European Economic and Monetary Affairs Commissioner Olli Rehn spoke with Bloomberg TV’s Sara Eisen today and said that Spain’s government is considering a request for a bailout. Rehn said, “The Spanish government has an open mind on this issue, but no decision has been made. We stand ready to act if there is a request.”
Rehn also said that “negative bond yields are not a healthy phenomenon. They’re not good for [...]
Britain will not be able to block an inflation-busting rise in the EU’s budget, which will cost taxpayers an extra £350million.
The UK is expected to vote against a proposal to raise the budget by 2.8 per cent for 2013, but the EU’s system of qualified majority voting makes it unlikely the increase will be thrown out.
The Netherlands and Sweden are expected to join Britain’s call for more fiscal prudence, but [...]
by Charles Hugh Smith from Of Two Minds
A Crazy Idea That Might Just Work: Greece’s New Currency, The U.S. Dollar
There is an undeniable internal logic to the crazy idea that Greece should jettison the euro and accept the U.S. dollar as its national currency.
Before you dismiss my crazy idea out of hand, hear me out. It might not be as crazy as it seems on first blush.
I have a straightforward three-point [...]
I write in the Daily Mail about Europe’s rejection of austerity. It’s not just the French and Greek election results. Within the past ten days, the Dutch and Romanian governments have also been brought down over their attempts to make savings. The same thing will keep happening across the Continent, at election after election.
Eurocrats, too, are tiptoing away from cuts, belatedly aware of how outrageous it sounded to argue for austerity in the [...]
Deja Vu All Over Again: Total US Debt Passes Debt Ceiling… In Under One Month Since Extension Tyler Durden 09/02/2011 Remember when one month ago the US, to much pomp and circumstance, not to mention one downgrade, announced a grand bargain raising the debt ceiling from $14.294 trillion to something much higher, with a stop gap intermediate ceiling of $14.694 trillion, or [...]
Remember when one month ago the US, to much pomp and circumstance, not to mention one downgrade, announced a grand bargain raising the debt ceiling from $14.294 trillion to something much higher, with a stop gap intermediate ceiling of $14.694 trillion, or $400 billion more. Well, as of today, or less than a month since the expansion, total US debt is at $14.697 trillion. [...]
Last week David Stockman was on Tom Keene, making the usual media rounds (sometimes we marvel at his patience and endurance), as one of the few voices of fiscal prudence available to TV producers who seek to hold a balanced debate on the topic of US insolvency. Today, Reagan’s budget director was again on Bloomberg TV explaining the reality of the situation to Matt [...]
Remember S&P had investment grade, AAA, ratings on countless mortgage-backed securities right up until the moment the paper became worthless. — Peter Schiff on the S&P’s “too late semi-downgrade of U.S. sovereign debt.”
In the first place, the S&P announcement only portrays a one in three chance that the U.S. would lose its AAA rating, reserving an opportunity later to move down to a one in two [...]