The man who broke the Bank of England George Soros. He’s the investor’s investor—the man who still holds the record for making more money in a single day’s trading than anyone. He pocketed $1 billion betting against the British pound on “Black Wednesday” in 1992, when sterling lost 20 percent of its value…
Cheap Money will Help European Banks But Not The People Boris Roessler / AFP / Getty Images A home-made euro sign is attached to the tip of a Christmas tree in front of the European Central Bank (ECB) in Frankfurt am Main, Germany, on December 21, 2011. Might the world be witnessing the first…
How the West became China’s willing servant Eurozone leaders have brought their begging bowl to China, looking for help in boosting their bailout fund. So what does this say about the shift in the global balance of power? In October 1911, China rose up in revolution. Four months later the last emperor had fallen and…
A German newspaper said Merkel had concluded Greece was insolvent and was pushing for a mandatory debt restructuring. Three years after the crash of the US investment bank Lehman Brothers, the financial crisis is hitting hard again. If, in the fall of 2008, the whole future of the international financial system – and,…
BEIJING – I had dinner with a few senior European financiers and professors in Beijing last week. When we talked about the euro crisis looming over Europe, we couldn’t but agree unanimously: across today’s small globe, all the major countries on the planet simply lack a strong leader. This is the very…
Mr. Doom and Gloom Marc Faber Reports from Hong Kong
Greece’s government must cut spending and improve tax revenue in order to greatly reduce or eliminate its need to borrow, reduce the cost of its output (via domestic deflation or leaving the Euro and depreciating a new currency) in order to restore the external balance between its imports and exports, and to reduce the impediments to economic efficiency and productivity growth so that its economy can grow more rapidly. How did it get in such a mess? What role was and is played by its use of the Euro? And what are its options?
According to a report in Germany’s news magazine Der Spiegel the European Commission warned that the euro area’s chances of survival would depend criticially on adjusting the internal imbalances. The reported quoted from a paper by DG Ecfin, accourding to which internal imbalances would weaken confidence in the euro and endanger the cohesion of the…