Relevant and even prescient commentary on news, politics and the economy.

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What the Oil money is doing

…and foreign-currency reserves have risen by more than that amount just since July. The soaring price of oil has helped Russia increase the federal budget tenfold since 1999 while paying…

Is China quietly moving away from US treasuries?

…companies to convert a portion of their foreign earnings into Chinese currency, the government said Tuesday, in a move that could ease pressure on Beijing’s foreign exchange system. Companies now…

Michael Darda’s Fiscal Advice for the FED

…significant appreciation would surely be deflationary. It is also quite telling that the strongest advocates of yuan appreciation (or tariffs on Chinese goods) never advocated a devaluation of the currency

Tamny on Wicksell’s Monetary Economics

…of money or, what is the same thing seen from the opposite angle, the general level of commodity prices, remains as stable and constant as possible.” … Importantly, Wicksell’s currency-stability…

Finally, the Big Event: China Revalues

…rate regime will be improved with greater flexibility. 2. The People’s Bank of China will announce the closing price of a foreign currency such as the US dollar traded against…

Greenspan on China

…some “mistakenly believe” that a marked increase in the value of the Chinese currency, the yuan, relative to the U.S. dollar “would significantly increase manufacturing activity and jobs in the…

Tariffs on Apparel v. Yuan Revaluation

…trade, we have offered legislation to impose a tariff on Chinese exports to the United States if Beijing continues to keep the value of its currency, the yuan, artificially low…

If the National Review Determined Monetary Policy

…from the gold standard. Growth of the M2 money supply (currency, checking accounts, and savings accounts) slowed with the pace of mortgage refinancings after the jumps in bond yields in…