Category Archives: Dollar

U.S. Treasury Market Borrowing & Global Foreign Savings

We were curious about how much U.S. Treasury market borrowings have increased relative to global foreign savings and whipped together the table below. We define  global foreign savings here as the cumulative current account surpluses of all the world’s surplus nations. The … Continue reading

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Is The U.S. Dollar Over/Undervalued?

If you are planning on retiring to a country other than the United States, you may want to have a glance at our following analysis. Purchasing Power Parity We have taken the October IMF WEO database and backed out their … Continue reading

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How Sustainable Is Earnings Growth?

Not very. We will leave the calculation for the entire stock market to the stock analysts. Here’s why: Just glancing over WalMart’s latest earnings release from the week, we see two one-off macro factors that helped WalMart’s earnings in Q1, … Continue reading

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Alan Greenspan on Debt, Deficit, Tax Cuts – Bloomberg

Excellent interview.   Upshot?  Inflation cometh. Apr.18 — Former Chairman of the Federal Reserve Alan Greenspan joined Bloomberg Television for a wide-ranging discussion about U.S. debt, the current rate hike path, Europe’s new direction and his reading assignment for the Republicans. … Continue reading

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What Keeps Us Up At Night…

This could end America’s free-ride:  no more QE;  no more balance of payments deficits without tears;  and no more foreign financing of the U.S. budget deficit. We hope the Administration at least is concerned and has it on their radar. … Continue reading

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Why the dollar is weak – FT

Authers dishes on the weak dollar. You know our suspicions (and just that – suspicions – as nobody really knows with certainty), which should negate some of this morning’s reversal on the president’s comments that sent shorts scrambling. Unless that … Continue reading

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Rosie The Riveter Tweets A Red Flag

Note the date of James Baker’s comment. January 24th, 2018: Steven Mnuchin to Davos: "A weaker dollar is good for us as it relates to trade and opportunities.” October 17th, 1987: James Baker to the Germans: "Either inflate your mark, … Continue reading

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Dangerous Gambit Out Of Davos

We woke to a comment out of Davos that surprised both us and the market. The U.S. Treasury Secretary, Steven Mnuchin, broke from tradition and welcomed a weaker dollar. “Obviously a weaker dollar is good for us as it relates … Continue reading

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Is This Why The Dollar Is Tanking?

Some nasty polling data out of Gallup about American global leadership that may explain, in part,  the dollar’s weakness, which is surprising to many given the strong economic data and ebullient equity markets. We thus suspect the weak Dixie is … Continue reading

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Making The World Great Again

Maybe President Trump should not read this but last year was all about “Making The World Great Again.” Financial Markets As the data and graphs illustrate below, the U.S. stock market was in the bottom quintile of performance in dollar … Continue reading

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