Hard hitting global and local news
Jeff Harding at the Daily Capitalist asks Why Does Hyperinflation Occur? In every modern case of hyperinflation the decision to inflate was a political one, not an economic one
See original article: Sen. Rand Paul Speaks Out Against Senators Voting without Reading the Bills
Pettis on Debt, Currency Wars, Commodity Prices and Capital Flight; China FDI Contracts 8.7% YoY, 8th Drop in 9 Months The much-denied hard landing in China is now underway with weakening data everywhere one looks.
There may have been some confusion about what Romney actually said about culture and economic success, so I thought I would document it: I recognize the power of at least culture and a few other things….As you come here and you see the G.D.P.
Bloomberg reports Monti Calls for More Crisis-Fighting Urgency in ECB Standoff Italy’s Prime Minister Mario Monti warned of a potential breakup of Europe without greater urgency in efforts to lower government borrowing costs, as a standoff over European Central Bank help for Italy and Spain hardened. Monti, in an interview with Germany’s Der Spiegel magazine published yesterday, said that disagreements within the 17- nation euro area are detracting from the policy response to the debt crisis and undermining the future of the European Union. Spain and Italy, whose surging borrowing costs have shunted them to the heart of the turmoil in the euro area, are resisting pressure from ECB President Mario Draghi to formally request aid in return for strict conditions before the central bank will buy their bonds
Read more here: Preposterous Falsehoods From Gary North Regarding the Inflation/Deflation Debate
100,000 Workers in Spain Will Not be Paid Because Regional Government of Catalona is Broke The crisis in Spanish regional governments continues to escalate. El Pais reports Catalona Will Not Pay Hospitals or Private Centers and 100,000 workers are affected.
Let’s take a look at additional Draghi comments as reported in the Financial Times article Draghi hints at return of ECB bond buying The euro strengthened on Thursday after Mr Draghi said the ECB was “ready to do whatever it takes†within its mandate to preserve the single currency. “Believe me, it will be enough,†Mr Draghi told a conference in London.“To the extent that these premia have to do not with factors inherent to my counter party, they come into our mandate, they come within our remit, Mr Draghi said. “To the extent that the size of the sovereign premia hamper the functioning of the monetary policy transmission channels, they come within our mandate.â€â€œThe ECB appears to be keen to increase the threat of the SMP being woken from its hibernation period,†Mr Wattret wrote in a note.
Spain 2-Year Treasury Yield Tops 7%, Inversion Between 5 and 10 Year Yields; Spain Sovereign Debt Restructuring Coming Up Posted by Michael Shedlock at 1:49 AM Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy.
Read the original: Record Low Yields Once Again on US Treasuries