U.K. to Propose Work-for-Benefits Program, Sunday Times Reports
By Svenja O’Donnell
Jan 8 (Bloomberg) — The U.K. coalition government is planning a compulsory community work program for the long-term unemployed, the Sunday Times said, citing Employment Minister Chris Grayling.
The plan will include stopping benefits for as many as three years for those who refuse to sign up, the newspaper said.
Grayling has indicated his support for the plan, saying a “work for dole” program will help curb the U.K.’s expenditure on benefits for the jobless, the paper said.
People who have been unemployed for three years or more will be forced to work unpaid for six months under the terms of the program, the Sunday Times said.
Payrolls
In case you missed this.
From GS:
MAIN POINTS:
1. Nonfarm payroll employment increased by 200k in December, a larger gain than the consensus had expected. Part of the strong gain reflected a 42k increase in employment for “couriers and messengers”, which likely reflects temporary employment for holiday gift delivery persons. A similar spike occurred last December and was reversed in the following month, indicating that the payroll statistics are not properly seasonally adjusting for this type of hiring. Taking this into account, December employment growth was still firmer than the preceding two months, but the underlying trend is likely still below 200k.
China seems to know how it works
China Should Seek ‘Relatively High’ Deficit
Jan 5 (Bloomberg) — China should seek a “relatively high” fiscal deficit this year to stabilize the economy, Jia Kang, a researcher at the Ministry of Finance, wrote in an article in China Finance magazine.
A growth rate of at least 8% this year is acceptable, Jia says.
Europe Agrees to Ban Imports of Iran Oil; No Date Set
The European leadership’s grasp of market forces is even worse than I had imagined.
Unless they somehow cut back on oil consumption, and no one else buys from Iran,
Iran’s sales and prices received don’t change:
Europe Agrees to Ban Imports of Iran Oil; No Date Set
Published: Wednesday, 4 Jan 2012 | 1:01 PM ET
By: Reuters
European governments have agreed in principle to ban imports of Iranian oil, EU diplomats said Wednesday, dealing a potentially heavy blow to Tehran just months before an Iranian election.
French pro growth formula
This is their idea of pro growth:
In a speech given in Paris on January 3rd, the President of France Nicolas Sarkozy confirmed that the country will soon see an increase to the national rate of value added tax and a reduction to the mandatory social security contributions paid by employers.
http://www.taxationinfonews.com/2012/01/president-confirms-tax-hike-in-france/
This is on top of the increase in the reduced rate of VAT in France (from 5.5% to 7%) that was announced earlier.
An increase in standard VAT rate (19.6%) in France (even though still under consideration), could have quite a significant impact on EU HICP and FR CPIx
EU Officials Begin New Year With Calls to Save and Consolidate
Ominous start for the new year:
EU Officials Begin New Year With Calls to Save the Euro
Published: Sunday, 1 Jan 2012 | 5:49 PM ET
By: Reuters
Policymakers marked the 10th anniversary on Sunday of the introduction of euro notes and coins by urging governments in the currency bloc to save and consolidate to overcome their debt crisis.
While German Finance Minister Wolfgang Schaeuble called the euro “a clear success story” and pledged the currency would remain stable, he also urged vulnerable debtor states to follow a tough savings course in 2012, boost their competitiveness and work to win back market confidence.
“This is not a euro crisis, it is a debt crisis in some euro states,” Schaeuble told German newspaper Bild in an interview to be published in Monday’s edition of the paper.
Foreign Central Banks Cut Treasury Holdings by Record
And Tsy yields at record lows!
Even with $trillion federal deficits!
Even with the S and P downgrade!
Even with large foreign holdings of US Treasury securities!
Who would have thought?
;)
Happy New Year to all!!!
Foreign Central Banks Cut Treasury Holdings by Record
Holdings of U.S. Treasurys by foreign central banks has fallen by a record $69 billion over the past four weeks according to the latest Federal Reserve data. The Financial Times reports
ECB bond buying for next year
For the coming year I’ll be watching to see if the ECB buys bonds
only on rate spikes to keep them from rising further,
or on a continuous basis regardless of yields.
I suspect the former.
It’s the difference between watering a flower only as it’s about to die,
or on a regular basis to keep it continuously perky.