A Greek economist’s terse sarcasm: “GDP has decreased by €47 billion in the last five years. Economy is expected to contract by 3.8% in 2013, the 6th straight year of recession! Unemployment has reached 24.7%. Youth unemployment… 55.4%! No worries though—we have the sun, the sea, our cultural background.” And GOLD.
Merkel Hides Behind The Troika Report, The Greeks Seethe, And The Drachma Advances
by Wolf Richter • • Comments Off on Merkel Hides Behind The Troika Report, The Greeks Seethe, And The Drachma Advances
When an acquaintance of mine in Greece had dinner with one of his relatives, a ranking official at the Bank of Greece, the discussion inevitably came around to the Troika—the bailout and austerity gang from the EU, the ECB, and the IMF—and how Greece should send them packing. “Of course,” the central banker said, “it would help considerably if we actually had a functioning government these past 182 years.”
Punishment Of The Spanish Political Class By The People
by Wolf Richter • • 4 Comments
Spanish Prime Minister Mariano Rajoy has a singular problem: 84% of all voters have “little” or “no” confidence in him. The fate of Alfredo Perez Rubalcaba, leader of the opposition Socialist party, is even worse: 90% of all voters distrust him! Those are the two top political figures of the two major political parties, and the utterly frustrated and disillusioned Spaniards are defenestrating them both.
The Noose Tightens On Germany’s “Success Recipe”
by Wolf Richter • • Comments Off on The Noose Tightens On Germany’s “Success Recipe”
Deceptive calm and optimism have settled on the German financial markets. But Germany, after hyperventilating for two years about its superior economic model, is worried about exports. And Chancellor Merkel about the elections next year. It would be a heck of a lot easier to hang on to power if Germany isn’t in a deep recession because exports dried up. And they are drying up. But suddenly, domestic demand is getting hit.
Chinese Strawberries Sicken 11,200 German Children
by Wolf Richter • • Comments Off on Chinese Strawberries Sicken 11,200 German Children
The Incredibly Ballooning Bailout Of Cyprus
by Wolf Richter • • Comments Off on The Incredibly Ballooning Bailout Of Cyprus
Cypriot President Christofias dug in his heels. On Greek TV. Not behind closed doors with the Troika, the austerity gang from the European Commission, the IMF, and the ECB that have performed such miracles in Greece. But as Cyprus veers toward bankruptcy, his game of playing the Russians against the Troika has fallen apart, banks are in worse condition than imagined, and the bailout amounts jumped again.
A Capitalist Revolt in Socialist France
by Wolf Richter • • Comments Off on A Capitalist Revolt in Socialist France
The French government is trying to reign in its deficit by jacking up taxes, including the capital gains tax—an old philosophical pillar of the French left. But an explosive essay published last Friday hit a nerve with entrepreneurs, venture capital investors, artisans, and mom-and-pop business owners. And their anger, which spread across the social media, the papers, and finally TV news, turned into an open revolt.
US National Debt: In A Year, I’ll Add Another Ugly Data Point
by Wolf Richter • • Comments Off on US National Debt: In A Year, I’ll Add Another Ugly Data Point
The final amount that the US government owes at the end of fiscal 2012 (September 30) is, drumroll, $16,159,487,013,300. It owes it, in no particular order, to the Saudis, US citizens, the Social Security Trust Fund, the Chinese, the Japanese, the Russians…. It amounts to about 103% of GDP. An earsplitting hangover from a debt binge that robbed the future. But there are winners.
California’s Ballyhooed Recovery? Oh Dude!
by Wolf Richter • • Comments Off on California’s Ballyhooed Recovery? Oh Dude!
Worse Than The Infamous Lehman September: France’s Private Sector Gets Kicked Off A Cliff
by Wolf Richter • • 3 Comments
The Paris auto show should have been exciting. Over 100 new models from econo-boxes to exotic prototypes. Chicks next to some of them. Nausea-inducing colors, downsized motors. Something for everyone. But it had been preceded by supplier events loaded with the dire verbiage of an industry on a death march. Particularly in France, whose private sector is veering into economic fiasco. And on Monday, it became official.