Wednesday, March 11, 2015

Wednesday roundup (03-11-15)

Global finance faces $9 trillion stress test as dollar soars: The world is more dollarized today that any time in history, and therefore at the mercy of the US Federal Reserve as rates rise by Ambrose Evans-Pritchard (The Telegraph) Here's what Fed interest rate hikes mean (CBSMoneywatch) The Fed Blew It by Charles Hugh Smith (of two minds blog) Global dollar credit: links to US monetary policy and leverage by Robert N McCauley, Patrick McGuire and Vladyslav Sushko [report mentioned in the Telegraph article] (Bank for International Settlements)

Greek Debt Talks Are Tested by Fraying Ties With Germany (The New York Times)

IMF Approves $17.5Bn Credit Program for Ukraine (The Associated Press) IMF aims for 'immediate' stabilization with latest Ukraine bailout deal (Reuters)

Barclays Says Russia Sliding Into 'Deep' Recession (Forbes)

China economic data weaker than expected, fuels policy easing bets (Reuters) Is China Quietly Continuing Its Massive Economic Stimulus? (The Voice of America)

South Korea cuts interest rate to record low 1.75%: South Korea's central bank made a surprise quarter-percentage point cut to its benchmark interest rate on Thursday (Mar 12), taking it to an all-time low of 1.75 per cent, reflecting continued concerns over deflation and the pace of growth. (Agence France Presse)

Ericsson cuts 2,200 Swedish staff as part of savings program (Reuters)

Areva says [it plans] to cut 1,500 jobs in Germany (Reuters)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

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