In These New Times

A new paradigm for a post-imperial world

Archive for the ‘Financial crisis’ Category

The financial system established in England after 1688, based on usurious lending to the state by private bankers, is reaching its final blowout in the form of a series of devastating bubbles and a massive bailout of the financiers with public money. But the issuance of money doesn’t have to be in the hands of a private consortium: another credit system is possible.

The left’s anti-European turn

Posted by seumasach on July 19, 2015

Cailean Bochanan

19th July, 2015

Just before the Greek referendum George Galloway tweeted:

“Greek Partisans will vote NO in Sunday’s referendum. There is European life after the Euro. No more bail-outs for bankers. Go for growth!”
Galloway would , of course, have been equally vehement in his opposition to the bail-out of the City of London in 2008. Well, actually, no. In statement made at the time he said:

“In the midst of this financial crisis which threatens us all, at last the government is taking action which may begin to shore up the banking system. I hope that it is not, as many in the City are saying, “too little, too late”. “It was essential the government propped up the banks’ capital base, it had to provide lending to banks that can’t borrow money from others to pay their debts. And we had to have a guarantee of bank debts, if we were not to see a full-scale financial panic and the collapse of the whole debit and credit system. But having put the money in, the government now needs to force the banks to pay the public back in return.”

Leaving aside the piety at the end this was simply a full endorsement of the bail-out. In an extraordinary but characteristic bit of sophistry Galloway was able to spin the bailout as a break from neoliberalism, as a break “from the outdated dogmas of free market economics.”

Read the rest of this entry »

Posted in Battle for Europe, british economy, Financial crisis | Leave a Comment »

Germany floats Greek euro “time-out” without more reforms

Posted by seumasach on July 11, 2015

Ekathimerini

11th July, 2015

The German government has argued that Greece could take a five-year “time-out” from the euro zone and have some of its debts written off if Athens fails to improve proposals it has made for a bailout.

Read more

Posted in Battle for Europe, Financial crisis | Leave a Comment »

Greece: Obama leads from behind

Posted by seumasach on July 9, 2015

The idea that Obama is pushing Germany to bail out Greece in order to prevent Russia and China from doing so has become topical over the last few days. According to this article, Obama is not ding that but, rather, just sitting back again under the pretext of not wanting to alienate their main “ally against Russia”, Germany

Why Obama Is Leaving Greece To Fend For Itself Against Germany

Huffington Post

8th July, 2015

WASHINGTON — The Obama administration is effectively sitting out the contentious talks over the festering economic crisis in Greece, despite increasingly extreme demands from the German government in the wake of last week’s Greek referendum.

Read more

Posted in Battle for Europe, Financial crisis | Tagged: | Leave a Comment »

Chinese stock markets continue nosedive

Posted by seumasach on July 8, 2015

Guardian

8th July, 2015

Chinese stock markets tumbled again on Wednesday as investors shrugged off a series of support measures by Chinese regulators, including the central bank’s first public statement in support of the market since it cut interest rates in late June.

Posted in Financial crisis | Leave a Comment »

Greece triggers the global crisis

Posted by seumasach on July 7, 2015

Cailean Bochanan

7th July, 2015

Coming at the end of a week in which the Greek people overwhelmingly reasserted their desire to remain in the Eurozone, the “No” vote can only be a result of Tsipras’ ability to convince them that their position in the Eurozone is safe, whatever happens. That now looks like a very shaky assumption and, I expect,  a brazen deception on Tspras’ part. It is particularly pertinent  to recall, at this point, that it was German Finance Minister, Schauble himself, who first proposed a referendum on proposals for Greece back in May and that this same Schauble had been arguing for Greek withdrawal from the euro in the face of the position of Angela Merkel. Merkel now looks on the way out if the latest take down on her by Spiegel is anything to go by. Could it be that, after a murky and convoluted process that has left everyone perplexed, Schauble has won?

Read the rest of this entry »

Posted in Battle for Europe, Financial crisis | Tagged: , , | 1 Comment »

The global credit market Is now a lit powderkeg

Posted by seumasach on June 29, 2015

….And Markets Are Totally Unprepared

Investment Watch Blog

26th June, 2015

The financial markets have had a bit of a tough time going anywhere this year.

The S&P 500 has been caught in a 6% trading band all year, capped on the upside by a 3% gain and on the downside by a 3% price loss. It has been a back-and-forth flurry while the stock market up to this point has simply marked time.

We’ve seen a bit of the same in the bond market: after rising 3.5% in the first month of the year, the ten year Treasury bond has given away its year-to-date gains and then some.

2015 stands in relative contrast to largely upward stock and bond market movement over the past three years.  What’s different this year and what are the risks to investment outcomes ahead?
Read more at http://investmentwatchblog.com/the-global-credit-market-is-now-a-lit-powderkeg-and-markets-are-totally-unprepared/#r6DHgXse6YI5yEEM.99

Read more

Posted in Financial crisis | Tagged: | Leave a Comment »

Across Europe, protesters call for solidarity with Greece

Posted by seumasach on June 23, 2015

The moment is approaching when the bankruptcy of the financial sector, a dead weight on the overall economy , has to be addresses. This “bail-in” or de-facto bankruptcy process will itself be painful, resulting in the wipeout of billions in shares and paper securities but it is the indispensable basis for reconstruction of the real economy.

GEAB(source-Deutsche Welle)

22nd June, 2015

Brussels and Amsterdam have joined London, France, Germany and Italy in hosting mass rallies in support of cash-strapped Greece. Demonstrators said the financial sector must take responsibility for the damage it caused.

Read more

Posted in Financial crisis | Tagged: , | Leave a Comment »

Fed tantrum sets off biggest exodus from emerging markets since 2008

Posted by seumasach on June 13, 2015

Telegraph

12th June, 2015

Investors are withdrawing money from emerging markets at the fastest rate since the global financial crisis, raising the risk of a ‘sudden stop’ in capital flows as the US Federal Reserve prepares to turn off the spigot of cheap dollar liquidity.

Read more

Posted in Financial crisis | Tagged: | Leave a Comment »

Dollar no more

Posted by seumasach on May 3, 2015

Sputnik

30th April, 2015

In early 2014, Justin Yifu Lin, the former World Bank Chief Economist, blamed the dominance of the US dollar for global economic crises and said it should be eliminated as the world’s reserve currency. According to Lin, the solution would be to replace the national currency with a global currency.

In the recent months, several countries, including Russia, China, India and Turkey, have decided to ditch the US dollar in their foreign trade, often paying for products in gold or other agreed on currencies.

Read more

Posted in Financial crisis | Tagged: , , | Leave a Comment »

Britain’s fragile finances are a political no-go area

Posted by seumasach on May 3, 2015

Liam Halligan

Telegraph

2nd May, 2015

Aren’t financial assets “simply pumped up by printed money?” Don’t share prices “need to adjust downward by something like 50pc?” Is it “really the case that if Greece leaves monetary union, other countries won’t follow?” It must “surely be wrong to try solving a debt problem by taking on even more debt?”

Read more

Posted in Financial crisis, UK economy | Tagged: , , | Leave a Comment »

The dwindling US economy

Posted by seumasach on May 2, 2015

Paul Craig Roberts

Institute For Political Economy

29th April, 2015

The announcement today (April 29) of a barely positive GDP first quarter 2015 growth rate of 0.2 percent (two-tenths of one percent) is an intentional exaggeration.

Read more

Posted in Financial crisis | Tagged: , | Leave a Comment »

 
Follow

Get every new post delivered to your Inbox.

Join 1,003 other followers

%d bloggers like this: