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Dollar Bull Plants Seeds of Worldwide Crisis Says Evans-Pritchard

The Telegraph’s Ambrose Evans-Pritchard told Lindsay Williams on his nightly business radio program that a new bull market in the US dollar could lead to major financial dislocations worldwide. The program was recorded on Tuesday morning, November 4.  You can listen or download here or use the player below.

See also Dollar smashes through resistance as mega-rally gathers pace

Must Reads

A Manufacturing Blowout in Philly – or Not?

I’ll tell ya – I was in Philadelphia last Friday night and was amazed by how lively and genuinely urban the Rittenhouse Square area is (especially in contrast to still-determinedly un-urban Washington, D.C.). But as it turns out, if I really wanted excitement, I would have gone to one of the Philly area’s factories – because according to the Philadelphia Federal Reserve’s new monthly survey of regional manufacturing activity, the area’s industry is having one of the biggest blowout months of all time.

Hidden story in US PPI increase

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The US core PPI surprised to the upside yesterday.

Source: Investing.com

Improved pricing power for US firms? Hardly. Did you ever have the feeling of being ripped off at the gas station when oil prices are falling while prices at the pump barely move? Well, it’s not just a feeling.

GS: – The headline PPI rose 0.2% in October (vs. consensus -0.1%). The surprise was entirely due to core prices, which rose 0.4% (vs. consensus +0.1%), while energy prices declined 3.0%. Within the core, the volatile trade services category—which measures retail and wholesale margins—rose 1.5%, adding three-tenths to the core. Drilling down further, a sizable part of the jump in trade services came from a huge 26% month-on-month increase in fuel retail margins (i.e., gasoline stations). While counterintuitive in light of the decline in energy prices on the month, the increase in this category reflects retail prices declining more slowly than wholesale prices. On balance, we would heavily discount this month’s report in light of the volatility in trade services. The core PPI according to the “old methodology”—finished goods less food and energy—increased a more modest 0.1%.

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Dogma and Denial

“Don’t Be Trapped by Dogma – Which is Living With the Results of Other People’s Thinking” -Steve Jobs There is a very strong and popular dogma out there that says, ‘you must own US stocks all the time no matter what.’ It’s really at the heart of the “buy and hold” mantra which is something […]

Deformations On The Dealer Lots: How The Fed’s ZIRP Is Fueling The Next Subprime Bust

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On any given day, Janet Yellen is busy squinting at 19 essentially meaningless labor market graphs on her “dashboard” looking for evidence that ZIRP is working. Well, after 71 months of zero money market rates—-an unprecedented financial absurdity—-there are plenty of footprints dotting the financial landscape. But they have nothing to do with sustainable jobs. Instead, ZIRP has fueled…