Tag Archive for Capital Flight

Regardless of Which Way Bernanke Panics Next, The Ending Won’t Be Happy

Once again the mainstream media boohooed over a false and misleading seasonally falsified industrial production number, bemoaning that the SA number was down 0.4% month to month in May. They are playing into the Wall Street mob’s desire for manna from Ben next week. It’s totally bogus, supported only by false and misleading SA data, not the real activity.

Businessweek’s “How Europe’s Contagion May Hit the U.S. Economy” Ignores its Benefits to US Economy

Businessweek argues that the European crisis is hurting the US economy. It ignores ignores the fact that European capital flight is driving US interest rates through the floor, and more importantly, directly funding US government deficit spending. Even a small reduction in that spending would result in a stall in the US economy. The US…

Germany and France can’t afford euro-zone bailout – Outside the Box – MarketWatch

SYDNEY (MarketWatch) — The standard narrative states that Germany does not want to bail out troubled peripheral nations within the euro zone. The reality is that the more highly rated and larger euro zone members, Germany and France, may not have the necessary financial resources for the task. German Gross Domestic Product is euro 2.5…

In the Euro Zone, a Lethal Vacuum — Economic View – NYTimes.com

AS problems mount in the euro zone, it’s increasingly evident that we’ve been witnessing an institutional failure of monumental proportions. … The continuing crisis has sapped confidence in banks not only in Greece, but also in Spain, Italy, Portugal and Ireland, though to varying degrees.  Unless there are explicit guarantees to these banks soon, the…

Egad, The Fed Pisses Me Off

From the excellent Binyamin Applebaum at the NY Times: One part of the economy that’s growing rapidly is the Federal Reserve. These are boom times for the central bank, which persuaded Congress to expand its responsibilities significantly in the wake of the financial crisis. And with greater responsibility comes a larger budget. If not in…

Greek euro exit looms closer as banks crumble – Evans-Pritchard- Telegraph

Economists warned that the Greek financial system could crumble within weeks or days unless the European Central Bank steps up support. President Karolos Papoulias told party leaders that banks had lost €700m in withdrawals on Monday alone as citizens rush to pre-empt capital controls and a much-feared return to the Drachma. He cited central bank…

Market’s Liquidity Indicators Begin To Tilt Bearish – With Free Excerpt

The composite liquidity indicator downticked last week on small declines in most of its components. We know that the downtick in the Fed’s pumping to Primary Dealers is temporary, but the weakening in other indicators may not be. Over the course of this latest surge, most of the cash has been targeted at the Treasury…

Capital Controls Loom in Greece – CNBC

It looks increasingly likely that Greece will have to implement controls to prevent capital flight and a banking collapse. To my mind, the only real question is when this will occur. The widespread talk about Greece possibly leaving the euro zone is likely to trigger withdrawal of bank deposits and other financial assets, by those…