Monthly Archives: November 2010

Trichet statement

*DJ Trichet: Euro-Zone Govts Are Conscious Of Their Past Mistakes *DJ Trichet: Efforts To Improve Governance Are Being Underestimated *DJ Trichet: Ireland And Greece Are Solvent *DJ Trichet: Euro-Zone Public Finances Compare Well With Japan, US *DJ Trichet: Real Euro-Zone … Continue reading

Posted in ECB, EU | Tagged |

euro update and why no one is leaving (yet)

As before, all that’s been done in euro land is highly deflationary. No new euro will be spent by any govt as a result of the latest goings ons. In fact, it’s more austerity. And the ECB continues to do … Continue reading

Posted in Deficit, ECB, EU, Germany, Government Spending | Tagged , |

Time for England to complete the conquest of Ireland

The UK conquest of Ireland began in 1169. It’s time to finish the job. All they have to do is offer the following: Ireland converts all its public debt to sterling. The UK Treasury takes over the responsibility for all … Continue reading

Posted in Currencies, Deficit, EU, Government Spending, UK | Tagged , , , , |

euro endgame

On Sun, Nov 28, 2010 at 7:24 PM, wrote: I’ve tried to think of a happy ending here and there simply isn’t one. That’s like thinking for the endgame of the US if you believe the federal budget needs to … Continue reading

Posted in ECB, EU, Inflation |

FMOC Minutes

New Forecasts (central tendency and range of forecasts) in Table 1 below: Long-Run inflation forecast of 1.6-2.0% is basically their target; 2011 and 2012 unemployment forecasts revised up by 0.6-0.7%. Note that low-end of GDP forecast for 2011 is 2.5%. … Continue reading

Posted in Employment, Fed, GDP, Inflation | Tagged , , , |

Next Debt Crisis May Start in Washington: Bair

She’s as much a part of the problem as any of them. Also, she continues to support taxing banks for FDIC losses, which works counter to Fed rate setting policy. Across the board taxes on banks hike rates charged to … Continue reading

Posted in Banking | Tagged |

European Debt/GDP ratios – the core issue

Review: Financially, the euro zone member nations have put themselves in the position of the US States. Their spending is revenue constrained. They must tax or borrow to fund their spending. The ECB is in the position of the Fed. … Continue reading

Posted in Currencies, Deficit, ECB, Employment, EU, Germany, Government Spending |

China May Set 4% Inflation Target for Next Year, Tighten Policy

Ch Headlines: China May Set 4% Inflation Target for Next Year, Tighten Policy Inflation Expectations Rise on Wages, Resource Prices, PBOC Says Setting inflation targets, worrying about inflation expectations, reserve requirements, etc. It’s all monetarist nonsense from the western educated … Continue reading

Posted in China, Inflation |

China, Russia quit dollar for transactions

Doesn’t matter, though most everyone thinks it does. What matter is what currency a nation saves in, not the numeraire for transactions. So good this happened, so everyone can get past it and stop worrying about it. China, Russia quit … Continue reading

Posted in China, Comodities, Currencies, Russia |

Fighting inflation in China

Inflation is a political problem, especially in China, where it can mean regime change. Inflation itself is not so much an economic problem- it doesn’t hurt growth and employment. But fighting inflation can very much hurt growth and employment. The … Continue reading

Posted in China, Currencies, Inflation |