Death Star Economics



Another month of dancing limbo to Greek folk music

Much has happened in my week of absence. What I really mean to say is that much has been lost: money, elections, dignity…

JP Morgan managed to lose more than $2bn in trades that led to an absurd number of whaling jokes. Angela Merkel’s party lost the state election in North Rhine-Westphalia, which is a bad sign for [her/] the 2013 general elections.

On the plus side, Germany is growing like a champion again and it single-handedly keeping the eurozone from falling into recession. And when I say ‘champion’, I mean 0.5% growth. That is, let’s face it, more than this negligible 0.1% business and clearly not negative, ergo ‘growing like a champion’. read article

In France, Francois Hollande was sworn into office and then hit by a lightning (well, his plane was) on the way to Berlin, upon which he returned to Paris. But you don’t ditch a German like that and later on that same evening, Hollande sat down with Angela Merkel in Berlin for their first session of partner therapy. read article

Today, the UK is busy over-interpreting unemployment and other data released throughout the morning. At the Bank of England‘s press conference, Mervyn King said fairly little in many words concerning the UK’s future growth in 2012 and beyond. He only diverted from his rather monotonous repetition when asked about the eurozone, the Greek exit and the role of the ECB. Not really wanting to make a statement to any of those topics, he said the most depressing part of the eurozone crisis was that it is just a rerun of the debates brought up in 2007. read article

Here is William Hague saying something sensible about Europe and referendums. In short: No, the UK cannot tell Greece or any eurozone country what to do, because, surprise, surprise, the UK is not in the eurozone. And disregarding the mess, the single market is a good thing and the UK’s biggest trading partner. So no, the UK won’t leave the EU. Cut it out. read article

In Greece, the on-going slow-motion bank run has sped up quite significantly on Monday with €700m being withdrawn from local banksread article

Also, 17 June for part II of the Greek national elections have been confirmed, after all attempts of forming a coalition failed. In other words:

Europe will now have to operate in limbo for at least 1 month as Greece just announced the new elections will be held on June 17 with a temporary caretaker government ruling the country in the meantime. What can possible go wrong.

So long.

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