Tito's Blog

Random thoughts on entrepreneurship,
venture capital, private equity,
world finance and global economy

Archive

About
Tito+

Get Updates

Subscribe to RSS feed

Favorites
Slice of MIT, ZeroHedge, Baseline Scenario, Tito's News

Hello! You should follow me on twitter to keep in touch!

Follow @tito

Jun
12th

Sun

Interesting analysis of Fed excess reserves generated by QE2 flowing to foreign banks (via Exclusive: The Fed’s $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went | zero hedge)

Tags: economics finance fed excess reserves US dollar

7 notes Comments (View)

May
19th

Thu

deltahedge:

The History of the World’s “reserve” currency.

Tags: economics history reserve currency dollar pound uk US

Comments (View)

Apr
14th

Thu

This cost [of maintaining the dollar’s status as reserve currency] comes as a choice between rising unemployment and rising debt.

— Michael Pettis via FT.com / Comment - America must give up on the dollar

Tags: US dollar reserve currency government debt economics china

1 note Comments (View)

Dec
24th

Fri

And as a reminder, every $1 rise in oil reduces US GDP by $100 billion, just as every cent increase in gas prices lowers disposable income by $600 million.

— Crude Passes $91, As $100 Billion In US GDP Is Wiped Out In Minutes | zero hedge

Tags: oil commodity US dollar finance

Comments (View)

Nov
2nd

Tue

But then on the other hand, also just yesterday, Tyler Durden at Zero Hedge had a justifiable freak-out over the NY Fed asking Primary Dealers for their thoughts on the size of QE2. According to Bloomberg, the NY Fed was asking the dealers how big they thought QE2 would be, and how big they thought it ought be: $250 billion? $500 billion? A trillion? A trillion every six months? (Or as Tyler pointed out, $2 trillion for 2011.) That’s like asking a bunch of junkies how much smack they want for the upcoming year—half a kilo? A full kilo? Two kilos? What the hell you think the junkies are gonna say?

—

Warning: coming from hyperinflation preacher, worth a read nevertheless.

Gonzalo Lira: Signs Hyperinflation Is Arriving

Tags: inflation hyperinflation fed US dollar commodities

Comments (View)

Oct
27th

Wed

PIMCO vs FED

When the world biggest debt investor (PIMCO) calls the world biggest debtor (the US Government) Charles Ponzi, we are up for trouble …

See November investment outlook by Bill Gross: Run Turkey, Run.

Tags: pimco fed bill gross ponzi government debt US dollar

2 notes Comments (View)

Oct
17th

Sun

Basically the key has to lie in reducing the wealth imbalance which exists between the developed and the developing world, but this is likely to prove to be a rather painful adjustment process for citizens in the planet’s richer countries, so policy makers are somewhat relectuntant to accept its inevitability.

— An Unusual But Interesting Argument Which May Help To Understand Why QE2 Is Now Almost Inevitable | afoe | A Fistful of Euros | European Opinion

Tags: emerging markets economics US euro dollar yen japan europe germany global imbalances trade balance

Comments (View)

Oct
14th

Thu

China wants to impose a deflationary adjustment on the US, just as Germany is doing to Greece. This is not going to happen. Nor would it be in China’s interest if it did. As a creditor, it would enjoy an increase in the real value of its claims on the US. But US deflation would threaten a world slump.

— FT.com / Columnists / Martin Wolf - Why America is going to win the global currency battle

Tags: economics US China Germany Greece dollar trade balance foreign reserves

Comments (View)

Jul
4th

Sun

Guest Post: The Original Dollar Crisis And How It Led To Today's Crisis - Part 1 | zero hedge

Interesting history lesson: 1944-1971 from Bretton Woods to the Nixon Shock.

Tags: finance economics history dollar gold nixon bretton woods gold standard US france UK

Comments (View)