Today, ECB President Draghi spoke to the Frankfurt Chamber of Commerce and proclaimed that the DARKEST CLOUDS OVER THE EUROZONE HAVE PASSED. Yes, since the July 26 pronouncement that the ECB would do anything to preserve the euro and its financial system–and also there would be “no taboos” on what the ECB could utilize to save the euro. The markets have certainly quieted, as has been reflected in the Italian and Spanish debt markets, as well as the equity markets across the European Union. In my opinion Mr. Draghi should not put away his boots and umbrella as some clouds may have passed but the radar is citing other severe fronts. President Draghi added in the Reuters piece: “But there is simply no alternative to the path of reform. Despite the good progress so far showing that adjustment is happening, reform efforts need to be sustained …. Countries need competitiveness to sustain growth.”
Posts Tagged ‘U.K.’
Notes From Underground: Draghi Channels Bush’s “MissionAccomplished”
January 22, 2013Notes From Underground: The Santelli Exchange (CNBC) — China Data: Questionable Accuracy?
November 1, 2012
Click on the image to watch Rick and I discuss the accuracy of China’s data.
Notes From Underground: IF … In a World Of Great Uncertainty
August 15, 2012The travails of the financial markets continue even as the EURO ELITE believe that their holiday time is sacrosanct. Greece is in the headlines as financial pundits with time to fill conjecture about how long it is before the lifeline to the Greeks is cut and its economy and society set adrift outside the “safe” harbor of the EUROZONE.
Notes From Underground: France to England–No, YER Going To Be Downgraded First
December 15, 2011Today, the finger-pointing in Europe continued as Bank of France Governor Christian Noyer scolded the ratings agencies and complained that it was the U.K. that should lose its AAA credit rating before France. Let us be clear: Christian Noyer is way out of line. First, the French are the premier bashers of the over aggressive role that Moody’s, S&P and Fitch play on the international financial scene. But when the power of the agencies can be used against a foe, then NOYER can point the finger that the BRITS are much weaker than the French and need to be punished. Secondly, NOYER shows how inept he is as a central banker because the finger-pointing does nothing to make the case of why France should not suffer a downgrade.
Notes From Underground: In the Battle of the European Balance Sheet Bulges, Cameron Says “NUTS”
December 11, 2011Almost 67 years ago, U.S. General McAuliffe told the German command that the U.S. forces at Bastogne would not surrender and actually said it in a one-word response: NUTS. In a parallel response to German/Franco demands that all European nations surrender their sovereignty by succumbing to a “FISCAL COMPACT”, British Prime Minister David Cameron basically said the same as the U.K. moved to cast a veto vote on the proposals that resulted from the European Summit.
Notes From Underground: Housing Is Making It As the Foundation of Obama’s Domestic Agenda … Why Hasn’t Geithner Been Replaced?
October 24, 2011The speeches by FOMC GOVERNOR TARULLO and Vice Chair Yellen were followed up with an Obama speech on a “major” REFI operation and many articles in the media. In today’s Financial Times, Larry Summers just happened to have a piece titled, “WHY THE HOUSING BURDEN STALLS AMERICA’S ECONOMIC RECOVERY.” It seems that the administration has awakened to the fact that the credit crisis has been wrapped in a housing crunch that has kept consumer demand lackluster at best. (Also known as the Geithner plan: Aid the banks first and maybe help the debt-laden consumer/homeowner somewhere down the line.)
Notes From Underground: Hey, George Osborne! Are You Daft?
August 14, 2011The weekend news has been unusually quiet, so with no news about any spreading of the financial crisis the EUROCRATS were opining about the need for Germany to back a massive issuance of EUROBONDS. Joining in the chorus for the creation of a massive dose of EUROBONDS were a group of global finance ministers, including Mr. Tremonti from Italy. The world’s PHILOSOPHER KING, George Soros, also threw his weight behind the need for a EUROBOND. It is now widely known that Merkel and Sarkozy are to meet in Paris on Tuesday in an effort to come to some agreement on [INSERT THOUGHT HERE], so as to help calm European markets and provide some plan for relieving the pressure on French and other European Banks.
Notes From Underground: The ECB and BOE Meet Tomorrow and the Market Expects No Change
May 4, 2011The market’s attention turns to the ECB and BOE rate decisions. Any rate change would be a surprise as the U.K.‘s data has been weak of late as the austerity budget is beginning to be a drag on the British economy. The policy makers in England are content to let rates stay on hold as it helps to weaken the POUND against the EURO. It will be more interesting to hear from the ECB through Trichet to see if the Europeans are content with the present inflation situation, especially as the EURO has made new highs for the last 18 months. The recent strength of the EURO is a problem for the debt-stressed countries and with the U.S. on hold for an “extended period” any move by the ECB would put more upward pressure on the EURO currency. Let’s see if Trichet surprises us by discussing the recent strength of the EURO. The post-meeting press conference will be waiting to hear if Trichet loses the vigilant language.
Notes From Underground: Inflation sets on the BRITISH empire
February 15, 2011The inflation data released by the U.K. showed that CPI has increased to 4 percent. The largest price increase was in INK costs as Mervyn King had to pen another letter to the Chancellor of the Exchequer explaining the price increases maintained during the BOE’s inflation-mandated levels. King has placed himself in a difficult position as he has held rates steady in the face of rising inflation. Governor King’s stance is the same as Bernanke’s. The rise in prices are due to elements that the CENTRAL BANK cannot effect and the inflationary impact is acting as a drag on the consumer. Why ?
Notes From Underground: U.S. heaps crap on the Chinese and fertilizer stocks drop
January 19, 2011As everybody tuned into some form of media knows, Hu Jintao, the President of China, is in Washington for high-level meetings with President Obama. After all the pageantry and display of hospitality, the U.S. President took the effort to admonish the Chinese leader on human rights within China, or rather, the lack of human rights. Mr.Obama also lectured the Chinese leadership on the importance of a world power acting responsibly on the world stage, hence the need for China to be a partner in opposing Iran’s development of nuclear weapons and, of course, in leashing the North Koreans.
