Category: banks

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Again, foreign exchange and bond yields looked flat today and I wonder if the US really wants lower rates.

The pound-dollar and euro-dollar were flat today, 27 February 2024, with the dollar yen making the biggest move between 9:14 am and 4:15 pm. According to data I obtained from Bloomberg, the GBP/USD increased three pips, from 1.2682 to 1.2685. The EUR/USD decreased four pips, from 1.0848 to 1.0844. The USD/JPY increased 1600 pips moving … Continue reading Again, foreign exchange and bond yields looked flat today and I wonder if the US really wants lower rates.

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A quiet day yesterday in the United States as foreign exchange markets got ready for Asia to open.

10-year bond yield and currency data from Bloomberg paint a quiet day in those markets. The GBP/USD stayed flat between 9:30 am to 4:15 pm with the rate going from 1.2686 to 1.2684. The EUR/USD was flat as well with ever so slight dollar weakening from 1.0847 to 1.0851 this afternoon. The Japanese yen demonstrated … Continue reading A quiet day yesterday in the United States as foreign exchange markets got ready for Asia to open.

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I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

In comments made last week by a number of members of the Federal Open Market Committee, traders and investors should hold their horses on a cut in overnight banking rates anytime before June 2024. There appears to be some sentiment among Committee members that reducing the overnight lending rate between banks (federal funds rate) and … Continue reading I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

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Domestic mercantilism keeps the race question out of banking …

Lineage is the framework through which I see myself in this political economy. My views on the political economy are steeped in observing my family members participate in trade. I saw members of both sides of my family in the Eastern Caribbean act as retail and wholesale merchants. Through merchant activity they brought their communities value. Value gets … Continue reading Domestic mercantilism keeps the race question out of banking …

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How the Democratic and Republican philosophies differ on managing the value of the currency.

I liken the Democratic and Republican parties as two major management companies pitching their management styles as the best one for managing the political economy. Political campaigns between Democrats and Republicans are public battles over whose philosophy and narrative should be allowed to guide the nation-state. As “privateers” for the political economy, banks and their trading … Continue reading How the Democratic and Republican philosophies differ on managing the value of the currency.

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Beware of political strategists. Your goal is to become an agent of State power…

You should beware of today’s political strategist. Their job is to sell you on the idea of voting for certain candidates at best and, while they struggle with economics 101, sell you on proposed policies and legislation that supposedly are created to meet your self-interest. None of these strategists know you, but, according to their focus group … Continue reading Beware of political strategists. Your goal is to become an agent of State power…

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The Court’s role in supporting monetary policy.

At times I think that traders and bank depositors operate in sandboxes oblivious to the rest of the playground that surrounds their play area. The media offers enough noise to distract market participants from the philosophy that orders the interaction between the State, the banking system, and transactional markets. I consider banks to be the retailer of … Continue reading The Court’s role in supporting monetary policy.