It is not secret that the author of this space, at times, has been rather critical towards the ECB. The reason has not been so much for its de-facto inability to amend the situation in the sense that this is an inbuilt characteristic of the system, but more so because of the seeming complacency with which ECB policy makers (with notable exceptions) have viewed the crisis.

However, and with the recent rate meeting one is tempted to conclude that the ECB is now seriously committed to considering alternative measures and also, as it were, drastic measures along the lines of its peers at the Fed, the BOE and the BOJ who have all in their distinct way been engaged in QE for quite some time. In the recent print edition, the Economist provides a fine overview of global central banking in the midst of the current financial crisis; what has

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Last time I had Japan under the loop I asked whether there was no end in sight for Japan's economy and as I wind up for another close look, I must say that it is still very difficult to find good news if any at all. However, and for the sake of argument I thought that we might begin with some recent arguments in the context of the global economy which suggest that we may be past the worst of our travails. The first observation comes from the Economist's ever eloquent financial markets pundit, Buttonwood, who recently made the neat point that while we are still stuck in the mire, the second derivative might be turning positive. This suggests that while indicators are still on the decline they are now declining less rapidly. In Tokyo, Cassandra voices a similar sentiment

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by Christopher Laird, PrudentSquirrel.com | February 18, 2009

In the latest manifestation of the world financial crisis, gold is rallying strongly now in all major currencies. Gold detached from the usual commodity drivers gradually over the period August 07 to the present, and closely reacted to any major new developments in the credit crisis. Gold now is almost totally dominated by ongoing credit crisis developments, and the massive attempts to bailout the financial system in every country. That is why gold and the USD are rallying together.

As we know, the $trillions the US, ECB, BOE, Japan, Russia and China have thrown at either bailouts or stimulus are causing gold now to rise relentlessly in the major currencies. Obviously, at some point, gold as a central bank reserve asset would reflect what I estimate to be going on $20 trillion worth of stimulus and financial bailouts by the

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In the currency market, the dollar rallied strongly against the euro in its opening shot across the bow for 2009. Late Monday, the euro was trading at $1.3588 vs. $1.3869 on Friday.

“[The] dollar was boosted in part by ongoing talk of a big fiscal package from the incoming Obama administration, and we think gains will be sustained in 2009,” wrote currency strategists at Brown Brothers Harriman.

That government handout is looking as if it might be huge. According to MarketWatch.com, “Obama plans to spend about $775 billion over two years, putting people to work on infrastructure projects and giving aid to states. In all, the tax cuts or breaks would account for about 40% of the value of the stimulus.”

Though the buck put a smackdown on the euro, it lost ground, nearly 1%, vs. the British pound.

“Although the [Bank of England] is expected to cut rates this week,

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Gold was strong in the overseas markets, but it started down with the New York open, declined sharply in the half-hour to the mid-morning point, rallied back to the close of the COMEX and eased slightly in the Globex to finish at $832.20, down $17.70 from Friday. Overnight, gold is trending higher.

This post is a guest contribution by Niels Jensen*, chief executive partner of London-based Absolute Return Partners.

It is time to move on. Not that the crisis is over, by no stretch of the imagination. But it is not going to make one iota of difference if I join the blame game bandwagon. It is what it is. Allow me instead to focus my energy on what is likely to happen next. That is more productive and definitely more useful.

A can of worms We are dealing with a rather large can of worms. The lid is off and the worms are all over the place. Let’s focus on what these worms might be up to. For all the

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by Claus Vistesen: CopenhagenI don't know how many GEM readers are dedicated followers of the day-to-day rhythm of market movements but with an important US unemployment report and a much awaited ECB interest rate decision to think about I imagine that many a trader and broker spent a good part of last Thursday holding their breath. In the former case the data confirmed that the US economy is stuck knee deep in stagflation as unemployment held stubbornly at that 5.5% "statistical quirk" while payrolls registered the sixth consecutive month of job losses, shedding 62.000 jobs. If the latest US employment data may have raised an eyebrow here and there, the decision taken by Trichet and his governing council almost certainly will not have (introductory statement here) since the 25 basis point hike was more or less expected by everyone.As I suggested earlier ...