Europe

In Copenhagen, Apartment Prices Jump 60% After Rates Go Negative

"Denmark’s biggest mortgage bank says there’s a 'real risk' Copenhagen is heading into a property bubble. Property prices in Copenhagen have risen 40-60 percent since the middle of 2012, when the central bank first resorted to negative interest rates to defend the krone’s peg to the euro. The benchmark deposit rate has been minus 0.75 percent since February as Denmark’s currency war intensified, and most analysts surveyed by Bloomberg see negative rates lasting at least through 2017. The Danish regulator this month warned Danske Bank against pursuing a growth strategy in Sweden as the housing market there shows signs of imbalances." Continue reading →

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Desperate Finland Set To Unleash Helicopter Money Drop To All Citizens

"With Citi's chief economist proclaiming 'only helicopter money can save the world now,' and the Bank of England pre-empting paradropping money concerns, it appears that Australia's largest investment bank's forecast that money-drops were 12-18 months away was too conservative. Over the last few months, in a prime example of currency failure and euro-defenders' narratives, Finland has been sliding deeper into depression. As The Telegraph reports, this is a deeper and more protracted slump than the post-Soviet crash of the early 1990s, or the Great Depression of the 1930s. And so, having tried it all, Finnish authorities are giving every citizen a tax-free payout of around $900 each month!" Continue reading →

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European Car Sales Jump As ECB Stimulus Takes Effect

"European car-sales growth accelerated to the fastest pace in 5 1/2 years in June. The jump was the biggest since a 16 percent surge in December 2009, when governments in the region offered incentives on trade-ins of older cars to help the industry recover from the global recession. The economy of the 19 countries using the euro is in its longest stretch of growth since the 2008 worldwide credit crunch, while unemployment in the U.K. is at close to a seven-year low. The European Central Bank’s monetary stimulus measures have helped economic revival in most euro-zone countries, partly offsetting the effects of the Greek sovereign-debt crisis." Continue reading →

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Greek Banks Reopen but Cash Limits Remain and Taxes Soar

"The cash-strapped nation got a short-term loan from European creditors to pay more than 6 billion euros ($6.5 billion) owed to the International Monetary Fund and the European Central Bank. But for most Greeks, already buffeted by six years of recession, Monday was all about rising prices as tax hikes demanded by creditors took effect. There are few parts of the Greek economy left untouched by the steep increase in the sales tax from 13 to 23 percent. strict controls on cash flows, including a ban on check-cashing and payments abroad as well as limits on cash withdrawals, remained in effect. New rules permit the withdrawal of up to 420 euros a week." Continue reading →

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Federal Reserve Spies on France

"New documents from WikiLeaks show the National Security Agency spies on French companies as well as its government. That's not especially surprising. What is surprising is seeing the Federal Reserve Board on the list of 'supported elements' for whom the NSA spied. We've always known the Fed had its nose in every economic nook and cranny. Now, thanks to WikiLeaks, we have proof. You can view the secret document online. What you will see is a standing topic list, dating back to 2002, on which the NSA collects information for further analysis. NSA's 'customer' list includes not only the Fed but also the Commerce Department, Treasury Department and U.S. Trade Representative." Continue reading →

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Ron Paul: Greece Today, America Tomorrow?

"While most commentators have focused on Greece’s welfare state, much of Greece’s deficit was caused by excessive military spending. Greece’s military budget remains among the largest in the European Union. Despite all the handwringing over how the phony sequestration cuts have weakened America’s defenses, the United States military budget remains larger than the combined budgets of the world’s next 15 highest spending militaries. Little, if any, of the military budget is spent defending the American people from foreign threats. Instead, the American government wastes billions of dollars on an imperial foreign policy that makes Americans less safe." Continue reading →

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Paypal Shuts Down in Greece; Bitcoin Still Operates

"Capital controls imposed by the Greek government mean that Greek citizens can only withdraw 60 euros (effectively 50 euros after ATMs have run out of 20 euro notes) and online payment service, PayPal, has been left crippled, as a result. PayPal relies on the traditional banking sector and credit card industry for all its transactions to flow. Fact is, there is an old-style bank that underpins nearly every finance tech start-up that purports to threaten and disrupt the old guard. Examples are peer-to-peer lending platforms such as Prosper and Lending Club. Neither company holds the loans they award on their own balance sheets, but, instead, acquire the funds from WebBank, Salt Lake City, Utah." Continue reading →

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Bitcoin: Greece’s new euro workaround?

"Joaquin Fenoy was wandering the streets of Athens Friday, doing his bit to ease Greece’s currency restrictions. He wasn’t handing out cash, but rather installing an ATM with a withdrawal limit of €1,000 (about $1,100). That’s €940 above the €60 daily ATM withdrawal limit the Greek government put in place to stop a bank run as its creditors decide the country’s financial fate. There is one catch, though: You need to have the virtual currency bitcoin to use it. In Greece’s case, worried relatives in London could buy bitcoins and transfer them to the digital wallet of a family member in Athens, who could then withdraw the bitcoins as euros from Bitchain’s ATM." Continue reading →

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Jeffrey Tucker: Greeks Prepare to Be Pillaged

"One thing needs to be said about this frantic authoritarian approach: It never works. Bank closings add to the atmosphere of panic. They are often followed by an announcement that the government is going to devalue or outright steal people’s money. Whatever trust remains in the system is drained away along with the value of the currency. But there’s another factor in play, for the first time. People are looking at Bitcoin as a way to store and move money. There is now a Bitcoin ATM in Athens that is reportedly doing a brisk business. Redditors are sharing tips. And, of course, the exchange rate of Bitcoin is on the move again." Continue reading →

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Bitcoin Payment Service Helps Greek Businesses Avoid Capital Controls

"With the banking system locked down, capital controls prevent Greek citizens from accessing cash and this disrupts the economy. The Irish company Spartan Route has come to the rescue of Greek businesses with an innovative service proposal: They will invoice their Greek clients’ foreign customers in euro, collect the payment, and send bitcoin back to Greece. Their proposal to Greek businesses is simple and crystal clear: 1. Invoice Spartan Route for your exports, 2. Deliver your goods as normal to your customer through your current supply chains; 3. Spartan Route pays you with bitcoin; 4. Spartan Route invoices your customer for euro." Continue reading →

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