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Germany's unspoken plan: A smaller euro zone – The Globe and Mail If Germany insists that investors in sovereign euro zone bonds share the pain in the future, why would these investors buy such risky bonds? Why lend to Greece, Ireland or Portugal when those sovereigns come back to the market in 2013, begging for … Read more

U.S. dollar once again at an all-time low (as measured by the Real Broad Dollar Index) – Calafia Beach Pundit This chart is arguably the best measure of the dollar's value relative to other currencies. It compares the dollar to a large basket of trade-weighted currencies, and it is adjusted for relative inflation differentials. This … Read more

German Finance Minister attacks Fed move again : report | Reuters German Finance Minister Wolfgang Schaeuble renewed his criticism of the U.S. Federal Reserve's move to buy $600 billion worth of government bonds, saying it undermined U.S. credibility and created uncertainty, according to a German magazine. (tags: monetary_policy Germany Federal_Reserve quantiative_easing)

Ben S. Bernanke – What the Fed did and why: supporting the recovery and sustaining price stability While they have been used successfully in the United States and elsewhere, purchases of longer-term securities are a less familiar monetary policy tool than cutting short-term interest rates. That is one reason the FOMC has been cautious, balancing … Read more

A Few Election Thoughts – Early Warning What I see happening is this: the public is aware, rather inchoately, that things are going badly wrong and that the life they are accustomed to is under threat, but they have no idea what to do. The parties, by and large, have failed to diagnose the roots … Read more