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Eurozone Inflation at a Record High
Eurozone Inflation at a Record High Inflation in the doomed Eurozone increased 4.9% in November, marking the highest level of inflation since the creation of the euro. The larger economies within the bloc experienced a significant rise in inflation, with Germany posting a 6% increase and France experiencing a 3.4% rise. Other nations saw extreme […]
Eurozone finances have deteriorated
Eurozone finances have deteriorated Despite negative interest rates and money printing by the European Central Bank, which conveniently allowed all Eurozone member governments to fund themselves, having gone nowhere Eurozone nominal GDP is even lower than it was before the Lehman crisis. Then there is the question of bad debts, which have been mostly shovelled […]
The Eurozone Economy Plunges Back Into a Severe Decline
The Eurozone Economy Plunges Back Into a Severe Decline Eurozone business activity fell sharply as countries introduced more aggressive measures to counter rising COVID infection rates. Flash PMI Signals Steep Downturn in November IHS Markit reports PMI Signals Steep Downturn in November Amid COVID Lockdowns. Key Findings Flash Eurozone PMI Composite Output Index at 45.1 (50.0 in […]
The Eurozone’s financial disintegration
The Eurozone’s financial disintegration Introduction The Euro Crisis Monitor (above) shows the increasing imbalances in the TARGET2 settlement system between all its members: the ECB (itself with a €145bn deficit) and the national central banks in the Eurozone. Other than minor differences reflecting net cross-border trade not matched by investment flows going the other way, […]
EU Economy Traveling Along Same Worn Dead-end Road
EU Economy Traveling Along Same Worn Dead-end Road With so many countries across the world facing difficulties, many people have yet to notice the Euro-Zone has become a place where hope goes to die. The last round of elections in the Euro-Zone should bring little comfort to those supporting a stronger Europe. Huge gains were […]
Third Mega-Crisis in 12 Years: Eurozone Economy Plunges at Fastest Rate on Record
Third Mega-Crisis in 12 Years: Eurozone Economy Plunges at Fastest Rate on Record First the Global Financial Crisis, then the Euro Debt Crisis, now the Big One. In its 21 years of official existence, the Eurozone has already been through two brutal crises — the Global Financial Crisis and one of its own doing, the […]
Huge Protests in Germany Against Government’s Lockdowns
Huge Protests in Germany Against Government’s Lockdowns The German Press is starting to wake up at last after a period of just saying Yes mam! They have run the story that if we acted rationally, we could quickly overcome the consequences of the corona crisis. But politics is deliberately spreading panic among the population and stirring up […]
Eurozone Breakup Risk at New High
Eurozone Breakup Risk at New High The German Constitutional Court made an unexpected and significant ruling last week against the ECB and Quantitative Easing. QE Deemed Illegal In the midst of a pandemic and an important presidential election, it is very easy to miss globally significant events. Here is one that is way under the radar: […]
Eurozone Collapse: V-Shaped Recovery Mirage Is Gone
Eurozone Collapse: V-Shaped Recovery Mirage Is Gone Eurozone Economy Collapses 3.8% in the first quarter, the worst on record. Spain (-5.2%) and France (-5.6%) GDP were much worse than Italy (-4.7%). Economist Daniel Lacalle offers his thoughts on the European economy in a YouTube video. Daniel Lacalle✔@dlacalle_IA EUROZONE COLLAPSE The V-Shaped Recovery Mirage Is Gone. […]
Eurozone
QUESTION: Hi Marty, I’m based here in South of England, within the commuter belt into London. The ECM forecasts an economic downturn 18.01.2020, and Europe looks to be at the epicentre. My own research tells me the job cuts in the auto sector in Germany are quite severe. How does all this play out after January? […]
Is Turkey “City Zero” in Global Contagion
Is Turkey “City Zero” in Global Contagion Last year Turkey’s lira crisis quickly morphed into a Euro-zone crisis as Italian bond yields blew higher and the euro quickly reversed off a major Q1 high near $1.25. It nearly sparked a global emerging market meltdown and subsequent melt-up in the dollar. This week President Erdogan of […]
Super Mario Draghi’s Day of Reckoning Has Arrived
Super Mario Draghi’s Day of Reckoning Has Arrived “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” — MARIO DRAGHI JULY 26TH 2012 No quote better defines Mario Draghi’s seven-plus years as the President of the European Central Bank than that quote. […]
The ECB’s Quantitative Easing was a Failure–Here is What it Actually Did
THE ECB’S QUANTITATIVE EASING WAS A FAILURE — HERE IS WHAT IT ACTUALLY DID The main reason why the ECB quantitative easing program has failed is that it started from a wrong diagnosis of the eurozone’s problem. That the European problem was a demand and liquidity issue, not due to years of excess. The ECB […]
The Tragedy Of The Euro
The Tragedy Of The Euro After two decades, the euro’s minders look set to drive the Eurozone into deep trouble. December was the last month of the ECB’s monthly purchases of government debt. A softening global economy will increase government deficits unexpectedly. The consequence will be a new cycle of sharply rising bond yields for […]
Italy’s New Government Eats Its Words, Joins Bank Bailout Club
Italy’s New Government Eats Its Words, Joins Bank Bailout Club Well, that didn’t take long. And whatever happened to the Eurozone’s new bail-in rule? Italy’s government, in its eighth month in power, has already bailed out a bankrupt bank, mid-sized Banca Carige, with public funds. If approved by European Commission and the ECB, it will […]
