The Fed Will End Its Bond Buying Program. Does It Matter?

The biggest non-surprise of the year is going to happen soon:  After telegraphing its intentions for months, the Federal Reserve announced yesterday that it would stop its long-running bond-purchase program at the end of October, ending a historic experiment that … Continue reading

Italy And The European Bank Stress Tests

This weekend, about one million people associated with CGIL, Italy’s leftist worker union, took to the street in Rome to march against the government’s labour reform. Most of the CGIL protesters appeared to be retired workers, in a stark contrast … Continue reading

Hillary Clinton Is Right – And Will Be Crucified For It

Appearing at a Boston rally for Democrat gubernatorial candidate Martha Coakley on Friday, Hillary Clinton told the crowd gathered at the Park Plaza Hotel not to listen to anybody who says that “businesses create jobs.” “Don’t let anybody tell you … Continue reading

What Would Have Happened Had The UK Been In The Eurozone?

The other day, we discussed the recovery in the UK, and suggested that the fact that austerity was not invoked as harshly as it was, say, in Greece, Ireland or Spain, in part helps to explain why the UK did … Continue reading

What’s The Real Reason For UK Growth?

The Cameron Administration is busy trumpeting the UK recovery as a sign that the “hard measures” the government took over the last few years are now bearing fruit.  That’s bogus.  What’s happening is that the government has EASED up on fiscal austerity … Continue reading

Matteo Renzi And The Perils Of Political Suicide

A political Wunderkind, Italian Matteo Renzi is a flamboyant leader with a keen understanding of media and spin, and a knack for political cleansing. Like a hermit crab, Renzi has hollowed out Italy’s largest centre-left party, the PD, and turned it into his … Continue reading

Oil Wars (Part II)

In hindsight, it does appear that the downward drift in oil prices over the last few months signaled an intensification of deflationary pressures, which was partly masked by bubbling stock markets.  It has been suggested that the break in the markets … Continue reading

Germany’s Export Machine Is Slowing Down

The always provocative FT columnist, Wolfgang Munchau, takes apart the notion that Germany’s “reforms” and sound public finances have paved the way for its economic recovery: “One of the biggest misconceptions about the Eurozone has been a belief in the … Continue reading

Oil Wars?

The Saudis continue to pump out large quantities of crude and the price is hitting multi-year lows.  A lot of existing oil producers are upset with the Saudi actions, notably the Russians, who have suggested that the surplus of oil … Continue reading