DAX Index Declines for Second Day as Commerzbank, Deutsche Bank Retreat Nov 21, 2009
Trichet said today the ECB will remove liquidity in order to ensure it doesnt fuel inflation. Not all our liquidity measures will be needed to the same extent as in the past, Trichet said at a conference in Frankfurt today. (Bloomberg -- Germany)
MIG: Actively looking to refinance Nov 21, 2009
The 407 is considered a very valuable asset because unlike Australian toll roads, price increases are not limited to inflation and the like. The 407 is allowed to raise the toll above inflation as long as the traffic growth exceeds 1 per cent a year, and there are 90 years remaining on the concession. (Sydney Morning Herald -- Business)
Healing Chile's Malaise Nov 21, 2009
The economy has been one of the world's fastest-growing, inflation is a distant memory, the poverty level has fallen to 13% from 45%, and per capita gross domestic product has quadrupled, to $10,100. Yet like Garcia, many Chileans feel a certain malaise. (BusinessWeek)
OUR VIEW: For some, county pay raise looks good Nov 21, 2009
Because the county is under the Property Tax Extension Limitation Law, property tax revenue can only increase by last year s rate of inflation, which was 1/10th of 1 percent. Board member Mike Weaver, who chairs the finance committee that prepared the budget, told the board that the present rate of inflation is actually below zero. (Mattoon Journal-Gazette, IL)
ECB slows emergency cash support Nov 21, 2009
The European Central Bank (ECB) will scale back its liquidity measures for fear of fuelling inflation ... Its annual inflation rate is currently 0 ... Back in June, eurozone inflation turned negative for the first time, falling to -0. (BBC News -- Business)
OECD Warns of 'Jobless Recovery' Nov 21, 2009
"Very low mortgage interest payments and moderate inflation are boosting the purchasing power of a good many people, thereby giving them scope to step up their discretionary spending," said Howard Archer, the chief UK economist at IHS Global. "It may also well be the case that a large number of people are determined to splash out and really enjoy Christmas after enduring a very difficult year.". (BusinessWeek)
Stocks Slip on Dell Earnings Nov 21, 2009
While officials have not expressed concern over a weak dollar, traders fear a future inflation outbreak due to huge government debt, says S. December gold futures, which fell at the outset Friday as the dollar index rose, were up $6. (BusinessWeek)
Europe: Drop some financial system crutches Nov 21, 2009
He said the ECB would soon be pulling some of its liquidity-providing "extraordinary measures" to ensure they don't cause an inflation threat. The ECB is expected to provide details on how the programs will be scaled back at its Dec. 3 meeting. (MSNBC -- Business)
In India, you're in gold's own country Nov 21, 2009
The fact that gold has traditionally been considered a hedge against inflation and a depreciating dollar too has fuelled its demand. It is estimated that about 15,000 tonnes of gold is privately held in India, more than twenty-five times as large as the official hoard of 558 tonnes after the RBI's recent purchase of 200 tonnes from the International Monetary Fund (IMF). (India Times, India -- Intl Business)
The deficit problem: Dealing with America's fiscal hole Nov 21, 2009
No one disputed that an ageing population and health-care inflation could bust the budget, but that prospect was decades away and procrastination seemed painless ... Worries about inflation or default could start to push up interest rates ... The Federal Reserve provides a model: it does not plan to tighten monetary policy in the near future, but has signalled its willingness to do so when inflation threatens. (The Economist)
Dollar Strengthens as Equities Drop, Investors Buy Short-Term Treasuries Nov 21, 2009
25 percent for an extended period and specified for the first time that policy will stay unchanged as long as inflation expectations are stable and unemployment fails to decline. The minutes are due Nov. 24. (Bloomberg -- US)
Colombia Peso Bond Yields Fall to Three-Year Low on Interest Rate Outlook Nov 21, 2009
The for a basket of the countrys 10-year peso bonds in inflation-linked currency units, called unidades de fomento, rose two basis points to 3 ... The yield on the countrys inflation- linked peso bonds due in 2033 rose six basis points to 10. (Bloomberg -- Latin America)
Different ways to invest in gold Nov 21, 2009
For centuries gold has been the ultimate cushion against the dangers of stocks price falls, fluctuating rate changes, inflation, rising/falling real estate prices, natural calamities, wars and more ... However, if we look at the past 15-20 years record, it is seen that Gold is a hedge against inflation. (India Times)
U.K. Shares Decline for Fourth Day on Concern Economy to Falter; Tui Drops Nov 21, 2009
Stocks in the region declined today as European Central Bank President said the bank will gradually withdraw the emergency cash it has pumped into the economy in order to ensure it doesnt fuel inflation. Underweight. (Bloomberg -- UK)
Japan's Latest Economic Ailment: Deflation Nov 21, 2009
While much of the rest of the planet frets about a coming rise in inflation a consequence of economic recovery, massive stimulus spending and a weakening dollar Japan faces the opposite problem: a potentially devastating bout of deflation ... While a little inflation is considered normal and healthy for growing economies, a prolonged deflationary period is a recipe for economic misery. (Time.com)
U.S. Two-Year Treasury Yields Fall to Lowest This Year on Refuge Buying Nov 21, 2009
At that time, Fed officials also specified for the first time that policy will stay unchanged as long as inflation expectations are stable and unemployment fails to decline ... The emphasis on low inflation and economic slack solidifies the message once again that the Feds dovish stance of a lower-for-longer policy with respect to rates is here to stay, said , chief technical strategist in New York at primary dealer Jefferies Group Inc. ... The difference between rates on 10-year notes and... (Bloomberg -- US)
German Government Bonds Set for Weekly Gain on View Stocks Rally May Stall Nov 21, 2009
Inflation Expectations ... The gauge of inflation expectations, as measured by the difference in yield between regular and index-linked debt, was at 1 ... The rate, which reflects the inflation level traders expect during the life of the security, was as low as 1. (Bloomberg -- Germany)
The other D-word Nov 21, 2009
On Thursday, the OECD issued a strong injunction to the BoJ to fight deflation by committing to keep interest rates low and implementing quantitative-easing measures until inflation turns firmly positive ... But much of that was spurred by public spending; domestic demand was still weak and the domestic-demand deflator (a measure of inflation excluding effects related to import and export prices) was at its lowest level in more than 50 years, according to Lombard Street Research, an economic... (The Economist)
EDF: Nuclear contamination Nov 21, 2009
The withering of the nuclear supply-chain over recent decades (there is only one supplier in the world for some components) and the sudden rush by multiple governments to spur construction are also sources of inflation. EDF has kept costs under control better than Areva, but it may still struggle to stick to the 4 billion budget it has set for the EPR it is building at Flamanville on France s northern coast (pictured). (The Economist)
5 comments Nov 21, 2009
But this only creates inflationary money expansion. The beleaguered U.S. dollar is in effect exporting U.S. inflation overseas. (Human Events Online)
Government Option in Health Already a Miserable Failure Nov 21, 2009
Government reimbursements also trail inflation ... This is barely half the $770 needed to equal inflation. (Human Events Online)
College grads: Home for the holidays and beyond Nov 21, 2009
Let s not forget that entry-level jobs pay LESS, NOT adjusted for inflation, than they did even 10 years ago. I am 28 with a Masters degree, and very few prospects. (Atlanta Journal-Constitution -- Living)
Stemming the tide Nov 21, 2009
Third, benefits could be linked to an inflation index with less upward bias than the one now used ... Switching Medicaid to a block grant, indexed to inflation and population, and requiring wealthy states to pay most of their share, would encourage states to control costs ... Thereafter, they would grow only slightly faster than inflation. (The Economist)
Govt set to reimpose ECB rate cap Nov 21, 2009
Large capital inflows and asset price inflation have the potential to feed on each other ... Dollar flow increases supply of rupee funds, which are then mopped up through bonds to keep high liquidity from causing inflation. (India Times)
2010 Budget lacks sense of urgency - CPP Nov 21, 2009
He said there was "no single digit inflation, no reduction of budget deficit to sustainable levels, no improvement in the foreign exchange regime," he said. Mr. Nylander observed that when the NDC presented its first budget on March 5, 2009, government proposed reduction in the estimated 2008 end of year budget deficit of 14. (Ghana Web, Ghana)
Pime rate reduced to 18 per cent Nov 21, 2009
"The monetary and fiscal policy framework is working and gradually placing the economy back on a path of disinflation," Mr. Kwesi B. Amissah-Arthur, Chairman of MPC, told a press conference after a meeting in Accra. "There are signs of stabilisation in prices and the foreign exchange market. Inflation is trending downwards and consumer price inflation has recorded four consecutive declines while core inflation is also on the decline," he said ... The MPC reviewed the macro-economic situation... (Ghana Web, Ghana)
Make your family's education as debt-free as possible Nov 21, 2009
Consider the impact of inflation. College prices today are not going to be the same as they will be in the year 2027, when children born in 2009 will likely begin their freshman year. (Lake City Reporter, FL)
Brazil `Buy' Ratings Sink to Record Low as Mobius Sees Commodity-Led Gains Nov 20, 2009
Annual inflation tumbled from a peak of 17. 2 percent in May 2003 to 4. (Bloomberg -- Latin America)
Click to read:14 Percent of U.S. Homeowners In Peril Nov 20, 2009
14 Percent of U.S. Homeowners In Peril - CBS News. WASHINGTON, Nov. 19, 2009. (CBS News)
Is the Fed Creating New Bubbles? Nov 20, 2009
Treasury bonds don't seem overpriced given today's subdued inflation, and junk bonds are fetching normal premiums over Treasuries ... Yes, gold at more than $1,000 an ounce does reflect fear among some investors about a resurgence of inflation, but the inflation expectations of the bond market and the public remain contained. (BusinessWeek)
Regents committee recommends UC fee hikes Nov 20, 2009
UC expects the fee hikes to generate more than half a billion dollars for the university, which UC officials said was needed to close this year's funding gap of $535 million - largely the result of reduced state funding and inflation. Much of the new revenue from the higher fees will be used for financial aid - a third of the increase on undergraduates and professional degree students, and half of the money generated by higher graduate fees. (San Francisco Chronicle)
Anger at Obama roils hearings on banking bills Nov 20, 2009
Federal officials and many private economists worry that the amendment could make future policy makers more reluctant to take unpopular steps to prevent inflation or support the economy in the long term for fear of second-guessing by Congress. The House Financial Services Committee had been set to vote to send the final piece of its financial regulatory overhaul package to the House floor after months of debate. (Boston Globe)
Press Release: Statement by an IMF Mission to Mali Nov 20, 2009
3 percent in 2009 and annual inflation should be reduced sharply to below 2 percent at year-end ... 8 percent, with annual inflation remaining at low levels. (IMF News)
Top Eurobank prepares for 'global economic collapse'... Nov 20, 2009
If you're worried about inflation and have modest savings (as most of us do), buy Index-Linked Savings certificates (you can buy ;15,000 worth of each issue) ... Inflation has got to come on in a big way eventually, if for no other reason than to erase the debt ... Land, guns, and ammo (all of which I can imagine BHO and Co. trying to take away to some degree), and I'd go into massive (fixed rate) debt to finance it if I were sure enough about my future cash flows to service it (on the... (The Drudge Report)
Japan says deflation has returned Nov 20, 2009
Deflation is, as it sounds, the opposite of inflation, meaning that the general level of prices in a country are falling. Declining prices might sound like good news for consumers, but in fact this is bad for everyone. (BBC News -- Asia-Pacific)
Sub-Saharan Africa: Challenges for 2010, Remarks by Ms. Antoinette Sayeh, Director, African Department of the International Monetary Fund Nov 20, 2009
Moderate or low levels of inflation, and macroeconomic stability accompanied the growth takeoff in most countries ... Inflation had been brought under control across most of the region ... Inflation risks have remained subdued, allowing many countries to ease monetary policy. (IMF News)
Silver price soars on heavy demand, high hopes for gains Nov 20, 2009
Gold and silver often move roughly in tandem, prompted by fears of inflation and the lower value of the U.S. dollar on the currency markets. Heavy demand. (USA Today -- Money)
Fed Sees Little Risk of Inflation in Weak Economy Nov 20, 2009
WASHINGTON/PARIS (Reuters) - Senior U.S. Federal Reserve officials said on Thursday inflation is not an immediate threat as a weak economic recovery and a grim outlook for jobs keep price pressures in check ... Plosser, one of the Fed's biggest anti-inflation hawks, said after a speech in Singapore the ailing commercial real estate market remains a problem as falling prices threaten small and medium-sized U.S. banks ... While inflation is not a threat for now, the United States will have to look... (ABC News -- Wire)
Transcript of a press briefing by Caroline Atkinson, Director of External Relations Department, IMF Nov 20, 2009
We need to have a full consensus behind a sustainable budget position that will avoid inflation or any increase in unemployment. ONLINE QUESTION: The Managing Director reportedly said in China that the world can no longer rely on a currency issued by a single country and a new global currency might evolve out of the Special Drawing Rights. (IMF News)
Letters to the Editor Nov 20, 2009
I think that these bills will kill the small businessman and toss us into inflation which will make the Carter-created inflation look like a little boo boo. I am not alone in this belief and our collective voices will become a choir come re-election time. (Rio Rancho Observer, NM)
60% Taiwan youth consider suicide Nov 20, 2009
Following years of inflation and income stagnation that had put pressure on common families, Taiwan unemployment surged to record levels earlier in the year as the export-reliant economy went into recession. As many as 4,400 people commit suicide per year, government statistics say. (People's Daily Online, China)
US at a crossroads Nov 20, 2009
He has charted a course of massive liquidity injections, financed by hitherto unimaginable levels of monetary inflation ... The whole world awaits the decision, which could indicate a wild inflation, a major recession or the worst of both ... On the other hand, if the government continues to run the printing presses, as seems far more likely, hyperinflation will become a distinct possibility. (Asia Times Online)
Press Release: IMF Mission Reaches Staff-Level Agreement on Third Review Under Stand-By Arrangement with Belarus Nov 20, 2009
Prudent fiscal and monetary policies would narrow the current account deficit and bring inflation to single digits. Monetary policy would continue to support the credibility of the exchange rate regime. (IMF News)
Goldman Sach's Shareholders Seethe Nov 20, 2009
Ron Paul of Texas, comes despite fierce opposition from the Fed itself which fears such a move "would undermine the central banks political independence and gravely threaten its credibility as a bulwark against inflation." Another House Republican from Texas, Rep. Kevin Brady, meanwhile, took aim at Timothy Geithner, yesterday. (Slate)
Builders’ fears hinder recovery Nov 20, 2009
Core inflation, which excludes energy and food, rose 0 ... Together, new- and used-car prices accounted for 90 percent of the increase in core inflation last month, government analysts said. (Atlanta Journal-Constitution -- Business)
Weak home building a drag on economy Nov 20, 2009
The tepid recovery is also holding down inflation ... And inflation is expected to stay subdued ... Core inflation, which excludes energy and food, rose 0. (San Francisco Chronicle -- Business)
What is deflation? Nov 20, 2009
"Deflation is, as it sounds, the opposite of inflation," said economist Diane Coyle on BBC World Services' Analysis programme ... "Then that creates more deflation, more job losses and so on. "The reason why economists also worry about deflation is because it's much harder to combat than inflation ... "If inflation rises there's no limit to how far you can raise interest rates, with deflation there is a limit to how far you can cut interest rates," he added. (BBC News -- Business)
Gold prices draw customers with old teeth Nov 20, 2009
"People throughout the world are using gold as a hedge against inflation and the falling dollar," said Henry Kornegay, a commodities broker who owns Jackson Commodities in Billings. "It's an asset that has never been at zero," Kornegay said. (Montana Standard, MT)
California's Suicide Nov 20, 2009
A general rule of thumb says states should increase spending no faster than the rate of growth in population plus inflation. Over the same period, California's population plus inflation grew just 4. (Investors Business Daily)
Trader Vic Says Buy Gold, Aussie Dollar Nov 20, 2009
"Gold is a hedge against inflation and a hedge against chaos," he said ... "The junior miners can provide exposure to early-stage ventures and something ... 11/11/2009 05:41 PM ET ETFs rallied across the board on news that the Group of 20 countries will keep stimulus measures in place, and the greenback resumed its slide, boosting commodities. Market Vectors Coal ETF (KOL) was among Monday's top-performing sector ETFs. It gapped up 5% in above-average trade to 34.20. It ... 11/09/2009 07:19 PM... (Investors Business Daily)
Gold set to hit new high on inflation hedge Nov 20, 2009
LONDON: Gold is poised to hit new highs this year and next after rising to record levels in November as investors looking for an inflation hedge pile into the metal, Baring Asset Management told Reuters on Thursday ... 75 an ounce on Wednesday, were consistent with inflation heading higher ... Inflation expectations as measured by an analysis of the bond market have risen throughout the year, he said. (India Times)
The rising price of university presidents Nov 20, 2009
Over the previous five years, the median presidential pay, adjusted for inflation, grew by 14 percent. To explain the nationwide increase in college presidents pay and compensation, Wrighton said that presidents salaries reflect the increasingly demanding and complex nature of their jobs. (Washington University Student Life, MO)
Canada Wholesale Sales Increase Less Than Forecast as Auto Sales Decline Nov 20, 2009
25 percent through June 2010 because of weak growth, unless the inflation outlook shifts. This month was disappointing, , an economist with TD Securities in Toronto, said in an interview. (Bloomberg -- Canada)
Moody's: Brazil's GDP to grow 4.5% in 2010 Nov 20, 2009
Moody's also noted that Brazil's inflation rate has so far remained below the 4. 5 percent target set by the central bank for this year, and that the recently-established Tax over Financial Operations (IOF) over foreign investments did not stop capital from entering Brazil. (Xinhuanet, China)
EU economy out of recession, but recovery slow Nov 20, 2009
Exiting too late would increase the risks of inflation and soaring government debt, posing new dangers for long-term economic growth. Special Report. (Xinhuanet, China)
Danquah Institute on 2010 Budget Nov 20, 2009
Real GDP is inflation adjusted GDP, when inflation is taken away from GDP. ... But, with this year's spending programmes enduring a 12 percent shortfall, it is difficult to predict how this increase will be met and how its real value will affected by inflation and exchange rate movements, in spite of Government targeting an annual average inflation rate of 10 ... "This government has, unfortunately, continued with the old NDC habit of setting targets and missing them with impunity. It's... (Ghana Web, Ghana)
Rage at UC fee hike in L.A., Berkeley protests Nov 20, 2009
UC President Mark Yudof had recommended the undergraduate and graduate fee increases to help close a budget gap of $535 million this year - largely the result of reduced state funding and inflation. Yudof said UC has lost more than $1 billion in state funding since last year, leading the university to lay off some 2,000 employees, reduce faculty pay through furloughs and cut course offerings to students. (San Francisco Chronicle)
OUR VIEW: For some, county pay raise looks good Nov 20, 2009
Because the county is under the Property Tax Extension Limitation Law, property tax revenue can only increase by last year s rate of inflation, which was 1/10th of 1 percent. Board member Mike Weaver, who chairs the finance committee that prepared the budget, told the board that the present rate of inflation is actually below zero. (Mattoon Journal-Gazette, IL)
Japan's Bonds Gain a Second Week on Outlook for Interest Rates, Deflation Nov 20, 2009
The between rates on five-year notes and inflation- linked debt, which reflects the outlook among traders for consumer prices over the term of the securities, was negative 0 ... Inflation-adjusted securities typically yield less than regular bonds because their principal payment increases at the same rate as inflation. (Bloomberg -- Japan)
Eskom: who is in charge and what are they doing? Nov 20, 2009
She would ensure the bank would "meet with people", signalling that their concerns about unemployment, growth and the using a blunt interest rate weapon to fight inflation would at least be canvassed. There was a murky exchange between her and Dennis Bloem, a former Correctional Services chairman who crossed from the ANC to Cope this year. (Business Report, South Africa)
SUNY Oswego president commends action on tuition plan Nov 20, 2009
This additional funding would help baccalaureate- and doctorate-granting campuses, including Oswego, to support state-mandated costs and inflation in 2010-11. For the complete story, pick up a copy of The Palladium-Times. (Oswego Palladium-Times, NY)
Australia, N.Z. Dollars Set for Weekly Loss on Signs Global Rebound Waning Nov 20, 2009
U.S. reports this week showed homebuilding in the worlds largest economy unexpectedly dropped in October and signaled inflation will be of little concern for the. Reduced risk appetite and the more cautious mood across global equity markets are expected to limit gains in growth- sensitive currencies like the Australian and New Zealand dollars, said , a currency strategist at Bank Of New Zealand Ltd. in Wellington. (Bloomberg -- Australia & New Zealand)
World economy gets back in shape - OECD Nov 20, 2009
The major issue "in many of these countries is now becoming one of withdrawal of stimulus so as to avoid igniting asset or general price inflation". The US economy will shrink by 2. (Business Report, South Africa)
Universities Record Drop In Black Admissions Nov 20, 2009
Federal Pell Grants to lower-income students have generally not kept pace with inflation. "Low-income students are generally the most risk averse to loans," said Dell Dunn, vice president for instruction at the University of Georgia, which enrolled 418 African American students this year, down from 521 last year. (Yahoo News -- Affirmative Action)
America's fiscal deficit: Stemming the tide Nov 20, 2009
Third, benefits could be linked to an inflation index with less upward bias than the one now used ... Switching Medicaid to a block grant, indexed to inflation and population, and requiring wealthy states to pay most of their share, would encourage states to control costs ... Thereafter, they would grow only slightly faster than inflation. (The Economist)
