Death Star Economics



Across the board, things could be better

…and when I say ‘board’, I really mean ‘world’.

The eurozone finance ministers are meeting in Luxembourg today, including the new Greek minister Vassilios Rapanos. So who is this man who will reduce Greece’ deficit and have the country return to growth and glory (I’m just messing with you)? Good old Vassilios used to be a political terrorist, who was sentenced in military court in the 70s, then hung out with other economists in jail, and continued to be chief economic advisor to the minister of finance and a member of the EU monetary committee planning for the introduction of the euro. The man literally said “Jail was my university“. I wonder if his knuckles read T-H-U-G L-I-F-E… read article

The US Fed has prolonged its economic stimulus program dubbed ‘Operation Twist‘, which was meant to end this month, until the end of the year. The thought behind it is, besides high unemployment and sluggish growth, to shield the US economy from the European explosion. By changing the composition of bonds held by the Fed that were acquired during the last rounds of quantitative easing, i.e. by exchanging short-term bonds for long-term bonds, which may [or may not, this is up for discussion] lower interest rates across the board and stimulates lending. read article

In terms of indicators, both Germany and China aren’t doing well with PMI and production output down respectively, and Spain sold 5-year bonds at the highest cost in 15 years  [indicating that things are shit]. And what does that mean? Exactly, it doesn’t matter where you look today, you won’t find great news anywhere [unless you’re a royal, see below]

Meanwhile, the Queen seems to be the only one left making money… Due to rising property costs, her real estate portfolio has appreciated 4% YOY, totalling £8bnread article

Otherwise, the usual back and forth continues. The ECB says it will discuss eurobonds, Merkel says she definitely won’t (with her hand over her ears: “LA LA LA, I can’t hear you!), les French say it may take years to implement them. Nothing new on that front, but the conflict seems less hateful today. read article

Recommended reading: BBC political editor Nick Robinson interviews David Cameron in Mexico during the G20 meetings. On the menu: Europe’s past, Mexico City’s skyline and sympathy for Angela Merkel. read article

So long.


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One Response

  1. princess1960 says:

    thank you ..i understand .i have to say i difficult for the moment maybe ..with try ….the situation go for good ..we will see.

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