Money and Finance
- The Taper: Recalibrating Liquidity - By Richard Duncan
The “Taper” has begun. It’s important to understand why. On December 18th, the Fed announced that it will begin to taper the amount of fiat money it creates each month from $85 billion to $75 billion starting in January. Chairman Bernanke also indicated...
- The Death Of The Dollar? – By Rob Arnott
To no one’s surprise, the Fed announced that it will replace the expiring “Operation Twist”—in which it was selling $45 billion of short maturity treasuries and buying a like amount of long maturity treasuries every month—with continued purchases...
- John Mauldin: Peak Oil Or Peak Energy? – A Happy Solution
A consistent theme in this letter has been the connections between items that may seem to be far removed from each other but are actually linked at the very core. If you push on one end you get a reaction in what would seem to be the most unlikely spots....
- In California, The Mungers Haunt Jerry Brown
Thanks to Will for passing this along. Oct 3 (Reuters) - California Governor Jerry Brown has a problem. Call it the Munger problem. They're scions of a billionaire financier, one a liberal lawyer in Los Angeles and the other a conservative scientist...
- Bill Gross - April 2010 Investment Outlook: Rocking-horse Winner
As a November IMF staff position note aptly pointed out, high fiscal deficits and higher outstanding debt lead to higher real interest rates and ultimately higher inflation, both trends which are bond market unfriendly. In the U.S. in addition to the...
Money and Finance
California deficit has soared to $16 billion, Gov. Jerry Brown says
Gov. Jerry Brown announced on Saturday that the state's deficit has ballooned to $16 billion, a huge increase over his $9.2-billion estimate in January.
The bigger deficit is a significant setback for California, which has struggled to turn the page on a devastating budget crisis. Brown, who announced the deficit on YouTube, is expected to outline his full budget proposal on Monday in Sacramento.
"This means we will have to go much further, and make cuts far greater, than I asked for at the beginning of the year," Brown said in the video.
Lawmakers and others were hoping that a rebounding economy would help the state avoid steep cuts to social services. But revenue in April, the most important month of the year for income taxes, fell far short of expectations, leading to a shortfall of at least $3 billion in the current fiscal year.
The state has also spent $2.1 billion more than expected, according to the controller, further worsening California's financial health.
- The Taper: Recalibrating Liquidity - By Richard Duncan
The “Taper” has begun. It’s important to understand why. On December 18th, the Fed announced that it will begin to taper the amount of fiat money it creates each month from $85 billion to $75 billion starting in January. Chairman Bernanke also indicated...
- The Death Of The Dollar? – By Rob Arnott
To no one’s surprise, the Fed announced that it will replace the expiring “Operation Twist”—in which it was selling $45 billion of short maturity treasuries and buying a like amount of long maturity treasuries every month—with continued purchases...
- John Mauldin: Peak Oil Or Peak Energy? – A Happy Solution
A consistent theme in this letter has been the connections between items that may seem to be far removed from each other but are actually linked at the very core. If you push on one end you get a reaction in what would seem to be the most unlikely spots....
- In California, The Mungers Haunt Jerry Brown
Thanks to Will for passing this along. Oct 3 (Reuters) - California Governor Jerry Brown has a problem. Call it the Munger problem. They're scions of a billionaire financier, one a liberal lawyer in Los Angeles and the other a conservative scientist...
- Bill Gross - April 2010 Investment Outlook: Rocking-horse Winner
As a November IMF staff position note aptly pointed out, high fiscal deficits and higher outstanding debt lead to higher real interest rates and ultimately higher inflation, both trends which are bond market unfriendly. In the U.S. in addition to the...