Daily Archives: April 18, 2013

Harvard Economist: ‘No Doubt, Pensions Are Screwed’

"Der Spiegel interviews Harvard economist Carmen Reinhart who has the novel idea that central banks are acting like the 'adults' in the room by cleaning up after spendthrift governments. 'Governments are incapable of reducing their debts and now central banks are stepping in.' Perhaps this argument sounds reasonable to a Martian that has not been following exactly what central banks have been doing and continue to do, but last time we looked we weren't Martian. The idea that monopoly central bankers are 'responsible' and politicians are not seems a spurious question, in our humble view. A pox on both their houses." Continue reading →

Continue ReadingHarvard Economist: ‘No Doubt, Pensions Are Screwed’

As Gold Declines Will Stocks Fly?

"We often write of directed history, the idea that powerful forces create conditions for the policies that they want to implement. When it comes to money metals, the idea would be to drive down metals prices while simultaneously affirming that these same metals are simply not a good investment. They are barbarous and whatnot. At the same time as precious metals prices are falling, stock indexes are rising – presumably at least in part because of the pump priming by central banks that are printing great gouts of money. Some of this money gets stuck in bank coffers but a fair amount is obviously finding its way into various stock markets." Continue reading →

Continue ReadingAs Gold Declines Will Stocks Fly?

Number of Chinese becoming US citizens declines

"The number of Chinese who became US citizens has declined annually over the last five years to 31,868 in 2012 from 40,017 in 2008, according to the US Department of Homeland Security. Tao Lin, a New York-based immigration law expert, said naturalization for Chinese appears to be changing. 'It's not like the old-fashioned way when Chinese immigrants would come to the US, gain their citizenship, stay and assimilate to US culture,' said Lin, managing attorney of T. Lin & Associates. 'You're seeing more Chinese people returning to China.'" Continue reading →

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US banker proud to become Chinese national

"The rise of China has not only transformed the global landscape of the financial industry, but it has also changed an American banker’s nationality. Some in Hong Kong’s financial community were surprised by an e-mail from one of the most veteran investment bankers in the city on Tuesday night. Marshall Nicholson, a managing director in charge of investment banking in Hong Kong for China International Capital Corporation (CICC) told his colleagues and friends that he had officially renounced his United States citizenship and would soon receive a HKSAR passport. Nicholson, whose wife is a Hongkonger, first came to the city about 11 years ago." Continue reading →

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China Builds Great Central Bankers?

"Around the world, Western-style monetary recipes are failing. But this article attempts to convince us that the Chinese have somehow managed to implement miraculous growth using ingredients that are notably dysfunctional elsewhere. How is that possible? We would submit it is not. What is going on is a kind of campaign to convince people that as capital and power flow east, such a reality is reasonable and inevitable. Seen from this standpoint, the profile of this Chinese central banking genius – and it drones on and on – is part and parcel of a larger attempt at explaining the inexplicable." Continue reading →

Continue ReadingChina Builds Great Central Bankers?