) for gold, silver and oil as they are the three benchmarks that measure the strength of the global economy, the value of the US dollar and the speculative excess inherent in modern global markets. Bullion Baron has some great insight into these

6

Sell signal

I don’t know if you trade, but if you do, there are clear reasons to get cautious. There is a gathering storm over the global economy and market patterns are now making it plain that the risk of a lightening strike is outweighing the benefits of remaining outdoors. Regular readers will know that I have

3

Is Bernanke blowing another bubble?

Fed Chairman Ben Bernanke mounted a spirited defense of quantitative easing on Tuesday in his semiannual monetary policy report to Congress, arguing that it’s effects were little different to conventional monetary policy: Large-scale purchases of longer-term securities are a less familiar means of providing monetary policy stimulus than reducing the federal funds rate, but the

4

The next domino

Predicting economic outcomes is hard. Predicting economic outcomes in conjunction with political unrest is impossible. Especially if that unrest is at the centre of global energy production. At least, that is the conclusion one should draw from last night’s US selloff. Rumours of Saudi unrest are flying, without much substantiation. Ongoing protests are planned in

6

Is gold the new global reserve?

Someone else has finally noticed that a sea change has transpired in forex markets during the oil crisis. As this blogger noted last week, the $US has not enjoyed its traditional safe haven role on the flight to safety trade. Sovereign Man picks up the theme today to argue that this is the end for