Mish's Global Economic Trend Analysis |
- Brussels Puts Spain Under Surveillance; Brussels Denies Putting Spain Under Surveillance
- Breakout in Japanese 10-Year Bond Yield
- Triple Dip Recession in France; It's Not the Weather
- In Rare Praise of Teachers
Brussels Puts Spain Under Surveillance; Brussels Denies Putting Spain Under Surveillance Posted: 15 May 2013 11:15 PM PDT Here is an amusing set of back-to-back headlines regarding Spain. Via Mish-modified Google translate from La Vanguardia Brussels Puts Spain Under Surveillance for Economic Imbalances Spain will be placed under European supervision and its political leeway in deciding what reforms the economy agree will be reduced.Brussels Denies Spain Put Under Surveillance Via Google translate from El Economista, Brussels Denies Spain Put Under Surveillance. The European Commission (EC) has denied today that it has decided to put under surveillance to Spain for their excessive macroeconomic imbalances and restated preliminary analysis indicates reform plan that the country is broadly taking adequate steps to correct its problems.The idea that anything positive is happening in Spain that would allow it to meet its budget targets is of course preposterous. Indeed, Spain was granted two more years because it could not possibly meet its targets. Of course, Italy cannot meet its targets, France cannot meet its targets, Slovenia cannot meet its targets, and in fact no country in Europe is likely to meet its budget deficit target. Should the denial be correct, it's simply a sign that the larger countries are now so off-target on their own accord, they have granted kick-the-can extensions elsewhere. However, I suspect the first headline is the accurate one and Brussels is simply looking for a word less harsh-sounding word than "surveillance". Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
Breakout in Japanese 10-Year Bond Yield Posted: 15 May 2013 10:57 AM PDT Curve Watchers Anonymous has its eye on global interest rates. For example, please consider this chart of 10-Year Japanese bonds. click on chart for sharper image Chart courtesy of Steen Jakobsen, chief economist at Saxo Bank in Denmark. I have been paying close attention to Japanese yields in light of this statement by the Bank of Japan chief: "I do not expect a sudden spike in long-term bond yields." I commented on the statement on Saturday in Expect a Spike in Long-Term Japanese Interest Rates; Currency Crisis Just Around the Corner. As a Yen-followup, please consider Will Shinzo Abe Succeed with Constitutional Changes to Militarize Japan and Further Destroy the Yen? Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
Triple Dip Recession in France; It's Not the Weather Posted: 15 May 2013 12:46 AM PDT France slipped into its third recession in four years as Germany barely went into positive territory, underperforming general expectations. The Financial Times reports France contracts in 1st quarter as Germany returns to growth French GDP shrank by 0.2 per cent in the first quarter, the same rate of decline as the final three months of 2012, according to Insee, the national statistics office. Investment, measured by gross fixed capital formation, remained weak, falling a further 0.9 per cent after 0.8 per cent in the fourth quarter. Exports fell and construction output fell.It's Not the Weather Blaming the German slowdown on the weather is complete silliness. More importantly, the idea that German exports will rise given stated pay raises and a weak and weakening eurozone economy is absurd. For more on the eurozone, and France in particular, please see Social Mood Darkens in Europe, Especially France, as Eurozone Economy in Freefall. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
Posted: 14 May 2013 11:59 PM PDT I do not frequently stand with teachers. It's not that I have anything against teachers. I don't. Teaching is an honorable profession. Those who understand my stance, know full well my problems sit with teachers' unions, administrators, and union work rules. Far too often I hear requests for tax increases allegedly "for the kids" when really the tax increases are for the teachers and administrators, not the kids. Something Different Today, I want to report something different. I want people to know that sometimes teachers want to do something that is genuinely for the kids. In this instance, state law does not permit it. Please consider Michigan District Fires All Teachers, Closes Every School. Summer break has started very early for kids in one Michigan school district.Buena Vista Announcement From the Buena Vista School District Website: 3. Teachers have offered to work for free until Friday, May 10. Why did the District lay them off?That notice came out on May 1. I salute the teachers in the Michigan Buena Vista School District for having the kids best interest at heart when they volunteered to work for free to close out the school year. Sadly, a blatantly bad Michigan law did not permit such action. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
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