The End Of The Innocence
Unus pro omnibus, omnes pro uno –
Tradional Moo of Switzerland
O' beautiful, for spacious skiesBut now those skies are threateningThey're beating plowshares into swordsFor this tired old man that we elected kingArmchair warriors often failAnd we've been poisoned by these fairy talesThe lawyers clean up all detailsSince daddy had to lie –
Don Henley, The End Of The Innocence
"Then the great hour struck and every man showed himself in his true colours." –
Fyodor Dostoyevsky
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THINGS THAT MAKE YOU GO
Hmmm...
A walk around the fringes of nance
By Grant Williams
10 February 2014
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THINGS THAT MAKE YOU GO
Hmmm...
10 February 2014
Contents
Greek-Swiss Tax Deal Remains Elusive .............................................................19Paul Singer's January Investment Letter (Extract) ...............................................20JPMorgan's Masters Said to Quit CFTC Panel After One Day ....................................21Why Global Water Shortages Pose Threat of Terror and War ...................................22German Court Defers to Draghi as Euro's Judge And Jury ................................ .......24Troubled Times: Developing Economies Hit a BRICs Wall ........................................25Why Is the Fed Tapering? ...................................................................... .......27Who Should Pay for Trusts That Go Bust? ..........................................................29How Many Criminals Have NSA's Phone Records Busted? Maybe One ..........................31
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THINGS THAT MAKE YOU GO
Hmmm...
10 February 2014
Things That Make You Go
Hmmm...
Take a long, hard look, Janet.The landscape over which you cast your eyes when you accepted the poisoned chalice prestigious role of Fed Chair changed last week — just two days before you
were conrmed in a rather lovely ceremony.
On January 30, in an interview in Mumbai, Raghuram Rajan (one-time Chief Economist at the IMF and current Governor of the Reserve Bank of India) rather
UN
ceremoniously dropped something of a bombshell that went largely unreported (perish the thought, in
this era of dogged journalism) but that most denitely
queers your pitch in a major way:
(Bloomberg): India central bank Governor Raghuram Rajan warned of a breakdown in global policy coordination after the Federal Reserve further cut stimulus, weakening emerging-market currencies from the rupee to the Turkish lira.Rajan, a former chief economist at the International Monetary Fund, called for greater
cooperation among policy makers weeks before nance chiefs from the world's top developed and emerging markets gather in Sydney. The Fed's Jan. 29 statement made
no mention of developing economies. "International monetary cooperation has broken down," Rajan, 50, said yesterday in an interview in Mumbai with Bloomberg TV India, noting how emerging markets helped pull the global economy out of crisis starting in
late 2008. "Industrial countries have to play a part in restoring that, and they can't at this point wash their hands off and say we'll do what we need to and you do the
adjustment."
Now this is going to be a problem, Janet.Potentially, a BIG one.
The standout feature of central bank policy over the last ve years has been the spirit of
cooperation amongst the men ("And women!" — Sorry, Janet, "and women") in charge of the world's central banks.Whilst this spirit of cooperation has been somewhat unwilling in a few cases (yes, Glenn, I'm
talking about you), it has been vital to establish a unied message that would give investors the
sense that these guys ("And girls!" — Sorry, Janet, "and girls") were talking (a) to each other and (b) to us from a common perspective, that perspective being low rates and free money forever.Then came The Taper.
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