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Legal Tender Money v Fiat

QUESTION:  I wonder if you would care in a future blogpost to cast some light on the following? The sole ‘legal tender money’ in the final analysis is the FRN (Federal Reserve Note — coins aside) collateralized by the Fed’s assets.All other ‘money’ is private bank credit money or suchlike,including Money Market Funds and other […]

Market Talk- September 8th, 2017

Governments and central banks across the world are still concerned about the lack of inflation or significant growth and we saw evidence again in that today from the Japanese Q2 GDP release. Well below estimate of 4% this mornings release came in at 2.5%. Mario Draghi also commented on growth concerns in yesterdays ECB meeting […]

Yellen Reveals She Also Does Not Understand What it all Crashed in 2007-2010

The head of the Federal Reserve, Janet Yellen, has warned politicians against turning back financial market regulation, yet she herself does not comprehend what the regulation truly accomplished. She has warned that any adjustments to the framework should be discreet. The Jackson Hole gathering turned out to be financially tense. Yellen admonished politicians stating bluntly that […]

European Banks – The Next Crisis – The Unseen Cause in Plain View

The clouds have not lifted from the heart of the financial center within the European Union on the continent. The origin of the next crisis is unseen yet in plain view if you care to look. Ten years since the financial crisis of 2007-2009, the core fundamental problems in the banking sector have not yet […]

Market Talk- August 4th, 2017

Markets in Asia were looking like they have been on borrowed time a few days this week and so a small retracement ahead of todays US numbers is no real surprise. Most indices were lower but saw a deserved bounce in the KOPSI after yesterdays drumming and also a small gain for the Hang Seng […]

Market Talk- July 25, 2017

Another mixed session for Asia but we did see a healthy bounce in the ASX as the currency behaved itself. We did see better levels during the trading session for the Nikkei but could not be held for the close. Those loses have been reversed in US trading as futures follow the healthy US market […]

Market Talk- July 21st, 2017

We did eventually see a mixed close in US with the NASDAQ setting new gains but the late rally failed to convince Asian markets of the rally and having seen ECB unchanged, we saw Asian indices small down. It was a reasonably light session to close the week as main core markets drifted. The Nikkei […]

Market Talk- June 14th, 2017

Despite better than expected data from domestic China (Retail Sales 11% and Industrial Production +6.5%) it was not sufficient to support a positive close. Shanghai finished the day -0.75% as talk that Private Investment growth slowed suggesting a lack of demand for small and medium sized companies; Private Investment is the bulk of the buying […]

Market Talk- June 13, 2017

Tech shares continued to suffer in Asia but failed to influence the wider markets, but by the close even they had turned positive. Having been closed yesterday, today we saw a healthy run in the ASX (+1.67%) after the report that Business Confidence for May released better than expected. Banks led the rally with CBA, […]

Market Talk- June 12th, 2017

We will probably only see one out of four move this week and that one will, of course, be the Federal Reserve. Yes, we have four central banks meeting this week (FED, SNB, BOJ and BOE) but it is only the FED where the market has anticipated a move. Having been talked for weeks we […]