Salient to Investors: The longest-dated Treasuries yield less than half the 6.8% average over the past five decades but are in line with the norm for the prior half-century. David Jones said the notion that Treasury yields are too low is shaped by players who began their careers in the wake
READ MORE... →Salient to Investors: Fareed Zakaria said: The Department of Defense cost overruns on one weapons system are more than the total defense budget of Britain and France put together. The US spends more on defense than the next 8 nations put together including China and Russia. Since 9/11 America has been
READ MORE... →Salient to Investors: Fareed Zakaria said: All through history, humans have advanced when they have been able to work together. Matt Ridley said human progress took off when human beings began exchanging things, ideas, skills, goods, services. Teamwork is the most crucial skill and yet education is mostly about solo performances.
READ MORE... →Fareed Zakaria said: Terrorism is rising around the globe, but nothing to panic over. The genius of America is alive – Washington may be paralyzed and polarized, but mayors and governors are ignoring party lines and partnering with the private sector to make reforms and investments for future growth. The
READ MORE... →Salient to Investors: Investors still believe that whenever stocks and risk assets fall, the authorities will act to limit the losses to ensure they don’t take economies down with them. Hans Redeker et al at Morgan Stanley said comments last week by Bullard and Haldane left markets with the impression
READ MORE... →Salient to Investors: Fareed Zakaria said: Obama’s Syria policy is destined for failure and almost certain to produce chaos and unintended consequences. Joshua Landis at Syria Comment estimates that non-jihadi groups collectively control only about 5% of Syria. The underlying reason for the violence in Iraq and Syria is a Sunni
READ MORE... →Salient to Investors: Ed Morse at Citigroup said the lowest oil price in 4 years will provide as much as $1.1 trillion of stimulus to global economies by lowering the cost of fuels and other commodities, which are energy intensive to one degree or another. Combined production from the US
READ MORE... →Salient to Investors: Eswar Prasad at Cornell and Brookings said: The US economic numbers looks good and the recovery is strengthening, but the rest of the world is weakening and there is a real fear Ebola could become something bigger. Policy-makers in the rest of the world have no room
READ MORE... →Fareed Zakaria said: Over time, countries that grow economically tend to become more democratic, excepting oil-rich states that are run by dictators. China will not become a Western-style liberal democracy, but should consider Singapore’s example. Minxin Pei wrote in 2006 that China had had virtually no move toward political openness
READ MORE... →Salient to Investors: David Bloom et al at HSBC said: A sustained rise in the dollar may be insufficient to push inflation back to target in countries struggling with the threat of deflation, but it could buy them time and help prevent inflation expectations becoming permanently detached from target. History
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