• Tag Archives Germany
  • The Globalist One World Currency Will Look A Lot Like Bitcoin

    This week the International Monetary Fund shocked some economic analysts with an announcement that America was “no longer first in the world” as a major economic growth engine. This stinging assertion falls exactly in line with the narrative out of the latest G20 summit; that the U. S. is fading away leaving the door open for countries like Germany and China to join forces and fill the power void. I wrote about this rising relationship between these two nations as well as the ongoing controlled demolition of America’s economy in my article ‘The New World Order Will Begin With Germany And China’.
    I find it interesting that the IMF is once again taking the lead on perpetuating the image of a failing U. S., just as they often push for the concept of a single global currency system to replace the dollar as the world reserve. The most common faulty counter-argument I run into when outlining the globalist agenda to supplant the dollar with the Special Drawing Rights basket system is that “the IMF is a U. S. government controlled organization that would never undermine U. S. authority.” Obviously, the people who make this argument have been thoroughly duped.
    The IMF is constantly and actively undermining America’s economic position, because the IMF is NOT an American controlled organization; its loyalty is to globalism as an ideology as well as the international financiers that dominate central banking. America’s supposed “veto power” within the IMF is incidental and meaningless – it has not stopped the IMF from chasing the replacement of the the dollar structure and forming the fiscal ties that stand as the root of what they sometimes call the “global economic reset.”

    This post was published at Alt-Market on Thursday, 27 July 2017.


  • Who Bought The New Greek Bonds: Here Is The Answer

    After triumphantly returning to the bond market three years after it last issued a euro-denominated long bond (which one year later nearly defaulted when only a third bailout prevented Grexit), this morning Bloomberg has provided details of who the lucky buyers of the just priced 3BN bond offering were. And not surprisingly, the biggest source of new funds for the Greek government (which will then use most of this to pay interest owed to the ECB) were US buyers.
    As Bloomberg notes, just under half, or 1.425BN of the 3BN deal was new money with 1.57b of existing paper rolled, with the following geographic distribution of new sources of cash:
    U. S. 44% U. K./Ireland 26% Greece 14% France 7% Spain/Portugal/Italy 3% Germany/Austria 3% Others 3% By investor type:
    Fund managers 46% Hedge funds 36% Banks/private banks 13% Others 5%

    This post was published at Zero Hedge on Jul 26, 2017.


  • Why Surging UK Household Debt Will Cause The Next Crisis

    – Easy credit offered by UK banks is endangering ‘everyone else in the economy’
    – UK banks are ‘dicing with the spiral of complacency’ again
    – Bank of England official believes household debt is good in moderation
    – Household debt now equals 135% of household income
    – Now costs half of average income to raise a child
    – Real incomes not keeping up with real inflation
    – 41% of those in debt are in full-time work
    – 1.537 trillion owed by the end of May 2017
    ***
    Editor: Mark O’Byrne
    Why UK household debt will cause the next crisis
    ‘Household debt is good in moderation,’ Alex Brazier, executive director of financial stability at the Bank of England (BoE), told financial risk specialists earlier this week. But, it ‘can be dangerous in excess.’
    The problem with ‘in moderation’ is that no-one knows what a moderate measure of something is until they have had too much of it. Sub prime borrowers in the U. S. and property buyers in Ireland and the UK did not know they would contribute to a global debt crisis. Central bankers in Germany in the early 1920s and more recently in Zimbabwe never thought they were doing something that would be as detrimental as it ultimately was.

    This post was published at Gold Core on July 26, 2017.


  • German police make arrests in March heist of giant Canadian gold coin

    Police in Germany have arrested individuals in connection with one of the most brazen and famous recent coin heists in the world.
    Law enforcement officials in Berlin detained four suspects in the March 2017 theft of the 100-kilogram gold Canadian coin with a face value of $1 million from the Bode Museum in Germany’s capital.
    The 2007 coin was minted from 100 kilograms of 0.99999 fine gold, one of six made by the Royal Canadian Mint. A Coin World correspondent from Germany, who is a numismatic journalist there, has confirmed that 13 suspects were targeted in raids in Berlin’s Neukoelln district. The raids were announced July 12.
    All four suspects detained are under the age of 21, and according to multiple European news reports, are from a large Arab family with connections to organized crime.

    This post was published at Coin World


  • European Stocks Fall To 3 Month Lows On “Carmaker Cartel” Fears, Sliding PMIs; US Futures Lower

    In a mixed session, which has seen Asian stocks ex-Japan broadly higher, the European Stoxx 600 index dropped as much as 0.6% after data Markit PMI data signalled euro-area economy grew in July at its slowest pace in six months while carmakers extended declines on continued concern about antitrust collusion in the industry. Germany’s DAX Index was hardest-hit euro-area benchmark, down as much as 0.8%. Autos continued to be the worst-performing sector on the Stoxx Europe 600 after EU and German regulators said they are studying possible collusion among German automakers. Der Spiegel magazine reported on Friday that BMW, Daimler and Volkswagen may have cooperated for decades on technology.
    ***
    Concerns have risen that with the Euro trading near its strongest level in 2 years and appreciating 11% against the USD YTD, it may weigh on exporters’ earnings; 1.20 on the EURUSD is being seen a key barrier beyond which European earnings will suffer. As a result, the euro headed for its first decline in three days as data showed the region’s economy cooling at the start of a week packed with earnings results and a Federal Reserve rate decision. Stocks were dragged down for a second day by carmakers amid a collusion probe.

    This post was published at Zero Hedge on Jul 24, 2017.


  • Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing

    – Gold hedge against currency devaluation – cost of fuel, food, housing
    – True inflation figures reflect impact on household spending
    – Household items climbed by average 964%
    – Pint of beer sees biggest increase in basket of goods – rise of 2464%
    – Bread rises 836%, butter by 1023% and fuel (diesel) up by 1375%
    – Gold rises 2672% and hold’s its value over 40 years
    – Savings eaten away by money creation and negative interest rates
    – Further evidence of gold’s role as inflation hedge and safe haven
    Editor: Mark O’Byrne
    ***
    Remember when you were taught about the inflation of the Weimar Republic in Germany at school? More recently I was taught about the inflation of Zimbabwe. In both instances we were given examples of how much the staple food of people cost – the humble loaf of bread.

    This post was published at Gold Core on July 21, 2017.


  • JULY 20/MUELLER NOW EXPANDS SCOPE INTO TRUMP’S BUSINESS DEALINGS SENDS GOLD AND SILVER NORTHBOUND/GOLD UP $3.50/SILVER UP 5 CENTS/BANK OF AMERICA PULLS OUT OF ALL FUNDING FOR LARGE CHINESE CONGLO…

    GOLD: $1246.00 UP $3.50
    Silver: $16.38 UP 5 cent(s)
    Closing access prices:
    Gold $1245.00
    silver: $16.36
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1247.75 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1239.50
    PREMIUM FIRST FIX: $8.25
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1246.52
    NY GOLD PRICE AT THE EXACT SAME TIME: $1238.10
    Premium of Shanghai 2nd fix/NY:$8.42
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1236.55
    NY PRICING AT THE EXACT SAME TIME: $1237.70
    LONDON SECOND GOLD FIX 10 AM: $1238.70
    NY PRICING AT THE EXACT SAME TIME. $1239.15
    For comex gold:
    JULY/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 0 NOTICE(S) FOR NIL OZ.
    TOTAL NOTICES SO FAR: 149 FOR 14900 OZ (.4634 TONNES)
    For silver:
    JULY
    34 NOTICES FILED TODAY FOR
    170,000 OZ/
    Total number of notices filed so far this month: 2956 for 14,780,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    end
    The key event today was the revelation that Mueller is probing Trump’s business interests around the globe. That sparked gold and silver to rebound after the bankers had targeted our precious metals to the dumpster today. That plan was foiled with the Mueller news.
    I would really like you to read the Stockman commentary at the bottom of my commentary. It is a must read..
    Let us have a look at the data for today
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    In silver, the total open interest FELL BY 1845 contract(s) DOWN to 207,844 DESPITE THE TINY RISE IN PRICE THAT SILVER TOOK WITH YESTERDAY’S TRADING (UP 4 CENT(S). TODAY WE HAD NEW SPECULATOR LONGS ENTER THE MARKET WITH THE BANKERS SUPPLYING THE NECESSARY PAPER. THE BANKERS ARE HAVING AN AWFUL TIME TRYING TO SHAKE THE SILVER LEAVES FROM THE SILVER TREE. HOWEVER SOME SILVER LONGS DID DEPART
    In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.061 BILLION TO BE EXACT or 152% of annual global silver production (ex Russia & ex China).
    FOR THE NEW FRONT MAY MONTH/ THEY FILED: 34 NOTICE(S) FOR 170,000 OZ OF SILVER
    In gold, the total comex gold FELL BY 2948 CONTRACTS DESPITE THE RISE IN THE PRICE OF GOLD ($0.50 with YESTERDAY’S TRADING). The total gold OI stands at 481,256 contracts. THE BANKERS ARE STILL LOATHE TO SUPPLY THE GOLD PAPER AND WISH TO COVER MORE OF THEIR SHORTS. SOME NEWBIE SPEC LONGS STARTED TO ENTER THE GOLD COMEX ARENA AGAIN. THE PLETHORA OF DATA RELEASED ON FRIDAY SHOWING RETAIL SPENDING BASICALLY COLLAPSING ALONG WITH SMALLER INFLATION NUMBERS MUST BE SCARING OUR BANKERS TO DEATH.
    we had 0 notice(s) filed upon for NIL oz of gold.
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    With respect to our two criminal funds, the GLD and the SLV:
    GLD:
    Today no changes in gold inventory
    Inventory rests tonight: 816.13 tonnes
    for 5 consecutive days, gold rises appreciably and yet gold inventory drops at the GLD
    (In the last 5 days gold rises $27.70 and yet GLD inventory collapses by 16.26 tonnes)
    GLD IS A MASSIVE FRAUD/INVENTORY SHOULD BE RISING NOT FALLING.
    SLV
    Today: : WE HAD A HUGE CHANGES IN SILVER INVENTORY TONIGHT/A WITHDRAWAL OF 945,000 OZ WITH SILVER UP AGAIN BY 5 CENTS
    INVENTORY RESTS AT 347.121 MILLION OZ

    This post was published at Harvey Organ Blog on July 20, 2017.


  • Yield Curve Not Suggesting Imminent Market Peak, Recession

    One of the most frequently cited predictors of a recession is when short-term interest rates rise above long-term interest rates. This is referred to as an “inversion of the yield curve” and typically happens when bond investors have a negative outlook on the economy. If you’re not familiar with the basics of the yield curve, please see What Is the Yield Curve Telling Us about the Future? for more background.
    Here is what the Federal Reserve Bank of New York says on their website regarding the Yield Curve as a Leading Indicator:
    The yield curve has predicted essentially every U. S. recession since 1950 with only one “false” signal, which preceded the credit crunch and slowdown in production in 1967. There is also evidence that the predictive relationships exist in other countries, notably Germany, Canada, and the United Kingdom.
    Currently, the yield curve for the US is flattening – and not inverted – so there is no imminent signal that the US economy is facing a recession.
    The big question is timing.

    This post was published at FinancialSense on 07/19/2017.


  • Did the Fed Just Ring a Bell At the Top?

    Very few investors caught on to it, but a few weeks ago the Fed made its single largest announcement in eight years.
    First let me provide some context.
    For eight years now, the Fed has propped up the stock market. In terms of formal monetary policy the Fed has:
    Kept interest rates at ZERO for seven years making money virtually free and forcing investors into stocks and junk bonds in search of yield.
    Engaged in over $3.5 TRILLION in Quantitative Easing or QE, providing an amount of liquidity to the US financial system that is greater than the GDP of Germany.
    In terms of informal monetary policy, the Fed has consistently engaged in verbal intervention any time stocks came in danger of breaking down.
    For eight years, ANY time stocks began to break through a critical level of support a Fed official appeared to issue a statement about future stimulus or maintaining its accommodative monetary policies.

    This post was published at GoldSeek on 19 July 2017.


  • Have Bundesbank Agents Infiltrated the Fed?

    Germany’s central bank is the Bundesbank. Prior to the commencement of trading of the euro in January 1999, the Bundesbank conducted Germany’s monetary policy. The Bundesbank has a reputation for pursuing general price-level stability above all else. You might say that the Bundesbank has inflation phobia. The reason for this Bundesbank inflation phobia is the remembrance of the hyperinflation Germany experienced between World Wars I and II. Given the US central bank’s recent actions, it would almost seem that the Fed has developed inflation phobia too.
    Although the US does not have general price-level stability, the rate of change of the consumer price index (CPI), no matter how you slice or dice it, is absolutely low. This is illustrated in Chart 1. Plotted in Chart 1 are the 12-month percentages changes in monthly observations of various CPI measures – the CPI including all of its goods/services items, the CPI excluding its energy goods/services items and the Cleveland Fed’s 16% trimmed-mean CPI. The 16% trimmed-mean CPI eliminates components showing extreme monthly price changes. Eight percent of the weighted components with the highest and lowest one-month price changes are eliminated and the mean is calculated from the remaining components, making the 16% trimmed- mean CPI less volatile than either the CPI or the CPI excluding prices for energy goods/services. In the 12 months ended June 2017, the percentage changes in the CPI with all items, the CPI excluding energy items and the 16% trimmed-mean CPI were 1.6%, 1.6%, and 1.9%, respectively. Moreover, the 12-month percentage change in the CPI, no matter how you measure it, has been trending lower since the first two months of 2017.

    This post was published at FinancialSense on 07/17/2017.


  • How High Can the Euro Go on this Reaction – 116 or 125-128?

    This upcoming seminar in Frankfurt Germany will deal with both the short-term and long-term. This has been the Year from Political Hell, and it will not end until after the German elections. With the ECB finally throwing in the towel admitting (but certainly not publicly) that nearly 10 years of low to negative interest rates has utterly failed to reverse the deflation. Now with the expectation of higher interest rates, the optimism is returning on schedule in Europe as virtually 99% are touting that deflation is over and let the good times roll.
    ***
    Of course, the greatest error with currency is the general public view it as a share price. They assume that the higher the Euro the stronger the economy becomes. Yet historically, the exact opposite is always true because currency is the medium of exchange which sits on the opposite side of the scale with tangible assets. Deflation is when assets decline because the currency rises in purchasing power.

    This post was published at Armstrong Economics on Jul 16, 2017.


  • July 14/Poor CPI numbers coupled with poor retail sales sends gold and silver northbound with the dollar sinking/Turkey turns its back on the West: purchases defense missiles from Russia/Turkey w…

    GOLD: $1230.30 UP $12.00
    Silver: $15.96 UP 21 cent(s)
    Closing access prices:
    Gold $1228.50
    silver: $15.96
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1226.61 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1216.15
    PREMIUM FIRST FIX: $10.46

    This post was published at Harvey Organ Blog on July 14, 2017.


  • Investors Are Dumping Emerging Market Debt At A Record Pace

    Having warned that Emerging Market debt risks had hit 10-year lows (despite soaring uncertainty) and EM equity risk had hit record lows (amid record inflows), it seems the lagged impact of the collapse in the China credit impulse is finally being recognized as the largest EM Debt ETF (from JPMorgan) just suffered its largest outflows in history…
    As a reminder, in the run-up to this dumping of EM assets, expected uncertainty in Emerging Market Equities has never been lower… (in fact EEM implied vol is now less than half its lifetime average of 29.7%)
    What was even more stunning than investors’ tolerance for these risky issuers is how little compensation they’re demanding in return. Emerging Market bonds were pricing in the least ‘risk’ since Dec 2007…
    The disconnect is a result of historically low interest rates worldwide — notes in Japan, Germany and France have negative yields — as well as what skeptics see as investors’ complacency as they pour into index-based funds without scrutinizing their holdings.

    This post was published at Zero Hedge on Jul 12, 2017.


  • The New World Order Will Begin With Germany And China

    In numerous articles over the years I have outlined in acute detail the agenda for a future one-world economic and governmental system led primarily by banking elites and globalists; an agenda they sometimes refer to as the “New World Order.” The term has gained such public exposure and notoriety recently that the globalists have fallen back to using different terminology. Some of them, like the International Monetary Fund’s Christine Lagarde, refer to it as the “global economic reset.” Others call it the “new multilateralism.” Still others refer to it as the “end of the unipolar order,” referring to the slow death of the U. S. economy as the central pillar of the global economy.
    Whatever label they decide to use, all of them signal a full spectrum destabilization of the “old world” financial and geopolitical system and the ascendance of a tightly controlled one world edifice dominated openly by globalist hubs like the IMF and the BIS.
    Too many people, even in the liberty movement, tend to examine only the veneer of this agenda. Some have deluded themselves into thinking the U. S. and the dollar are actually the core of the NWO and are therefore indispensable to the globalists. As I have shown time and time again, the Federal Reserve is now on a fast track to complete its sabotage of the U. S. economy; they would not be instigating instability and crisis to deflate the massive fiscal bubbles they have created unless America was at least partially expendable.

    This post was published at Alt-Market on Wednesday, 12 July 2017.


  • JULY 10/GOLD AND SILVER REBOUND/FRIDAY WITNESSES AN ASTRONOMICAL VOLUME OF 165,000 CONTRACTS/ITALY AND GERMANY BECOMES OUTRAGED WITH MIGRANTS: ITALY WANTS TO END IMMIGRATION;GERMANY WITNESSES THE…

    GOLD: $1213.90 UP $3.50
    Silver: $15.71 UP 28 cent(s)
    Closing access prices:
    Gold $1214.00
    silver: $15.66
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1211.73 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1211.50
    PREMIUM FIRST FIX: $10.23
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1215.44
    NY GOLD PRICE AT THE EXACT SAME TIME: $1208.95
    Premium of Shanghai 2nd fix/NY:$6.49
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1207.55
    NY PRICING AT THE EXACT SAME TIME: $1221.30
    LONDON SECOND GOLD FIX 10 AM: $1211.95
    NY PRICING AT THE EXACT SAME TIME. $1209.75 ???
    For comex gold:
    JULY/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 1 NOTICE(S) FOR 100 OZ.
    TOTAL NOTICES SO FAR: 62 FOR 6200 OZ (.1928 TONNES)
    For silver:
    JULY
    61 NOTICES FILED TODAY FOR
    305,000 OZ/
    Total number of notices filed so far this month: 2323 for 11,615,000 oz

    This post was published at Harvey Organ Blog on July 10, 2017.


  • Germany Pensions System Crisis

    The German publication DWN has come out and warned that the German Pensions system is collapsing. They wrote:
    The core problem of the German economy and society is miserable demography. A positive development, namely the increasing longevity of the population, is an extremely negative groundbreaking, namely a small number of children. This is reflected in one of the lowest birth rates in the world – and this has been the case for decades. The record-breaking birth rate is by no means rooted in a biological, but in deeper social causes and inadequate policies at different stages. One consequence is a pension system that is not sustainably financed , because the ratio of contributors and receivers will drastically deteriorate.

    This post was published at Armstrong Economics on Jul 10, 2017.


  • Global Marketplace Upbeat To Start Trading Week

    This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
    World stock markets were mostly higher overnight, amid generally optimistic trader and investor attitudes to start the trading week. The just-completed G-20 meeting in Germany did not produce any fireworks, and that is helping to keep buying interest in world equities keen. U. S. stock indexes are also pointed toward firmer openings when the New York day session begins.
    Gold prices are weaker and hit a nearly four-month low overnight, on a lack of risk aversion in the marketplace at present. Gold prices are in a steep five-week-old downtrend on the daily bar chart and bears have the near-term technical advantage.

    This post was published at Wall Street Examiner by Jim Wyckoff ‘ July 10, 2017.


  • Who Knew? German Central Bank Has Been Selling Gold For More Than A Decade

    Authored by Louis Cammarosano via Smaulgld.com,
    Deutsche Bundesbank gold reserves shrink 45 tons over the past ten years.
    German Central Bank holdings fall From 3,420.6 tons at the end of Q2 2007 to 3375.6 tons, a drop of 1,446,783 ounces. German gold reserves have decreased 1.3% over ten years.
    Bring the Gold Home & Sell Some Deutsche Bundesbank, the central bank of Germany, has gained a high profile for its insistence on repatriating a good portion of its gold from vaults at the New York Fed, the Bank of England of London and the Bank of France in Paris. We have been covering the German gold repatriation story since they made their request in 2013 here, here, here and here.
    The German repatriation requests aimed to rebalance the Deutsche Bundesbank’s gold holdings from nearly 70% held abroad to 50% held within Germany’s borders. The German Central Bank announced earlier this year that it has nearly completed its plan to repatriate its gold.


    This post was published at Zero Hedge on Jul 8, 2017.


  • The German problem: Why Germany’s current-account surplus is bad for the world economy

    The battle-lines are drawn. When the world’s big trading nations convene this week at a G20 summit in Hamburg, the stage is set for a clash between a protectionist America and a free-trading Germany.
    President Donald Trump has already pulled out of one trade pact, the Trans-Pacific Partnership, and demanded the renegotiation of another, the North American Free-Trade Agreement. He is weighing whether to impose tariffs on steel imports into America, a move that would almost certainly provoke retaliation. The threat of a trade war has hung over the Trump presidency since January. In contrast, Angela Merkel, Germany’s chancellor and the summit’s host, will bang the drum for free trade. In a thinly veiled attack on Mr Trump, she delivered a speech on June 29th condemning the forces of protectionism and isolationism. An imminent free-trade deal between Japan and the European Union will add substance to her rhetoric.
    There is no question who has the better of this argument. Mr Trump’s doctrine that trade must be balanced to be fair is economically illiterate. His belief that tariffs will level the playing field is naive and dangerous: they would shrink prosperity for all. But in one respect, at least, Mr Trump has grasped an inconvenient truth. He has admonished Germany for its trade surplus, which stood at almost $300bn last year, the world’s largest (China’s hoard was a mere $200bn). His threatened solution – to put a stop to sales of German cars – may be self-defeating, but the fact is that Germany saves too much and spends too little. And the size and persistence of Germany’s savings hoard makes it an awkward defender of free trade.
    At bottom, a trade surplus is an excess of national saving over domestic investment. In Germany’s case, this is not the result of a mercantilist government policy, as some foreigners complain. Nor, as German officials often insist, does it reflect the urgent need for an ageing society to save more. The rate of household saving has been stable, if high, for years; the increase in national saving has come from firms and the government.
    Underlying Germany’s surplus is a decades-old accord between business and unions in favour of wage restraint to keep export industries competitive. Such moderation served Germany’s export-led economy well through its postwar recovery and beyond. It is an instinct that helps explain Germany’s transformation since the late 1990s from Europe’s sick man to today’s muscle-bound champion.

    This post was published at The Economist


  • G-20 Meeting Shines a Spotlight on Global Divisions

    Leaders of the world’s most powerful economies are converging on Hamburg, Germany, for the annual Group of 20 meeting. The summit, as usual, will provide a venue to discuss issues of critical international importance. But setting this year’s agenda apart are the divisions that lately have grabbed the world’s attention thanks largely to US President Donald Trump’s “America First” policies on trade, climate, and security. Competing forces are trying to rebalance the global order, pitting nationalists and globalists against each other. The fight to change, or preserve, the status quo will pervade the G-20 meeting, both during the main event July 7-8 and as world leaders meet one-on-one on the summit’s sidelines.
    Trade Atop the Bill
    Despite its recent shift toward retrenchment, the United States still occupies a position of power on the world stage and will guide the course of conversation at the G-20. Trade will be a central topic of discussion. As health care and tax reform proposals face congressional and judicial roadblocks, Trump sees trade as a strong fallback option to advance his agenda. The president, after all, has more authority to change US policy over the matter through executive action relative to other domestic issues. A country-by-country review of the United States’ bilateral trade deficits reached Trump’s desk during the week of June 26, and he may soon start planning to try to reduce the imbalances. Washington’s actions to that end will target primarily the other members of the G-20. In 2016, the United States had a combined trade deficit of $667 billion – or 84 percent of its total trade deficit – with its 18 fellow countries in the G-20 (the European Union being the group’s 20th member).

    This post was published at FinancialSense on 07/07/2017.