Death Star Economics



Japan opens floodgates [further]; Euribor to be reformed

Japan will spend JPY 10.3tn ($116bn) on an economic stimulus package that is set out to boost GDP by 2%create 600,000 jobs and worsen the country’s public debt situation. At this point, Japan’s debt amounts to 220% of GDP. About a third of the stimulus will be spent on disaster prevention and reconstruction; natural disasters, that is, not financial ones. read article

A handful of conservative European leaders are meeting in Cyprus to talk budget today, which is awkward because Angela Merkel has publicly opposed a bailout of the country. read article

In the background, Silvio Berlusconi proclaims that he “will not admit any responsibility for Italy’s crisis:

Berlusconi blamed his legal troubles, which include a tax fraud conviction and a pending trial on charges of engaging a minor in prostitution, on politically motivated judges and prosecutors.

After the recently re-arisen Libor scandal (some more dissecting of what Deutsch Bank did, here), the European Banking Authority and the European Securities and Markets Authority have recommended to reform the Euribor benchmark interest rate as well. read article

London is getting cold again these days and so is China. In the worst winter, like, ever, consumer prices accounted for 2/3 of the 2.5% inflation hike [from 2011] in December. The cold weather is pushing the price of vegetables up, and higher inflation could endanger future government stimuli, although that’s still a bit far-fetched at this point. read article

This week, both Morgan Stanley and American Express jumped on the bandwagon and announced significant staff cuts. While MS plans to fire around 1,600 people6% of its global workforce, AmEx will reduce its employee base by 8.5%, which will cost about $400m in severance payments.

Weekend reading

– a song for Paul Krugmanwatch video

– women in defense (the industry, stupid!), read article

– the case for the $1tn coinread article read another article

– Obama’s new posse – controversial(?) choices at the White House, read article

Have a good one.

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One Response

  1. princess1960 says:

    first why from to day weekend ?reading
    second ..why you are nervouse ?
    theard.. JAPAN will be allright
    USA .too
    ah CHina ..?
    PK is good for fed but after will lose the nice popularitet have (not because he wanted ) but because there is like this YOU CAN NOT DO WHAT YOU THINKING BUT WHAT THEY THINKING so better …in NTIMES.
    thank you next time comment about bank’s malakia
    enjoy …like allways

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