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Post by Clinton SPX on Jan 17, 2012 1:19:33 GMT -5
Monday, January 16, 2012 6:48 PM 65% of Italians Think Euro Made Things Worse for Italy's Economy CNBC has some interesting figures on a recent poll in Italy: Majority of Italians No Longer Trust the Euro 65% of those polled thought the introduction of the euro has been more damaging than beneficial for the Italian economy 55% percent of Italians have lost confidence in the euro single currency Confidence in the European Union stood at 51%, the lowest level in many years 31% said they would prefer a return to the lira The last bullet point is the odd man out. Expect to see that number rise as Italy heads into a massive recession. Mike "Mish" Shedlock globaleconomicanalysis.blogspot.com
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Post by Clinton SPX on Feb 7, 2012 22:02:20 GMT -5
Feb. 7, 2012, 5:45 p.m. EST ECB to swap Greek bonds for EFSF bonds -- report Stories You Might Like Japan conducted secret forex intervention: reports Tuesday’s biggest gaining and declining stocks Sponsored: Merrill Lynch: Wealth Management Outlook 2012: Prospects for Growth in the Year Ahead 7 Comments Share NEW Portfolio Relevance LEARN MORE By Christopher Noble SAN FRANCISCO (MarketWatch) -- The European Central Bank has agreed to exchange Greek bonds it bought last year for bonds of the European Financial Stability Facility, the euro zone's temporary rescue fund, the Wall Street Journal reported Tuesday, citing anonymous sources. The exchange won't take place unless Greece's debt restructuring talks end successfully, the paper reported. The ECB won't make a loss on the swap but details of pricing were not known, the paper reported. The paper said analysts estimated the exchange could reduce Greece's debt by as much as 11 billion euros ($14.6 billion).
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Post by Clinton SPX on Feb 12, 2012 11:35:59 GMT -5
Posted 2012-02-10 06:16 by Karl Denninger in Editorial Whah Whah: Go Ahead Merkel, Pull The Pin
This is getting amusing...
Greece is missing its debt-cutting targets, German Finance Minister Wolfgang Schaeuble told lawmakers today, intensifying pressure on Greek politicians to deliver on austerity promises.
Schaeuble said in Berlin that Greece’s plans would leave its debt as high as 136 percent of gross domestic product by 2020, according to two people who took part in the meeting and who spoke on condition of anonymity because it was private. That compares with the 120 percent foreseen in a 130 billion-euro ($172 billion) bailout being negotiated.
Oh well, gee, you mean that when you stop deficit spending GDP goes down and thus debt-to-GDP goes up?
Yep.
Now here's the ugly -- you have to do it anyway.
In fact, you have to cut spending and the deficit by more than the private economy falls, so the imbalance is still corrected. You must run a primary surplus. You must do so even though it is difficult and even though the nation goes through an economic depression.
You cannot borrow your way out of debt. You must balance the budget with either major tax increases, spending cuts or both. You must do so even though it sucks, even though it brings major pain, even though the nation and her people will scream bloody murder. You must do so even if there is risk that you get civil disorder and overthrow of the government.
Mathematics are not subject to political whim or what people want. Mathematics just is. That's all. And mathematics are that you cannot borrow more than you take in on a continual basis; you must eventually stop, you must eventually balance the budget, you must in fact have government growing at a slower pace than the economy, which means if the economy is shrinking government must shrink faster!
These are all uncomfortable truths, but they are also all truths.
They are truths in Greece, they are truths in Italy, they are truths in Portugal, in Spain, in Great Britain and in the United States.
Greece is a relatively small nation. But the fact is that those who lent the nation money did so foolishly and without mathematical foundation behind it that they would get paid. Now trouble has come, because those banks and others lent money they didn't have -- unsecured lending with effectively-counterfeited Euros, as the European banking system, like ours, does not enforce "One Dollar of Capital."
This must end. It must end there, it must end in the rest of Europe, and it must end here.
We'd be wise to end it now.
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Post by Clinton SPX on Apr 7, 2012 17:36:54 GMT -5
Japan, China to ‘Consult Closely’ on Support for IMF, Azumi Says By Mayumi Otsuma - Apr 7, 2012 1:24 AM ET
LinkedIn Google +1 8 COMMENTS Print QUEUE Q Japan and China will seek to coordinate on supporting the International Monetary Fund’s effort to contain Europe’s debt crisis, Japanese Finance Minister Jun Azumi said. “Rather than make decisions independently, we’ve agreed to consult each other very closely” on financial contributions to the IMF, Azumi told reporters today after meeting with Chinese Finance Minister Xie Xuren in Tokyo.
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Post by jack on Apr 7, 2012 19:22:58 GMT -5
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Post by Clinton SPX on Apr 8, 2012 8:31:57 GMT -5
It is Jack. But what helps their exports but a weaker yen and flooding the EU with yen would drop the yen and raise the euro so I can see why they would want to do this.
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Post by Clinton SPX on Apr 8, 2012 9:22:06 GMT -5
Euro Falls Most in 11 Months Versus Yen on Debt Concern By Catarina Saraiva and Allison Bennett - Apr 7, 2012 12:00 AM ET
LinkedIn Google +1 0 COMMENTS Print QUEUE Q The euro fell by the most in 11 months against the yen as rising Spanish borrowing costs boosted concern the region’s sovereign-debt crisis in worsening. The dollar posted weekly gains against most of its major counterparts as demand for safety increased. Higher-yielding currencies, led by South Africa’s rand, fell as a report showed U.S. employers added the fewest jobs in five months in March, which fueled concern the U.S. economic recovery is slowing and underscored bets the Federal Reserve will introduce further stimulus. The yen rose against all of its major peers before a Bank of Japan meeting next week.
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