Japan doubling sales tax could mean less revenue, not more
The headline story here points out very clearly why Japan has two lost decades behind it. The country tries to gin up growth via fiscal and monetary stimulus when it lapses into recession. A gaping hole opens up in the government’s books. Then the Japanese stomp on the brakes by raising taxes and recession comes roaring back. This is exactly the fate that awaits the United States if it continues on the present path. Most pundits fail to understand this and the article below is a prime example of bad economic opinion masquerading as reporting. It doesn’t frame the issues well and is just a complete mess.
Japan Lifts Sales Tax to Tackle Debt – WSJ.com
The reporting on this article is all wrong and shows reporting bias. The key to look at here is that Japan is in a deflationary rut that sees consumption shrinking. And it is trying to balance a budget deficit in that environment by doubling sales taxes. What do you expect to happen? I expect recession, a reduction in tax revenue and a still high deficit as a result, Japan is trapped in a deflationary path here. This only makes it worse.
Be Glad Benjamin Lawsky Can Keep a Secret – Bloomberg
"Whatever you think of Lawsky’s threat to strip Standard Chartered of its New York state banking license, one oft-repeated criticism is so off-base it’s crying out to be set straight. That would be the notion that Lawsky, the superintendent of the New York State Department of Financial Services, did something improper by releasing his Aug. 6 order against Standard Chartered without warning the company ahead of time that it was coming."
Breaking: Apple Offered to License its Patents to Samsung for $30 Per Smartphone, $40 Per Tablet – Ina Fried – Mobile – AllThingsD
"For 2010, Apple estimated that Samsung would have owed Apple approximately $250 million, an amount it noted was far less than Apple was spending on components. The Oct. 5, 2010 offer was contained in the presentation, which was made public on Friday."
Exclusive: Standard Chartered, regulators in settlement talks | Reuters
"Standard Chartered is in talks with multiple law-enforcement officials, including New York’s banking regulator, to resolve a probe into improper Iranian money transactions by the British bank, according to people familiar with the situation."
Standard Chartered helped build damning case against itself | Reuters
"Standard Chartered, the British bank facing explosive money laundering allegations from New York State’s top bank regulator, appears to have been burned by a decision to waive attorney-client privilege, a move that usually helps appease U.S. authorities."
Exclusive: U.S. regulators irate at NY action against Standard Chartered | Reuters
"The U.S. Treasury Department and Federal Reserve were blindsided and angered by the decision of a New York banking regulator to launch an explosive attack on Standard Chartered Plc over $250 billion in alleged money laundering transactions tied to Iran, sources familiar with the situation said."
Le déficit de l’Etat a reculé de 4,6 milliards d’euros en juin en un an
France was able to close its deficit by 4.6 billion. The deficit is now 56.7 billion.
Treasury-Yield-Snapshot – Treasury Yields and the 30-year Mortgage on the Rise
"Treasury yields have risen significantly from their historic lows on July 25th. At yesterday’s close the 3-year note was up 10 basis points (bps), the 5-year 18 bps, the 7-year 24 bps, and the 10-year 26 bps. The 20- and 30-year bonds were up 29 and 32 bps, respectively. Yesterday Freddie Mac survey listed the 30-year fixed-rate mortgage at 3.59, up 10 bps from its historic low two weeks earlier."
Unemployment falls to 5.2pc as Australia weathers world slowdown – World, Business – Independent.ie
"The number of people employed rose by 14,000 last month, the fourth gain in five months, erasing almost half of the revised 28,300 fall in June, the statistics bureau said in Sydney yesterday. The jobless rate fell to 5.2pc from 5.3pc."
Get Ready for the Gold Rebound Before It Is Too Late: Marshall Auerback [APE, GCU, G, GG, PDG, UGD] – The Gold Report
Canada surprises with big job losses in July | Reuters
"Canada’s economy unexpectedly lost 30,400 jobs in July in a third disappointing month for the labor market, suggesting the central bank will stay on the sidelines for longer as a global slowdown crimps growth at home."
Calculated Risk: The Housing Bottom and the Unemployment Rate
"Going forward I expect housing activity to increase and help push down the unemployment rate. Unfortunately I expect the housing recovery to be somewhat sluggish."
Bill Gross Is Wrong About Stocks: GMO – MarketBeat – WSJ
Eurozone crisis: Der Spiegel names Europe’s 10 most dangerous politicians | Economy | News | Financial Post
Corn prices surge to record high – FT.com
Bad loans plague State Bank of India | beyondbrics
Apple sold 5.7 million tablets in the U.S. last quarter, court documents show. Samsung sold 37,000 – Apple 2.0 – Fortune Tech
Jesse’s Café Américain: Marshall Auerback: Central Banks Will Need to Recover Their Gold
Samsung Galaxy Prevail is Samsung’s best-selling US Smartphone since June 2010, says court documents
El FROB pincha la burbuja de Bankia | Economía | EL PAÍS
The Spanish bank bailout fund has finally burst the speculative bubble in Bankia shares by admitting that shareholders will take losses. This caused the shares to fall as much as 20% but they have bounced back and are still well off lows last month. Clearly, investors think shareholders will not be wiped out. The US bailout model seems to be the guideline here.
Analysis: False records issue is key to Standard Chartered case | Reuters
El paro juvenil en Alemania se sitúa en el 7,9%, frente al 52,7% de España – ABC.es
Youth unemployment varies wildly in the eurozone. Spain is the worst of the lot with 52.7% unemployment while Germany has only 7.9%. This is simply crazy. How can Spain continue to cut spending when half od the next generation is jobless with no recovery in sight? it makes no sense.
Chinese capacity utilisation plummets | | MacroBusiness
China July export figures add to slowdown fears | Business | guardian.co.uk
Justice Department will not prosecute Goldman Sachs, employees for Abacus deal | Reuters
"Neither Goldman Sachs Group Inc nor its employees will face U.S. criminal charges related to trades they made during the financial crisis that were highlighted in a 2011 U.S. Senate report, the Justice Department said on Thursday."
George Osborne seeks assurances from US over Standard Chartered claims | Business | The Guardian
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