Another step towards the crash of the Euro
Euro-zone has made a new step towards disintegration, once Germany decided to step back from another principle of stability of the euro. It is clear that step by step the euro becomes a piece of paper, and Germany will apparently return to the Deutsche Mark. This is the only way - the euro devalued will stay as currency for lazy nations. For Germans and other solid and industrious countries - a Deutsche Mark and some clones of it. Later, the lazy nations will understand they are losing their standard, and they need Marks and not Euros. But with no common currency they will have fewer reasons to ask to be saved...
Read more...Greece to outplay the stupid europeans again
For 3 years up to now Greece is doing exactly one and the same thing - simulation of reforms and periodically inventing new reasons of not making reforms. These reasons are of so called "inevitable" type and require stepping back from promises given to international donors that finance the bankrupted country.
Read more...$ Twist again...
Today it became clear what will be the exact form of the new money-print round of FED. It will be an extension of the old Twist program that is de facto a prolongation of the maturity of the old government debt. This means the Government will repay back less money, i.e. the net quantity of newly added money on markets will increase. This is almost equal to QE programs that are direct purchases of government bonds by FED, using newly printed money. With Twist FED buys long term securities and sells short term ones. As the short term ones will expire sooner, so the final result is that the money that had to be repaid back on short term bonds are de facto not repaid as FED has bought with it long term bonds.
Read more...The demagoguery in Europe
Europe today is a symbol of duplicitous demagoguery. All look to Merkel and criticize it because of the savings just like she is the reason of them. Well it they don't like savings they can stop saving. But what if they simply have no money?
Read more...2 philosophical questions on the Spanish bailout
The Spanish rescue program, although the largest of all programs up to now (Greece, Portugal and Ireland), will require no austerity measures by Spain. This inspires an interesting philosophical question whether this is good for Spain, or is bad. The anathema of austerity and making it a major subject of criticism is not clear whether it is a sign of healthy thinking. Or is a sign of the next stage of the disease.
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