Category Archives: Euro zone Crisis

The FOMC is living in a fantasy land whose dangers are highlighted by Hungary and the Euro Zone

Last night we received the minutes from the December meeting of the Federal Open Markets Committee which is the policy making section of the central bank of the United States. There were few, if any, grand insights into the US … Read More

Posted in Banks, Euro zone Crisis, Eurozone, General Economics, Quantitative Easing and Extraordinary Monetary Measures, UK Inflation Prospects and Issues | 19 Comments

Spain is already in recession and the danger for 2012 may be an economic depression

The New Year in the Euro zone has opened in rather an odd manner. Firstly its politician’s gave  a very downbeat message for 2012 with Chancellor Merkel of Germany saying this. next year will no doubt be more difficult than 2011 … Read More

Posted in Euro zone Crisis, Eurozone, General Economics, Recession, Yield | 14 Comments

Some reflections on 2011 and how the world’s banks will drive how 2012 will develop

As we come to the end of 2011 and arrive at what will be no doubt be called New Year’s Eve Eve, I thought that I would take Kylie Minogue’s advice to “Step Back in Time”. If I do so … Read More

Posted in Banks, Euro zone Crisis, Eurozone, General Economics, Gilts, Greek Financial Crisis, Japan's Economic Situation, Quantitative Easing and Extraordinary Monetary Measures | 19 Comments

Italy’s government bond market shows the dangers inherent in creating a false market

Whilst yesterday I took a look at the likely future for Japan and her economy there were also developments in the Euro zone which seems unable to keep itself out of the news. In particular there was a sale of … Read More

Posted in Banks, Euro zone Crisis, Eurozone, General Economics, Quantitative Easing and Extraordinary Monetary Measures | 13 Comments

If I was Greece I would default and devalue this Christmas

As we start on what I notice some are calling Christmas Eve Eve I thought that today I would present you with something expected but also something that is very much unexpected. The something expected is what has become called … Read More

Posted in Banks, Euro zone Crisis, Eurozone, General Economics, Greek Financial Crisis, The US Economy | 30 Comments

What does 489 billion euros buy the European Central Bank? A little time maybe if it is lucky

Yesterday we saw the results of an event I had been waiting for and had written two posts on which was the three-year Long-Term Repo Operation by the European Central Bank. It did not disappoint as it turned out to … Read More

Posted in Banks, Euro zone Crisis, Eurozone, General Economics, Interest rates, Quantitative Easing and Extraordinary Monetary Measures, UK Inflation Prospects and Issues | 17 Comments

The Bank of England’s Mr Bean has made a Charlie of himself again

Yesterday Bank of England Governor Charlie Bean emerged from the shadows of the central banking world and gave an interview to BBC Radio Four. Those who have followed me for a while will remember that Mr. Bean has been relatively … Read More

Posted in Euro zone Crisis, Eurozone, General Economics, Gilts, Inflation, Quantitative Easing and Extraordinary Monetary Measures, Stagflation, UK Inflation Prospects and Issues | 11 Comments

The Belgian experience shows the danger implied in being a Euro zone member right now

We start another day with more problems for the Euro zone as yet another cunning plan begins its inexorable journey to failure. I was following events yesterday and it occured to me that there is a theme in this that … Read More

Posted in Euro zone Crisis, Eurozone, General Economics, Greek Financial Crisis, IMF, Quantitative Easing and Extraordinary Monetary Measures | 21 Comments

The UK,US India China and North Korea are all facing the “guns or butter” problem

I opened last week by discussing the economic situation in China and India. These two countries have taken on an increasing role in the world economy over the past decade and we find that their economic surge over this period to … Read More

Posted in Bear Market, China, Emerging Markets, Euro zone Crisis, General Economics, House Prices, Inflation, Interest rates | 15 Comments

Why Spanish,Italian and Belgian government bond markets have recovered and worrying UK liabilities

Yesterday we saw an example of a new factor in the Euro zone crisis that I discussed back on the 2nd of December. Although to be fair it is better to say that it is a new variant of a … Read More

Posted in Banks, Euro zone Crisis, Eurozone, General Economics, Greek Financial Crisis, Interest rates, Quantitative Easing and Extraordinary Monetary Measures, Yield | 23 Comments