The Eurocrisis in 3 Steps

Monday, October 7th, 2013 by posted in Banking, Capitalism, Economics.
eurocrisis teaser

Writing for the Globe and Mail, Michael Babad comments that a recent IMF report on Greece praises some of its reform measures, yet demonstrates that the beleaguered country falls well short in others. In particular the report focuses on three key issues:

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A short history of currency swaps

Sunday, May 5th, 2013 by posted in Economics.
Front image May 5 2013

Republished from “A View from the Trenches“, by Martin Sibileau To read this article in pdf format, click here: May 5 2013 With equity valuations no longer levitating but in a different, 4th dimension altogether, and credit spreads compressing… Which fiduciary portfolio

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An analytic framework for 2013

Tuesday, January 15th, 2013 by posted in Economics.
Front Jan 15 2013 ii

Republished from “A View from the Trenches“ Click here to read this article in pdf format: January 15 2013 In the same fashion that I proposed an analytic framework for 2012, I want to lay out today what I think will be

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What causes hyperinflations and why we have not seen one yet: A forensic examination of dead currencies

Tuesday, December 18th, 2012 by posted in Economics.
Dec 16 2012 3

Please, click here to read this article in pdf format: December 18 2012 As anticipated in my previous letter, today I want to discuss the topic of high or hyperinflation: What triggers it? Is there a common feature in hyperinflations that

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The Mess the Bank Made… and Denies

Monday, December 17th, 2012 by posted in Banking, Capitalism, Economics, Education, Politics, Regulation.

Back in April, I reviewed a document called the “Financial System Review”, published semi-annually by the Bank of Canada.  Due to the dire warnings contained therein, I thought it necessary to produce a more user-friendly summary of the information the

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On currency swaps and why Gartman may be wrong in focusing on the adjusted monetary base

Sunday, October 14th, 2012 by posted in Economics.
Jacques Rueff

(republished from “A View from the Trenches“)   Please, click here to read this article in pdf format: October 14 2012 Today, we were supposed to follow up on our last topic (how to shift to a commodity-based standard, with a

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On risk convergence, overdertermined systems and hyperinflation

Sunday, September 30th, 2012 by posted in Uncategorized.
Sep 30 2012 featured

(republished from “A View from the Trenches“, September 30th, 2012) Click here to read this article in pdf format: September 30 2012 This week, we want to follow up on some thoughts from our last two letters, where we deduce the impact of

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The US money markets and the price of gold

Sunday, August 19th, 2012 by posted in Economics, Uncategorized.
August 19 2012

(republished from “A View from the Trenches“, August 19, 2012) Click here to read this article in pdf format: August 19 2012 What do USD money markets have to do with gold? Money market funds invest in short-term highly rated securities, like

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General market comments

Monday, June 25th, 2012 by posted in Economics.

We are as deceived as you are with the policy decisions undertaken by the European Union (EU) and the US. As we muddle through their consequences, today we take a moment to offer a few thoughts… -On the EU: Banking


We’re getting closer…

Monday, April 9th, 2012 by posted in Economics.

As Easter approached, we began to see a timid sell off in US stocks (but not so timid in Europe or Canada), in corporate debt, and in Treasuries. Treasuries later in the week rallied, but if you ask, we would

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If new Euros come only from collateral, would the Eurozone not be better off under the gold standard?

Sunday, March 25th, 2012 by posted in Banking, Economics.

Please, click here to read this article in pdf format: March 25 2012 During the past week, we think, we witnessed some interesting developments. In our previous letter, we had discussed what was the KreditAnstalt event of 1931. We saw a


On gold, stocks, financial repression and the KreditAnstalt of 1931

Sunday, March 18th, 2012 by posted in Economics, History.

Please, click here to read this article in pdf format: March 18 2012 We are back from Washington DC and realize that we could choose different titles for today’s letter. Let’s try a few… Title No.1: “The market proved us wrong”

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The Future of the Euro

Monday, March 5th, 2012 by posted in Banking, Economics, Socialism.

[Originally published on, Thursday, February 23rd, 2012] The problems of the eurozone are ultimately malinvestments. In Greece these days the struggle continues about who will ultimately foot the bill for these investments. During the early 2000s an expansionary monetary

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Some Insights from My Visit to the ECB

Saturday, February 18th, 2012 by posted in Banking, Economics.

[Originally posted on, February 12th, 2012] Last week I attended a workshop at the ECB on Global Liquidity. Global Liquidity of course refers to money flowing throughout the world as a result of western central bank money printing—especially Fed

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Cat’s Out Of The Bag On EZ Solution

Friday, December 16th, 2011 by posted in Economics.

When push comes to shove, never doubt the central banker’s decisiveness to fall back on what he/she knows best.  Business Insider has finally cracked the code on the implications of last week’s decision by the ECB to both cut interest


Leaping Toward the Keynesian Dream

Wednesday, December 7th, 2011 by posted in Capitalism, Economics, Politics, Regulation, Socialism.
Keynes Drinking Alone

The Fed’s latest inflationary scheme sounds like a technocratic innovation. It lowered the costs of currency swaps between central banks of the world, with the idea that the Fed would do for the globe what Europe, England and China are

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Evans-Pritchard Says We’re Wrong

Friday, December 2nd, 2011 by posted in Capitalism, Economics.

Despite his not-half-bad diagnoses of the political problems facing Europe, the Telegraph’s Ambrose Evans-Pritchard has really done himself in with his article today entitled “You Are All Wrong, Money Printing Can Halt Europe’s Crisis.”  In regards to the title, Evans-Pritchard

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