Tag Archives | Abenomics

European interest rates go negative as Draghi boosts stock markets

Historians will not look kindly on Mario Draghi, head of the European Central Bank. They will ask what he thought he was doing, issuing an extra €1tn ($1.05tn) of debt from March 2015, when the Eurozone was already struggling under a dead-weight of government debt: In the big countries, Italy has $47k of debt per person; […]

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BRIJ auto sales head in different directions

There has been a lot of wishful thinking over the past 15 years about the BRIC countries (Brazil, Russia, India and China).  The experts told us they were all going to become middle class overnight, and ensure that global growth continued to motor, even as the West slowed. Reality has proved rather different, of course.  This makes […]

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Oil price fall set to push Japan back into deflation

Could Japan actually go bankrupt at some point in the future?  This was the question left hanging in the air after Friday’s panic at the Bank of Japan, when its Governor forced through his new stimulus policy on a 5 – 4 vote. Financial markets’ first reaction was to assume this was a coup de théâtre on […]

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RingOfFire Jun14

Central banks have created a debt-fuelled ‘ring of fire’

A new article by an IMF economist makes the point that in April 2008, not a single one of the mainstream economic forecasts covered by ‘Consensus Economics’ was forecasting a recession in 2009. The IMF itself expected growth to continue, as did the World Bank and the Organisation for Economic Co-Operation and Development.  Even by […]

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Q4 results show companies still waiting for something to turn up

We all live in hope.  That seems to be the underlying message from the blog’s quarterly survey of company results. Nothing has changed since last quarter or indeed Q2, when BASF noted that “achieving our earnings target is significantly more challenging today than we had expected”. Yet this latest quarter was, of course, supposed to be […]

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