Links: 2013-06-12

UK workers watch helplessly as inflation outstrips wage growth | Heather Stewart | Business |

TheMoneyIllusion » Exit is easy

This one is on the Fed’s QE. The contentious point is on endogenous money. Monetarists believe that central bank monetary is long-term endogenous but short-term exogenous. Post-Keynesians believe that central bank policy is always exogenous and that the broad money supply is always endogenous.

See here:

The Broad Money Supply is ALWAYS Endogenous

This is a pretty good post on an important topic because standard macro has the base money tail wagging the broad money/credit supply dog. It is broad money created by fiat in the private banking system that rules the roost.

Google tax whistleblower says he was motivated by Christian beliefs | Technology |

Italian showdown with Germany over euro looms closer – Telegraph

The problem with AEP’s view is that Berlusconi and Grillo are taking water and the center is gaining votes. Doesn’t look like confrontation

Europe’s Way Out by Dani Rodrik – Project Syndicate

“The most direct way to address the debt problem is a write-down, coupled with recapitalization of those banks that will suffer large losses as a result”

Strikes Called in Greece to Protest Closure of Public Broadcaster –

Analysis: After emerging corporate bond boom, default risks on rise | Reuters

The overstated inflation danger –

“nominal debt outstanding rose by just 29 per cent between 1948-49 and 1970-71, while nominal GDP rose by 336 per cent. Both real GDP (up 91 per cent) and the price level (up 128 per cent) contributed to this happy outcome: the compound rate of growth of nominal GDP was 6.9 per cent, of the real economy 3 per cent and of the price level 3.8 per cent. (See charts.)”

China trade data underscores growth worries | Reuters

Brad DeLong : Are There Risks to Abenomics?

Abenomics and Interest Rates: A Finger Exercise (Wonkish) –

Noahpinion: The Zero Upper Bound?

“So if monetary expansion can only cause the kind of recovery where interest rates rise, Japan is in deep shiitake. Japan’s only hope is to cause the kind of recovery where interest rates stay very low for a very long time. If Japan is living in a Nick Rowe type world, that will prove impossible, and Japan’s only options will be stagnation, default or hyperinflation. We should pray with all our might that we are living in a Richard Koo world instead, and that there is an economic policy that will allow Japan to boost growth and inflation while keeping interest rates low.”

David Rosenberg: The Fed has turned markets upside down –

Ireland: Household debt shrinks by 3.7pc –

Messi and father accused of tax fraud in Spain | Reuters

Trading, market-making, speculation or manipulation? Who knows anymore | FT Alphaville

Moody’s: Covenants of Low-Rated Bonds Weaken Significantly in May

UK employment at record high as more pensioners stay in work – Telegraph

Dutch central bank warns of slow recovery – MarketWatch

The Ultra-Easy Money Experiment by William White – Project Syndicate

“The world’s central banks are engaged in one of the great policy experiments in modern history: ultra-easy money. And, as the experiment has continued, the risk of failure – and thus of the wrenching corrections and deep economic dislocations that would follow – has grown.”

Euro zone industrial output shows surprise rise in April | Reuters

I believe the peak rates of economic decline are in the past. I also believe the EU will leave recession in the second half of the year if it doesn’t get hit by economic exogenous shocks.

Oil product glut coming as refineries mushroom-IEA | Reuters

Jim O’Neill: Get ready for 4% bond yields, ‘quite ugly days’ – The Tell – MarketWatch

Danemark: la banque centrale abaisse sa prévision de croissance à 0,5%, Actualités

Danish Central Bank lowered its forecast for Danish GDP growth today from 0.8% to a microscopic 0.5%.

Traders Said to Rig Currency Rates to Profit Off Clients – Bloomberg

Bond bubble threatens financial system, Bank of England director warns | Business |

Feedly officially leaves Google Reader behind, transitions to own servers with three weeks to spare | The Verge

Nokia to stop shipping Symbian smartphones –

“Nokia to stop shipping Symbian smartphones”

Emerging market assets suffer in fierce sell-off –

How Amazon Brainwashed Us All (And Joyent, Too) – Pete Johnson – Voices – AllThingsD

If you’re not a techie, this post might be incomprehensible. But it made a lot of sense to me. In layman’s terms, what they are saying is that Amazon takes a cookie cutter approach to cloud computing and web hosting. And while that has brought economies of scale that lower costs and create cost pressure elsewhere, there is a lot of waste that goes with this model in terms of things that are not customized for individual users.

Here’s the thing about Abenomics… | FT Alphaville

When money multipliers become divisors | FT Alphaville

BBC News – Greece suspends state broadcaster ERT to save money

Greece to ask creditors to lower 2013 privatisation target-source | Reuters

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