Links 7th August

Global Macro:

  • The economic crisis will solve itself, climate change won’t. Financial Times. I agree.
  • July “was the only month in the last 400 in which European stocks, the German 10-year bund and gold rallied by more than 2.5%.” BCA Research via Buttonwood
  • But with Draghi keeping his powder dry, is Europe turning Japanese? Economist


  • Syrian PM sacked, reported to defect. Al Jazeera
  • ‘Al Qaeda’ kills 45 in Yemen. AFP
  • 48 Iranians seized by rebels in Syria. Al Jazeera. Have Sunni extremists kidnapped Shia pilgrims, or have freedom fighters taken Revolutionary Guards?
  • Kremlin signs oil deal with Damascus. Moscow Times
  • Saudi Arabia goes to battle stations. Washington Post
  • Middle East heats up: And Obama does nothing. McCain, Liebermann and Graham
  • And tensions rise in the South China Sea. Wall Street Journal. Always wonder if this could escalate while the US is distracted elsewhere

United States

  • CFTC silver manipulation investigation may be dropped. Chicago Tribune. You can go to ZeroHedge to read the conspiracy theories.
  • Midwest heatwave hits fisheries. Wall Street Journal
  • Firms fear tax hikes on Congress debt impasse. NY Times. Tax hikes are the least of their worries…
  • Knight Capital given $400 million lifeline. Reuters.


  • Germany’s Ökonomenstreit. Economist
  • And the Thomas Becket of that ideological war is Jens Weidmann. Financial Times
  • Meanwhile, in the battle for the ECB, Germany wants control. WSJ


  • Is this Chinese sub-prime? Reuters
  • China’s political paralysis. Project Syndicate
  • But others are optimistic on Chinese reform. Eswar Prasad
  • And here’s some cause for optimism on Chinese growth: a falling RMB. Beyond Brics
  • So, are Chinese stocks at the bottom? Bloomberg. Chris Becker has more to say on this.
  • Un-incredible India. Financial Times
  • More links in the daily “China Links post”




    • It took the CFTC four years to find that everything was in order. The only thing to note is that Bart has wicked hair 🙂

  1. Interesting article on the China subprime. “golden elephant” they called it? White elephant more like. Bound to be a lot more of this going on in China too!

  2. @ “But with Draghi keeping his powder dry, is Europe turning Japanese?” Economist

    Great article that sums up what happened most concisely.

    Here it is in a nutshell: The eurocrats and the Japanese technocrats placed the creditor-class and the banks upon a pedestal, making debt sacrosanct, and thus moved heaven and earth to bail out the creditor-class and the banks. Then they told everybody else to go to hell.