Germany Archive

EU update

More possible hints that deficits may be large enough to support stability A little better than expected: Euro-Area Manufacturing Contracted for 11th Month in June By Mark Deen July 2 (Bloomberg) — Euro-area manufacturing output contracted for an 11th straight month in June as Europe’s debt crisis sapped demand across the continent. ...Read More

Germany signals shift on 2.3 trillion redemption fund for Europoe

Getting there as previously discussed: Germany signals shift on 2.3 trillion redemption fund for Europoe By Ambrose Evans-Pritchard June 13 (Telegraph) — The German government has begun opening the door to shared debts for the first time in a profound change of policy, agreeing to explore proposals for a €2.3 trillion (£1.9 ...Read More

Quick update

US economy muddling through, growing modestly, particularly given the output gap, but growing nonetheless. Lower crude prices should also help some. I had guessed the Saudis would hold prices at the $120 Brent level, given their output of just over 10 million bpd showed strong demand and their capacity to increase to ...Read More

German Majority Ready to Help Pay Down State’s Debts, Poll Shows

In case you didn’t think there’s political support for austerity. Lemming economics firmly in place. German Majority Ready to Help Pay Down State’s Debts, Poll Shows By Alan Crawford May 3 (Bloomberg) — A majority of German voters said they are prepared to help the state pay down its debt, according to ...Read More

Euro zone news headlines

Typical day for euro zone news. Slow motion train wreck continues. Headlines: EU Finance Ministers to Face Off Over Rules to Implement Basel Ill Standards France’s Hollande Says He Hasn’t Had Parallel Talks With Merkel Weidmann Says Reforms Are Best Basis for Growth, Zeit Reports European Unemployment Rate Rises to Highest in ...Read More

German Manufacturing Shrinks at Fastest Pace Since 2009

The 10th plague, as the infection spreads to the core? The surprise is that it took so long, with austerity eroding export markets. And note the drop in the employment index as well. German Manufacturing Shrinks at Fastest Pace Since 2009 By Alice Baghdjian April 23 (Reuters) — Germany’s manufacturing sector unexpectedly ...Read More

Bad headline day for eurozone

Euro-Area Construction Declines for Third Month Led by Germany Bundesbank Says Euro Nations Must Set Aside Growth Concerns Merkel Gives Spain No Respite, Says Debt Cuts Key to Yields Germany wants IMF funding raised to $1 trillion IMF Lowers Additional Funds Target To $400bn-Plus: Lagarde Spain weighs financing options Spain Reduces Flexibility ...Read More

Global themes

Austerity everywhere keeps domestic demand in check and export channels muted Non govt credit expansion pretty much stone cold dead in the US and Europe Rising oil energy prices subduing global aggregate demand US federal deficit just about enough to muddle through with modest GDP growth Rest of world public deficits also ...Read More

EUR PMIs-Big GDP Implications

And not only no change in fiscal policy, but more of same. As the carpenter said about his piece of wood, ‘no matter how much I cut off it’s still too short.’ Fertile ground for the ‘bond tax’ (PSI) for the next round of austerity, to reduce the need to further cut ...Read More

Rest of Europe Shouldn’t Follow Greek Bailout: Dallara

In regard to the euro zone officials insisting there will be no further haircuts: ‘The lady doth protest too much, me thinks.’ Mr. Dallara and the rest of the euro mob have as yet not come up with any reason any one nation wouldn’t be better off, as evidenced by Greece, with ...Read More