Trouble ahead: yet more U.S. fiscal restriction on the horizon
President Barack Obama is asking Congress for a short-term deficit reduction package of spending cuts and tax revenue that will delay the effective date of steeper automatic cuts now scheduled to kick...
View ArticleMoral hazard leads to the great complacency in markets
Markets are close to breaching highs reached in 2007. Here we are back to the all time highs in the stock market with the weakest economic recovery ever and still very high debt. All in a weak world...
View ArticleEven on its own metrics, the UK government is a comprehensive failure
So now we have the news that Moody’s Investors Service stripped the United Kingdom of its triple-A rating, citing continuing weakness in the country’s medium-term growth outlook and rising debt burden....
View ArticleSome idiots never learn
Here’s the latest abstract in what is considered to be “serious economic thinking” Countries with high debt loads are vulnerable to an adverse feedback loop in which doubts by lenders lead to higher...
View ArticleThere won’t be a central bank exit strategy
Fed Chairman Bernanke, in response to questions on day two of his semiannual testimony to Congress last week said the exit strategy laid out in June 2011 needs to be reviewed. It doesn’t need to be...
View ArticleWhere’s the bull market in the mining sector?
Bloomberg (courtesy of Andy lees) says that mining minnows and developers, the lifeblood of the USD1.5trn industry, are running low of cash as funding dries up, increasing the chance they will need to...
View ArticleAnother Rubinite to the White House?
Bob Rubin and his acolytes are like the belched-up after-taste of bad pizza one consumed the night before. No matter how many times you brush your teeth or swallow copious amounts of mouthwash, the...
View ArticleWarnings from the penthouse suite of the roach motel
Chancellor Angela Merkel’s junior coalition partner said on Sunday Germany must not allow France to break the European Union’s debt rules and it warned the European Central Bank against buying up...
View ArticleThings still look risky in China
I had thought there was an even chance that the new political leaders in China would turn to stabilizing an overheating financial situation once they won their political battles. That was confused in...
View ArticleShould we tax excess corporate profits?
This analysis actually a very neat bit of extension of the Functional Finance/Keynesian body of theory, inspired by a recent article on Japan by Martin Wolf of the Financial Times. Commenting on...
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