In my early adult walkabout
in Europe, my wife and I visited a fois gras farm outside Bordeaux. Having slaughtered livestock in my past
(infrequently) I was not in the least bit squeamish around working farms where animals are commodities. Nevertheless I
was struck by the image â€“ hanging from the ceiling in the barn were large
containers of feed connected to funnels which had leather straps fastened to
the heads of geese with broken bills in a several times a day session of forced
feeding with one goal in mindâ€¦bloating the liver of the geese.
Yes I still eat fois gras
and confit, though admittedly less so in the last year, and I am glad that
places like Chicago have overturned bans on this delicacy.
And I hold nothing against the lovely French family that showed us their
fois gras farm with joy and pride. It was the best fois gras I ever
tastedâ€¦we were invited into their house and served the exquisite food.
But the image of that day in
the barn in the French countryside stuck and it again comes to mind as a visual
in light of the discussion over getting banks to lend and more importantly
households and firms to borrow for consumption and investment.
Context is everythingâ€¦firms
do not need bank loans to expand capacityâ€¦they need bank loans to tide them
over to better times or if they are overleveraged they really donâ€™t need loans
at any price other than ones for debt restructuring/consolidation.
Household balance sheets on balance are far worse. Cheap credit fuelled a
massive wave of consumption that borrowed from future consumption and needs to
revert to the mean. Firms and households are like the geese in that
French barnâ€¦they donâ€™t want or need any new debt to finance consumption.
They, like firms, need low cost loans to replace higher cost loans, taking the
difference to pay down debt and save, not spend.
Yes a functioning banking
system (and shadow bank system) is essential for any recovery to take
hold. But force feeding households and firms stuffed to the gills on a
decade of cheap credit and massive consumption by households and massive
investment by some firms is pushing on a string. No amount of wishing a
return of risk seeking behavior for households and firms is going to get the
bloated goose to eat more corn. A liquidity trap is all about no demand
for money in a world flush with money.
This is why the ideologues
on the right are misguided (and some on the left) when calling for tax cuts
over government spendingâ€¦a dollar of a tax cut in the current economic
environment (fiscal policy needs to be made in the context of the business
cycle not fixed rules and surely not supply side fantasies) is going to yield
< a dollar of spending and < a dollar for GDP. A dollar of government
spending is going to lead to a dollar of spending for GDP. When the
private sector is withdrawing from spending and investing in the dramatic
degree we are currently witnessing, the government can or cannot fill the
void. If it does not, the deflationary spiral that is assured will leave
GDP even more in the red and unemployment more in the black, making government
fiscal deficits even larger if $800bln is thrown into GDP (well in this bill a
lot less as it includes tax cuts when it should not have any tax cuts).
I am not opposed to tax cuts
(or tax hikes)â€¦they have their place and timeâ€¦just not now. There are
appropriate times to starve government with tax cutsâ€¦just not now.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
POTENTIAL PRICE RISK: HIGH to Medium- Wed --14:15 GMT-- US- Industrial Production
POTENTIAL PRICE RISK: HIGH- Wed -- 15:00 GMT-- CA- Bank Of Canada Decision
John M. Bland, MBA co-founding Partner, Global-View.com
Max McKegg's Daily Forex Trading Forecasts
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.