Archive - Sep 2010 - Blog entry

For centuries, the relationship between China and Japan may be best described as tense to turbulent with two Sino-Japanese wars all within the last century or so. However, the fuse was lit again this month when Japan seized a Chinese fishing boat near a disputed border. The Third Sino-Japanese War could be brewing, but with brand new battle formation this time around.

Has the outcome of Japanese elections signaled the end of the great bull markets in the yen and the JGB?

My thoughts on last week's action.

Many of America's largest pension funds are sticking to expectations of fat returns on their investments even after a decade of paltry gains, which could leave U.S. retirement plans facing an even deeper funding hole and taxpayers on the hook for huge additional contributions.

This is the final part of two parts of "The Economics of Mass Destruction." I examine the fallout of globalization of bad economics. At the end there is a link to a PDF of the entire article that you may download.

A couple of weeks ago, U2 performed in front of more than 100,000 fans at the Olympic stadium in Athens. Listen to Bono's comments on the Greek economy...

After much speculation and many flying rumors, Japanese government stepped in and intervened--sell yen, buy dollar--for the first time in six years. But the bigger question is whether this would achieve the ultimate goal--pushing export and domestic price levels high enough to help fight deflation--which has plagued the country for a decade.

“Dr. Copper”, the only commodity with a PhD in economics, is predicting a decent economic recovery. While demand for American home construction remains in the basement, demand from China is surging, whose own construction industry remains on a tear. Global production has fallen 12% during the first half of this year. The new “monetization” of the red metal. Stashing copper bars in warehouses around the country, expecting the red metal to hit $6/pound within the next three years. (JJC), (DBB), (ECH), (FCX).

Roundup of current events ...

Graham’s note: the following is an excerpt from my latest issue of The Phoenix World Views Digest, my monthly newsletter devoted to dissecting how the socio-economic-political structures of the world REALLY work.

Spot gold Tuesday hit a record $1,274.75 an ounce,drifted lower on Wednesday partly weighed down by fresh comments from billionaire financier George Soros that gold is the ''ultimate bubble,' and that "this is a period of great uncertainty so nothing is very safe."

A buddy of mine in Athens is a lot less optimistic on Greece's economic prospects...

Other than that, its a totally level playing field ...

What are the drivers of the recent heat-up in M&A activity in the past few weeks? A healthy prospect of the Global Economy? Cash burning holes in CEOs’ pockets? Valuation for the acquisition targets is compelling?