Other articles

  1. Friday thoughts

    Gold and real rates

    I just saw this plot posted by David Finch. It’s very clear cut.

    XAU real rates


    I just feel that Covid has not changed the world so much that it no longer needs energy. I recognize that more electricity generation is going to come from wind and …

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  2. Velocity of money taking a dive, same as markets

    Velocity Drops Precipitously

    The mysterious “velocity of money” is just GDP divided by the amount of money, in consistent units. The following is created by looking at GDP and M2 (in real dollars). Velocity takes a dive before (and early during) recessions. Maybe this time will be different.

    Markets today …

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  3. Another day in paradise


    John Plender argues that central bank action will make treasuries and gilts (so called “safe assets”) less safe, in that it will increase the correlation of their prices with those of corresponding equities. It’s not Plender’s finest work, but it shows how inflation fears are being reported …

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  4. Something ain’t right with the market

    Inflation expectation out of line with nominal yields

    This is from the Market Ear. It shows how the TIPs market has different expectations of future inflation than the Treasury bond/note market. My money would be on the breakevens being right, if I had any.


    Seems as though terrible …

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