Saturday, November 26, 2016

Blog Now at New Location

The blog has moved to better looking more professional site (to be launched by the end of November 2016). Find the blog here.

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Sunday, October 16, 2016

US Trade Deficits and Recession

One burden of having the reserve currency is that the nation who issues it has to be the consumer to the world. Often the reserve currency is referred to as a privilege, however, Michael Pettis in Foreign Affairs explained back in 2011 that it could be a burden as well.

Note how shrinking trade deficits in the US have coincided with US recessions. This means the US has to buy more from the world than it sells and that cutting off global trade will not bring back workers.

Credit is Growing

Monetary Velocity

No bottom in sight?
 Or is it bottoming?
When velocity bottoms, deflationary trends will become non-existent. 

US Dollar Bull or Bear?

Over the past 5 presidents Democrats have been US Dollar bullish while Republicans have been USD bearish.
Is this chart about to break out or break down? 


Demographics

There is concern by some analysts that demographics for equity assets are negative as the baby boomers retire. However, according to the Pew Center the millennials are a larger group.




Risks for each Commodity