8 replies to this topic

[SemiBizz]

Big price destruction in the market today on so/so volume, tomorrow that volume is going to pick up big time... on top of this accelerating trend... It's a MONSTA !!

[CHAx]

Semi, I couldn't agree more and timely post this morning.

[NAV]

Semi, Thanks. You are onto something.

[SemiBizz]

Japan wholesale prices down record 8.5% in July
(AFP) – 3 hours agoTOKYO — Japanese wholesale prices dropped by a record 8.5 percent in July from a year earlier, the central bank said Wednesday.

The fall was steeper than a revised 6.7 percent drop in June and marked the seventh straight month of year-on-year declines, the Bank of Japan said in a preliminary report.

Month-on-month, wholesale prices rose 0.4 percent, the central bank said.

Japan, the world's second-largest economy, was stuck in a deflationary spiral for years after its asset price bubble burst in the early 1990s, prompting the central bank to slash interest rates to almost zero.

[pedro]

Lotsa folks pt to $, but last Fri ($ up, mkt up) underscored the problem with that. Smarter folks are watching FXY to FXE. Thanks Semi.

[SemiBizz]

Rising government debt won't equal inflation, rating agency says

(AXcess News) New York - Standard & Poor's says in a recently released report that the burgeoning level of rising government debt incurred to thwart the economic downturn of the nation's worst recession since the Great Depression will not impact inflation as bad as some believe.

When U.S. government deficit spending began mounting to record levels this year to stimulate the economy out of a deepening recession, some raised the specter that the dark days of double-digit inflation might soon return. But according to a new S&P report the causes of inflation are more complex than that.

"People are looking at monetary indicators and the big increase in government debt, and saying it could presage inflation," said Standard & Poor's Chief Economist David Wyss. "That's not necessarily the case."

The S&P Analyst cited the Bank of Japan who in the 1990s printed money to offset the growing Japanese government debt. "Despite the flood of liquidity Japan's central bank unleashed, prices in Japan have pretty much gone done down for the last 15 years."

"So these simplistic arguments that there's necessarily going to be inflation because of government debt are simply not the case," said Wyss. "If you look at the history, the link is not as clear as people might think."

Wyss gave his own take on inflation, saying it would take a good five years before the economy had rebound enough to affect the rate of inflation.

[SemiBizz]

Yen just took a full point off the euro, while the dollar spiked higher... Gold smoked $7 Crude contract near low of day at commodity close.

[OEXCHAOS]

"(AXcess News) New York - Standard & Poor's says in a recently released report that the burgeoning level of rising government debt incurred to thwart the economic downturn of the nation's worst recession since the Great Depression will not impact inflation as bad as some believe."

No knock on the post (appreciate the thread), but MAH GAWD! Who wrote that? Where are the editors?

Mark

[SemiBizz]

7:08 PM ET... looks like Japan must be in the office... started pounding away on GBP and Euro... Dusting off gold, smacking Eur/$ down.