An already jittery market …

Overnight Chinese markets dropped some 7%, after news that Chinese manufacturing contracted for a 10th straight month.

Some analysts now suggest China – who reportedly contributes between 0.5% to 1% of global GDP – will now drive a global recession in starting in Q2 2016.

Ok, that has looked to me to be [...]

A sequester you say? America’s profligacy

With all the talk of sequester, I thought I’d take a closer look at the money. Not so much where it comes from – more on that later – but where it goes and how much is spent on what. The chart above shows that we as a nation are spending 63% more money [...]

America does export to China you know

I’ve previously written about the curious relationship between the United States and China, from the the point of view of trade as well as financing America’s excessive debt but in the light of new data had a little more to note on the subject of trade. From the American point of view, the chart [...]

About The VIX

VIX and widening divergence between Dow Industrials and Dow Transports

I’ve previously posted about The VIX so won’t go into details here, but we’re starting to see it bounce off lows which is somewhat concerning.

The top chart shows The VIX since 2008, and the index has clearly retreated from it’s 2008 record [...]

So the US won’t call China a currency manipulator?

Twice a year The Treasury Department reports to Congress about the currency policies of America’s trading partners. Treasury has “declined to brand China a manipulator of its exchange rate” but apparently still will continue to push for further appreciation of the Yuan.

The chart above shows the real problem. In Q3 2011 [...]

America and China’s curious relationship

The chart above shows monthly returns on The Shanghai Composite Index (black line) compared with US Imports from China (red line). The table below presents correlations of the two series, first month on month and then with increasing monthly lags i.e., one month lag, two month, etc. We can see that month on month [...]

About those BRIC nations …

This year seen a bloodbath in the equity markets, BRIC nations included.

Brazil, the Bovespa ($BVSP) down 21% YTD, Russia, the RTS ($RTSI) down 38% YTD, India, the Sensex ($BSE) down 20.5% YTD and China, Shanghai Composite Exchange ($SSEC) down 24.2% YTD.

Since the generally accepted definition of a bear market is [...]

European Bailout Fund Could ‘One Day’ Issue Bonds in Yuan, Regling Says – Bloomberg

Ok, issuing bonds in Yuan is one thing, most multinational corporations already issue in foreign currencies but including the Yuan in SDRs is something completely different. Besides, folks are getting tired of bailouts …