What is the price of gold telling us? Your thoughts?

Gold prices spiked this week, gaining over $50 per ounce in one trading day. In the absence of evidence of widespread, surging consumer prices, and with relative calm on the geo-political stage, the natural question to ask is, “What does this signal?”. Japan and China have intervened in currency markets this week with Japan trying … Continued

The Public Pension Reform Dividend

The burgeoning growth worldwide of unfunded liabilities has received a lot of press lately. Defense spending (future blog), pension liabilities and public sector salaries have been drawing the most ire from both sides of the aisle. Public debt concerns across the world have been much in focus, with the Greek debt crisis and public spending … Continued

A Keynesian Debate

The debate over Keynesian orthodoxy is raging. Most recently, in a NYT op-ed, Paul Krugman suggested we are in the beginning stages of The Third Depression. http://www.nytimes.com/2010/06/28/opinion/28krugman.html We do not fully subscribe to Krugman’s analysis for a number of reasons. First and foremost, the Keynes prescription to spend to spur aggregate demand assumes borrowing capacity … Continued

Don’t touch my wallet!

This discussion relates to our blog posting of May 26, 2010 about the unraveling social contract in Europe. Since that time, “austerity” has become the policy prescription of choice by the governing classes to fix the budgetary ills of Europe generally and Greece specifically. Elected officials, for the most part, do not like to impose … Continued

Game Changer or Just Noise?

Market volatility is back in vogue. We were just beginning to find comfort in the calm when instability returned. It is often difficult to discern the differences between “noise” and true fundamental shifts that would warrant large price moves in the major stock indexes in a single day. A war in the Korea’s – that … Continued

NY Times article on Europe

The May 23, 2010 New York Times most emailed article was Europeans Fear Crisis Threatens Liberal Benefits http://www.nytimes.com/2010/05/23/world/europe/23europe.html It was an eye-opening piece, clearly reflecting the shifting sands in the social safety net that defines most of Europe. There are implications for the United States and other similar economic systems, the repercussions of which portend … Continued