At Casey Research, they have been watching the actions of foreign holders of U.S. dollars as closely as a Las Vegas pit boss watches a card player on a $1 million winning streak. Many of those in the deflation camp largely, or entirely, ignore the potential role these foreign holders may play in the drama now unfolding.

China has once again snatched the leadoff spot in our daily lineup. And once again, they’ve knocked the cover off the ball. The Chinese economy expanded at a dizzying 7.9%, their government announced yesterday. That far exceeds analyst expectations and China’s still-impressive 6.1% first-quarter growth.

With the global economy on the mend, could gold be gearing up for another record-setting run? It sure looks that way. 

Jobs data skewed by ’seasonal adjustments’…  BOE surprises the market…  Oil falls below $60…  China’s reserves continue to grow… And Now… Today’s Pfennig!

Stock market-wise, I wish we were back in July 2008. At that time, a 1% swing in the market was an anomaly. Today, it’s the norm. And even though we’ve seen volatility calm down somewhat in recent weeks, don’t be fooled. As we enter another earnings season, we’ll see volatility pick up again. So what are you going to do?

Bias to sell dollars again…  More supply to choke down…  More thoughts on China…  RBA leaves rates unchanged…
And Now… Today’s Pfennig!

Deflation takes root from Fareast Asia to Western Europe, The pitfalls of trying to defy the laws of nature, Lost in translation in Japan, “Q.E. kindling” and plenty more…

Euro trades past 1.42…  Geithner make a promise to China…  Central Bank meetings this week…  Canada’s Fin Min, speaks… And Now… Today’s Pfennig!

There’s a lot of anger towards President Obama. Most of it is misplaced. Obama is a slick young politician with high approval ratings. He replaced a president who had 90% approval ratings at one point – the highest of any president in history. Both have sacrificed the free-market principles America was founded on. Partisan politics mean nothing when both parties insist on spending the country into oblivion.

The Treasury is having a tough time hawking US debt these days.  This from today’s Financial Times: The 30-year Treasury yield rose to 4.30 per cent on Thursday from 4.10 per cent the day before after bids at the government auction came at lower prices than expected.