Commodities Forex News & Analysis

In the End, Germany, not Greece, Will Be the Loser

Germany is using its size and wealth to compel its Eurozone partners to take a hard line toward Greece but in the end, Germany has much to lose by forcing the Aegean nation to choose between more austerity and dumping the euro. Merkel’s government has cultivated the notions that the Greek government is run by […]

The Greeks Should Vote No!

Sunday, Greeks should vote No! Hellenic voters are being asked whether they accept the terms offered by the European Union, European Central Bank and International Monetary Fund to extend the bailout for Athens’ troubled finances or give Prime Minister Tsipras a mandate to insist on a better deal. Those conditions include more cuts in government […]

Steady Jobs Growth, Fed Likely to Raise Interest Rates

Thursday, the Labor Department is expected to report the economy added 230,000 jobs in June. Hardly robust-monthly gains averaged 260,000 in 2014-but good enough to push the Federal Reserve to raise interest rates soon. Economists expect stronger consumer spending, housing activity and business construction to boost GDP growth to nearly 3 percent by the second […]

The Sooner Greece Defaults and Dumps the Euro the Better

Greece and its principal creditors-the European Union, European Central Bank and International Monetary Fund-should acknowledge that Athens will never be able to repay the €131 billion it owes, write down its debt and let the Aegean nation exit the euro gracefully. Greece and the Troika are desperately trying to patch together another round of tax […]

Why Greece Must Default or Restructure Its Debt

Greece will never be able to pay all its owes and the sooner its principal creditors-the European Union, European Central Bank and International Monetary-face reality, the better for everyone. The Troika is demanding more austerity-cuts in government spending, higher taxes and labor market reforms-to release another tranche of bailout funds. Without it, Greece can’t pay […]

Globalization Curbs Fed’s Impact on Economy, Stock Prices

Federal Reserve policymakers meet Tuesday and Wednesday, and markets are looking for clues about when Chairwoman Yellen will raise short term interest rates. However, globalization makes that decision far less important for the economy and stock prices than in years past. The Fed has good reason to want higher rates. Rock bottom interest rates make […]

Obama’s Asian Trade Deal Sells Out American Workers

Congress should not grant President Obama authority to conclude another free trade agreement in Asia, because it would lower American wages and exacerbate income inequality. The Trans-Pacific Partnership would eliminate tariffs and lower other regulatory barriers to trade and investment among the United States, South Korea, Japan and nine other Pacific Rim nations. If successful, […]

Strong Dollar, Skills Shortage to Slow Jobs Growth

Shaking off a severe winter and West Coast port strike, the Labor Department is expected to report the economy added 220,000 jobs in May. That’s well below the 269,000 monthly average for 2104, and a strong dollar, revived productivity growth and shortage of qualified workers will slow jobs creation going forward. First quarter GDP contracted […]

Hedge Funds Forcing Corporations to Pay Shareholders Are Good for the Economy

Activist investors and institutional shareholders are increasingly forcing publicly held companies to return more cash to shareholders-that’s good for the economy. According an S&P Capital IQ study, S&P 500 firms returned about 36 percent of operating cash flow to investors through dividends and share repurchases in 2013, up from 18 percent a decade earlier. Critics […]

Fed’s Tough Journey to Higher Interest Rates

The Federal Reserve is on track to raise interest rates later this year. Chairwoman Yellen has good reasons to push ahead, but she may not get very far in her quest to “normalize” rates. Inflation is heating up. Thanks to falling oil prices through January, consumer prices are down 0.2 percent from a year ago […]

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