The BoE announced this month that it will be embarking on a new policy course of increasing the amount of money in the economy.  The economic jargon for this is ‘quantitative easing’, something most recently done by Japan in the 1990s, but also now adopted by America.
Monetary policy in the industrial world is focused on [...]

As the price of gold toys with $1000 oz again, voices from various corners in the market are dusting up old forecasts for the shiny metal to rise to untold biblical glory, $1500, $2000, maybe higher, definitely not lower.  The forecasts are not interesting, but the arguments are.  Those range from an outlook for accelerated [...]

As oil and grain prices have fallen substantially over recent weeks and inflation pressures have (potentially) fallen and in light of the fact that we are entrenched in truly dysfunctional markets 3D is of the belief that the landscape has changed enough to warrant a cut at next weeks MPC meeting by 50bps!
3D also believe [...]

The Euro continued to rise against the dollar last year and in the first quarter of 2008 because the big fall in the risk adjusted return on US assets made it even more difficult to attract the necessary capital to fund the $738bn US current account deficit. US official interest rates fell from 5.25% to [...]

“When it rains cats and dogs, it’s best to stay at home” – Bulgarian proverb
On March 3rd, we gave some thought to switching out of sterling and into Canadian dollars. In the end, we decided that the environment was way too risky and speculative to have an exposure that could easily lead to a loss. [...]

This week’s BoE interest rate decision won’t be an easy one to make. The doves on the MPC would point to the deterioration in the housing market and would draw parallels with the US economy where a deep and continuing housing market correction is spreading into the wider economy and could lead to a recession.
They [...]