Archive - Jan 16, 2013 - Blog entry

The real problem is that nobody ever planned for the US to be producing 7 million barrels of oil every day and rising, there is just not enough demand in the world for this extra oil.

Worth it's weight in tungsten gold...

The Winners of the Academy Award and Golden Globe Are ... Government Propagandists

Something has to give....

Germany is now openly telling the Fed that it is done playing around. This will have severe consequences in the financial system.

Count on technology to bring the world into a new Oil [and Gas] Renaissance.

Today there is just soot and and no hope.

After relatively large moves in the foreign exchange market since nearly the start of the year, participants were particularly vulnerable to commentary that encouraged a reversal of trend. Japan's Amari got the ball rolling, suggesting that the yen's decline has been sufficient and that excessive strength had been corrected. This encouraged a bout of short-covering and took some shine off the other major currencies as cross positions were unwound.

Then Juncker's comments hit in the North American afternoon yesterday, claiming that the euro's exchange rate was dangerously high. Again the market's reaction was more about positioning than about the policy signal. Part of the demand, after all, for the euro has been coming from some of the largest asset managers returning to the Spanish and Italian bond markets, believing that the Open Market Transaction scheme is indeed a viable backstop.