Good graph and sets the ballyhoo about the Yuan devaluation in perspective. China has avoided a devaluation despite having been pegged to the dollar which has been rising. Sadly the dollar will continue to rise as the US economy continues to flounder and the US has used up all its traditional mechanisms to prevent a oncoming business downturn.

Go talk to a Wall Street broker sometime. They are pushing International exposure like their jobs depend on it. Undoubtedly they get big commissions getting people into International bond funds that suck off commission like mad and heap the risk onto the buyers.

The market is falling for good reason, save share buybacks the economy is not growing fast enough to accelerate earnings to justify their price valuation. Without more horseplay and funny money from the government, the Federal Reserve, or Fannie Mae, Freddie Mac, or regulators to artificially ease lending standards or inflate bank and others assets the market can not make much headway.

Regardless on how one would like to couch the debate the issue for Europe is not one of austerity or not, it is how to deal with rouge countries that have unsustainabe expenses and debt. Even if Greece got new funding, it still wouldn't change the fact that Greece as is, is broke and can not continue to operate as is. The charade has gone on way longer than it should because it is just that, a charade.

The Greek government never intends to run a budget that makes sense, pay its debt, negotiate in fairness, or act prudently to grow its economy. With allies like that who needs enemies.

What credibility? It has seemed apparent to many that declining imports, exports, shipping, and commodities that the economy was headed the way down not up. The only reason they want to raise it is because they know they can't do a new round of QE given the political situation and they wish they had rates above zirp so they could do something when the business cycle ends.

Thank goodness for the health of the American public.

The fact we are sitting at zirp and the fed is scared to raise rates even 1/4 of a point shows how fragile and false asset prices are currently. One should be scared stilly over the implications as well as the fact there is no Keynesian tool besides fake liquidity because the fed has so terribly abused the economic tools they have been given. It's about time people stop calling the Fed as Keynesian, loosening throughout a cycle is not Keynesian, its sheer stupidity.

The Feds numbers are worse than what any class of first year college econ students would generate and much less honest. They are, however right about 1 rate rise this year. Yellen can hardly get away not raising rates at least once this year given rates are rising without her. Still, I expect her fussing and trying not to raise rates until the end.

If Greece left the Eurozone it would still have massive debt and nothing to pay it with. Worse yet, it would need to borrow more even if its debt was negated and few if any would lend to them. Lastly, its the Greek government that is dooming Greece not lenders. Any separation from the EU would not get rid of the giant worm in the Apple.

China is quite smart. Those selling gold and silver here are going to end up on the losing side of the trade. If China eventually floats its currency with massive gold reserves it knows it has a chance to take some of the trades currently going for US Treasuries and dollars forcing the currency exchange markets to recognize them as another safe haven currency at least partially backed by gold.

Sadly this is a playbook the US used before to garner so much of the International currency market.