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Inflation and Deflation
Let's assume that a forger is able to create perfect copies of paper-money. When he distributes this counterfeit money, what happens next?
British think tank gives Euro just 1% chance of survival
The British Center for Economics and Business Research estimates the chance of an Euro-breakup within the next 10 years to be 99% and predicts that at least one country will leave the Eurozone in 2012.
France: CEO of retail chain expects menacing inflation
_The CEO of the second-biggest french retail chain is reporting that some of his suppliers have to face increases in costs of up to 20% and: "In the year 2012 the financial crisis will reach the real economy in a way in which we will all have to pay for the insanity. By higher sales taxes, higher garbage fees, etc."
Economic Growth and Wealth
A figure like the GDP cannot completely disguise the real facts. While several methods exist to create "economic growth" on paper, in the long run, the truth cannot be supressed.
USA: Fed secretly gave $16 trillion to banks
A partial audit of the Federal Reserve has revealed that it has given $16 trillion to banks between December 1, 2007 and July 21, 2010 and that these loans have been kept secret. Included are $3 trillion, which were given to banks in Europe and Asia.
01/10/2012      share:derubg

Industrialized Nations Have to Refinance $8 Trillion in 2012

A new record sum of debt is maturing in 2012 which will make finding buyers for new government bonds a challenge.

_The amount coming due in 2012 (including interest payments) is:

$3.1 trillion - Japan
$3.0 trillion - USA
$500 billion - Italy
$421 billion - France
$330 billion - Germany
$235 billion - Canada
$232 billion - UK
$200 billion - Brazil
$162 billion - China
$96 billion - India
$22 billion - Russia

Not included in the list are smaller nations like Spain or Ireland.

Especially challenging will be the year for Italy, which auctioned government bonds for 8.5 billion Euros late in December but was only able to find buyers for 7 billion. Italy would need such an auction every week in 2012 to avoid bankruptcy.

But of course the central banks can and probably will just print enough money to solve the situation: “The market is now flush with liquidity after measures taken by central banks, particularly the ECB, and that’s great news for risky assets,” Fabrizio Fiorini (chief investment officer at Aletti Gestielle SGR SpA in Milan) said in a telephone interview on Dec. 20. “The market will have no problem taking down supply from countries like Spain and Italy in the first quarter.”

World’s Biggest Economies Face $7.6 Trillion Bond Tab as Rally Seen FadingBloomberg01/03/2012
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