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Archive for the ‘Willem Buiter’ Category

The worries of an old hand

The most thought-provoking presentation I have heard at the CFA Institute was from Felix Zulauf, a Swiss investor well known for his regular contributions to the annual Barron’s Round Table. His views are slightly darker, shall we say, than those of many others here. He remains bullish on gold and the Swiss franc and had many interesting insights on Europe. I plan a provide a more detailed analysis of the various high level contributions at this year’s event, including those of Gavyn DaviesRussell Napier, Jim Rogers and Willem Buiter,  in the next issue of Independent Investor.

Written by Jonathan Davis

May 11, 2011 at 10:39 AM

Crunch time for America and Japan

The US is likely to lose its AAA credit rating in 2013, and that will also be the last year in which both Japan and the States will be able to carry on borrowing at risk-free rates without sorting out their unsustainable fiscal deficits. That was the blunt warning today from Willem Buiter, former member of the Bank of England Monetary Policy Committee, now Chief Economist at Citigroup.

Speaking at the CFA Institute conference in Edinburgh, Mr Buiter added that the bond market might well force the inevitable 3% rise in US Treasury bond yields even earlier than that date, for example if Chicago was about to go bust. The best chance of the US finally getting to grips with its huge debt burden would be immediately after the 2012 elections, but as yet there are absolutely no signs of a bipartisan approach to a solution.

Written by Jonathan Davis

May 10, 2011 at 3:27 PM