“The author and euro-critic Udo Ulfkotte believes that Angela Merkel already thinking “behind closed doors” about a split in the euro zone. She stand positive to a North Euro because she knows that the euro in it’s current form can not exist. In the new anti-euro party AFD Ulfkotte sees a serious threat to Merkel. Well revenge on it’s assessment of the undemocratic introduction of the euro, which was orchestrated [...]
The euro is down big lately, which is to be expected. Over-indebted countries have traditionally used devaluation to keep their debts from crippling them.
The problem is that a cheaper currency is only a temporary fix because it invites retaliation from everyone else. For a real-world example of this process in action, consider what just happened to McDonald’s. For the past few years it has been turning crappy food into great [...]
(Reuters) – The global financial crisis has barely started and is likely to last for at least another 15 to 20 years as major economies cut debt levels, according to Jamil Baz, one of Europe’s most prominent hedge fund managers.
Baz, chief investment strategist at GLG Partners, told the GAIM 2012 conference in Monaco that total debt levels in a number of major economies had actually risen since 2007 and had [...]
Europe has 3 months to address crisis: Soros
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) — The European Union has three months to address its financial crisis before the markets stop giving it time, but in the end the euro is likely to remain, said George Soros, chairman of Soros Fund Management LLC.
Europe is struggling with a fundamental flaw of its original design: that’s it’s a monetary and economic union but not [...]
April 15, 2012
George Soros has gone to Berlin to tell the Germans that their policies are leading to the disintegration of not just the Euro, but Europe itself.
Yesterday in a panel on the “Future of Europe” at a conference organized by the Institute for New Economic Thinking, Soros said:
The Euro has really broken down. It has sprung defects, some of which could have been anticipated and some were anticipated. [...]
From Caroline Baum on Bloomberg.com:
Consider the following numbers: 2.2, 62.8, 454, 5.9. Drawing a blank? Not to worry. They don’t mean much on their own.
Now consider them in context:
1) 2.2 percent is the average interest rate on the U.S. Treasury’s marketable and non-marketable debt (February data).
2) 62.8 months is the average maturity of the Treasury’s marketable debt (fourth quarter 2011).
3) $454 billion is the interest expense on publicly held debt [...]
March 20, 20112
Europe is only at the beginning of a “very tough, very long, hard road” to recovery and its future is still a threat to the US economy, Timothy Geithner, the treasury secretary, warned on Tuesday.
In testimony to the House financial services committee on the state of the international financial system, Geithner warned against draconian spending cuts by heavily indebted countries and called on better-off European countries to [...]
International debt inspectors believe they have found another €15bn (£12.5bn) black hole in
Greece’s public finances caused by the deepening recession, delivering the crippled nation another devastating blow.
A meeting of the eurozone’s finance ministers has been scheduled for Monday, to discuss the disbursement of the €130bn second bail-out for Greece. Photo: REUTERS
By Louise Armitstead
12:20AM GMT 03 Feb 2012
With pressure growing over talks with private investors about the terms of a €100bn debt write-off, [...]
by Michael Goldfarb
The new Italian Prime Minister told theFinancial Times that it was in Germany’s “own enlightened self-interest” to help Italy and the other heavily indebted countries of the euro zone periphery to lower their borrowing costs.
Monti, a technocrat appointed to replace Silvio Berlusconi, praised Germany’s “culture of stability” as “a precious German product [that] has been marvelously exported.”
The German lesson has been absorbed says Monti, not just by Italy but by [...]
Eurozone leaders have delivered more than investors feared they would only last night, and less than they would ideally like to see.
An agreement in principle with banks and private-sector creditors that the Greek government will pay them back only half what they are owed came right at the last moment.
It will also be seen as progress that the 250bn euros left in the kitty of the bailout fund, the European Financial [...]
This is the crunch day for the eurozone – yet, even now, it is far from clear if or when a deal will be reached to bail out the EU’s indebted countries. A finance ministers’ meeting today has, incredibly, been postponed, although in theory it should be possible for leaders meeting in Brussels to hammer out the main points of a deal. They cannot afford to fail: the stakes could [...]
BRUSSELS (AP) — The president of the European Union said Monday he is delaying next week’s summit of EU leaders until Oct. 23 because they need more time to finalize a plan to fight a worsening debt crisis.
The EU summit was originally planned for next Monday and Tuesday.
The new timing will allow the bloc “to finalize our comprehensive strategy on the euro area sovereign debt crisis,” [...]
Dow Jones Newswires:
Sep 28, 2011 (Dow Jones Commodities News Select via Comtex) — FRANKFURT (Dow Jones)-Greece has no choice but to leave the euro zone, the former chief economist for the European Central Bank says in an interview published Wednesday.
The country cannot get back on its feet through radical austerity, Otmar Issing tells Germany’s Stern magazine.
With its debt load expected to reach 160% of gross domestic product [...]
If America’s good days are over, so are China’s
“Be careful with what you wish,” goes an old saying. “Because when it comes true, it may not be good for you.”
Everyone who follows closely US-Chinese economic relations cannot help but be puzzled by China’s bold statement, after the S&P downgrade of US debt, that “America’s good day’s over.“
While China, as America’s largest foreign investor in US Treasuries, has [...]
1) Spanish Yields Surge in EU3.31 Billion Sovereign Debt Auction
“Spain sold 3.31 billion euros ($4.72 billion) of bonds at higher interest rates after the yield on the country’s 10-year bond approached the 7 percent mark that heralded the bailouts of Greece, Portugal and Ireland.
The Treasury in Madrid sold 2.2 billion euros of April 2014 bonds at an average yield of 4.813 percent, compared with 4.291 percent [...]
WASHINGTON — US debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted, Treasury figures showed Wednesday.
Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country’s spending commitments reached a breaking point and it threatened to default on its debt.
As part of its most recent issue the New Yorker has released a must read interview with Ray Dalio – head of the world’s biggest hedge fund, Bridgewater. Dalio’s fund, which according to some may now be as large as $80 billion, continues to outperform even in this problematic environment, indicating that unlike various other managers who shall remain nameless, and whose wealth is built up almost [...]
From the full interview:
Dalio believes that some heavily indebted countries, including the United States, will eventually opt for printing money as a way to deal with their debts, which will lead to a collapse in their currency and in their bond markets. “There hasn’t been a case in history where they haven’t eventually printed money and devalued their currency,” he said. Other developed countries, particularly [...]
1) Portuguese Bond Sale May Make Bailout `Inevitable’
“Portuguese yields may be rising to levels that force the nation to follow Greece and Ireland in requesting a bailout from the European Union and the International Monetary Fund to avert default.
The nation plans a 10-year sale tomorrow, the first bond auction by any of the euro regionâ€™s most indebted countries this year. Its existing 10-year debt has [...]