History Repeating

Official refuses to resign after saying Japan should follow Nazis’ constitution overhaul

"'The German Weimar constitution changed, without being noticed, to the Nazi German constitution. Why don’t we learn from their tactics?' Days later, Aso insisted he had been misunderstood and that he was not praising Nazi leader Adolf Hitler’s political prowess, but rather saying constitutional reform should be not be influenced by media criticism or animosity from Japan’s neighbours. Aso is known for his sometimes clumsy and uncomfortable remarks, including saying earlier this year that elderly people should 'hurry up and die' to avoid taxing the country’s medical system." Continue reading →

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What is the Money Supply?

"Money supply growth has been crashing. Near the start of the year, three month annualized money growth was around 11.2%. It is now at 2.2%. I use the Fed's money supply measure M2 (non-seasonally adjusted) to calculate the growth. If the slowdown in growth continues, it suggests that the Fed manipulated economy will slow once again and that the stock market is likely to once again crash." Continue reading →

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U.S. gives seal of approval to Egypt’s new leaders

"Supporters of deposed Egyptian president Mohamed Mursi prepared for confrontation on Friday, and the United States said Egypt’s military had been 'restoring democracy' when it drove him from office. Thousands were gathered in two Muslim Brotherhood camps in Cairo, defying warnings from the new army-backed government to abandon their protest or face action from security forces. Mursi, an Islamist who became Egypt’s first freely-elected president in June 2011, had faced weeks of street demonstrations against his rule. The turmoil has left Egypt more polarized than at any time since U.S.-backed autocrat Hosni Mubarak was toppled in 2011." Continue reading →

Continue ReadingU.S. gives seal of approval to Egypt’s new leaders

IMF finds $11 billion ‘black hole’ in Greece’s finances

"The International Monetary Fund warned the eurozone yesterday that it may be forced to write off a chunk of Greece’s debt after identifying an $11bn black hole in the finances of the recession-stricken country. In its regular update on the programme of financial austerity and structural change agreed to by Athens in return for financial help, the Washington-based IMF said weak growth and a sluggish pace of reform had opened up a funding gap in both 2014 and 2015." Continue reading →

Continue ReadingIMF finds $11 billion ‘black hole’ in Greece’s finances

American Dream Slipping as Homeownership at 18-Year Low

"Housing industry and consumer groups are pressing lawmakers to make the American Dream more inclusive by ensuring new mortgage standards designed to prevent another crash are flexible enough that more families can benefit from the recovery. Regulators are close to proposing a softened version of a rule requiring banks to keep a stake in risky mortgages they securitize. Lawmakers currently shaping housing finance are seeking to reduce the government’s role in keeping rates affordable for riskier borrowers while ensuring homeownership is within reach of minorities and first-time buyers who could be needed to sustain the housing recovery." Continue reading →

Continue ReadingAmerican Dream Slipping as Homeownership at 18-Year Low

Deutsche Bank to Cut Assets $332 Billion as Profit Slides

"Deutsche Bank AG (DBK), continental Europe’s biggest bank, said it will shrink its balance sheet by 250 billion euros ($332 billion), joining Barclays Plc (BARC) and UBS AG (UBSN) in seeking to comply with stricter capital rules. Deutsche Bank will reduce leverage by changing the way it accounts for derivatives and by winding down a 73 billion-euro portfolio of assets. Co-Chief Executive Officer Anshu Jain has been offloading riskier assets, firing staff and raising capital by selling shares as lingering doubts about the ability of Europe’s banks to withstand another financial crisis prompted regulators and shareholders to demand stronger finances." Continue reading →

Continue ReadingDeutsche Bank to Cut Assets $332 Billion as Profit Slides

The Debt Ceiling Battle Is Coming

"A working paper by economist James Hamilton, of UC San Diego, for the National Bureau of Economic Research indicates that the official federal debt, $16.7 trillion, is the tip of the iceberg. Currently, the feds are $86.8 trillion in debt, according to Hamilton. The Treasury department has been looting government pensions to hold the debt ceiling at bay. This can go on for another month or so until the battle in Congress begins again. Sunday, Treasury Secretary Jack Lew pre-empted the debt ceiling fight with a strike against the GOP on Meet the Press. Lew predictably blamed the debt ceiling for the S&P crash of summer 2011." Continue reading →

Continue ReadingThe Debt Ceiling Battle Is Coming