There is nothing like a wealthy central bank chief admitting that he wants to, one, help governments default gradually on their debts; and two, cut the real wages of workers. An honesty the Fed never dared to exhibit when it inflicted waves of QE on American workers.
By Don Quijones: With more back channels and revolving doors to governments around the world, Monsanto is used to getting its way. But now it faces an outright rebellion.
New Prime Minister of France: It All Hangs Together Or We’ll Hang Together (Warning: Biting Sarcasm)
By Hilary Barnes: Manuel Valls, the new Prime Minister of France, who has discreetly hinted that he hopes one day to be regarded alongside General de Gaulle as "the man who saved France" from itself, has found a new and fascinating definition of "austerity."
By Cassandra: In the South of the Eurozone, people feel crushed, their future sacrificed on the altar of the Holy Euro. I’m in the Netherlands, so north of the Great Divide. We’re not suffering as much as the people in Greece, Spain, and Portugal. Not yet.
By David Stockman: Now it has happened. For nearly two days there was not a single cash bid for the 10-year JGB in what is a $10 trillion market. At least for the moment, liquidity has dried-up completely. This is the canary in the Abenomics shaft.
They’re not even trying to blame the weather this time. “Housing affordability is really taking a bite out of the market,” is how the chief economist for the California Association of Realtors explained the March home sales fiasco. “We haven’t seen this issue since 2007.”
By Abigail Field, Attorney, Benzinga: Every year that multinational corporations and wealthy individuals lower their U.S. tax bills by stashing profits in off-shore tax havens, you pay more to cover their tab. The same is true for small businesses.
The tiny country of Belgium with a GDP of $484 billion, a country that became famous to the chagrin of some people because it did just fine for a couple of years without a national government – well, it’s growing an enormous mountain of US Treasuries.
By Don Quijones: The story is now playing out across Europe’s bailed-out nations. The losers are by and large the poor and middle classes, while the beneficiaries are the same as always: the world’s largest multinational corporations and banks.
A report from the asset management and investment banking division of Groupe BPCE, the second largest bank in France, predicts what daredevil voices at the maligned margin of financial analysis have worried about for a while: another global financial panic.
This year has been lumpy for stocks around the world. Gone are the wild rallies followed by mild rallies interrupted by minor downticks, followed by more rallies. That’s so 2013. It's as if on December 31, someone turned off the spigot. But in Japan, it turned into a rout.
By Terry Coxon: What the consequences of economic mismanagement can be, and how stealthily disaster can creep up on you.
“Biotech Stocks’ Rout Perplexes Analysts” the WSJ headlined the phenomenon, as analysts continue to hype this stuff to small investors. But hedge funds are dumping stocks, and private equity firms are dumping their LBOs. That’s the Smart Money. They’re getting out.
By David Stockman: China’s credit bubble fed the largest construction boom in history, and property prices rocketed higher so persistently that people believe luxury condos they never intend to live in are the best savings account. Now the credit pyramids under it are faltering.
By Nick Cunningham: Russia’s primary energy customer is Europe, which is now planning sanctions. That has accelerated the natural gas deal Russia is trying to hammer out with China. But they’ve been negotiating for years, the biggest sticking point being price!
Hidden in the IMF’s Global Financial Stability Report is a doozie of a chart. “Seek cover, implosion in sight,” it screams. It depicts the bubble in covenant-lite and second-lien loans, the same that helped blow up the banks in 2008. Only this time, they’re even worse.
Armed pro-Russian separatists barricaded in official buildings in eastern Ukraine exhorted Uncle Putin to come to their aid. But sudden breath of fresh air: a poll found that an overwhelming majority of the people in that region want to remain part of Ukraine.