background preloader

European Debt Crisis Explained

European Debt Crisis Explained

World debt comparison: The global debt clock Options for Europe – Part 68 | Bill Mitchell – billy blog The title is my current working title for a book I am finalising over the next few months on the Eurozone. If all goes well (and it should) it will be published in both Italian and English by very well-known publishers. The publication date for the Italian edition is tentatively late April to early May 2014. You can access the entire sequence of blogs in this series through the – Euro book Category. I cannot guarantee the sequence of daily additions will make sense overall because at times I will go back and fill in bits (that I needed library access or whatever for). But you should be able to pick up the thread over time although the full edited version will only be available in the final book (obviously). Part III – Options for Europe Chapter 17 Overt Monetary Financing? Why is Overt Monetary Financing taboo and should it be? There is an urgent need for fiscal deficits at the Member State level to rise substantially. The substantive criticism of OMF is the obvious one.

The Corporation Welcome to YouTube! The location filter shows you popular videos from the selected country or region on lists like Most Viewed and in search results.To change your location filter, please use the links in the footer at the bottom of the page. Click "OK" to accept this setting, or click "Cancel" to set your location filter to "Worldwide". The location filter shows you popular videos from the selected country or region on lists like Most Viewed and in search results. Loading... China Pulls The Rug From Under Europe, Halts French Bank Transactions, Make A flurry of headlines out of China suggest global macro-economic volatility may be ready to take it to the next level. We discussed last week how China's oh-so-generous offer of help to Europe was merely a veiled threat playing US against Europe in a game of who-gets-the-funding. Well, tonight, it seems, they are making good on some of those threats. Aggravated by EU's lack of market economy recognition, they pull trading lines with French banks, express concern at the EUR's safety (preferring US Treasuries), and indicate a clear preference for bonds over stocks - all the while warning of growing trade tensions - consider the sabre-rattled. Initial comments from Commerce Minister Shen via Bloomberg: was quickly followed by the 'threat/promise': and then Reuters reports: And the piece-de-resistance of the night was, again from Reuters: China, the largest foreign holder of U.S. government debt, will keep buying U.S. Furthermore, as if he had just read our earlier debt vs equity post:

Europe According to Stereotype | andrewcusack.com A London-based graphic designer has created a series of maps depicting Europe according to the national stereotypes in the minds of various peoples. Yanko Tsvetkov, a Bulgarian living in Great Britain, created the first one in 2009 in the midst of the energy dispute between Russia and the Ukraine. Russia was labelled “Paranoid Oil Empire”, the Ukraine “Gas Stealers”, and the E.U. as “Union of Subsidized Farmers”. Switzerland was simply “Bank”. “I created the first one in 2009 because at that time there was an energy crisis in Europe,” Mr. Europe according to the French. Europe according to the Germans. Europe according to the Italians. Europe according to the British. Europe according to the Americans.

Explaining US Hypocrisy on Ukraine | Consortiumnews U.S. government hypocrisy toward the Ukraine crisis has been breathtaking, as has the U.S. press corps’ stubborn refusal to see the hypocrisy (i.e. the Iraq War and many other U.S. interventions). William Blum looks at the reasons behind the double standards. By William Blum When it gets complicated and confusing, when you’re overwhelmed with too much information, changing daily; too many explanations, some contradictory … try putting it into some kind of context by stepping back and looking at the larger, long-term picture. The United States strives for world domination, hegemony wherever possible, their main occupation for over a century, it’s what they do for a living. And who threatens United States domination? Since the end of the Cold War the United States has been surrounding Russia, building one base after another, ceaselessly looking for new ones, including in Ukraine; one missile site after another, with Moscow in range; NATO has grabbed one former Soviet Republic after another.

Outfoxed – Rupert Murdoch's War on Journalism Documentary | Watch Free Documentary Online “Outfoxed” examines how media empires, led by Rupert Murdoch’s Fox News, have been running a “race to the bottom” in television news. This documentary provides an in-depth look at Fox News and the dangers of ever-enlarging corporations taking control of the public’s right to know. The film explores Murdoch’s burgeoning kingdom and the impact on society when a broad swath of media is controlled by one person. Media experts, including Jeff Cohen (FAIR) Bob McChesney (Free Press), Chellie Pingree (Common Cause), Jeff Chester (Center for Digital Democracy) and David Brock (Media Matters) provide context and guidance for the story of Fox News and its effect on society. This documentary also reveals the secrets of Former Fox News producers, reporters, bookers and writers who expose what it’s like to work for Fox News.

Unmittelbar betroffen: Die polnische Bank PKO hat Filialen auf der Krim geschlossen Was hat ein Schweinefuß mit der Krim zu tun? Und ist Stanislaw Karemba ein Opfer der Umwälzungen in der Ukraine geworden? Bis vor kurzem war Karemba noch Landwirtschaftsminister in Warschau. Dass er vergangene Woche seinen Platz im Kabinett räumen musste, lag an seinem mangelhaften Krisenmanagement bei der aus Weißrussland eingeschleppten afrikanischen Schweinepest in Polen. Aufgebrachte Bauern hatten protestiert, weil das von Russland verhängte Einfuhrembargo für polnisches Fleisch schon zu einem Preisverfall von 10 Prozent geführt hatte. Autor: Sven Astheimer, Jahrgang 1972, Redakteur in der Wirtschaft, zuständig für „Beruf und Chance“. Autor: Reinhard Veser, Jahrgang 1968, Redakteur in der Politik. Die Nerven sind angespannt, denn die Wirtschaftsbeziehungen zum Osten sind ein wunder Punkt für das größte der osteuropäischen EU-Länder. Mittlerweile schlägt man in Warschau vorsichtigere Töne an. Folgen

The "plan" outlined in a interview with Bloomberg is nothing more than a rehash of the plan that helped hurt the Soviet Union in the 1980's when a drop in currency revenue due to declining oil prices created substantial difficulties for the Soviet economy. Basically, Soros proposes that the US open up its strategic oil reserves and dump them all in the market. According to a Bloomberg report that he believes that "strongest sanction" against Russia "is in the hands of the United States" because US could sell crude from the Strategic Oil Reserve and depress prices . Today, during a panel discussion in Berlin, Soros stressed that the Russian government needs a price of over 100 US dollars per barrel in order to balance the budget. While the "Soros plan" looks good on paper it is nothing more than wishful thinking.

Die Ersparnisse in Sicherheit bringen: Kundinnen vor einem Bankautomaten in Athen. Foto: Keystone Die Verhandlungen zwischen Griechenland und den anderen Euroländern sind am Montag ohne Ergebnis zu Ende gegangen. Am Freitag will man sich wieder treffen. Was wird als Nächstes passieren? Das Wahrscheinlichste ist, dass Griechenland bald Kapitalverkehrskontrollen einführen und den Bezug von Sparguthaben beschränken wird. Wie die Einführung von Kontrollen vor sich geht, konnte man in Zypern vor zwei Jahren beobachten. Das Beispiel Zyperns verdeutlicht auch, dass die Einführung von Kapitalverkehrskontrollen nicht zu einem permanenten Austritt führen muss. Kapitalverkehrskontrollen erleichtern es aber durchaus, eine neue Währung einzuführen. Wann werden die Kapitalverkehrskontrollen kommen? Das Tempo der Abzüge kann sich allerdings beschleunigen, wenn die Bevölkerung das Vertrauen verliert. Tags: Euro, Geldpolitik, Grexit, Griechenland

EconoMonitor : EconoMonitor » International Debt and Financial Crises The latest issue of the IMF’s World Economic Outlook has a chapter on global imbalances that discusses the evolution of net foreign assets (also known as the net international investment position) in debtor and creditor nations. The authors warn that increases in the foreign holdings of domestic liabilities can raise the probability of different types of financial crises, including banking, currency, sovereign debt and sudden stops. A closer inspection of the evidence that has been presented elsewhere suggests that it is foreign-held debt that poses a risk. The role of international debt in increasing the risk of crises was pointed out by Rodrik and Velasco (working paper 1999), who showed that short-term bank debt contributed to the occurrence of capital flow crises in the period of 1988-98. Why are debt liabilities more risky for countries than equity? These results have consequences for the use of capital controls and the sequence of decontrol.

Nomura Presents The Fair-Value Of European Currencies In A Euro Breakup Sce As investors proceed happily through the forest that is this week's potentially epic fail, Nomura asks the question on every European is asking - What's in my wallet? Investors holding EUR-denominated assets and obligations face potential redenomination of contracts into new currencies. Based on the current misalignment of the real exchange rate and future inflation risk estimates, the fixed income group sees very material depreciation risks in most of the periphery and one surprise but critically the research enables risk-reward trade-offs on intra-European trades. This potential 'fungibility' issue is exactly what we described last week as a potential driver of stress and Nomura's work provides a framework for quantifying that relative stress. Belgium, while not entirely surprising to us, faces a dramatic devaluation in a break-up scenario buit it becomes very clear just how concerned depositors and obligation-holders must be in Greece, Portigal, and Spain at a minimum.

This Time is Different, An Update « Oregon Office of Economic Analysis UPDATE: The information below was originally published September, 2011; an update was done in September, 2012 and the latest employment graph (data through November 2013) is here. The following provides an update on the great research that Carmen Reinhart and Kenneth Rogoff conducted regarding the build-up and subsequent bust of historical financial crises. While their work on crises was largely conducted in the time period leading up to and directly after the financial meltdown in late 2008, there does not appear to be any updates now that the U.S. economy has been in technical recovery for over two years at this point. Some of the facts and figures cited in This Time is Different and the authors’ academic papers were still a work in progress at publication date given that events were ongoing. In order to not bury the lede, first up is a quick summary of the U.S.’ current experience relative to historical financial crises, followed later by graphs for each individual measure. Like this:

Related: