The G20 finance ministers and central bankers have put off an immediate decision to weigh up a global financial transaction tax (FTT) proposal at the forthcoming G20 Summit (Cannes, 3-4 November 2011). The two-day Ministerial Meeting (14-15 October) in Paris took place against the backdrop of huge protests in US and Europe, galvanized by the … Read more
Here are a few charts from the credit default swaps market based on 5-year CDS. Here’s what I see. First, in the sovereign space, the UK was the biggest widener on the day, but the default probability is only 8%. I don’t see this as anything to note. On the other hand, if you look … Read more
From Project Syndicate: This year has witnessed a global wave of social and political turmoil and instability, with masses of people pouring into the real and virtual streets: the Arab Spring; riots in London; Israel’s middle-class protests against high housing prices and an inflationary squeeze on living standards; protesting Chilean students; the destruction in Germany … Read more
The FOMC minutes for the September 2011 meeting were released today and the first things that stand out are the clear hawk-dove divide, the smorgasbord of additional ad-hoc monetary stimulus policy options that were discussed, and the increased economic pessimism of the members. Something else, though, really caught my attention in the minutes. It was … Read more
Yet another rescue plan for the EMU is making its way through central Europe—raising the total funding available to the equivalent of $600 billion. Germany agreed to raise its contribution to the fund by more than $100 billion equivalent. However, Slovakia has vetoed the rescue and all eyes are now turned to a forthcoming October … Read more
The BRICs cannot bailout the risky Eurozone economies. They can offer capital and jobs, but in return of hard assets and advanced technology. It is time for old barriers to crumble in Europe. Not so long ago, Italy’s finance minister Giulio Tremonti used to write profusely about the threat of China’s “reverse colonization” of Europe. … Read more
On Sunday, Merkel and Sarkozy promised a “sustainable and comprehensive” solution to the euro debt crisis ahead of the November 3-4 G20 meeting. Along with this rather grand announcement are absolutely no details on their plan. However, Van Rompuy today pushed back the European Summit, which convenes now on October 23, to ‘finalise our comprehensive … Read more
Time to go to Greece! I should have already been there, but due to the general strike I have been forced to reschedule my flight for this morning. Hopefully, I will be there soon. It shouldn’t come as a surprise that the Greek people are on general strike again – not the first time and, … Read more
Here are slogans to put on your signs as you join those occupying Wall Street, demanding an end to the Bankster Fraud that is aided and abetted by Washington. Send your comments with other suggestions. (Thanks to MMT friends for suggestions, including especially Warren Mosler.) Many of the signs used by protestors have been quite … Read more
Nearly every news story I read about the occupation of Wall Street begins by saying that the protesters are vague about what they want. Even Paul Krugman, who is supportive of the demonstrations, complains in today’s New York Times about a lack of specific policy demands. Maybe that is a valid critique of individual protestors, … Read more