Yearly Archives: 2013

Land prices rising even after year of record drought

"American farmers may have suffered an historic drought last year, but the price of their land is skyrocketing. In Iowa, the land prices jumped 24% in 2012 and and have gained 63% over the last three years, according to a study by Iowa State University. Last year, farmers recovered some $14.7 billion in insurance payments for crop damage, a record sum. US government forecasters expect overall farming income to gain 14 percent this year. 'Farmers have cash on hand and with low interest rates, the best place to make investments is to buy more land that they can farm to be more profitable in their operation,' said Lyle Hansen, a real estate agent." Continue reading →

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Private equity crash could trigger next wave of financial crisis, Bank of England warns

"The Bank of England warned on Thursday that the next phase of the UK's six-year financial and economic crisis may be triggered by the collapse of debt-laden companies bought by private equity firms in the boom years before the crash. In its latest quarterly bulletin, Threadneedle Street said the need over the next year to refinance firms subject to heavily leveraged buyouts posed a systemic threat. The Bank added that it would use its new role as the watchdog of the City to monitor private equity deals in future 'episodes of exuberance' to prevent a repeat of the debt-driven takeover boom in the run-up to the banking crisis." Continue reading →

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Euro woes not over, says crisis-wary Bundesbank

"A wary German central bank said on Tuesday it had set aside billions more euros against what it deems risky European Central Bank moves, and criticized France directly for "floundering" in its reform drives. Presenting Bundesbank 2012 results, Jens Weidmann, the bank's chief, said the euro zone crisis, which has eased as a result of ECB funding promises, was not over. Weidmann, a member of the ECB's Governing Council, opposed the bank's yet-to-be-used bond-buy plan agreed last September and believeseuro zone governments must shape up their economies to exit the crisis rather than looking to the ECB for help." Continue reading →

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150,000 Greek Public Sector Job Cuts Pending As Greece Launches Another Grexit “Plan B” Movement

"Greece is locked in talks with international creditors in Athens about shrinking the government workforce by enough to keep bailout payments flowing. Identifying redundant positions and putting in place a system that will lead to mandatory exits for about 150,000 civil servants by 2015 is a so-called milestone that will determine whether the country gets a 2.8 billion-euro ($3.6 billion) aid installment due this month. More than a week of talks on that has so far failed to clinch an agreement." Continue reading →

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Nigel Farage: Eurozone completely incompatible with nation-state democracy

"There has been a major political event since we last met and no one has mentioned it. Italy had an election. And 55% of the electorate voted for Eurosceptic political parties, indeed Mr Grillo's movement managed to get 26%. It is quite tough in European politics these days to tell who the comedians are. And what is absolutely clear is that Eurozone membership is completely incompatible with nation-state democracy. You can do what you like to take away the powers of national parliaments but people will go on voting, and there is a trend developing right across Europe; the Eurosceptic parties are going to get stronger and stronger." Continue reading →

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More Entrepreneurs Say “Au Revoir”, Escape France’s Confiscatory Tax Regime

"New evidence of top French executives leaving the country has emerged as President Francois Hollande battles a stalling economy and tumbling approval ratings. Two senior executives at Moet Hennessy, the champagne and cognac arm of the LVMH luxury group, are moving to London from Paris and the head of Dassault Systemes, the software arm of Dassault Aviation, said some senior managers of his company had left and he was considering following suit. …The news follows Mr Arnault’s own application for Belgian citizenship, leaked last September, which poured fuel on a fiery debate in France about entrepreneurship, patriotism and high taxes." Continue reading →

Continue ReadingMore Entrepreneurs Say “Au Revoir”, Escape France’s Confiscatory Tax Regime

Popularity of French President Francois Hollande in Steep Decline

"Since taking office 10 months ago, Hollande has experienced the fastest drop in popularity ever seen in French presidential politics. In June of last year, those who said they had confidence in him numbered between 51 and 63 percent, depending on the polling institute. That number is now 30 to 37 percent, nearing the lowest approval rating of any French president on record: Nicolas Sarkozy in May 2011, at 20 percent. Hollande is struggling to find convicing counterarguments as unemployment has risen to 11 percent, economic data looks more dismal by the week, industrial output is taking a nosedive and a recovery is nowhere to be seen." Continue reading →

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New anti-euro party forms in Germany

"A new party in favour of returning to the Deutsche Mark is taking shape in Germany, hoping to attract voters disillusioned by the political establishment. The new 'Alternative for Germany' party is hoping to capitalise on a growing resentment about the euro-crisis and what Germans perceive as costly bailouts for profligate southern countries. Backed by Hans-Olaf Henkel, a prominent eurosceptic and former head of the German Industry Federation (BDI), the new party is expected to have its official launch on 14 April in Berlin. A survey published Monday by TNS-Emnid showed that 26 percent of Germans would consider backing a party that campaigns for getting rid of the euro." Continue reading →

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Greece’s Futile Austerity

"The Greek situation is beyond wretched. Top earners are being pursued by helicopters and spied on by satellites over non-payment of taxes; there are regular riots in the streets and, as in Argentina a decade ago, middle-class people have been reduced in some cases to picking through garbage bins to survive. The suffering has been needless. The result is not going to be of benefit to anyone except perhaps some of Europe's largest banks, and they are getting plenty of help already. There is little money in Greece but there is plenty of anger. And Prime Minister Samaras, taking note of it, announces there will be no further austerity measures." Continue reading →

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