How do you cut salaries, jobs and pensions and raise income tax, corporate tax and VAT, and still get growth? That is the pair of pliers our governments have chosen to construct around their own gonads. How is Portugal or Spain, let alone Greece, going to earn the cash to paying its debts if the …
I have a simple question for our economic leaders and experts – where is the growth you need to cover the debts you still have on your and now our books, going to come from? Bear in mind this profit had better be LARGE and SWIFT arriving, because we have very large debts and the …
The concept of losing money – once upon a time, it was a very simple concept. Not any more. Losing money used to be a simple measure of how much you have now, against how much you had before. Any decrease and you had lost. Any thing else and you were quits or richer. Either …
The New TIC data are out from the FED. It shows that the BoE bought $45 Billion of US debt in February alone. That purchase increased the UK’s holding of US debt by 20% a fifth in a month. Total holdings now up to $279 Billion. Why? And particularly why, at a time the UK …
BoE buys $45 Billion of US debt at a time the UK is broke. Read More »
There seems to be a lot of cross-talk about what the ECB bail out was and was not for. We must be careful not to assume the ECB action was the response to what was being talked about in the news at the time. At the time two things were in the headlines. One was …
In 1953 Enrico Fermi and his team at the US military research facility at Los Alamos made an interesting and unexpected discovery. A discovery which, I think, is worth noting in today’s global financial crisis. They had been researching the behaviour of driven coupled oscillators. A simple oscillator is a weight being bounced up and …
The French Bourse has lost half of the gain the ECB spent 750 billion euros buying. Half in a week. 4.5% down today. The Dow has fallen 2% and the Nasdaq almost 3% at the time of writing. The Euro has fallen against the dollar, below any level the market recognises, which means the market …
A news story at MarketWatch, which is the on-line protrusion of the Wall Street Journal, has the reassuring title -“Chinese banks safe for now”. It goes on to claim that even a thirty percent drop in property prices won’t cause the Chinese banks “to break a sweat”. Now, it just so happens that I read …
I believe the bailout has failed. I think we are already ripped from stem to stern and it is just a matter of time. Last week liquidity quite suddenly disappeared from the US stock market. In seconds an unstoppable disintegration swept away 800 points on the DOW, 10% of all value in Paris. In response …
Cuts and Debts – why the bail out may already have failed. Read More »
Every day of the first three months of this year 4 of the big American Banks found a way to making record profits. Greece collapsed. Every single day without exception, the men and women of Goldman Sachs, JPMorgan Chase, Bank of America and Citi, according to their own figures, never lost a cent. Greece, Portugal, …
