Germany And Spain Inflation Picked Up Significantly
The German unemployment rate also increased for the fifth consecutive month in August.
MADRID–Spain’s inflation picked up significantly in August from a year earlier due to higher gasoline prices, final data from the National Statistics Institute, or INE, showed Wednesday.
Spain’s harmonized consumer price index rose 2.7% in August from a year earlier, well above the 2.2% CPI increase seen in July, INE said. The data confirms an earlier flash estimate released late last month.
World’s Economies Are CRASHING! PMI Numbers Crashing Across The World. CHINA HSBC PMI FALLS TO LOWEST LEVEL SINCE MARCH 2009!!!
- Japan: Markit/JMMA Manufacturing PMI — 47.7, down from 47.9 in July
- China: Official PMI – 49.2, down from 50.1 in July
- South Korea: HSBC Manufacturing PMI — 47.5, up from 47.2 in July.
- Netherlands: NEVI Manufacturing PMI — 49.7, up from 48.9 in July.
- Taiwan: HSBC Manufacturing PMI — 46.1, down from 47.5 in July.
- China: HSBC Manufacturing PMI — 47.6, down from 49.3 in July.
- Indonesia: HSBC Manufacturing PMI — 51.6, up from 51.4 in July.
- India: HSBC Manufacturing PMI — 52.8, down from 52.9 in July.
- Russia: HSBC Manufacturing PMI — 51.0, down from 52.0 in July.
- Saudi Arabia: SABB HSBC Manufacturing PMI — 58.3, up from 58.1 in July.
- Ireland: NCB Manufacturing PMI — 50.9, down from 53.9 in July.
- Sweden: Swedbank PMI — 45.1, down from 50.6 in July.
- Poland: HSBC Manufacturing PMI — 48.3, down from 49.7 in July.
- Turkey: HSBC Manufacturing PMI — 50.0, up from 49.4 in July.
- Spain: Markit Manufacturing PMI — 44.0, up from 42.3 in July.
- Czech Republic: Manufacturing PMI — 48.7, down from 49.5 in July.
- Switzerland: Manufacturing PMI — 46.7, down from 48.6.
- Italy: Markit/ADACI Manufacturing PMI — 43.6, down from 44.3.
- France Markit Manufacturing PMI — 46.0, up from 43.4.
- Germany Markit/BME Manufacturing PMI — 44.7, up from 43.0.
- Greece Markit Manufacturing PMI —42.1, up from 41.9.
- Monday, 9/3, 4:00 AM: Eurozone Manufacturing PMI. Expected: 45.3. Previous: 45.3.
- U.K.: Markit/CIPS Manufacturing PMI— 49.5, up from 45.4.
- Tuesday, 9/4, 8:58 AM: Markit U.S. PMI Final. Expected: 51.9. Previous: 51.4.
** Perhaps an ugly bellwether for the global economy, Asia’s aggregate exports turned lower Y/Y in July for the first time since the financial crisis, says Nomura’s Rob Subbaraman.
What started out as a celebration that marked marking Catalonia’s “National Day” turned into one of the biggest gatherings the city has ever seen.
Over a million Catalonians descended upon Barcelona yesterday, protesting current economic conditions, tax policies, and what they see as an unequal distribution of wealth.
“Catalonia: a new European state”
Catalonians have long viewed themselves as culturally distinct from the rest of Spain. They have their own history, traditions, and a distinct language native to their region. But now, the economic climate has driven a huge amount of people to favor full independence.
German FinMin Schaeuble has been on TV for the last 30 minutes explaining the ‘bailout’ reality to the ugly mob that is the German taxpayers. Less than 12 hours after the German Constitutional Court rejected complaints against the ESM – though added conditions capping German indebtedness – it seems the need to explain the limited ‘unlimited’ liability to the people is high. To wit:
- NEIN - ”No country in Europe” can hope for the ECB to “fire up the money printing press,” Schaeuble says. Germany “will make sure that it doesn’t happen”
- NEIN - *SCHAEUBLE SAYS ECB DOESN’T HAVE MANDATE TO FINANCE STATES
- NEIN - *SCHAEUBLE SAYS ESM CAN’T HAVE BANKING LICENSE
Yesterday we worked through the illusion to reality for the ECB’s unlimited bond purchases, the end result being that the ECB:
- Didn’t announce anything new
- Is implementing the same policies it’s tried twice before with no success
- Is implementing policies that neither Spain nor Italy will go for
- Has solved nothing due to the fact that of the two mega-bailout funds, one has only €65 billion in firepower left and the other has yet to be ratified by Germany
Today we turn our attention to the US’s Federal Reserve where the whole world expects the Fed to announce QE 3 at its FOMC meeting this Wednesday and Thursday.
There is a small problem of math with this. The Fed currently owns all but just $650 billion of the outstanding 10-30 year Treasuries. At this point, even a $200-300 billion QE program would create serious liquidity problems for the financial system.
Of course, the Fed could potentially implement another agency/MBS QE program. But that would be a very political move with the Presidential election so close. This, combined with current food and energy prices, makes it unlikely the Fed would want to do this.
Indeed, we’ve seen some striking admissions from the Fed recently. St Louis Fed President James Bullard:
“I am a little – maybe more than a little bit – worried about the future of central banking,” said James Bullard, president of the Federal Reserve Bank of St Louis, in a Financial Times interview at Jackson Hole. “We’ve constantly felt that there would be light at the end of the tunnel and there’d be an opportunity to normalise but it’s not really happening so far.”
The biggest worry on display at Jackson Hole was whether these bureaucrats, sitting at the heart of every mature economy, still have the power to influence demand now that interest rates cannot fall much further. Lurking behind many debates was this question: if central bank policies are so effective, why is the global economy not growing faster?
Former Bear Stearns trader Greg Mannarino discusse the race to the bottom between the dollar and the Euro.
Mannarino states the dollar has entered a terminal phase and is being continually attacked daily by Ben Bernanke and the Fed.
Mannarino states the ECB’s new plan for unlimited sterilized bond buying will cause the Euro make a sustained bullish run relative to the dollar, which will be classically debased as Bernanke ramps up UNSTERILIZED asset purchases and quantitative easing.
Greg concludes by stating that there is a deliberate attack on the dollar, and that the dollar is going to win the race to the bottom!!!
The dollar is being CRUSHED BY A MAN NAMED BEN BERNANKE!
CrossTalk: China Power Engine Without Fuel?
John Williams: A Dollar Sell Off Imminent
Economist John Williams of Shadowstats.com says, “You’re likely going to see a dollar sell-off . . . That should evolve into hyperinflation.” Williams predicts, “Hyperinflation is virtually assured because the Fed doesn’t have any options left.” Williams says people should get prepared because we are facing a “man-made disaster.” Join Greg Hunter of USAWatchdog.com as he goes One-on-One with John Williams.