Chartage!

Gold vs. US$
Another head shaker it seems. Just when we were warming to the idea of gold and the US$ moving arm in arm, the correlation breaks down or maybe pauses or maybe never was; either way we are now back to the old game of higher dollar and lower gold as you can see in the chart below (see the yellow rectangle on the right showing the US$ and gold divergence:

Maybe Australia is First Out; Maybe Not.

Worried about your countries currency? The easy solution to your worries: don’t cut rates when the market expects it.

The Reserve Bank of Australia announced their latest monetary policy decision overnight. Sitting at 3.25%, most analysts figured that was plenty of room for the RBA to knock a few more basis points of their benchmark.

Turning Red in the Face on Government Aid

Inflation is back ... but this time it’s a bit different.

I’m not talking about the inflation of prices; I’m talking about the inflation of lungs.

It’s almost as if every morning there’s some new stimulus bill, or some alteration to one, or some plan to fix banks, or something along those lines. And with each morning, we hold our breath ... some more.

Central bankers boast they know history, but…

Though it is fashion to blame the US for all the ills now flowing into the global economy, we don’t think it’s quite that simple.

Remember that mass that was referred to as the “global savings glut.” In short, it was the massive current account surplus accumulation of the East thanks to the massive consumption of the West, which was buoyed by the Massive “global savings” glut allowing for the creation of rocket science products called derivatives.