The principle of relativity, from Newtonian mechanics to Einstein/Lorentz/Poincaré theory of special relativity, has its roots in the basic principle that physical laws should be the same in all inertial reference frames. In other words, there is no such thing as an absolute motion.
Here I want to apply this simple principle of the absence of the […]
Do you have a feeling that something big is happening? I do.
The last year was amazing. Today is exactly a year since the biggest financial crisis in 25 years had started, and we are still posting the GDP growth and there is no recession, at least on TV. The big hairy hand from abroad is […]
Martin Pring just published a very nice report on commodities, with tons of good charts and also a lot of fundamentals. What I like in his approach (and what I’m usually trying to do myself) is that he is usually finding the way to chart the fundamentals as well. For example, the rate of change […]
In this podcast Nariman Behravesh, chief economist at Global Insight Inc. is throwing out some surprising research. The most interesting bullet points are:
Q2′08 GDP in US is +2.5% (who would imagine!)
Q4′08 is negative
Q2′08 GDP in Eurozone is already going negative, by their estimates (wow!)
US headline inflation will reach +6.5% sometimes during this year
US headline inflation […]
Many economists are closely watching China as the primary driving force behind the world economic growth and the commodities bubble. The alarm that this last bubble is about to pop was ringing several times in the last two years, but so far it proved to be a false alarm, and the commodities bubble resumed its […]
Even though we live in a service economy the industrial sector is still the cornerstone it lies upon, and today’s economic news are hinting that the sharp downturn is ahead.
Today we had major negative news on jobs, confirming that the economy is firmly in recession, and it happened to be a good occasion to observe PPT in action. In the morning the CNBC reporters dismissed the 20-year record one-month unemployment increase by referring to teens just graduating from school and unable to find a […]
Some of my recent posts were dedicated to the speculative nature of the recent commodities run-ups. To offset the possible bearish bias I want to re-post some of the very wise comments made by the readers of my old blog in the past months.
As interest rates jumped off the bed this week it doesn’t seem to me that Ben is trying to move them back. My personal opinion is that Fed’s power to change interest rates is very limited. Just heard a guy on the Bloomberg podcast saying that right after the war dollar made pretty much 100% […]
“the investment desert is littered with the bones of those who bet on new paradigms” - Jeremy Grantham
It must be something unusual to happen to bring the attention. Few years ago I heard a story that Africa is considering to switch to wireless telephony because peasants are stealing wires for copper and any attempt to […]
The Yellow Brick Road
