Debt Rattle June 13 2015
- This topic has 8 replies, 7 voices, and was last updated 8 years, 10 months ago by
.
-
Posts
-
Lewis Wickes Hine Night scene in Cumberland Glass Works, Bridgeton, NJ 1909 • Investors Yank $9.3 Billion From Emerging Markets, Most in 7 Years (WSJ)
[See the full post at: Debt Rattle June 13 2015]I have been listening and humming along to you two on TAE for years now. I have heard Nicole, online and in person, say exactyl this as an indicator and a consequence of deflation “While prices have gone down, they have done so at a much smaller rate than incomes”. If you guys and people like Steve Keen and Chris Martinson etc can have got this 10 years ago, why has it been SO hard for the people supposedly, but not actually, in charge to see and act on it.
I know, corrupt, feckless cowards springs to mind, but even so.
On the $9bn yanked from emerging markets. It’s funny but $9bn is a tiny tiny sliver of money now in the big scheme of things. For the US Treasury that is a small week of borrowing. For the ECB it’s just another week of bond buying.
Still it’s significant because every last drop of liquidity in the world is needed to keep all the plates spinning. Any faltering in liquidity far off stage right and the faint sound of breaking china is heard by the audience.
This one is SO wonderful, I had to share it with all the folks here.
https://www.marketwatch.com/story/the-number-that-makes-us-bullish-on-america-99-trillion-2015-06-12Ilargi (I still like those), I particularly thought you might enjoy dissecting that one in detail.
It is, of course, the most ASTONISHING fantasy. Eye-popping to me, and folks here, I’m sure; but a lovely example of what the Econofantasists consistently feed to the media and the public; ever lusting for things to prop their own fantasies up.
A perfect, perfect example of “omigod, this guy does not live on any planet even near reality…”
Educational, actually, for those with eyes to see and ears to hear. And entertaining, too – once you can relax about it all a bit.
🙂
“Ms. Lagarde effectively said in Ukraine, IMF will act differently than it did in all European programme countries and differently from pretty much every other case in its history.”
IMF orders Ukraine to default
Of course Ukraine is as I see it the key to keeping the EU together. Together to ‘defend’ against Russian agression is the story. I’m still thinking Greece may need a regime change for the very same reason. Unlike most others I expect to wake up some morning and hear that Tsipras and Syriza are out and a civilian of Goldman Sachs heritage is in courtesy of the military.
There were two parts to Congress’ vote yesterday re fast-tracking the Trans-Pacific Partnership. (1) Congress DID pass fast track on the TPP portion – 219 “yes” votes to 211 “no” votes. (2) Congress DID NOT pass the TAA portion (which would compensate people WHEN, not if, they lose their jobs over this trade agreement).
Every single one of the congressmen who voted “yes” should be labelled a traitor and should be, at the very least, thrown out on their asses at the next election. If corporations and the White House can throw enough money at the dissenters (which is what it’s going to take to change their minds), this thing will pass.
Bill Still is calling on every citizen to phone their representatives and register their outrage.
This was a good Salon article on the differences between Greece and Ukraine. They bend Greece over like a pretzel, yet Ukraine is…well, it is treated differently. IMF urges Ukraine to default?
“The latest from Kiev has most people in the markets dumbstruck. Last week the parliament voted to authorize Jaresko to refuse any further payments to foreign lenders on the grounds she “has the right not to return loans borrowed by a kleptocratic government.”
This is called the “odious debt argument,” the reasoning being that a new government cannot take responsibility for a corrupt predecessor’s capriciously incurred borrowing. It has been tried before, sometimes with justification, but I seriously question if the Poroshenko government can make any such case stick. […]
Second, another phrase in the bill references “unscrupulous external creditors.” Essential to note here is that 1) Russia holds a $3 billion bond issued by the Yanukovych government and is plainly considered one of these and 2) Russian Prime Minister Dimitry Medvedev said in a televised interview last week that Moscow has no intention of renegotiating the terms on these instruments.
It shapes up as a showdown. Under the circumstances, one can hardly blame the Russians for this position. It will be interesting, maybe even fascinating, to watch how Kiev’s backers line up if it defaults on the Yanukovych bonds—the odious debt argument being simply a lunge for legal protections as debts are ignored.
Third and last, this is a reckless way into debt resolution and a depressing measure of just how irresponsible the people governing Ukraine are. I am hard pressed to recall a client regime this shabby and ignorant, and Washington has settled on some real losers over the decades. Funds Yanukovych borrowed did not benefit the citizenry, and therefore…. Where does this chicanery end?”
Michael Hudson on Greece:
“A default is a default. The attempted euphemism of “technical” default came up with regard to the Greek debt in 2012 at the G8 meetings. Geithner and Obama lobbied the IMF and ECB shamelessly to bail out Greece, simply so that it could pay bondholders, because U.S. banks had issued credit default insurance (CDS) against Greek bonds and were on the hook for a big loss if a default occurred. The ECB suggested euphemizing default as a “voluntary renegotiation,” asking banks and other bondholders to agree to write down the debt.”
- You must be logged in to reply to this topic.
Sorry, the comment form is closed at this time.