Monthly Archives: November 2011

We are going to hear two constant refrains in what passes for economic debate in the UK. We will be told that our exports to the EU are crucial to our economy, and will be at risk in some unspecified way if we dare to demand a renegotiation of our position or a referendum. We [...]

Sometimes it is a good idea to see the big picture. For many years now the west apart from Germany has decided to live beyond its means. It has imported its lifestyle from China and other emerging markets, and borrowed money to sustain the spending. More recently a collapse of private sector bank credit and [...]

Yesterday’s casual approach to the Italian debt markets by the Euro area does not breed confidence in the currency. It is true the European Central Bank intervened to buy some Italian bonds. It did not do so on a scale sufficient to get the yields down to acceptable levels. Leaking rumours that France and Germany [...]

Today the markets cut up rough on Italian debt. Ten year bonds now yield 7.4% and one year money is priced at 9%. Pundits have told us 7% is the danger level, the point at which borrowing becomes too dear for the Italian state. We await news from the Euro leaders what they now plan. [...]

                 Left wing critics of  market economics talk about markets as if they were just a small overpaid bunch of bond and currency traders they do not like. Markets are places for us all.  The large financial and banking markets are used by almost everyone. Let him who has no hedge fund to back [...]

              There is now much discussion of the immorality of the market. The latest fashion is to say that financial deregulation, dated conveniently to 1986 to place it under Margaret Thatcher, caused people to suddenly become self centred, materialistic and greedy in a way which has wrecked our finances, markets and banking ever since. [...]

                           Today the EFSF did manage to borrow another 3bn euros. It had to pay 1.77% more than German bunds for ten year money. The trillion euro geared fund now probably has 6.5 bn euros to call on, but has to make payments to existing clients.                             Meanwhile we learned that the European [...]

            Contemporary politics and much media commentary concentrates on getting the IMF/EU packages through and into effect for Greece, Portugal, Ireland, and to discussing the need for one in  Italy. There is rejoicing when governments change, coalitions form, or even better when there is a government of national unity to close down dissent and [...]

              There has been argument over the Chief Secretary’s use of a £40 billion figure for the UK’s contribution to the  IMF yesterday on TV. I have been back and checked the Hansard record of the Committee I attended to hear the government’s case for an increased subscription on July 5th 2011. The Minister [...]