Death Star Economics



Destroying foreign relations – a how-to guide from today’s news


First things first. Today marks the 200th news brief and I’m pretty excited. In fact, I’m typing with just one hand, brushing dirt off my shoulder with the other. Anyway, thanks for reading (and promoting)!! And no, sorry, despite my awareness of pay-walled content, I will not buy all of you an FT subscription…

Besides this exciting piece of information, however, there is not that much going on. Today is a lot like yesterday in terms of expectations, suspense and the same news all over again. In addition, we have faltering foreign relations and the 9/11 anniversary.

The data du jour includes the US trade deficit, which is expected to rise by $1.9bn, reaching $44.8bn (official announcement at 830am EST/130pm GMT). Across the pond, the UK trade deficit, which has shrunk to £7.15bn, beating forecasts of £9bn and marked the lowest since February 2011. Most of it is attributed to ex-European trade involving oil and diamonds. It’s fine though, we’ll wipe our hands with all those notes.

Meanwhile, German finance minister Wolfgang Schaeuble took his time on the podium, speaking to the Bundestag, to proclaim that what is wrong with the world, is the amount of US public debt. From Reuters:

“Ahead of the election in the United States there is great uncertainty about the course American politics will take in dealing the U.S. government’s debts, which are much to high,” Schaeuble said.

But rather than concern for the global economy, the reason behind statements such as the above, may be that Tim Geither continuously points his finger at Germany. During his last visit to Europe, he made it very clear that Germany needs to step up its game and be proactive about the eurozone crisis, which includes agreeing to eurobonds.

Speaking of which, today marks the highest volume day of debt issuance in 2012 in Europe. Corporates borrowed €7.8bn, riding the risk-appetite wave after Draghi’s bond-purchase promise. read article

A a follow-up from yesterday: the Treasury has sold 554m shares in AIG. At $32.50 per share, that amounts to $18bnread article

Greece has set up a government working group to evaluate Germany’s outstanding reparations from WWII. Now we have two countries, two bailouts and a lot of bad relations. It’s like the prisoner’s dilemma on crack. read article

Something light, finally: Alphaville analyses how Markit was meant to be come the “iTunes of finance”, defeating both Bloomberg and Reuters as instant information providers, but failed miserably and embarrassingly in execution. read article

So long.


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One Response

  1. princess1960 says:

    ok now is 2/17 morning early and i can not sleep SO iam reading your article ..not analytice (epifania) sorry i don’t have power anymore to read but i wanted to send this comment ..let go all in hell ..this people like to make maza of the poor people unhappy and desperamente..(they did)..isee the logice to many politican and economist is for (cry) and i ask my self many time mamma mia this people is our capital??????yes it is ..SO this is the reason the world is in truble..
    thank you for reading my comment and SORRY if this is not what you want or wait…
    so long yes it is

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