What Went Wrong in Portugal?
The country's economy will now shrink because European policy makers fail to understand the dynamics of debt deflation.
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Browsing Tag
debt deflation
Chart of the Day: Permanent Zero and Personal Interest Income
If you are a retiree, you're not happy these days. Five years ago, you were getting a decent return on your fixed income investments. But since then, the Fed has trashed the fixed income market by reducing interest rates to zero percent for…
Michael Hudson on the erosion of democracy
Michael Hudson was on RT's Capital Account with Lauren Lyster, speaking about the loss of democracy that has accompanied the global financial crisis. The video is below, but recently Michael also wrote two articles for the Frankfurter…
Foreign News: France and Germany are still miles apart on agreement
Foreign news for 1 December 2011 focuses on Europe, and in particular Spain.
Running through unilateral Italian euro zone exit scenarios
A unilateral exit would be a devastating event for Italy and the euro zone. Inflation would be high but bank and national solvency issues would recede. If the exit were done under these nationalistic pre-conditions of redomination, most of…
Predicting the future of policy making
Predicting the future of policy making has been and will continue to be key to understanding where this economy is headed – and by extension what your investment portfolio will do.
Hussman: Why the ECB Won’t (and Shouldn’t) Just Print
As I said in defense of the ECB last week, “central bankers always prefer to force elected officials to make the tough political choices that are the essence of fiscal policy.” The ECB wants this whole problem to be resolved by elected…
Credit Writedowns Weekly Report, Vol 1 Issue 1: European and US Sovereign Debt
With the fundraiser week winding down, I am going to start making a few changes now. One thing we probably need is a synopsis of the past week’s posts in order to tie the week’s events together thematically. I will make this synopsis using…
Auerback: The more you deflate, the bigger the debt problem will get
Marshall Auerback was on Fox Business talking about the European sovereign debt crisis. He said he is very concerned not just about the national solvency problem in the euro zone but also about the debt deflationary policy remedies now…
Debt Deflation on the rise
“Without consumption, markets are going to shrink. Companies won’t invest, stores will close, “for rent” signs will spread on the main streets and local tax revenues will fall. Companies will lay off their employees and the economy will…