Monday, June 7, 2010

European governments vow major fiscal tightening for 2011

Budgets will remain “neutral” in 2010, becoming “clearly
restrictive as of 2011 when recovery is expected to gain
momentum,” Luxembourg Prime Minister Jean-Claude Juncker told
reporters today after chairing a meeting of euro-region finance
ministers in Luxembourg.

As if that's not enough the Bush tax cuts will expire on Jan 1, 2011 and a spending freeze goes into effect this October.

If you thought the last time down was ugly, that's gonna look like a picnic compared to what's coming.


Mike Sandifer said...


I just came across this:

There's also the graph on the front page of this site:

Yeah, aggregates aren't everything, but if this is true we may be in for worse than I thought.

I'm not even sure how M3's calculated.

Mike Sandifer said...

Oh, the Fed still calculates this, but simply doesn't publish the M3.

googleheim said...

I bet something is going down with Iran. The USA will try sanctions while simultaneously wagging the world into the fold by a major flight to the USD and quality.

If Iran is caught with funds in Euros they are hosed, and if they switch to USD the funds will be frozen.

ok - maybe 5% chance, but heck of a rocky road
If the "big one" is going down, then the other "big ones" are going with ....

Matt Franko said...

Sadly, I dont think they are that smart/knowledgeable about these issues to try to pull something like that off.