Ideas and analysis on money, markets and the world around us.
The quantity theory of money and its accompanying equation of exchange are generally accepted as defining the relationship between money and prices. The equation has been expressed a number of ways, always including…
Read the articleSome stability returned to precious metals this week, with gold rising $14 from $1,564 at last Friday’s low to Friday morning, London time, and silver rising $0.65 from $28. Predictably – on the back of recent falls in…
Read the articleStocks markets have hit record (nominal) levels in the last few days, amid the on-going torrent of central bank currency injections into the banking system. Month-on-month changes in the US M3 money supply continue to…
Read the articleOn Comex, last week’s Commitment of Traders Report for gold showed Managed Funds (mostly hedge funds) with record shorts. However, they became very skittish – some changing their minds on a mini-bear squeeze in both…
Read the articleSterling is once again front and centre of market attention today – and again, not in a good way: tumbling by nearly 1% against the dollar following news of an unexpected contraction in UK manufacturing last month. The…
Read the articleJames Turk discusses the macro environment with a focus on Europe with Beurs Magazine. Since last summer the euro has been on the rise. Is that a trend you see continuing going forward? JT: It’s hard to predict the…
Read the articleMarkets have been roiled over the last 48 hours by the three B’s: Berlusconi, Bernanke and Boehner. The indecisive Italian election outcome and the strength of the anti-austerity vote has many traders thinking that the…
Read the articleDespite recent headlines and a great deal of squawking over hints that the latest FOMC minutes heralded a slight (maybe) signal of more hawkish intentions from the Federal Reserve, January saw US M3 rising to almost…
Read the articleMoody’s announcement late on Friday that it was downgrading the United Kingdom’s credit rating from AAA to Aa1 has had predictable consequences for sterling: the currency sinking to $1.5073, its lowest level since the…
Read the articleOn 20 March George Osborne, the UK’s Chancellor, will present his budget. So far he has made a valiant attempt to cap public sector spending, particularly when compared with other finance ministers who were slow to…
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