Debunking the Causes of the Eurozone Crisis
The orthodox German view of the Eurozone crisis gets shellacked at an important INET panel.
Read more...Category Archives: Doomsday scenarios
Rob Parenteau: Draghi’s Doom Loop(s) – More Than Just the Euthanasia of the Rentiers
Draghi’s Doom Loop(s): why the ECB’s QE, combined with negative deposit rates, could set a 1987 style crash for bonds in motion.
Read more...Greece Threatens to Miss IMF Payment, Issue Drachma (Updated)
Greece has decided to up the ante in its negotiations with the Troika. The open question is whether the latest move, the press leak via Ambrose Evans-Pritchard at the Telegraph that Greece will miss its April 9 payment to the IMF so that it can continue to make pension payments, and has started to make plans to issue the drachma, are game-changers that Greece hopes they will be.
Read more...Greece Throws Away One of Its Eurogroup Memo Wins, Submits Reforms Reaching Up to a 3.9% Fiscal Surplus
One of the things we’ve stressed is that the Greek government’s repeated claims that it is submitting an anti-austerity reform package is untrue. The Greek government committed to achieving a fiscal surplus of 1.0 to 1.5% and has separately said it will always run a fiscal surplus. We have stressed that running a fiscal surplus is an economic dampener, and is even more damaging in a severely depressed economy like Greece.
So what has Greece done? It has submitted a reform package that it says will meet an even higher fiscal surplus target.
Read more...Greece Submits Insufficiently Detailed Reform List; Tsipras Tells Parliament of “Peace with Honor,” Um, “Honorable Compromise”
The Greek government continues to climb down substantively on its promises of resistance to the dictates of its creditors as time pressure intensifies.
Read more...China’s Military and Growing Political Power
China has the potential to challenge the US on a military basis at a lower relative cost than many defense analysts assume.
Read more...Central Banks Warn: Investors May Get Crushed When They All Run for the Exits
This post illustrates how remarkably short investors’ memories are. Or they may be betting that if they have a big enough hissy fit when monetary authorities raise rates, as they did during the taper tantrum of 2013, that central banks will lose their nerve.
Read more...The Troika’s Leverage Over Greece: The Ongoing Bank Run
Why Greece’s bank run, and the risk of a banking system collapse, gives the ECB the whip hand over Greece.
Read more...Bill Black: How FCIC Spurned Its One Chance at Greatness
How the FCIC not merely ignored but actually suppressed information that revealed what and more important, who, drove the crisis.
Read more...Mathew D. Rose: Greece – Plus ça change
Whether the Greek government’s protests are substantive or mere grandstanding, any show of opposition is more that the Eurocrats are prepared to accept. And a successful left-leaning government is also seen as a threat in quite a few quarters.
Read more...Greece Raids Public Health Service Kitty as It Scrambles for a Short-Term Lifeline; ECB Refuses to Cut a Break. Updated: No Deal, Greece Given Ultimatum
As Greece continues to scramble to raise funds to avert default and keep paying pensioners and government officials, the end game is becoming clearer.
Read more...Latest Greece Talks End in Confusion, Dissent
It’s hard to fathom Greece’s approach to its dealings with its oppressors, um, creditors.
Read more...The Coming China Crisis
A high private debt to GDP ratio is a strong indicator of a coming financial crisis. China is well into the danger zone.
Read more...Rob Parenteau: “Goebbelnomics – Austerian Duplicity and the Dispensing of Greece
A case study in Goebbelnomics, here used by austerians to justify the class and economic war against Greece.
Read more...Wolf Richter: Investors Crushed as US Natural Gas Drillers Blow Up
The carnage in natural gas drillers that Wolf called early has arrived.
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