Commentaries

By: John E. Charalambakis | On: May 30, 2013 |

Speculating into the Void: The Demarcation of Absorption Capacity

It has been a week now since the Japanese markets have been exhibiting significant volatility. What we have been observing is that both equities and bonds show signs of turmoil. […]

By: John E. Charalambakis | On: May 21, 2013 |

On Gold, the Proclaimed “Success Stories”, and the Placebo Treatment: Is there Substance in Recent Developments?

Late last year I wrote that we anticipate precious metals to suffer losses in 2013. We would not be surprised if this lasts more than a year. In one of […]

By: John E. Charalambakis | On: May 15, 2013 |

At the Intersection of Equities Road and Monetary Boulevard: Seeking Collateral Base

Could it be that the over-collateralization and re-hypothecation of paper assets via the derivatives avenue has created a huge hole in the financial system that the monetary authorities are called […]

By: John E. Charalambakis | On: May 3, 2013 |

The Eureka Moment of the EU, Market Cyclicality, and Monetary Aggregates: Approaching a Crossroad

A few days ago Jose Manuel Barroso (President of the European Commission) declared that austerity has its limits. The Eureka moment which says that you cannot add by subtracting finally […]

By: John E. Charalambakis | On: April 13, 2013 |

Resilient Markets Searching for Vitality: Incompatible Affections and Inept Detachments

I do not think that we would have had a hard time if we desired to find alarming market signals. However, the message from the markets seems to be a […]

By: John E. Charalambakis | On: April 2, 2013 |

An Attempt to Explain Stagnation, Growth, and Inflationary Episodes in the Post Bretton Woods II Era: The Absorption Framework

I think we are all puzzled by the fact that despite the pumping of credit via monetary reserves in several western nations, we still feel that stagnation prevails and certainly […]

By: John E. Charalambakis | On: March 29, 2013 |

“It is Finished”: Financial Institutions, Economic Stability, and Hades

Last Thursday (March 28) professor Simon Johnson of the MIT (former chief economist of the IMF) published an excellent piece in his blog (http://economix.blogs.nytimes.com/2013/03/28/the-debate-on-bank-size-is-over/#postComment). Needless to say that nothing else […]

By: John E. Charalambakis | On: March 23, 2013 |

10 to Midnight in the Garden of Credit: Socrates Wonders About Cardinal Rules, Historical Precedents, Matter-Antimatter, and the Fantasy Era of Fiat Money Creation

The unfolding events – by the hour – in Cyprus shine light to a historical precedent: When the next crisis comes around bank deposits may not be spared. This is […]

By: John E. Charalambakis | On: March 17, 2013 |

Lasciate Ogne Speranza, Voi Ch’intrate: Dante Meets Pandora in Aphrodite’s Island a.k.a. Cyprus

In Dante’s Inferno, the poet is guided in the underworld by the great Roman poet Virgil. As he enters the gate of Hell (Inferno) the inscription reads “Lasciate ogne speranza, […]

By: John E. Charalambakis | On: March 5, 2013 |

At the Intersection of Geopolitics and Geoeconomics: Francafrique Meets Africom

Objective: The energy independence of Europe, the containment of China in Africa, and the development of African assets Goal: Breaking the energy ties between Russia and Europe, limiting the transfer […]