Category Archive: 8) Economics

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Richard Koo: Balance Sheet Recessions

Ying Yang Cycle of Bubbles and Balance Sheet Recessions Richard Koo

Peripheral Europe is going to follow step and step the Mexican and the resulting Latin American debt crisis of the 1980s.

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Quantitative Easing: The Fed Wants Americans to Continue Deficit Spending

2012-12-13

by George Dorgan

2012-12-13

The main drivers for demand for Swiss francs are the Euro crisis, but even more the behavior of American investors, who go out of the dollar in the fear of further bad US economic data and in the fear of Quantitative Easing. This usually pushes down the dollar and inflation hedges like the Swiss franc and …

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SNB Monetary Policy Assessment Outlook

2012-12-12

by George Dorgan

2012-12-12

On Thursday, December 13th, 2012, at 09.30 CET, the Swiss National Bank (SNB) holds its quarterly monetary policy assessment meeting. As we explained in the “drivers of Swiss inflation” post, inflation pressures will remain subdued for the next 2-3 years, because the effects of the quick rise of the franc and weakening global growth need to …

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Robert Mundell: Why Libertarians Must Love the Euro

2012-12-10

by George Dorgan

2012-12-10

The idea that the euro has "failed" is dangerously naive. The euro is doing exactly what its progenitor planned for it to do. According to Robert Mundell, the creator of the Optimum Currency Zone concept, the euro would really do its work when crises hit. Removing Keynesian monetary and fiscal juice to pull a nation out of recession. More about this evil genius on

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The Balance Sheet Recession: UK Q2 Housing Equity Injection Largest Since Q2 2011

2012-12-03

by George Dorgan

2012-12-03

Gross Flow Withdrawals Injections BoE UK

The American-Taiwanese economist Richard Koo, is the chief-economist of the Nomura Research Institute. In his theory of the Balance Sheet Recession he distinguishes between the “Yang” phase of the economy and the “Yin” phase (the so-called “balance sheet recession”). In “Yang” times companies want to increase profit and people consume a big part of their pay …

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Definitions of money supply in the context of the SNB

Monetary Aggregates according SNB M0 M1 M2 M3

Don’t sell economic stability to buy economic growth,” warned Tomáš Sedláček, chief macroeconomic strategist at CSOB Bank. Sedláček’s unconventional view is that our problem is not lack of growth but too much of it. See more at the

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Is China’s Growth Rate Healthy Now? Golden Rule of Capital

Fixed Investments as part GDP different countries

After a slowing in Chinese growth this year, economists recently stated that a hard landing has been avoided and that the economy might have bottomed out. Marc Faber has changed his mind and considers buying Chinese stocks. Also Sprach Analyst provides the following data: Sequential growth rates since Q1 through Q3 were 1.5%, 2.0% and 2.2% respectively, or in annualised annual rate, 6.16%, 8.24%, and 9.09% respectively. Compared that with the...

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Order the Full Report on the S&P Critique

2012-09-25

by George Dorgan

2012-09-25

In the full report we explain in detail how one can analyze the balance sheet of the Swiss National Bank (SNB) based on several sources of information, for example the monthly bulletin, which shows the changes of the SNB balance sheet and the quarterly distribution of the SNB assets including the information about FX … Continue reading...

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7) Economic Theory

Central Bankers against Central Bankers Banned Weber Stark Issing

There are already three former European central bankers who criticize more or less openly the European Central Bank (ECB).

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The Wealth Effect: Rising House Prices Sustain Spending

Link Housing Wealth Consumption Doms Dunn

Swiss Franc at record highs (May 2011)

2011-05-27

by George Dorgan

2011-05-27

swiss franc versus cross currencies 2010-2011 chfusd chfjpy chfeur

May. 27th 2011 Extracts from the history of the Swiss franc (May 2011) This month, the Swiss Franc touched a record high against not one, but two currencies: the US dollar and the Euro. Having risen by more than 30% against the former and 20% against the latter, the franc might just be the world’s … Continue reading »

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EUR/CHF: One Year of Free Market (07/2010-07/2011): March 2011

2011-03-31

by George Dorgan

2011-03-31

March 2011 Swiss KOF Leading Growth Indicator 2.24 In March Up from revised 2.19 in February (initial 2.18.) Stronger than median forecast of 2.15. Bit of a surprise. EUR/CHF lower, presently at 1.2978. By Gerry Davies || March 30, 2011 at 09:39 GMT EUR/USD: Look To The Crosses For Guidance EUR/JPY has made a significant move … Continue reading...

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EUR/CHF: A History of Interventions, April 2010

2010-04-30

by George Dorgan

2010-04-30

April 2010 Quick Look At The Order Books AUD/USD: stops below .9135 and again below .9070 USD/JPY: solid bids 92.70, stops below 92.40, heavy semi-official bids expected at 91.50 ( I’m hearing of “massive” stops below 90.50 so if market gets on a roll lower keep this level in mind) EUR/USD: looks like the order … Continue reading »

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EUR/CHF: A History of Interventions, March 2010

2010-03-31

by George Dorgan

2010-03-31

, March 2010 Big Barrier Eyed In EUR/CHF Traders report a large barrier option is in play at the 1.4200 level in EUR/CHF. Nothing attracts price action like a big barrier. The owner of the option wants to protect his investment while the bank that sold the option wants to knock it out to erase … Continue reading »

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