Links for 30 August

Global Macro:

  • The unintended consequences of QE: not what you think – FT Alphaville
  • Citigroup reaches $590 million settlement over CDOs – Reuters
  • Changing Views of Globalization’s Impact – New York Times

United States:


  • ECB: The future of the euro: stability through change –
  • Draghi Hits Back at German Criticism of ECB Bond Plan – Bloomberg
  • Interview with Bundesbank President Jens Weidmann – Der Spiegel
  • Spain, EU in agreement over bad bank terms: minister – Reuters
  • Ugly No Barrier for Apartment Sales in German Boom: Mortgages – Bloomberg
  • Sober Look: German economy converging with the Eurozone’s – Sober Look
  •  Charting sovereign bond holdings across the eurozone – FT Alphaville
  • Danish Economy Shrinks More Than Estimated as Spending Drops – Bloomberg
  • Chart of the Day: The Great Depression in Europe –
  • German Report: Crisis-Hit Countries Have Become More Competitive – Der Spiegel


  • “China is Okay” by Stephen S. Roach | Project Syndicate – Project Syndicate
  • Latest on China: all is well and “economic growth is stabilizing” – Sober Look
  • China in Revolt –
  • China has easily the fastest rate of growth of consumption of any major economy in the world – John Ross
  • China’s banks to dominate – John Ross (Yeah right – that’s what they said about Japanese banks in the 1980s!)


  • Why Talking Trash About The Australian Economy Has Become The Latest Meme – Business Insider
  • Australian economy susceptible to downturn – The Big Picture
  • The Government’s $120 billion budget blowout – AFR (How about scrapping negative gearing? There’s $4 billion of savings right there)
  • McKibbon – Carbon link to EU mad – AFR
  • Squeeze on miners set to continue as iron ore price crashes – AFR
  • Government ‘razor gang’ to target federal grants – The Australian



    • innocent bystander

      just as everyone else is about to leave 🙂

      actually, the article goes on to be fairly balanced about Perth’s issues – even if it is a bit rear view mirror.

  1. Citigroup reaches $590 million settlement over CDOs – Reuters

    Can I rob a bank off $1 million and then pay back $500k as settlement, with no admission of guilt or jail term? No

    The best way to rob a bank is to own one – Bill Black.

  2. Great chart on size/composition of household debt

    Those rapidly growing student loans look like the next step towards capturing the world in debt slavery.

    • Yes, and unlike most other forms of debt, they’re not dischargeable via bankruptcy in the US which I find unbelievable.

  3. “The unintended consequences of QE: not what you think – FT Alphaville”

    Yes! QE will result in deflation once it is stopped. No doubt about that. The relevant question is ‘Will they stop?’ My opinion is that when the choice of the rock and the hard place arrives, as it inevitably will, they will choose inflation….obviously!!!

    The problem with the whole QE thing is that it is aimed at restoring the old economy. The old economy has already proven unsustainable. So, actually, despite the fact that initially seems to be doing some good re unemployment etc, it is actually resetting the old economy and preventing reform. So as soon as you stop the QE the whole thing collapses, only this time, at a much faster rate and greater depth than would originally have occurred. So QE rewards a few allowing them to continue the old profligate ways.
    It is actually at the expense of the long-term welfare of the society.

  4. “How about scrapping negative gearing?”
    Perhaps that’s exactly where we’re headed, such is the extent of this latest Labor cash-splurge on fundamentally laudable initiatives (extra funding for private schools notwithstanding).

  5. The Australian reporting ALL Federal grants not yet funded are to be frozen. Would this include the $7,000 FHOG or is aimed more at higher level Federal/State funding programs?

  6. @ “China in revolt”

    Great article that explains the nuts and bolts of how the Chinese government, working hand-in-globe with transnational capital, murders labor.

    I think people in the developed world are in denial about the magnitude of state violence and repression that has been unleashed, in the service of transnational capital, against workers in these neoliberal paradises like China and Mexico.

    The immigration situation in China is almost identical to that in US-Mexico. The only difference is that China has duplicated the US-Mexico situation all within the borders of one nation.