JN Daily | Jobless Rate Moves Higher, CPI drops, HHold Spending Misses Expectations

[Skip to the end] Looks like China is starting to stabilize Japan, which means it is probably helping the eurozone some as well. Shipments Up Across Industries In June As Production Recovers Cost Cuts Help Electronics Firms Reduce Losses In April-June Jobless Rate Hits 6-Year High Of 5.4% In June Household Spending Rises 0.2% In […]

Eurozone- quantitative easing VS fiscal adjustment

[Skip to the end] Thanks, they all have it wrong regarding quantitative easing. Net financial assets of the non government sectors remain unchanged. There is no ‘monetary’ consequence apart from the resulting somewhat lower long term interest rates. And the idea that it helps delays fiscal responses that do help. Europe needs its politicians to […]

Re: The pressure increases on the eurozone

[Skip to the end] These types of articles have gotten respectable and are getting more strident by the hour. I do think a banking crisis where the national government can’t or won’t write the check freezes the entire payments system, as no one will want to keep any funds in a eurozone bank, nor will […]

Eurozone going the wrong way

[Skip to the end] This has been making the rounds and is not impossible: But European banks may be in far worse shape. Bruno Waterfield of the London Daily Telegraph reports to have seen an eyes-only document prepared by the European Commission for the finance ministers of the various EU member countries. The problem revealed […]

Eurozone trade deficit rising

[Skip to the end] This is not a good sign given their monetary arrangements with no federal fiscal authority to incur the corresponding budget deficits, public and private. And the unlimited Fed swap lines to the ECB could now be further increasing eurozone foreign currency debt, and funding imports with fresh ‘cheap and easy’ dollar […]

In over their heads

[Skip to the end] The Fed and Treasury decided ‘the problem’ was the LIBOR/Fed funds spread and threw everything they had at it. What finally did the trick was the Fed’s unlimited swap lines with the MOF, BOJ, ECB, and SNB. Unfortunately that turned a technical problem into a fundamental problem, as I’ve previously described. […]

European leaders vow Bank guarantees, bid to stop financial rot

[Skip to the end] Hopefully this will buy some time to hope for a general recovery of output and employment that contains the national deficits. This plan is also coordinated but still relies on the national government’s balance sheets. European Leaders Vow Bank Guarantees, Bid to Stop Financial Rot By James G. Neuger Oct. 12 […]

EU leaders to agree to relax stability rules

[Skip to the end] This will only move them closer to brink of investors refusing to buy their debt. EU leaders agree to relax Stability Pact rules (Roundup) by Siegfried Mortkowitz Paris – To help prop up their banking systems, European leaders meeting Saturday in Paris agreed to loosen the requirements of the European Union’s […]