I have discussed at length the support for the Treasury market provided by foreign central banks.But that is only part of the story. I have also alluded to the role played by Treasury’s debt manageme…

A less kind headline might be "Asian policy makers meet, agree to continue manipulating foreign exchange markets" Still, this Bloomberg article (link thanks to Calculated Risk) suggests that there ma…

Somehow, all three are linked together today in my mind. And at some level, they do all connect. As Martin Wolf notes, Asia’s current account surplus (savings surplus) shows up in the phenomenal gr…

I have long worried that as the carry trade gets less profitable (i.e. the difference between the interest rate on short-term and long-term debt falls), hedge funds would respond by doubling up their…

If China were growing slowly, there would be no shortage of potential explanations.Free labor market in China? Not even close. The household permit system is an enormous impediment to free labor mo…