Wednesday, November 18, 2009

UK keeps rate at .5%!!

Well, if credit to households and consumers have not just yet gotten back to normal levels, and the rate is near zero, what is the BOE to do?

They can't be worried about internal inflation? Apparently, they report low inflation for September- CPI of 1.1% and low expectations.

The VAT reversal may have played a part in the inflation rate as it is, but certainly investor and consumer appetite has not been wet as yet. Maybe the X-mas may be better news for businesses!
BOE Report

Monday, November 16, 2009

The FT has a good Monday Ed...

Could not have reported it any other way!

“When the recovery picks up, we will be back to square one,” Mr Diouf told the Financial Times in an interview.

He said the same structural problems behind last year’s spike in food prices were still affecting the market. These included lack of investment, surging demand in Asia and diversion of food commodities into biofuels.

“We have all the elements of the crisis,” he said, adding that a weakening US dollar could exacerbate the upward price pressure in food commodities.

Well, do something about it G-20/G-7/G-2 or what ever number you want to put to a G!

What he should have added is that the frayed financial market mechanisms on derivatives/futures, should be focused on as addition to the Doha Round stalemate!

Japan's economy grew at 4.8% in 4th QT!

They blame it all on the fiscal stimulus FT Report. They would blame everything on the fiscal stimulus. But, it is what they say they want it to be- I guess.

The issue that has me concerned is; how do they, or, "did they", create value out of nothing? For example, they [Japan] ran the same cash for clunkers programme as did the USA. But, it was just to stimulate transactions? Wasn't it?

The trick was to get persons to but new cars at an affordable rate. But, would allowing cars to sit in inventory, rather than being purchased at a low price or at a loss, be a good thing?

I don't think that it would be a good thing and they would [Japanese officials] have to give us another excuse. Because, I don't know of any business that can stay in operation, if it sells its products at a loss or below the market value or real value! That's just me!

The issue to me is with the value of the YEN. As it stands, now, the YEN hovers under 95 YEN per $1 USD. A stronger YEN, means more relative value for Japanese products. Also, it means that the YEN is worth more than the USD and that would have increased speculation over the last few quarters.

Not bad. But, a stronger YEN, with a weaker dollar, may not be a bad thing. The US economy is not as sound as it once was, so if the Japanese have not found other consumers for their exporters, or, show themselves to be less worried about the Euro and other Asian currencies, then they are probably going to under perform- all circumstances considered- in the early part of the next QT.

Especially they would underperform if they depend on fiscal stimulus and cash for clunkers....which may not sound like a bad idea after all, considering that the YEN is stronger and they can create value, relatively, within their own economy!

Friday, November 13, 2009

One of my favourite tunes...

While this blog is about my work and my professional interests, I like to show another side.

We can't all be serious all of the time!! "Tiger Baby" from Militant out of Guyana!


I posted this notification everywhere...

...aside for on my blog. I had an interview yesterday on a local radio station, Star 106 fm with the host Jeff Lloyd.

It was a pre-recorded show. But, in any event, when I get a taping I would post it to the website.

I talked about allot of things...political economy, economics, the Bahamian economy, diversification of the Bahamian economy, the global economy and some issues as they relate to capital punishment and social justice.

Great interview. Jeff Lloyd over at Star 106 fm did a fantastic job with me.

Just in case any of you like easy listening in the days...

Monday, November 2, 2009

What in the world?

German businesses are asking for more taxes?

I knew the Germans were weird, but not this weird!

I guess its a socialist type mentality. Perhaps its German exceptionalism rather than US or French exceptionalism.

They tend to think about the macroeconomic picture, rather than for their individual firms. Good for them to be so caring about everyone else.

For me, tax cuts would be welcomed at any time. No idea as to the full reasoning with regard to the bottom line for businesses. But, the business community has said that it fears that the spending that occurred under this crisis, could leave it with a bad reputation for terrible fiscal mismanagement.

So what? Get your tax break and pay some back in if you wish to. Good grief!

Turn your clocks back!

Hope you guys remembered to turn your clocks back one hour. Daylight savings time, in reverse. (I think!)

I always like this time of year. The weather is not so hot and not so cold. Just cool. Even though I normally have bad luck around this time, things always seem to feel great.

Better days ahead...