Ironically even with Greek CDS surging by 60 bps to 909 bps this morning, the biggest mover in percentage terms is not the bankrupt Mediterranean country but Europe’s “stablest” one - Germany, whose default risk has spiked by 9.19% according to MarkIt. Without splitting hairs, Europe is a sea of red this morning as the ugly specters of default and complete lack of credibility in the EU administration raise their ugly heads again. Yet adding that special spark to the reignited flame, is George Soros, who in an interview with Die Welt, said that “German policy is a danger for Europe, it could destroy the European project.”
Soros, who earned $1 billion in 1992 by betting against the British pound, added that he “could not rule out a collapse of the euro.”
“If the Germans don’t change their policy, their exit from the currency union would be helpful for the rest of Europe,” he said.
Chancellor AngelaMerkel unveiled plans earlier this month for 80 billion euros ($107 billion) in budget cuts over the next four years — a package she hopes will bring Germany’s structural deficit within European Union limits by 2013.
“Right now the Germans are dragging their neighbors into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk,” he said.
“Germany is globally isolated … Why don’t they let their salaries rise? That would help other EU states to pick up.”
Merkel on Monday defended her budget cut plans after U.S. President Barack Obama preached patience in clamping down on public spending. A German government official said on Tuesday Berlin did not expect to come under pressure at a G20 summit in Toronto this weekend to provide fresh stimulus measures.
This interview merely confirms this underreported clip on German TV station Phoenix, from June 17, when in passing it was noted that Merkel said Germany was consider returing to the D-Mark.
That’s enough ‘kicking ass’, Mr President: Barack Obama’s attacks on BP may play well at home, but they are damaging millions of British people (London Times)
Banks with state debt ignore not-if-but-when default (Bloomberg)
As reported, Caja Madrid, Bancaja start moves to form Spain top savings bank, as BBVA says Spain may need €50 billion of capital to infuse into insolvent banks (Bloomberg)
Lehman emails that say “stupid” didn’t stay “just between us” (Bloomberg)
US firms holding record piles of cash underscoring worries about sustainability of financial recovery (WSJ)
Hungary PM says to issue second economic action plan in H2 (Reuters)
The bearish forecasters who rose to fame in the market crash of 2008 have, for the most part, not surrendered their pessimism. Their moment could be coming back around (BusinessWeek)
Daily humor from disgraced car czar Steve Rattner at the only venue desperate enough for clicks to still have him: How Wall Street stokes populist fury (MSN)
June 8 (Reuters) – The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.
The report that was sent to lawmakers Friday night with no fanfare said the ratio of debt to the gross domestic product would rise to 102 percent by 2015 from 93 percent this year.
“The president’s economic experts say a 1 percent increase in GDP can create almost 1 million jobs, and that 1 percent is what experts think we are losing because of the debt’s massive drag on our economy,” said Republican Representative Dave Camp, who publicized the report.
He was referring to recent testimony by University of Maryland Professor Carmen Reinhart to the bipartisan fiscal commission, which was created by President Barack Obama to recommend ways to reduce the deficit, which said debt topping 90 percent of GDP could slow economic growth.
The U.S. debt has grown rapidly with the economic downturn and government spending for the Wall Street bailout, the wars in Afghanistan and Iraq and the economic stimulus. The rising debt is contributing to voter unrest ahead of the November congressional elections in which Republicans hope to regain control of Congress.
The total U.S. debt includes obligations to the Social Security retirement program and other government trust funds. The amount of debt held by investors, which include China and other countries as well as individuals and pension funds, will rise to an estimated $9.1 trillion this year from $7.5 trillion last year.
As if uncontrollable economic contagion was not enough for the administration, Obama is now willing to add geopolitical risk to the current extremely precarious economic and financial situation. Over at Debkafile we read that the president has decided to “boost US military strength in the Mediterranean and Persian Gulf regions in the short term with an extra air and naval strike forces and 6,000 Marine and sea combatants.” With just one aircraft carrier in proximity to Iran, the Nobel peace prize winner has decided to send a clear message that peace will no longer be tolerated, and has decided to increase the US aircraft carrier presence in the region by a 400-500% CAGR.
From Debka:
Carrier Strike Group 10, headed by the USS Harry S. Truman aircraft carrier, sails out of the US Navy base at Norfolk, Virginia Friday, May 21. On arrival, it will raise the number of US carriers off Iranian shores to two. Up until now, President Barack Obama kept just one aircraft carrier stationed off the coast of Iran, the USS Dwight D. Eisenhower in the Arabian Sea, in pursuit of his policy of diplomatic engagement with Tehran. Read more…
For 220 years, through civil upheaval, global conflict and a depression, the United States largely kept its public debt under control.
But the world’s largest economy may finally have met its match. In its bid to prevent the Great Recession from spiralling into a global depression, the U.S. government spent tens of billions rescuing financial institutions and automotive companies. In the process, the federal budget deficit swelled 220 per cent from 2008 to a record $1.6-trillion (U.S.).
The world’s biggest economy has plenty of company: Seven of the members of the Group of 20 nations are on a trajectory that will leave them with debts bigger than 75 per cent of their economies by 2014, according to the International Monetary Fund.
It’s hard to understate the fiscal cost of the financial crisis, which continues to send shock waves around the world. This week’s move by Dubai World, a state-owned conglomerate that fuelled the United Arab Emirates’ rapid growth, to withhold debt payments shows the financial crisis continues to put government finances at risk. Read more…
The Conservative weirdos are having a field day on account of Obama getting the Nobel Prize. They didn’t think he earned it.
Fair enough. But why should the weirdos care? The Norwegians gave the award for his efforts in pushing alternative energy. It didn’t cause the U.S. taxpayers any money. It’s not like the whiners will ever get the Nobel Prize themselves. So they should just be happy for him.
“Well, giving him the award like that will diminish the prestige of the Nobel Prize.”
Oh really? It will diminish NOTHING, especially when it comes with a $1.4 million award. With a stipend like that, it will always be valuable, I assure you. Read more…
PepsiCo Inc. and its largest bottler, Pepsi Bottling Group Inc., plan to spend $1 billion in Russia over the next three years, extending an investment in a key international market as the economy crimps growth in the U.S.
PepsiCo Chairman and Chief Executive Indra Nooyi announced the investment on a visit to Russia, which coincides with her attendance at a business summit called by U.S. President Barack Obama and Russian President Dmitry Medvedev.
Above is the Weekly chart and we are Highly Bullish on this stock.
Already broken triangle and it looks very soon will kiss $ 62-63 level.Any Panic….Buy this stock.
Two consecutive close above $61 or weekly close will take stock to $ 66-68 level.
Ironically even with Greek CDS surging by 60 bps to 909 bps this morning, the biggest mover in percentage terms is not the bankrupt Mediterranean country but Europe’s “stablest” one - Germany, whose default risk has spiked by 9.19% according to MarkIt. Without splitting hairs, Europe is a sea of red this morning as the ugly specters of default and complete lack of credibility in the EU administration raise their ugly heads again. Yet adding that special spark to the reignited flame, is George Soros, who in an interview with Die Welt, said that “German policy is a danger for Europe, it could destroy the European project.”
June 8 (Reuters) – The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress. 
BLACK PEOPLE I’VE MET WHILE YACHTING
For 220 years, through civil upheaval, global conflict and a depression, the United States largely kept its public debt under control.
The Conservative weirdos are having a field day on account of Obama getting the Nobel Prize. They didn’t think he earned it.
