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Frankly speaking I don't feel like commenting much on the FOMC's decision today to keep the Fed fund target unchanged - it was as expected, but sadly it is very clear that the Fed has not given up the 1970s style focus on the Phillips curve and on the US labour market rather than focusing on monetary and market indicators. That is just plain depressing.
The Arab Spring started in 2010-11 in Tunisia and until now Tunisia has been highlighted as basically the only country, where the Arab Spring has not ended in disaster. Unfortunately over the last couple of days social unrest and violent confrontation between demonstrators and police have erupted across Tunisia.
My friend the great economic historian Clark Johnson has written a review of Scott Sumner's new book The Midas Paradox.
The commodity currencies of the world continues to take a beating on the back of the sharp drop in oil prices. This is now causing some to fear "currency instability". Just these this story from Canada's Financial Post:
The global stock markets are taking yet another beating today and as I am writing this S&P500 is down nearly 3.5% and the latest round of US macroeconomic data shows relatively sharp slowdown in the US economic activity and more and more commentators and market participants are now openly taking about the risk of a US recession in the coming quarters.
The Bretton Woods Committee is hosting what I think will be a very interesting Webinar on "China, the Renminbi, and the IMF's Special Drawing Rights".
Watch this wonderful rant from legendary economist and commentary Larry Kudlow.
I am happy to announce that I in the future will be contributing to Geopolitical Information Service (GIS).
Today we got the Minutes from the December 15-16 FOMC meeting where the Fed hiked interest rates. That in itself is not terribly interesting and there is not much news in the Minutes to shock the markets.