Dutch MPs are increasingly worried about the financial situation in Italy, following the dumping of Italian banking shares on Friday, the Financieele Dagblad reports on Tuesday. Opposition party financial spokesmen are calling for a concerted effort to solve the crisis quickly, the paper says. There are growing fears the debt crisis may now spread to Italy and Spain – which are major EU economies. Labour’s finance spokesman Ronald Plasterk told the paper the inclusion of Italy in the euro crisis ‘crossed a new line’. -> Read more: Opposition parties call for unified euro crisis solution (dutchnews)
Archive for July 13th, 2011
The decade from 2020 to 2030: Welcome to the World Afterwards… the babyboomers ! by Franck BiancheriWednesday, July 13th, 2011
What will the world after the babyboomers look like? Or, more exactly, Europe after the babyboomers? This is the main anticipation work of this 3rd edition of MAP. And the subject’s worth it because, on the one hand, we’re seeing throughout Europe the growing expression of the younger generation’s frustration (the “Indignant” is the particularly obvious expression for them) against the frenzied selfishness of a generation that refuses to consider that it hasn’t “deserved” all the collective benefits and privileges from which it benefits, of which many are political “income” without ever having been there other than to play at being post-pubescent rebels during May 1968 . -> Read full article: he decade from 2020 to 2030: Welcome to the World Afterwards… the babyboomers !
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“It’s inevitable that the U.S. will default—it’s essentially an empire which is overextended and in decline—and that its financial system will go with it,” he said.
The question is: Does the U.S. default when it is forced to by the outside world, probably the Chinese, or does it take the option to default on its own terms in such a way that it may have a strategic advantage, Murrin said. -> Read more: US Default Inevitable: Fund Manager (cnbc)
“We will not saddle our children and grandchildren with mounds of debts, with promises for funding levels that will not be there in the future,” said the Republican House Speaker, publicly feuding with the Democratic executive over how best to trim yawning deficits. “This is debt that they can’t afford. It’s debt that we can’t afford right now.” -> Read more: In Minnesota Shutdown, Wider Budget Conflict Comes to a Head (time)
In a Wednesday television address to the nation, Japanese Prime Minister Naoto Kan said Japan should decrease, and eventually eliminate, its reliance on nuclear energy. “We will aim at realizing a society which can exist without nuclear power,” Kan said. -> Read more: Japan’s prime minister calls for phase-out of nuclear power (washingtonpost)
The revolving door between Goldman Sachs Group Inc. (GS) and central banks is spinning again. The fifth-biggest U.S. bank by assets said yesterday it hired Bank of England economist Andrew Benito after recruiting Huw Pill from the European Central Bank in May and Naohiko Baba from the Bank of Japan in January. Moving in the other direction, Ben Broadbent, Goldman Sachs’s ex-chief U.K. economist, started at the Bank of England last month. Former vice chairman Mario Draghi will take up the presidency of the ECB in November.
…/… Goldman Sachs isn’t alone in recruiting central bankers. UBS AG, Switzerland’s biggest bank, said today it plans to appoint former Bundesbank President Weber to its board and then make him chairman in 2013. Barclays Plc said in May it hired Brian Madigan, the Federal Reserve’s former top staff adviser on interest-rate policy, to provide counsel on economic research and regulation.
-> READ FULL ARTICLE: Goldman Sachs’s Central Bank Connections Reach Ever Deeper After Hiring (bloomberg)
In Chicago, it’s the sale of parking meters to the sovereign wealth fund of Abu Dhabi. In Indiana, it’s the sale of the northern toll road to a Spanish and Australian joint venture. In Wisconsin it’s public health and food programs, in California it’s libraries. It’s water treatment plants, schools, toll roads, airports, and power plants. It’s Amtrak. There are revolving doors of corrupt politicians, big banks, and rating agencies. There are conflicts of interest. It’s bipartisan. And it’s coming to a city near you — it may already be there. We’re talking about the sale of public assets to private investors. -> Read more: America for Sale: Does Goldman Sachs Own Your City…Yet? (huffingtonpost)
Ten weeks after the earthquake and tsunami, it’s tempting to give Japan a new name: Tepco Nation.
What else is the world to think? Tokyo Electric Power Co.’s shameful mismanagement of the melt down at the Fukushima Dai- Ichi nuclear plant has cast a real and figurative radioactive cloud over Japan’s economy. And yet leaders here still are coddling a company vilified globally on a level that matches BP Plc at the height of last year’s Gulf of Mexico oil-well blowout. -> Read more: Nuclear Meltdown Feeds Tokyo’s Inertia (bloomberg)
Federal Reserve Chairman Ben Bernanke avoids direct comment on the current government fiscal debt crisis in remarks prepared for testimony today on Capitol Hill. Instead he will focus on the Fed’s assessment of the economy’s health and outlining how the Fed’s monetary policies have succeeded in keeping the U.S. out of a deflationary spiral at a hearing before the House Financial Services Committee today. -> Read more: BERNANKE: Prepared Remarks Avoid Comment on Fiscal Crisis (abcnews)
Given enough time, and enough fiscal room to restart growth, Greece could pay back the refinanced debt in full. Relaxing Europe’s demands for fiscal contraction, together with tax reforms, privatization of publicly owned services and utilities, and continued efforts to reopen the Greek labor market, could help generate sufficient growth for Greece to begin paying down its debts.
Mrs. Merkel, Mr. Sarkozy and other European leaders, however, are not even talking about this kind of approach. They focus instead on complex and dubious plans to disguise the losses of their banks. -> Read full article: Fumbling Toward Default (nytimes)