Congress Passes Fiscal Cliff Deal

We now see who are “millionaires and billionaires” in practice.  They are individuals with income over $400,000 or married couples with income over $450,000.  Their top tax bracket rises from 35% to 39.6%, an increase of 13%.

The capital gains tax rate goes from 15% to 20%, an increase of 33%.

The temporarily reduced payroll [...]


Fiscal Deniers

Everyone today is talking about the “Fiscal Cliff”.  It is a small decrease in spending combined with a significant tax increase.  Let’s put this in perspective.  The budget for fiscal year 2012 was $3.8 trillion and the deficit (shortfall which had to borrowed) was $1.1 billion.  If no deal is reached, and we go “over [...]


More Hints That QE Will Not Be Unwound Any Time Soon; Implications May Continue To Be Bullish For Treasury Bond Prices

The Fed is hinting that quantitative easing is here to stay:  there may be no unwinding of its expanding balance sheet in 2015. reports (LINK):

A decision by the Federal Reserve to expand its bond buying next week is likely to prompt policy makers to rewrite their 18-month old blueprint for an exit from record [...]


Gold: Faster, Higher, Stronger?

What will the gold-dollar exchange ratio be in the future?  Both trade hyperactively on currency desks.  Thus gold is a physical commodity that acts as a currency.  It is a hybrid.  Is it really money, as many adherents claim?  Should it be?  Certainly that topic accounts for the rise in the gold-dollar ratio in past [...]