Monetary aggregate M2-M1 increased by $49.7 billion during the week finishing on August 20. M2-M1 only once increased as much: $51.1 billion after the September 11 (at September 19, 2001). This very important increase means that Americans save much because...
A new TAFTA, T rans A tlantic F ree T rade A greement is being born, at least concerning the financial markets. Indeed, American and Europeans rates converge: the 2-year yield in euro zone was yesterday Tuesday August 28 at 4.02% and that of United States...
On August 15, everyone is on holiday, or almost. On August 15, it does not occur anything, or almost. * On August 15, 1971 Richard Nixon decided to remove the free convertibility of the dollar in gold. For the first time in the history of humanity, the...
Some central banks (Fed, ECB, Japan, Switzerland, etc.) recently injected cash on the markets. This monetary policy is strange because it is against the usual practices. Indeed, the monetary policy of the central banks always consisted in intervening...
The GDP growth in the United States in the second quarter was much stronger than I predicted it: + 3.4% (from a quarter to another in annualized rate) instead zero growth, but only 1.8% year-on-year, which is lower than the optimal potential (3.5%). I...
The profit of American companies increased (year-on-year) approximately by 10% for 20 quarters, which is higher than the standard (5 to 7%). The stock prices increase logically, but less quickly: the average PER of SP500 is at 16.9 what corresponds to...
I predicted for several months a stock exchange collapse which currently occurs but my blog on "Turgot Institute" was removed at the end of July without my agreement! Small reminder of main points… The members of the FOMC raised their target on a too...
The GDP growth reaches its optimal potential when core inflation is contained in the band from 1.0 to 1.5% with real 10-year yield which fluctuates between 2 and 3% corresponding to a placement without risk. Under these conditions, the 10-year should...
