Tag Archives: Japan

Bank of England, Bitcoin, BOJ, Budget, Central banks, Commodities, CPI, Crypto, ECB, Emerging Markets, Equities, Europe, Federal Reserve, Fiscal policy, Fixed Income, Government, Inflation, Japan, Keynesianism, Macro, Metals, money supply, Politics, Production, Revenues, Tech, UK, UK Treasury, US Treasury, USA

Burning Holes in Idlers’ Pockets

Posted on by Sean Corrigan

Inflation, Milton Friedman famously said, is a monetary phenomenon. But it is also one given the readiest of outlets through recourse to what we call ‘fiscal’ policy – i.e., by spendthrift governments borrowing money created at their call and forced into the system by means of warfare, welfare, contracting, cronyism, bureaucratic expansion and plain old boondogglery. Arguably, this is where we find ourselves today, in a world where supply is no longer likely to meet demand as abundantly and as effortlessly as has been the case these past twenty years.

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Bonds, China, Commodities, Elecction2020, Equities, Fixed Income, Forex, futures, Gold, Inflation, Japan, Metals, Money, money supply, Oil, Politics, US Treasury, USA

A Shot in the Dark

Posted on by Sean Corrigan

The ink has not even dried on the US ballot papers (!) but the Market already thinks it knows what this will all mean. And then there’s Pfizer’s vaccine announcement – perhaps similarly preliminary in nature – but, hey, the Herd will always take every silver lining it can find. Some of the themes we touched upon at the end of the Summer are still in play: Japan has been attracting money, non-oil commodities are rallying, gold has lost some lustre, bond yields are creeping higher, and Value may just be topping out at last v Growth.

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Banking, Central banks, China, Commodities, coronavirus, COVID19, ECB, Equities, Europe, Federal Reserve, Forex, Gold, Government, Inflation, Japan, Macro, Metals, money supply, Revenues, Tech, UK, USA

The Fall Approaches

Posted on by Sean Corrigan

OPEN ACCESS FOR A LIMITED TIME ONLY.
It’s not just the leaves that often turn when the year begins, with gathering pace, to slip towards its chilly end. Markets often do, too.

Given this backdrop, the sell-off in the Nasdaq – in the marvelled-at ‘Growth’ stocks, in the FAANGs, and in Tesla – comes at a moment which is particularly intriguing for reasons which go far beyond whatever coup SoftBank may or may not have attempted and whether those irritating Lockdown Livermores have finally gotten their comeuppance.

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Banking, Equities, Europe, Japan, USA

Don’t Bank On It

Posted on by Sean Corrigan

On April 13th, a financial pundit with a wide media following made the following (loosely transcribed) proposition about US banking stocks: Banks won’t rally because rates -long and short- are too low; Japan is our marker – banks there falling while their US/EZ peers rose pre-GFC and have not made any ground since; vis-à-vis their EZ peers, US bank returns have long been anomalous, ergo their out-performance won’t be repeated. We demur in the main.

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BOJ, Central banks, Economics, Equities, Inflation, Japan, Macro

Turning Japanese

Posted on by Sean Corrigan

A noted [monetary extremist] resident at GMU’s Mercatus Center fretted on March 20th that Japan’s efforts during 2001-06 to have the central bank finance deficits ‘didn’t work’ – i.e., they failed to ignite meaningful levels of wealth-sapping inflation. The reason? As our sage tells us, was that there was ‘no commitment… to a permanent expansion of the monetary base’ as expounded in the ratiocinations of that dark genius of modern central bank theorising, Michael Woodford. We replied:-

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Central banks, Credit, ECB, Emerging Markets, Europe, Fixed Income, Forex, Japan, Macro, Money, USA, Volatility

Where’s the Off Switch?

Posted on by Sean Corrigan

In our latest piece we look at the ECB’s overkill and all manner of possible over-valuations at work in different markets around the world – the two not being entirely unconnected, the reader might note!

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Bank of England, Banking, Central banks, Credit, Cycles, Equities, Europe, Federal Reserve, Japan, Macro, Money, Real Estate, USA

Ten Years After

Posted on by Sean Corrigan

A little over 10 years ago, a hitherto obscure German institution called IKB – majority-owned by an arm of the German government – suddenly made headlines around the world. On the last day of July 2007, a company which ironically had its origins in a foredoomed effort to ‘stimulate’ the German economy in the aftermath […]

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Bank of England, BOE, Central banks, Commodities, Credit, ECB, Equities, Europe, Federal Reserve, Fixed Income, Gold, Japan, Keynesianism, Macro, Money, Oil, UK, USA

Pluto’s Republic

Posted on by Sean Corrigan

The more our would-be Philosopher Kings attempt to display the awesome panoply of their intellectual armour, the more we think, not of the Greek sage from whom they seem to draw inspiration, but of Mickey Mouse’s dopey canine friend. In bonds, the Bears are mounting another one of their forlorn hope charges against the central […]

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Banking, BOJ, Central banks, China, Commodities, Credit, Cycles, Equities, Federal Reserve, Fixed Income, Forex, Gold, Japan, Macro, Money, USA, Yield Curve

Fretting on the Fed: Monitor No.5

Posted on by Sean Corrigan

Falling returns in the US. Tight money in China. An upswing in Japan. Deflation in India. Gold goes cold. Fretting the Fed on falling CPI and a flattening curve? No need to panic, just yet. Please click for the latest Monitor. 17-06-20 M4 No5

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Bank of England, Brexit, China, Equities, Fixed Income, Forex, Japan, Macro, Money, UK, USA

Japan, sterling & more: Monitor Update

Posted on by Sean Corrigan

The latest edition can be had here:- 17-06-05 M4 No 3 Including a look at Japanese equities, the US dollar & sterling, the latest US data round, the significance of yield curves, and misconceptions about monetary ‘velocity’. Courtesy of Cantillon Consulting

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