Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Best of the Blogs: Should the Government Be Borrowing More?


Minyanville's daily roundup of some of the best financial commentary from around the Web.

This column highlights the most interesting and useful business and financial commentary from around the Web each day. Feel free to send along your own suggestions for blog content that you've read or written.

Capital Gains and Games
Link: Tea Party/GOP Are Wrong: Federal Government Should Be Borrowing More Right Now
"Yesterday's The New York Times had a good story by Binyamin Appelbaum about how low interest rates are significantly driving down the government's borrowing costs. Appelbaum said that, given the continuing very strong demand for U.S. debt, the Treasury is considering issuing securities with negative interest rates -- requiring buyers to pay for the privilege of safely parking their money -- and is assuming it will get lots of takers. In fact, the story shows that some investors in Treasuries are already getting a negative return and, given the alternatives, are happy to have it. Appelbaum's piece is factually correct and interesting but misses the real story. As Jesse Eisinger of ProPublica wrote about a months or so ago in The Times and I posted about here, there are three important budget implications of this situation."
"Mobile payment systems feel like magic. Wave a smartphone in the air with a wandlike flourish, or tap two of them together like Captain Marvel's bracelets, and invisible currency changes invisible hands.Contact-free and tap-and-go payments powered by NFC (near-field communication) give great demo. They're all the rage at this year's Mobile World Conference in Barcelona, where Spanish bank La Caixa just rolled out an ambitious citywide payment system. But even at a Google Wallet-friendly Starbucks, waiting in a 10-minute line only to pull a phone out of our pocket and fumble with it rather than a credit card barely feels like the future."
"Noam Scheiber, a senior editor of The New Republic, is the author of the just-published book "The Escape Artists," which argues that the Obama administration "fumbled the recovery." Bloomberg Businessweek calls the book a "Woodwardian account of infighting in the White House's economics team." Neil Irwin of The Washington Post praised its "really good detail" and said the book contained much he didn't know. Michiko Kakutani, in her review in The New York Times, also praised the book's detail while taking issue with some of Mr. Scheiber's arguments. My conversation with him, conducted by e-mail, appears below." (Also read Stock Markets Perform Much Better Under Democratic Than Republican Presidents.)
Zero Hedge
"Back on January 27, before the impact of the trillions in liquidity injections by the central banks was fully appreciated, the advance Q4 GDP print came in below estimates of 3.0%, printing at 2.8%. Today, we just got the flip flop to that, after the second revision just printed at 3.0%, on expectations of an unchanged print at 2.8%. The reason: a fine-tuning, whether seasonally adjusted or not, which improved 4 of the components of Q4 GDP (Fixed Investment, Personal Consumption, Imports, Government Expenditures), while reducing two (Inventories and Exports) nominally."
Total Return
"Over the past year, you'd have made roughly 26% on an investment in gold. But you'd have done even better, with a 35% return (ignoring dividends and currency translation), if you'd put your money into De La Rue, the U.K.-based printer and papermaker. Just as gold benefits from "money printing" by the world's central banks, so does De La Rue, which prints money for more than 150 countries. De La Rue also benefits from operating in a secretive, even crepuscular, industry. Among the other firms that contribute to the making and printing of currencies: Giesecke & Devrient, family-owned and based in Germany; privately held, French-based ArjoWiggins; Crane Currency, also private, based in Sweden and the U.S.; and privately held Orell Fuessli and family-controlled SICPA, both based in Switzerland." (Also Read The Long-Term Fundamental Case for Gold.)

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos