Archive | May, 2004

The Blessings of Deflation in Japan

We have all heard how deflation is supposed to prevent growth and create a economic depression. Yet for the latest 2 quarters Japan has outperformed the US not to mention the UK and the Euro zone with a growth rate of more than 6% at an annual rate compared to 4% in the US and […]

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COMEX gold ends up on bombings, weak dollar

NEW YORK, May 17 (Reuters) – Safe-haven buying lifted COMEX gold on Monday after bombings in Iraq and Turkey shook the dollar, but profit-taking cut gold’s gain after news a weapon containing the nerve agent Sarin was found in Iraq. June gold closed up $2.50 at $379.60 an ounce, backing off the top of its […]

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Inflation Appears to Be Returning

By Jeannine Aversa, Associated Press Writer WASHINGTON – Inflation appears to be stirring from its hibernation. Consumer prices are advancing in the first four months of this year at a pace twice as fast as the increase for all of 2003. That in turn is increasing chances that the Federal Reserve will boost interest rates […]

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Commodity stocks dive on rate fears

Anthony Tran and Gladys Tang With Chinese inflation rising at the fastest pace in seven years, commodity stock prices began to fall sharply yesterday amid concerns that Beijing would take measures to seriously slow down the economy. Investors are increasingly worried that if China – now the world’s largest consumer of many raw materials – […]

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The Threat of Rising Interest Rates

By: Gary North, Mises on Money Gold is down. Stocks are down. Bonds are down. What’s going on here? Worries about interest rates are blamed by most commentators. But why should worries over interest rates push all three markets lower? These markets are usually thought to move independently or even conversely to each other. What […]

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CFTC Proposes Changes To Trade Reporting Rules

The Commodity Futures Trading Commission is proposing to raise the reporting levels at which futures commission merchants, clearing members and foreign brokers must file large-trader reports in certain commodities. In addition, the CFTC is proposing changes in the way certain new products, such as exchanges of futures for swaps, and how should be reported under […]

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Banker rejects inflation analysis

By Andrew Balls in Washington Anthony Santomero, the president of the Federal Reserve Bank of Philadelphia, yesterday rejected warnings that rising commodity prices were a significant threat to US inflation, while inflation expectations in the US remained controlled. “For commodity prices to increase the rate of inflation on asustained basis, they would have to rise […]

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Ethanol achieves commodity status

Once considered an expensive, experimental additive to make gasoline burn cleaner and more efficiently, it has become a staple like soybeans, eggs and pork bellies. So much so, that the New York Board of Trade introduced a futures contract for sugar-derived ethanol Friday and will introduce an options contract today. The Chicago Board of Trade […]

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Commodities’ surge raises prospect of bull market

By Elizabeth Wine in New York As commodities continue to surge, with the price of oil hitting a fresh 13-year high last week and metals still near long-term peaks, many investors are beginning to believe the asset class is in the early stages of an enduring bull market. That means large blocks of money are […]

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