Hong-Kong

Much Has Changed Since Short Sellers Last Attacked HK Dollar

Vincent Chan via Caixin | The Hong Kong dollar has been under pressure recently. On January 20, the value of the currency plunged to an eight-year low of 7.8228 to the U.S. dollar. Meanwhile, the stock market’s benchmark Hang Seng Index fell 3.8 percent from the previous day to 18,886.3, the lowest level in 42 months.

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Debt-defaltion-copia

The loop of debt deflation

Monetary policy is not equipped to control the real economy and the financial economy at the same time. Its aim is to moderate the fluctuations in real variables, GDP, employment and prices. But this destabilises the financial market, fuels speculation and increases household and corporate debt with the banks.


gamesa

Gamesa-Siemens, the merger that makes sense

UBS | Gamesa has confirmed it is in talks with Siemens regarding a combination with some of Siemens’ wind assets “through a merger structure”. A merger is the preferable option against the possibility of Siemens acquiring Gamesa. The primary reason is that the value of the potential synergies are shared between the two parties rather than, as is often the case in a take-over, transferred to the seller.


greece-broken

Honey, I shrunk the Greeks vol. 2

Yiannis Mouzakis via Macropolis | The IMF formally announced last week that it changed the policy of exceptional access criteria, in essence reversing a highly political decision of the Fund back in 2010, a decision that saved the euro and paved the path for half a decade of economic devastation that sealed Greece’s fate.

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Fed_ReserveTC

The Fed Shows Class Bias ?

Benjamin Cole via Historinhas | In general, the “class glass” is a poor lens for analyzing U.S. politics and macroeconomic policies.  To be sure, the nation has interest-group politics in spades, and groups are often well-financed.

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