Daily Archive: Thursday, June 16, 2011

Greece on the slippery slope

First, I think there isn’t enough political or popular support to leave the euro and go back to the drachma. As previously discussed, it’s not obvious to the population or the political leadership that there is anything wrong with the euro itself. Instead, it probably seems obvious the problem is the result ...Read More

Euro trade data

So looks to me that China shifted to buying more euro just as the trade flows were turning the other way and might have otherwise been weakening the euro. This means that when they stop buying there could be serious gap down until it gets to where it would have gotten had ...Read More

CNBC mention

Just got this email in comments section of my blog: Warren, You just got quoted by Steve Leisman on CNBC: Leisman: “As Warren Mosler has said: ‘Because we think we may be the next Greece, we are turning ourselves into the next Japan’. ” But I think based on other things he ...Read More

WSJ on China buying Tsy secs

A bit of support in the Wall Street Journal for my suspicions about an understanding being reached between China and the Fed, and Fed Chairman Bernanke’s timing on his strong dollar speeches: “A report this week showed foreigners were net buyers of long-term U.S. financial assets in April. China bought U.S. Treasuries ...Read More

Obama on deficit reduction and jobs

He has to tax where there is negative propensity to spend and cut where there is negative propensity to save. >    >   (email exchange) >    >   On Thu, Jun 16, 2011 at 8:15 AM, Stephanie wrote: >    Obama’s White House Press Secretary says, ”Obama approaches the deficit talks with a ‚Äúsingular concern, which is ...Read More

thoughts on the euro

So my story has been that while most thought QE was a bumper crop for the dollar- Fed printing money and flooding the system with liquidity and all that- It was in fact a crop failure for the dollar, as evidenced by the Fed turning over $79 billion in QE profits (that ...Read More