Category Archives: Austerity

UK: Driving down a blind ally

The UK Budget is seriously missing the point. It will not create any growth and the already bleak forecasts will have to be downgraded again. Here’s why. The financial industry was one of the main drivers of the economy before the … Continue reading

Posted in Austerity, Conservatives, Debt, Financial crisis, Osborne, Politics, Recession, Tax Cuts, UK | Tagged , , , , | 1 Comment

In the long run the Euro will survive, in the short term it remains on life support

The trouble with the Euro Zone is that the plan is a long term restructuring program with very few measures to help ease the pain in the short term. But as we all know, “We’re all dead in the long … Continue reading

Posted in Austerity, ECB, Euro Zone, France, Germany, Greece, Ireland, Italy, Portugal, Spain | Tagged , , , , , | Leave a comment

The UK’s Top Export Markets

The UK’s top export markets are dominated by both US and European countries as would be expected. The US is the UK’s biggest export market in terms of individual countries so any improvement in the US economy should be beneficial … Continue reading

Posted in Asia, Austerity, China, Euro Zone, France, Germany, Holland, Ireland, Italy, Spain, UK, US | Tagged , , , | Leave a comment

The Trials and Tribulations of the UK Economy

No real surpises accompany the latest UK GDP figures. The UK economy is in bad shape, shrinking by 0.2% in the last quarter of 2011, but with the government intent on its austerity path and the UK’s biggest trading partner, … Continue reading

Posted in Austerity, Bank of England, BOE, Osborne, Quantitative Easing, UK | Tagged , , , , , | Leave a comment

Inflation: Dr. Jekyll and Mr. Hyde

It has been said over the past few years, that the presence of elevated inflation in the economy can help to reduce the debt burden. One way to do this is monetising debt by using the Bank of England printing … Continue reading

Posted in Austerity, Bank of England, BOE, Debt, Euro Zone, Osborne, Quantitative Easing, Tax, Tax Cuts, UK, Unemployment | Tagged , , , , , , , , , , | Leave a comment

ECB’s Rate Cut And Liquidity Analgesic

The ECB’s latest rate cut and 36 month liquidity operations can ease interbank liquidity problems, but it acts more as a painkiller for a bullet wound and much deeper surgery is needed in the form of Euro Zone restructuring. Since … Continue reading

Posted in Austerity, Banking, ECB, Euro Zone, European banks, European Central Bank, France, Germany, Greece, Holland, Ireland, Italy, Merkel, Politics, Portugal, Spain | Tagged , , , , , , , , | 1 Comment

Charting Italy

I’ve put together a few charts of Italy to illustrate the problems facing the beleaguered country. 1) Italy’s bond yields remain high. Figure 1: Italy’s 5-year bond yield. Source: Bloomberg. Despite the exit of Berlusconi, the market remains far from … Continue reading

Posted in Austerity, ECB, Euro Zone, Germany, Italy | Tagged , , , , | 1 Comment