The crisis in Latin America shows two very different types of economic decline:
Continue reading Latin America. Two Kinds of CrisesCategory Archives: Sin categoría
The ECB Cannot Disguise Risk Much Longer
Despite the unprecedented increase in the ECB’s asset purchase program, the spread of Southern Europe sovereign bonds versus German ones is rising.
The ECB balance sheet has soared to more than 42% of the eurozone’s GDP, compared to the Fed 27% vs U.S. GDP. However, at the same time, excess liquidity has ballooned to more than 2.1 trillion euros.
Continue reading The ECB Cannot Disguise Risk Much LongerU.S. Depression? The V-Shaped Recovery Fades Away
The recent jobless claims figures show how difficult it will be for the U.S. recovery to be as quick and strong as initially expected.
Continue reading U.S. Depression? The V-Shaped Recovery Fades AwayThe Oil Market Is Broken
OPEC and its partners have been cutting production since September 2016. Between September and November 2016 they cut production by more than 1.7 million barrels a day, a historical cut that was wrongly prolonged throughout the expansionary phase of the global economy. In December 2018 they cut production again.
OPEC’s most serious mistake in recent years has been forgetting its mission and principles and trying to artificially inflate the price of oil. No oil-producing country lost money at 2016 prices, the only thing they could not afford was to pay huge subsidies, civil servants and non-oil expenses that many OPEC members finance with export earnings.
Continue reading The Oil Market Is Broken