Pater Tenebrarum's Blog

Markit has released its global business confidence survey, and it makes for sobering reading. Due to sharp declines in business confidence in both the US and China, a new post crisis low has been reached in June.

Regarding the risks in Germany's banking system, it should be pointed out that large German Banks are among the most highly leveraged in Europe relative to their net tangible capital.

Given that the inflationary policy the BoJ has embarked on is likely to be maintained or even intensified once Abe wins the upper house elections, it wouldn't be surprising if the breakout in yields were to follow on the heels of the election.

In spite of this year's decline in the gold price, we still trust in gold, one might say. There are a few valid reasons for the recent bearish trend, some of which Ronald dissects; nevertheless, the bet remains that it is very likely undergoing a large degree correction in a secular bull market.

Following the FOMC announcement (although there is probably no direct causal relationship, it is still noteworthy that this temporal coincidence occurred), interbank lending rates (SHIBOR) and repo rates in China went absolutely ballistic overnight.

There is a new reality various governments still dreaming of imposing 'windfall taxes' and other measures of this type on companies involved in the extraction of resources will have to face.

Over the past two weeks, treasury note yields have risen rather vigorously from a higher low. As a side effect of this, mortgage rates are now increasing in spite of Bernanke's truly massive purchases in that sector.

Japan's current economic policy also has strong mercantilist overtones, as the devaluation of the currency is held to help its export sector.

Hollande is – similar to many of his predecessors – apparently very concerned about keeping France's unique cultural heritage alive and kicking, even if that means he has to invent and/or raise a few more taxes here or there.

Carmen Reinhart and Kenneth Rogoff are apparently eager to repair their dented reputation with the economic mainstream. After having to endure and fend off an attack of Keynesian deficit spenders...