Posts Tagged Europe

A peak into Japan’s future?

A peak into the future for Japan? Some people think that “deficits don’t matter” as Dick Cheney said in 2000, and the Washington Post reminded readers in 2004.  If you believe that, there is no need to read what follows.

The tax hikes are quite massive : apart the tax on house ownership which was canceled by Berlusconi government 3 years ago and so is just a comeback, there will be tax increase on revenues applied by each Italian region, there has been increase between 5 and 10% of fuel petrol, diesel, propane and methane.

Federconsumatori estimates that the sum of the all the austerity budget laws passed this year Berlusconi + Monti will reduce the spending power of a typical family of 7.6%.

via Mish’s Global Economic Trend Analysis: Explaining Italian Christmas Season Sales It’s Far Worse Than Previously Reported; How Various Austerity Measures Will Affect Spending in 2012; Emails from Italian Readers; Massive European Recession On the Way.

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An Overview of the Euro Crisis – Interactive Graphic –

The New York Times has created an interactive chart that lets you find out which nation’s banks owe what to other nations. You can see how all roads lead to France. Greece owes more to French banks that any other nation. So does Spain. So does Italy. This is why Sarkozy is desperate to get Germany to bail out everyone. If Italy goes down, France goes down.

Japan is listed. Which banks does it owe? Only France: $8 billion. Japan is the creditor nation. Its biggest debtor is the USA.

via Which Governments Owe How Much to Foreign Banks? | The Tea Party Economist


It’s All Connected: An Overview of the Euro Crisis

European leaders are dealing with growing debt problems that are rattling investors worldwide. Here is a visual guide to the crisis.

via An Overview of the Euro Crisis – Interactive Graphic – Move your mouse over the country’s name to see how much it owes to whom.

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To get out of debt, buy more debt!

Well, it is Hallowe’en, so I’ve underlined the scary part to make sure you get the shivers.

Japanese Prime Minister Noda offers vague promise.

 Prime Minister Yoshihiko Noda Japan on Friday offered vague promises that Japan will help Europe climb out of its debt hole, but left himself a week to decide how Japan might augment its already hefty contribution to the EU’s bailout fund.

Noda told the Diet that Japan stood ready to play its part in stabilizing the eurozone as it struggles to get a grip on a two-year crisis that has threatened to derail the global recovery.

Japan has so far purchased around 20% of the debt issued by the European Financial Stability Facility, the continent’s bailout fund, and has indicated its willingness to buy more.

Klaus Regling, head of the EFSF, was in China Friday amid speculation that Beijing would come to Europe’s rescue, although he insisted there had been “no deal.”

Looks like the Chinese said, “she-she but no she-she”:

The head of the European bail-out fund dampened hopes Friday that China Would come to a debt-stricken EU’s rescue, but left the door open for a deal with the world’s second-biggest economy.

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Mish’s Global Economic Trend Analysis: Spain’s Icelandic Revolt; Protests Spread to Italy

protest images by Juan Luis Sanchez on Yfrog


Wow! Things are hotting up in Europe. This is getting interesting!

A protest movement that started in Spain has now spread to Italy. The Spanish government has banned protests, but that has only encouraged more protests.

Protests in Iceland helped bring down the Icelandic government and stopped the bailouts of banks at the expense of Icelandic taxpayers. Can the same thing happen in Spain?

via Mish’s Global Economic Trend Analysis: Spain’s Icelandic Revolt; Protests Spread to Italy.

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