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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Archive for October 28th, 2011

Pelosi Quote

Posted by WARREN MOSLER on 28th October 2011

“It is clear we must enter an era of austerity; to reduce the deficit through shared sacrifice.”
- Nancy Pelosi, Dem Leader, US House

Posted in Deficit | 34 Comments »

Italy Bond Yields Rise at Auction, 10-Year Bond Auction Yield at New Euro Era High

Posted by WARREN MOSLER on 28th October 2011

Nice, they announce proposal to confiscate 50% of Greek bonds from investors right in front of an Italian auction. And we thought we had sorry politicians…

Posted in Bonds, Greece | 9 Comments »

Euro Bailout Fund Chief Sees No Quick China Deal

Posted by WARREN MOSLER on 28th October 2011

Now it all starts unraveling. It’s all talk- another ‘optical illusion’ with no operational reality I sight. The China participation isn’t a done deal. The 50% haircut isn’t a done deal either as they haven’t yet figured out how to actually do it without a default event. The EFSF contributions aren’t a done deal either.

What they have done is further frightened investors to the point where the ECB will find itself buying a lot more bonds to keep member nation funding in check, while ‘negotiations’ drag on with no resolution, meaning, as previously discussed, this is the resolution.

Hoping i’m wrong…

Euro Bailout Fund Chief Sees No Quick China Deal

By Reuters

October 28 (CNBC) — The head of Europe’s bailout fund said on Friday he does not expect to reach a conclusive deal with Chinese leaders during a visit to Beijing but expects the surplus-rich country to continue buying bonds issued by the fund.

Posted in Bonds, China, ECB, Germany, Greece | 4 Comments »