The Divergent Monetary Policy Theme and the Dollar

The US dollar has been on a roller coaster ride. Many have lost confidence in the underlying trend.  An important prop for the dollar, namely the prospects for the Fed's lift-off, extends again, this time ostensibly due to the heightened volatility of the financial markets, apparently sparked by events in China.

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Can Australia Grow Their Economy via Tax Cuts?

In his recent speech on personal income tax cuts, Treasurer Joe Hockey made clear that the “common cause of reform [of the tax system is] to improve the growth trajectory of the Australian economy”. The key to this for Hockey is to ensure the income tax system is not constraining workforce participation and effort, through things such as bracket creep.

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Benchmark U.S. Treasury Yields Backed Up

US 10-year Treasury yield has risen 30 bp since Monday's low water mark.  There are a number of reports that are trying to link the back up in US yields to sales by China. The Chinese sales, in turn, link to its efforts to stem the decline in the yuan.

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Debt is the fatal disease of republics, the first thing and the mightiest to undermine governments and corrupt the people.
Wendell Philips
He who controls the money supply of a nation controls the nation.
James A. Garfield
The moment that government appears at market, the principles of the market will be subverted.
Edmund Burke