Monthly Archive:: February 2012

Japan Not Immune To Debt Crisis, BOJ Kamezaki Says

Not to be outdone by the rest of the world’s central bankers: Japan Not Immune To Debt Crisis, BOJ Kamezaki Says By Tatsuo Ito February 28 (DJ) — A Bank of Japan policy board member said Wednesday that Japan is not immune to a Europe-style debt crisis as confidence in the country’s ...Read More

Today’s Data/Bernanke

Karim writes: Bernanke gives his latest Congressional testimony and takes Q&A at 10am tomorrow. He’s unlikely to diverge much from the recent narrative and I expect him to focus more on the changes they made at the last FOMC meeting (easing via extending conditional commitment and new set of forecasts) than highlight ...Read More

Are Japanese Banks Bailing Out Europe?- John Carney reposts my article

Are Japanese Banks Bailing Out Europe? ...Read More

MMT conference in Italy with 2,000 attending

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GE to 3M Pension Pain Mounts as Rates Boost Liabilities

Feel free to forward to your local Fed President, to remind them that rate cuts do remove income from savers and from the economy in general, as the economy is a net saver to the tune of the cumulative govt debt (to the penny). (And not to forget the $80 billion or ...Read More

ECB reports Spanish and Italian banks’ Dec and Jan bond buying

Looks like the drop in Spanish and Italian bond yields was at least partially driven by Spanish and Italian bank buying of their govt’s debt. While the LTRO did provide floating rate ECB term funding, funding has generally been available in any case, and the bond buying did add risk and ‘use ...Read More


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LTRO birdie telling me maybe the BOJ gave the nod to its banks

Just a hunch now, but Italian, Spanish, and related bond yields began falling coincident with the first ECB LTRO. The question is why, as I saw no operative channel of consequence from ECB liquidity provision of 3 year funds on a floating rate basis to the term structure of rates. So it ...Read More

GEI article is up

Eurozone: How to Drive an Economy in Reverse By Warren Mosler February 27 — The situation in Greece brings me back to the conclusion that merely resolving solvency issues in the Eurozone doesn’t fix the economy. Solvency must not be an issue, but if there is negative growth, solvency math simply doesn’t ...Read More

Someone is still worried about the US becoming the next Greece

Sorry to see this happen. Whatever. First, it’s not a debt burden. Debt management is just shifting $ between Fed reserve accounts to Fed securities accounts. Second, the trick is for a given size govt to keep taxes at the right level. Yes, some day circumstances could possibly warrant much higher taxes, ...Read More