NEW YORK, May 29, 2013 /PRNewswire/ -- The May 29th issue of Grant's Interest Rate Observer, a journal of the financial markets, is published and available to the public. This issue is now available for download at www.grantspub.com for all subscribers.
The current issue includes the following articles:
Welcome to the revolution
You need gray hair or a library card (or a subscription to Grant's) to know that the gold value of the dollar was fixed as recently as 1971. You need a good memory to recall the uproar that greeted Chairman Ben S. Bernanke's helicopter-money manifesto in 2002. We live in the midst of a monetary revolution, though few seem to know it.
Government bond yields are higher than they used to be. We do not say they are "going up," because that would imply that we are predicting that they will continue to go up. But though we do not choose to forecast, we will take license to comment.
'Weird' is the word
According to data from Green Street Advisors, average office nominal cap rates stand at 5.6%, down from 8.8% in April 2009. The current average nominal cap rate is lower than any seen before the fatally optimistic era of 2006-2007. Herewith a comparative tale of weird, ZIRP-induced cap rates in thriving Austin and not-so-thriving northern New Jersey.
Sticks and stocks
The internal rate of return on hearth and home. Here's hoping the kids don't take the conclusion to heart.
Billiard balls scatter
Measured against the dollar over the past eight months, the yen has fallen by 24% while the renminbi has appreciated by 3% and the won has depreciated by 1%. The Ph.D. standard surely has no finer friends than the monetary elite in the world's No.3 economy. Evidently, money printing is the cross-cultural cure-all.
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SOURCE Grant's Interest Rate Observer