Posts filed under “Currency”

Commodities Return to the 1990s

    The chart above is the Bloomberg Commodity Index. It consists of baskets of common commodities, including energy, metals, foodstuffs, softs and precious metals.

After a fairly flat period in the 1990s, the index leapt upward beginning in the early 2000s. The context explains the jump: High inflation, weak dollar and low interest rates. From 2001 to 2007, the dollar lost 41 percent of its value, and all commodities priced in dollars skyrocketed. At the same time, China began a huge expansion of its infrastructure, transportation, housing and manufacturing sectors. The BCOM index moved from around 90 to almost 240.

You know the rest of the story: Inflation is nowhere to be found, and the Federal Open Market Committee is concerned about deflation. The dollar is at multiyear highs against just about any other currency. Commodity prices have suffered as a result.

    Continues here: Why Commodities Are Back in the 1990s

Category: Commodities, Currency, Economy, Markets

Charting a Decade of Yuan Moves

Source: Bloomberg Brief

Category: Currency, Digital Media

Look Out Below, China Yuan Devaluation Version

click for updated futures

Category: Currency, Markets

Commodity prices now falling in all currencies…

…and across all categories Source: Gerard Minack, Downunder Daily

Category: Commodities, Currency

The Effect of the Strong Dollar on U.S. Growth

The Effect of the Strong Dollar on U.S. Growth Mary Amiti and Tyler Bodine-Smith Liberty Street Economics,  July 17, 2015   Correction: This post was updated on July 17 to replace the term “export volumes” with “real export values.” Although the terms are often used interchangeably, the term “real export values” is deemed more precise….Read More

Category: Currency, Economy, Think Tank

Greece Crisis, the musical (GREASE PARODY)



Category: Bailouts, Currency, Film, Humor, Music, Video

Bring Back the Drachma!

The never ending sturm und drang over the state of Greek debt, membership in the euro zone and the potential shocks of a debt default have moved from tragedy to comedy to monotony. The solution is simple. It won’t be fast, it won’t be easy, but it will be a huge improvement for all concerned….Read More

Category: Bailouts, Currency, Current Affairs, Federal Reserve

Category: Currency, Think Tank

The Eurodollar Market in the United States

The Eurodollar Market in the United States Marco Cipriani and Julia Gouny Liberty Street Economics, May 27, 2015       In February, the Federal Reserve Bank of New York’s trading deskannounced it will publish a new overnight bank funding rate early next year. The new rate will be based on both federal funds and Eurodollar transactions…Read More

Category: Currency, Think Tank

Past, Present, and Future Challenges for the Euro Area

Past, Present, and Future Challenges for the Euro Area Vice Chairman Stanley Fischer At the ECB Forum on Central Banking conference “Inflation and Unemployment in Europe” Sintra, Portugal  May 21, 2015       It is an honor and a pleasure to participate in the ECB Forum on Central Banking, and I thank you, President Draghi,…Read More

Category: Bailouts, Currency, Think Tank