Category: Global Debt Crisis
The analysis published under this category are as follows.
Friday, December 16, 2011
U.S. Exposure to Europe - Unknowns Unknowns / Politics / Global Debt Crisis
By: Fred_Sheehan
"[T]here are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns - there are things we do not know we don't know." - Former United States Secretary of Defense Donald Rumsfeld, February 12, 2002
There were reasons to criticize Donald Rumsfeld's turn as Defense Secretary but this was not one of them, even though the media quoted and re-quoted this most sensible approach to uncertainty as proof of a retarded intellect.
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Friday, December 16, 2011
French Central Bank Attacks British Economy As Eurozone Rescue Plan Starts to Disintegrate / Politics / Global Debt Crisis
By: Nadeem_Walayat
French President Sarkozy let his attack dogs loose on Britain as illustrated by comments form the head of the French central bank, Christian Noyer attacking the British economy following threats of Standard & Poor's credit ratings agency downgrade of French Government debt as a consequence of the French banks exposure to bankrupting PIIGS debt.
Thursday, December 08, 2011
Negative Real Interest Rates, Central Banks Prepare For the Worst Life After Euro / Stock-Markets / Global Debt Crisis
By: GoldCore
Gold is trading at USD 1,719.40, EUR 1,302.70, GBP 1,109.30, CHF 1,608.40, JPY 135,050 and AUD 1,689.4 per ounce.
Gold’s London AM fix this morning was USD 1,739.00, GBP 1,105.81, and EUR 1,297.28 per ounce.
Yesterday's AM fix was USD 1,731.00, GBP 1,108.20, and EUR 1,289.96 per ounce.
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Thursday, December 08, 2011
Debt Champions and Eurozone Bailout Fund, Another $670Bn Not Enough? / Stock-Markets / Global Debt Crisis
By: PhilStockWorld
I titled yesterday’s post "More Stimulus Please" and, as expected, we did indeed get another $670Bn (500Bn Euros) rumored around noon yesterday as the word is the EFSF is going to either double or eliminate it’s lending cap. This action was backed up by our own little Timmy Geithner, who backed the play, saying: "We’re encouraged by the progress [Europeans] are making, not just to put in place economic reforms across Europe to create the conditions for stronger growth in the future, but to try to build a stronger architecture for a fiscal union … and try to make sure there’s a sufficiently strong firewall in place to support those efforts."
Monday, December 05, 2011
Euro Crisis Destabilizing the U.S. Dollar / Politics / Global Debt Crisis
By: Dr_Ron_Paul
In response to pressure from Wall Street, the White House and central banks in Europe, the Federal Reserve last week drastically cut interest rates for currency swaps to benefit troubled European banks. This will flood world markets with more dollars and will soon mean rising prices for every American at the grocery store. This extra liquidity will temporarily ease the cash crunch for irresponsible bankers, but in the long run it will make the situation much worse for consumers all over the world. Equities markets registered big gains at the news, but only for a day. Make no mistake - this is not capitalism, and this is not how a free market operates. In a free market, bankruptcies happen, even to large banks. We must remember, free markets are the true and best regulators of financial mismanagement.
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Monday, December 05, 2011
The Evil that is Democratic Thought / Politics / Global Debt Crisis
By: BATR
The mantra that democratic rule exists in the realm of governmental affairs has proven false. The fact that deficit spending is commonplace and acceptable to their populace links the social democracies in a feudal structure that most are unwilling to acknowledge. The practice of debt created bank money underlies every social policy and expenditure. The notion that paying for public projects, based upon popular support and taxes, is extinct. Destroying domestic currencies and obligating future generations to the debt slavery of past failed projects, has replaced the work ethic. Democracies pledge subsidies without labor and security absent of personal freedom.
Thursday, December 01, 2011
Coordinated Central Bank Action Temporary Fix, Not Panacea for Europe’s Sovereign Debt Woes / Interest-Rates / Global Debt Crisis
By: Asha_Bangalore
The Federal Reserve, Bank of Canada, Bank of England, the Bank of Japan, the European Central Bank, and Swiss National Bank announced coordinated actions to provide liquidity support to the global financial system. Today’s announcement involves a reduction in cost at which banks in foreign countries can borrow dollars from their central banks. The central banks lowered the price on the existing temporary U.S. dollar liquidity swap line by 50 basis points such that the new rate will be U.S. dollar over night indexed swap (OIS) rate plus 50 bps instead of U.S. dollar OIS rate plus 100 bps. In addition, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank will continue to offer three-month tenders until further notice. This arrangement will be effective as of December 5, 2011 and will remain in place until February 1, 2013.
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Sunday, November 27, 2011
New Chaos And Old Versailles: Is This Guided History ? / Politics / Global Debt Crisis
By: Andrew_McKillop
Everybody knows that Keynes' first (some would say only) claim to fame was to argue that Kaiser Germany's war debt reparations following the 1914-18 war were too high and should be struck down. In modern parlance this is called debt write down and economic bail out by an accelerated turn of central bank money printing presses, and the play of institutions partly-proposed or invented by Keynes, the IMF and Bank for International Settlements (BIS).
Thursday, November 24, 2011
What is Good for EU is Bad for Germany? Euro-zone Debt Crisis Intermarket Views / Interest-Rates / Global Debt Crisis
By: Capital3X
What was good for EU was always bad for Germany and what was good for Germany was bad for other EU countries. This could not have been more pronounced than yesterday Nov 23 2011 as Germany yields rose 11.3% and now are up another 4% for the day as Bond markets take a disliking to the German paper or rather the attitude. But what is interesting is that as the German yields rise, Italy and France continue to be falling in terms of spread. Is this why they say :Germany is the crux of the problem?
Thursday, November 24, 2011
Big Banks, Big Governments, Big Debts, Let the Sucker Go Down / Interest-Rates / Global Debt Crisis
By: Gary_North
Conclusion: Europe is in bad shape. This is hedge fund manager Kyle Bass's assessment of the situation in Europe. He stated this in a rousing interview on the BBC's TV network. Here is the segment.
He made two crucial points – points that stock market investors are ignoring. First, over the last nine years, there has been an increase of world debt from $80 trillion to $210 trillion. These numbers are staggering. Global debt over the last nine years has grown at 12% per year, while GDP has grown at 4% per year.
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Tuesday, November 22, 2011
Greece High Flying Drachma / Interest-Rates / Global Debt Crisis
By: Axel_Merk
The worst-case scenario for Greece, should it be unable to secure further bailouts, might be that it would have to live within its means. Presently, spending only the money coming in is considered unbearably brutal. If Greece could only leave the euro, it could install its own printing press, inflating its sorrows away. Any economist will object: it’s complicated. But it isn’t: Greece could introduce a high-flying New Drachma, quite literally.
Tuesday, November 22, 2011
Italy Proves Simplest Reform Most Difficult to Pass / Interest-Rates / Global Debt Crisis
By: Dr_Jeff_Lewis
Never mind Berlusconi's resignation. The story coming from the European Debt Crisis is hardly fixated around one leader of one country. Instead, the biggest story should be that even the most simple measures of government reform continue to be the most impossible to pass.
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Monday, November 21, 2011
European ERM 1992 Currency Crisis Replay, Government Bond Interest Rates Come Full Circle / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
Tonight I received a thoughtful email from reader Rick Cameron who made some observations and notes way back in 1992 and recently went back to review those notes.
His notes are regarding the European ERM, the Exchange Rate Mechanism, that was supposed to reduce exchange rate variability and achieve monetary stability in Europe.
Sunday, November 20, 2011
The European Bank Run Downward Spiral, Final Phase Of Goldman’s World Domination Plan / Interest-Rates / Global Debt Crisis
By: PhilStockWorld
Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden.
"Nervous investors around the globe are accelerating their exit from the debt of European governments and banks, increasing the risk of a credit squeeze that could set off a downward spiral. Financial institutions are dumping their vast holdings of European government debt and spurning new bond issues by countries like Spain and Italy. And many have decided not to renew short-term loans to European banks, which are needed to finance day-to-day operations. "
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Saturday, November 19, 2011
Why We Should Help Debt Crisis Europe! / Stock-Markets / Global Debt Crisis
By: Sy_Harding
A major component of the big new eurozone rescue plan is to substantially increase the European EFSF contingency bailout fund, from 440 billion euros to 1 trillion euros ($1.4 trillion). The fund would then be a substantial firewall, with the ability to lend money to Italy, Greece and other countries at low interest rates, helping them cover their debts until the austerity measures being imposed bring their debt loads under control.Read full article... Read full article...