Category Europe

To predict Europe’s future read some Japanese history..

The ECB has tweaked the words and now has low interest rates forever, and a new mandate to “tolerate” higher inflation. What will it achieve? To answer look at the failed 30 year experiment in Japan and the multiple parallels. The outlook for Europe as a global economic and innovative powerhouse looks shaky.

Stock Market Dips and The ECB’s Power Play

Global Stock markets seem to be living the dream, but under the surface there are serious concerns. In Yoorp the ECB makes its power play this week to confirm its place within the political trinity of States, EU and ECB by effectively handing itself control of the fiscal and industrial policy levers that could power up Europe. No one tell the Germans…

Forget the noise, distractions and sausages, the real issue is inflation vs deflation

As the UK and Yoorp prepare for a set-to over Sausages, the real issue remains inflation vs deflation. Are rising PPIs in China due to speculation on commodities boosting prices, is inflation due to supply glitches, and are the longer-term threats of Central Bank taper, growing West-East tension, and the reality of pandemic debt likely to tip us back into a deflationary cycle?

Failing Global Politics and Inflation will be a Nasty Shock

Across the Occidental Economy there seems a trend towards political failure as polarization, sleaze and opportunism takes hold, even as electorates suffer from increasing inequality and declining prospects. As the threat of post-pandemic inflation rises, the ingredients are all there for further instability and labour strife. It’s all happening as the geo-political spheres of influence between China and the West are being redrawn.

Low rates? Don’t worry.. What could possibly go wrong…?

Central Banks are playing the “lower for longer” interest rate card to reassure markets on growth. There are always consequences of such actions – ranging from bubbles, delusion and fraud. Eventually consequences trigger change, and reassessment – which is driving the rotation from Hope as a Strategy Tech into Fundamental stocks – Autos are a good example.

European Vaccine Squabbles as UK Flounces Out

Europe's vaccine rollout is in tatters as a result of stupid politics and a desire to blame the UK, while the UK has just sent a very unsubtle message about Europe looking after itself. Its a silly playground squabble that needs to be resolved quickly, but at its heart is the usual European problem: Britain vs France.