Tag: economy

May 27, 2013 0

Large Risk of Instability in Japan; Rates Climb Even With Japan Buying 70% of New Issuance

By News Desk

The correct interpretation of course is "the risk of instability is huge". Please consider Haruhiko Kuroda says rates must stay low until economy improves . Haruhiko Kuroda, Japanâ€™s central bank governor, said the countryâ€™s financial system could cope with rising interest rates only once the economy improved, as he laid out the stakes in his attempt to tame the volatile bond market.

May 25, 2013 0

Gradually-increasing gas tax that’s buffered against price shocks

By News Desk

Tweet That’s the answer. The question is what’s better environmentally and economically than the current situation of an inadequate gas tax and a price that swings widely. We need to increase the gas tax, a lot, to cover the economic externalities, decrease overconsumption, accelerate the transition away from internal combustion engines, and pay for infrastructure previously paid for by gas taxes on inefficient engines.

May 23, 2013 0

Japanese Bond Rout Continues; BoJ Vows to Curb Bond Turbulence; Curbing Turbulence is Theoretically Easy

By News Desk

NewsDay reports Bank of Japan vows market steps to curb bond turbulence The Bank of Japan vowed yesterday to take necessary steps to reduce volatility in bond markets that has threatened to jeopardise the governmentâ€™s fight to end deflation and revive growth. BOJ Governor Haruhiko Kuroda vowed to take steps needed to reduce volatility in the JGB market, but he disappointed some bond investors by sticking with the strategy of leaving it to BOJ bureaucrats to address the problem by tweaking the bankâ€™s market operations.

May 23, 2013 0

Bernanke’s Semi-Annual Tap-Dance of Distortions, Half-truths, Lies, and Hypocrisy to U.S. Congress

By News Desk

Inquiring minds with extra time on their hands this morning are plodding through the Full Transcript of Bernanke’s Testimony To Joint Economic Committee, U.S. Congress looking for the usual collection of half-truths, distortions, and outright lies it usually contains. Here are some point-by-point statements by Bernanke with my comments immediately following each set of statements.

May 16, 2013 0

Brussels Puts Spain Under Surveillance; Brussels Denies Putting Spain Under Surveillance

By News Desk

Read More: Brussels Puts Spain Under Surveillance; Brussels Denies Putting Spain Under Surveillance

May 9, 2013 0

Action Plan to Save Slovenia is Trifecta of Stupidity

By News Desk

Please consider the inane "Action Plan" for Eurozone Straggler Slovenia . The new government of struggling eurozone member Slovenia is expected to announce Thursday an action plan aimed at avoiding a bailout, reportedly including privatisations, "crisis" taxes and austerity cuts. Moody’s last week cut its rating on Slovenia two notches to "junk", the economy has been in recession since 2011, unemployment stands at 13.5 percent and voters are fed up with their political leaders

April 17, 2013 0

Is Australia Next in Competitive Currency Debasement?

By News Desk

The Sydney Morning Herald reports RBA May Have to Cap Australian Dollar Ross Garnaut, one of the authors of the float of the Australian dollar 30 years ago, warns that the Reserve Bank might have to consider intervening to push the currency down to minimise the recession he sees coming as the mining boom goes bust. Professor Garnaut, of the University of Melbourne, says he would rather see the Reserve cushion the economy’s looming fall and bring down the overvalued dollar by cutting interest rates to bring them closer to those of other Western countries. While the International Monetary Fund forecast Australia will stay on its present track, with growth of 3 per cent this year and 3.3 per cent next year, Professor Garnaut warned that mining investment would fall from 8 per cent of gross domestic product back to its long-term average of 2 per cent.