February, 2012 Archives

19
Feb

The State Of The Global Political Economy

by admin in Global Economy

The Cancer of Debt and Deficits

Thoughts from the Frontline

http://www.frontlinethoughts.com/

by John Mauldin

 

Trouble Brewing Behind Facade Of Bull Rally

http://seekingalpha.com/article/374091-trouble-brewing-behind-facade-of-bull-rally

by Bret Rosenthal

Tim Duy’s Fed Watch

Will They or Won’t They?

http://economistsview.typepad.com/timduy/2012/02/will-they-or-wont-they.html

by Tim Duy

1
Feb

Blame The Baby Boomers

by admin in News

Cartoon by Mike Keefe - Planet of the AARPs

By Niall Ferguson (www.niallferguson.com)

After years when young Americans yearned only to be occupied on Wall Street, suddenly they have taken to occupying it. It’s easy to scoff at this phenomenon. I know, because I have.

This is certainly not America’s answer to the Arab Spring—the Bobo Fall perhaps, unmistakably both bohemian and bourgeois. But it’s still worth taking seriously. What is it that makes evidently educated young people yearn to adopt leftist positions that are eerily reminiscent of the ones their parents adopted in 1968?

Check out the protesters’ website, which on Monday featured a speech by Slovenian critical theorist Slavoj Žižek. At first I thought this must be some kind of parody, but no, he really exists—red T-shirt, Krugman beard, and all: “The only sense in which we are communists is that we care for the commons. The commons of nature. The commons of what is privatized by intellectual property. The commons of biogenetics. For this and only for this we should fight.”

Yeah, man. Property is theft. Ne travaillez jamais. And all that.

There are three possible explanations for this retrogression to the language of ’68.  To read more go here: After years when young Americans yearned only to be occupied on Wall Street, suddenly they have taken to occupying it. It’s easy to scoff at this phenomenon. I know, because I have.

This is certainly not America’s answer to the Arab Spring—the Bobo Fall perhaps, unmistakably both bohemian and bourgeois. But it’s still worth taking seriously. What is it that makes evidently educated young people yearn to adopt leftist positions that are eerily reminiscent of the ones their parents adopted in 1968?

Check out the protesters’ website, which on Monday featured a speech by Slovenian critical theorist Slavoj Žižek. At first I thought this must be some kind of parody, but no, he really exists—red T-shirt, Krugman beard, and all: “The only sense in which we are communists is that we care for the commons. The commons of nature. The commons of what is privatized by intellectual property. The commons of biogenetics. For this and only for this we should fight.”

Yeah, man. Property is theft. Ne travaillez jamais. And all that.

There are three possible explanations for this retrogression to the language of ’68.  To read more go here: http://www.niallferguson.com/journalism/finance-and-economics/blame-the-baby-boomers 

 

 

1
Feb

Is Europe About To Unravel?

by admin in Global Economy

Cartoon by John Cole -

Below is a posting from Tim Duy’s Fed Watch blog (http://economistsview.typepad.com/timduy/the-oregon-economy/)

Even the illusion of political unity in Europe appears to be dissolving before our eyes.  This, of course, should come as no surprise to anyone watching the European crisis unfold.  The key problem always was the internal imbalances, a problem for which European policymakers have never offered a credible solution.  They simply don’t have such a solution in the context of a system of fixed exchange rates.  I believe that currency devaluation is the only option that will change relative competitiveness in any reasonable timeframe and restore internal balance. But that option is unavailable for Euro members.   To read more go here: http://economistsview.typepad.com/timduy/2012/01/is-europe-about-to-unravel.html

 

 

1
Feb

Anschluss Economics – The Germans Launch A Blitzkrieg On The Greek Debt Negotiations

by admin in Global Economy

Cartoon by Adam Zyglis - Crappy Gift

By Marshall Auerback at www.neweconomicsperspective.org

News stories continue to suggest that Greece once again appears on the verge of reaching a deal with its private sector creditors on how much of a loss they would be willing to accept on their bond holdings. The latest numbers suggest a 70% write-down. A pretty striking comedown for what is supposed to be a “voluntary default” and, hence, not subject to the triggers of a credit default swap on Greek debt.
 
Naturally, the spin surrounding the proposed agreement is that this is a “one-off” and that other troubled periphery nations shouldn’t even begin to think of securing a comparable deal. But the inherent tension between securing a write-down on Greek debt which more closely mirrors the disaster which is now the Greek economy, and the desire to minimise the potential contagion effect is rearing its ugly head already, and may help to explain some of Germany’s recent machinations.  To read more go here: http://www.neweconomicperspectives.org/2012/01/anschluss-economics-germans-launch.html
 
 

 

1
Feb

Living In A QE World

by admin in Global Economy

By Barry Ritholtz from www.ritholtz.com/blog

All Central Bank Balance Sheets Are Exploding Higher, Or Engaged In QE

The degree to which central banks around the world are printing money is unprecedented.

The first eight charts below show the balance sheets of the largest central banks in the world. They are the European Central Bank (ECB), the Federal Reserve (Fed), the Bank of Japan (BoJ), the Bank of England (BoE), the Bundesbank (Germany), the Banque de France, the People’s Bank of China (PBoC) and the Swiss National Bank (SNB).  Noted on the charts are significant events or growth rates.

Shown is the size of each respective balance sheet in its local currency.  Note that all are exploding higher as every chart goes from the lower left to the upper right.  Most are still making new all-time highs. If the basic definition of quantitative easing (QE) is a significant increase in a central bank’s balance sheet via increasing banking reserves, then all eight of these central banks are engaged in QE.

To read more go here: http://www.ritholtz.com/blog/2012/01/living-in-a-qe-world/