Mish's Global Economic Trend Analysis |
Posted: 24 Mar 2015 12:27 PM PDT ECB Denies it is Blackmailing Greece Yesterday, Mario Draghi Hit Back at QE Hawks and denied the ECB was blackmailing Greece. Critics of QE, such as Bundesbank president Jens Weidmann and the head of the Dutch central bank, Klaas Knot, argue the policy, which helps lower the cost of borrowing for member states, will allow countries such as France and Italy to shirk unpopular reforms.Screws Tighten Today, the Wall Street Journal reports ECB Tells Greek Banks Not to Boost Exposure to Athens Government's Debt. The European Central Bank has instructed Greece's biggest banks to refrain from increasing their exposure to Greek government debt, according to people familiar with the matter.Greece Out of Cash by April 20 Reuters reports Greece Out of Cash by April 20. Greece will run out of money by April 20 unless it receives fresh aid from creditors, a source familiar with the familiar with the matter told Reuters on Tuesday.Greece Still Needs Third Bailout, Another €54 Billion Bear in mind that Greece still needs to negotiate a third bailout. See Third Greek Bailout? Another €53.8 Billion Needed? Primary Account Surplus Revisited. Thus, even if Greece gets over this hump, negotiations start all over again in June because Greece will be unable to pay back ECB bonds that mature this summer. How much more can Greece take? Whom is To Blame? In case you missed it, please read my March 10 article From ZIRP to NIRP: Virtues of Germany vs. the Vices of Greece; What About "Speece" and Gold? The article contains a discussion of whom is to blame, a rebuttal of the widely held belief that the euro acts like a gold standard, and the role of attitudes in this mess. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
CPI Ticks Up, Led by Rise in Energy; CPI Still Negative Year-Over-Year Posted: 24 Mar 2015 11:10 AM PDT Following three months of declines (primarily due to falling energy prices), today the BLS Consumer Price Index for February shows that month-over-month, the CPI is back in positive territory. CPI and Weightings click on any chart for sharper image From October to November the CPI declined -.3 percent, so this rise follows three straight month-over-month declines. Year-Over-Year Seasonally Adjusted Percent Change Year-Over-Year the CPI is negative for the second month. From December to January the year-over-year CPI was -0.45%. Today, it's a barely negative 0.17%. Year-Over-Year Components Of course, your prices will vary greatly. Take for example medical care. Did your costs only go up by 1.8%? Your food basket by 3%? The above tables are partial. The BLS has many more categories in the link at the top. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
You are subscribed to email updates from Mish's Global Economic Trend Analysis To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States |