Austerity Archive

Italian article this am

Misrepresents what I say a bit, but they do have my picture next to JFK! ;) The IMF: sovereign currency, no longer the monopoly of the banks Eliminate the public debt of the United States at once, and do the same with Great Britain, Italy, Germany, Japan, Greece. At the same time ...Read More

German Economic Model Vindicated by GDP Data

As previously suggested, any sign of stabilization will be twisted into ‘austerity works’ rhetoric. Yes, austerity has pushed deficits up the ugly way- higher unemployment comp and lower tax payments due to the slowing economy- to the point where the deficits gravitate to levels high enough for euro zone GDP to stabilize ...Read More

U.K. Factory Index Falls More Than Forecast on Export Slump

As expected, the export channel doesn’t look to be able to save Europe this time around. That leaves only domestic demand and net public sector spending via ‘borrowing to spend’ to do the trick, which doesn’t look all that promising either. U.K. Factory Index Falls More Than Forecast on Export Slump By ...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

Marshall Auerback’s Euro Update Video

Marshal Aueback says: My latest attempt to explain it all. Is the ECB Europe’s Last Hope? ...Read More

Merkel comments

*DJ Merkel: “Euro Zone Solidarity Must Be Combined With Sound Budget Measures” To make sure unemployment never comes down and unit labor costs stay down. *DJ Merkel: Italy Will Put Through Planned Austerity Measures Soon Also to make sure unemployment never comes down and unit labor costs stay down. ...Read More

Talk still cheap – ECB writes the check again

Lots of talk, particularly from Germany about the ECB not writing the check, due to (errant) inflation concerns. But to no avail. In fact, with the Rubicon crossing decision to haircut Greek bonds 50% for the private sector’s holdings, expect the check writing to continue to intensify. And expect economies to continue ...Read More

Noda Makes Consumption Tax Hike Pledge At G-20 Summit

The world’s poster child for losing decades looks to stay a step ahead: (Nikkei)–Prime Minister Yoshihiko Noda vowed Thursday to gradually raise the nation’s consumption tax to 10% by mid the 2010s during a summit meeting of the Group of 20 leading economies in Cannes, France. The announcement at the summit has ...Read More

Blog Comment on Italy

This was recently posted by a reader: I’m from Italy so I can answer your question. The general and most accepted ideas in Italy are: “The problem is president Berlusconi.” “We need structural reforms!” (In every pub people love to say that, to feel themselves intelligent, the same that are in precarious ...Read More

The Euro Zone Race to the Bottom

While the symptoms get continuous attention as they get threatening enough, the underlying cause-the austerity- does not. The euro zone, like most of the world, is failing to meet its further economic objectives because of a lack of aggregate demand. And in the euro zone, the fundamental problem is that the member ...Read More