Category Archives: Euro zone Crisis

Are the Greeks now worse off than before they joined the Euro?

Last night saw a combination of yet more Euro zone summit inflation combined with apparent ennui. In fact the ennui seems to have spread to the participants as being politicians they like to end with bombast and hype about some … Read More

Posted in Banks, Euro zone Crisis, General Economics, Greek Financial Crisis, Inflation, Stagflation, UK Inflation Prospects and Issues | 23 Comments

Both the European Central Bank and Europe’s banks are singing along to Britney Spears’ “Gimme More”

Yesterday central banks were in operation in both of their favourite areas. We saw the Chairman of the US Federal Reserve and members of the UK Monetary Policy Committee giving testimony to their respective Parliaments. But we also saw the … Read More

Posted in Banks, Euro zone Crisis, General Economics, Greek Financial Crisis, Quantitative Easing and Extraordinary Monetary Measures, UK Inflation Prospects and Issues | 9 Comments

Second ECB “bazooka” injects much more cash than first

The ECB’s second three-year longer-term refinancing operation (LTRO) is similar in gross terms to the first but will have a significantly larger impact on net lending to the banking system and bank reserves, suggesting further liquidity support for markets. The … Read More

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Why in my opinion Ireland should vote no in her referendum on the EU fiscal compact

Yesterday the Irish government announced that it will be holding a referendum on the latest European Union plans for a fiscal compact. However there is already a consensus building that in the words of 1066 and all that this is … Read More

Posted in Banking Reform, Banks, Euro zone Crisis, General Economics, Quantitative Easing and Extraordinary Monetary Measures | 8 Comments

The economic powerhouse that is Germany seems a miracle,what can go wrong?

I would like today to look at the other outlier in the Euro zone. So rather than the travails and problems of Greece I will look at the economic success story that is the Federal Republic of Germany. If we … Read More

Posted in Euro zone Crisis, General Economics, Greek Financial Crisis, Growth, Interest rates | 26 Comments

Currency flight from the Euro is boosting the Swiss Franc but has the Yen finally started to weaken?

Over the past few years there has been a remarkable convergence in the performance of the Swiss Franc and the Japanese Yen. A lot of this has been due to the effects of traders reversing “Carry Trades” in each country … Read More

Posted in Banks, Euro zone Crisis, General Economics, Greek Financial Crisis, Japan's Economic Situation, Quantitative Easing and Extraordinary Monetary Measures | 12 Comments

Why the current rise in the price of crude oil could have a more powerful economic effect than expected

Only last Thursday I discussed the rise in the oil price that has taken place so far in 2012. At that time the price of a barrel of Brent crude oil had touched US $120 and since then we have … Read More

Posted in Euro zone Crisis, General Economics, Greek Financial Crisis, Inflation, Japan's Economic Situation, Stagflation, The US Economy, UK Inflation Prospects and Issues | 16 Comments

One solution to Portugal’s problems requires her to join Greece and Spain and form one of “The Three Euros”

Today I wish not only to take a look at the latest data on how deep the current economic depression is in Portugal but I wish to look at the underlying causes of the situation and suggest some ways forward … Read More

Posted in Euro zone Crisis, GDP, General Economics, Greek Financial Crisis, Growth, Quantitative Easing and Extraordinary Monetary Measures, Recession, Stagflation | 10 Comments

The latest Greek bailout has Euro zone leaders acting like the March Hare from Alice in Wonderland

Today has some of the elements of groundhog day as we see yet another bailout for Greece although these days the mainstream media uses the word “rescue” much more rarely. One strong element of such meetings is bombast and hyperbole … Read More

Posted in Banks, Euro zone Crisis, General Economics, Greek Financial Crisis, Quantitative Easing and Extraordinary Monetary Measures | 29 Comments

When it comes to a choice between the Greek people and the banks the ECB chooses itself and the banks

Developments over the weekend concerning Greece and her parlous financial situation have dominated the news over the weekend. On the one hand some media organisations such as the BBC’s Newsnight and the New York Times tried to explain what reality is now … Read More

Posted in Banks, Euro zone Crisis, General Economics, Greek Financial Crisis, IMF, Quantitative Easing and Extraordinary Monetary Measures | 15 Comments