Monthly Archive:: November 2011

CB announcements

Just looks like the Fed lowered the rate on its swap lines to keep libor down, which had been moving up to its prior swap line rate. No big deal, apart from the fact the Fed shouldn’t be allowed to lend on an unsecured basis like this without explicit approval of congress. ...Read More

Indian Firms Risk Dollar Debt Default as Rupee Slides

Another region with a private sector dollar short to worry about. Seems the world is short dollars and euro? Indian Firms Risk Dollar Debt Default as Rupee Slides By James Fontanella-Khan November 29 (FT) — Dozens of Indian companies are coming under financial stress after the sharp fall of the rupee against ...Read More

Osborne Vows More Austerity as Slump Hits U.K. Deficit Plan

Says it all, sadly. France and Germany also announce agreement to target 0 deficits for all euro members which takes the steam out of any relief rally as they solve the solvency issue. Not much upside for the world economy when it all thinks and acts like this: Osborne Vows More Austerity ...Read More


Still no default… ...Read More

Why the IMF thing works for the euro

As a matter of chance, the euro’s lucky stars fall in line with the latest IMF musings. Perhaps most important, operationally, the ECB lending to the IMF, which then lends to euro member nations, doesn’t count as ‘printing money’ in the Teutonic monetary bible. To recap: When the ECB buys bonds, it ...Read More

France Sees Budget Rules Paving Way for ECB Support Bloomberg

Another step closer France Sees Budget Rules Paving Way for ECB ...Read More

MMT to the ECB- you can’t inflate, even if you wanted to

With the tools currently at their immediate disposal, including providing unlimited member bank liquidity,lowering the interbank rate, and buying euro national govt debt, the ECB has no chance of causing any monetary inflation, no matter how hard it might try. There just are no known channels, direct or indirect, in theory or ...Read More

Fed Chairman Eccles 1933 statement

“Individuals, corporations, cities, and States can not, of themselves, do anything except play according to the rules of the present money system and make their outgo balance their income, or ultimately “go broke.” Most of them are unable, much as they may desire, to give consideration to helping the general situation except ...Read More

U.S. and Eur Data/GDP Downgrades

Karim writes: U.S. data on the soft side (October) Most notable is core durable goods orders (capex has been gwth leader of late) falling 1.8% and 3mth annual rate slowing to 4% from 7.3% Core shipments (more important for current quarter growth) down 1.1% Personal spending up 0.1%. Personal income up 0.4% ...Read More

DJ Europe Mulling New Role For ECB, Lending To IMF-Greek FinMin

Hint of German support? *DJ Europe Mulling New Role For ECB, Lending To IMF-Greek FinMin ...Read More