Category Archives: Budget Deficit

Quote of the Day: EU Policymakers on Hopium

The primary strategy being pursued to prevent a further worsening of the situation is that of hope. And it is a strategy also being applied to the danger of further contagion. Greece, Ireland, Portugal, Spain: So far, European leaders have … Continue reading

Posted in Black Swan Watch, Budget Deficit, Euro, PIIGS, Sovereign Debt | Tagged , , , | Leave a comment

Quote of the Day: Fiscal Barbells

And to this we say,  AMEN! The right policy, which also happens to be the only one with any hope of being adopted in the foreseeable future, is a barbell approach, with more stimulus on one side and, on the … Continue reading

Posted in Budget Deficit, Fiscal Policy | Tagged , , | 2 Comments

Euro Crisis: Lorenzo Bini Smaghi

Lorenzo Bini Smagi,  former Member of the Executive Board of the European Central Bank, nails it, You call it austerity, i would call it putting your house in order. You can’t grow especially if you have a deficit which is … Continue reading

Posted in Black Swan Watch, Budget Deficit, Eurozone Sovereign Spreads, Fiscal Policy, PIIGS, Sovereign Debt | Tagged , , , , , | 2 Comments

Government Gross Financing Needs

The latest data from the IMF’s Fiscal Monitor.  Read it and gulp!  Then fire up the printing presses. Click on the tables to enlarge and for better resolution. (click here if tables are not observable)

Posted in Black Swan Watch, BRICs, Budget Deficit, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , , , | 1 Comment

The Fiscal Health of Nations: General Govt Balance

The IMF is out with their Fiscal Monitor today.  Great stats.  Here is a comparison of the fiscal health of the world’s economies. Contrast Norway and Saudi (both oil exporters) with, say,  the U.S. and Japan.  Italy doesn’t look so … Continue reading

Posted in Black Swan Watch, Budget Deficit, Economics, Eurozone Sovereign Spreads, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , , , , , , , , | 2 Comments

Markets Want More FED “Crack” – Harry Dent

Harry Dent does a pretty good job in ‘splaining today’s risk sell-off, in our opinion. We’re beginning to sense, however, the markets are awakening to the fact the U.S. government is going to have a funding problem. As the world … Continue reading

Posted in Black Swan Watch, Budget Deficit, Gold, Japan, Monetary Policy, Sovereign Debt, Sovereign Risk | Tagged , , , , , , | Leave a comment

Charlie Rose: Erskine Bowles and Alan Simpson

Excellent discussion on the U.S. fiscal crisis with Erskine Bowles and Alan Simpson.  They were co-chairs of the National Commission on Fiscal Responsibility and Reform, commissioned by President Obama in 2010 to identify “…policies to improve the fiscal situation in the … Continue reading

Posted in Black Swan Watch, Bonds, Budget Deficit, Economics, Interviews, Politics, Sovereign Risk, State and Local Government | Tagged , , , | 1 Comment

Is the Bond Market’s Arab Spring Upon Us?

Ugly action in bonds over the past few days. In last month’s post,  Is the Fed ready for the bond market’s Arab Spring?, we suspected the Fed needed more ammo to continue their repression of long-term rates.   Yesterday Mr. Bernanke … Continue reading

Posted in Black Swan Watch, Bonds, Budget Deficit, Sovereign Debt, Sovereign Risk | Tagged , , | 1 Comment

The Great Repression: Freedom of Speech in the Bond Market

We’re baffled anybody still looks to the U.S. bond market for signals of future economic activity, inflation, or even risk aversion.  Case in point is today’s 7-year bond auction, which CNBC’s Rick Santelli rated an eleven on a scale of … Continue reading

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Worldwide Debt

Shocking chart from Jeffery Gundlach’s  “Fall of the Roman Empire” presentation. Looks like the global central banks’ balance sheet expansion is only in the first inning.   Not by choice but by necessity. Freakin’ stunning! Click on chart to enlarge … Continue reading

Posted in Black Swan Watch, Bonds, Budget Deficit, Sovereign Debt, Sovereign Risk | Tagged , , | 1 Comment