Saturday, May 3, 2014

Blogging will be light for a few weeks

Tomorrow we leave for a tour of the Alps, starting and ending in Stuttgart, with a route that takes us through Zurich, St. Moritz, Merano Italy, Innsbruck, Munich, Salzburg, Vienna and Prague. We've never been to that part of the world, and its high time we did.

I suspect the world will not end nor even change significantly while we are gone, but I do hope to keep up with things and to post occasionally.

I also plan to test first-hand my theory that the Euro is about 20% overvalued relative to the dollar, as the chart above suggests.


Michael Meyers said...

Scott, have a great trip. It is a beautiful part of the world. Great hiking in the Alps.

William said...

From my experiences, your theory about the value of the EURO will not be dis-proved ;~)

But Europe is a very unique part of the world; and the culture, architecture and food is worth the premium!

William said...

Velocity of M2 Money Stock

St Louis Federal Reserve -

"2014:Q1: 1.545 Ratio
Quarterly, Seasonally Adjusted, M2V, Updated: 2014-04-30"

Velocity of M2 in Q1 of 2014 took a plunge lower.

Scott Grannis said...

As M2 velocity fell to its lowest level in modern history, the demand for money (M2/GDP) rose to a new high. I keep thinking this needs to turn, but I keep being wrong.

Vespasianus said...

Hope you enjoy your trip to Europe. Regarding the euro, you have to take into account that you're travelling to some of the most expensive regions of the Eurozone (Switzerland is not a member, but it's quite dear, too), so prices will tend to be higher than elsewhere, making comparisons not exactly homogeneous, unless you come from the richest part of USA, of course! The analogy would be someone going to New York and conclude prices in the USA are a bit of unaffordable.