Category: money

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Good economy? Bad economy? In the end, can you make a trade?

During a discussion tonight with friends, the issue came up about whether the Biden administration has created a good economy. One participant decided to put out there for consideration the economic data points often cited by the mainstream media. The participant cited inflation, arguing that inflation has been coming down under the Biden administration, moving … Continue reading Good economy? Bad economy? In the end, can you make a trade?

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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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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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The Federal Reserve, banking, and managing political theatrics ….

The Federal Open Market Committee issued a decision last Wednesday to maintain the target range of its federal funds rate between 5.25% and 5.50%. For banks that need to borrow from the Federal Reserve System’s discount window, rates for this lender of last resort facility is at 5.50%. Within the interbank market, banks will continue to see … Continue reading The Federal Reserve, banking, and managing political theatrics ….

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Should a president be allowed to manage the economy where she doesn’t provide actual facts?

If a president can’t give you full facts about the political economy, then should she be managing it? Last week, U.S. President Joe Biden announced that “inflation was at the pre-pandemic benchmark of 2 percent over the last six months of 2023.” The problem with this statement is that if year-over-year inflation was two percent during the … Continue reading Should a president be allowed to manage the economy where she doesn’t provide actual facts?

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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 …