Today's Macro Reading
Must-read: Tasker on the difference between mid-80s Japan and present-day China and the risk that an enormous emerging markets bubble is now forming. His commentary is illuminating -- this is worth your time.
In other news:
Gold: Another element that supports a bullish stance on gold: South Korea -- the 5th largest holder of foreign exchange reserves -- is considering gold purchases. At 0.2%, South Korea's current allocation to gold is one of the lowest among large economies (the world average is 10%). Consider that if S. Korea were to raise its allocation by a single percentage point, that would correspond to a $29 billion investment -- more than half the current value of the total assets of the most popular gold ETF, the SPDR Gold Shares (NYSE: GLD).
Money Printing/ Bubble Blowing: Nobel winner Stiglitz warns of the risks linked to the 'new Monetarism', prefers fiscal stimulus. The piece is titled It is folly to place all our trust in the Fed. And in academic economists, I would add.