Frontrunning: June 3

• Still no go on the white smoke, a few more weeks: Hilsenrath - Dallas Fed's Fisher Says More Easing by Fed Not Needed (WSJ)
• Chinese Economic Slowdown May Lead to 75% Plunge in Commodities, S&P Says (Bloomberg)
• EU should control member states' budgets, says bank boss (Guardian)
• Syrian Violence Tests U.S. (WSJ)
• SAC Again? Probe Deepens of Alleged Inside Trades at FDA (WSJ)
• Pushing for a return to the gold standard (LATimes)
• Wheat Futures Climb for Second Day on Weather Concerns in U.S., EU, Canada (Bloomberg)
• Europe E. Coli Outbreak is Deadliest on Record (Bloomberg)
• EU, IMF Wind Up Greek Economy Review (Bloomberg)
• China Ministry: 1H Industry Output To Slow to 13.5% (Market News)
• Italy, China set to boost trade relations (China Daily)
• Who Will Be the Marginal Buyer of Treasuries Post-QE2? (Morgan Stanley)
• A healthy dynamic in job creation: Destruction (WaPo)
• Stress Tests for Europe’s Banks Take Longer Than Expected (NYT)
• OPEC considers increase in oil output (FT)
• The Mistake of 2010 (Krugman)

European Economic Highlights

• UK PMI services 53.8 Slightly lower than expected Consensus 54.2, Previous 54.3
• France PMI services 62.5 Slightly lower than expectedConsensus 62.8 Previous 62.8
• Germany PMI services 56.1 Higher than expected Consensus 54.9 Previous 54.9
• Italy PMI services 50.1 Lower than expected Consensus 51.8 Previous 52.2
• Eurozone PMI Services 56.0 Slightly higher than expected Consensus 55.4 Previous 55.4
• Eurozone PMI Composite 55.8 Slightly higher than expected Consensus 55.4 Previous 55.4

Comments

[ivars]

Gold short term bubble (July-October) is coming closer :

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=420#p32823

[Zedge Hero]

I have been reading the Hedge since late 2010 and have come up with a weekly news show inspired by such- Please tell me what you think.  I know I will get some good criticism here.  Thanks

http://www.youtube.com/user/zedgehero

[oh_bama]

What??!

CHINA output only 13.5%??! That is WAY TOO SLOW, PBOC may have to do another QE guys!!

[TopOnePercent]

Looks like EURO land is setting the stage for a new world order.

Sovereignty will soon be a thing of the past for the PIGS.

What really needs to happen is for the EURO to be eliminated as a failed academic experiment.

Some academics need to realize that THEY can be held accountable for flawed introductions such as the EURO.

Furthermore the same issues will not be resolved until the US banks such as GS are better regulated, along with many regulation changes which would separate banks from the securities markets.

[Catullus]

Krugman has a rock-solid argument.  It's like he can't be wrong.  There was never going to be enough stimulus.  He didn't even have to pick a number.  He just had to say in early 2009 that whatever was announced wasn't adequate and when it doesn't work (because as the nemesis Austrians keep screaming that it's just pulling consumption forward) just say "I told you so".

Of course this argument was destroyed during the Depression of 1946. 

https://mises.org/journals/rae/pdf/R52_1.PDF

That right, the worst "depression" in US history was in 1946 on a GNP/GDP basis.  When all that government spending was cut after WWII. And in 1944 and 1945, it was wildly held by Keynesians that the post-war depression would be worse than the Great Depression if the government made the mistake of cutting spending.  But Keynesianism was institutionalized at the very moment it was apparent it was a failure to explain why their Great Depression of 1946 never materialized.

[Jim B]

Don't even bother reading Krugman anymore.... Krugman = Zero Credibility..

[malek]

Clown Krugman with a good one once again:

By the beginning of 2010 [...] an overwhelming consensus emerged among policy makers and pundits that nothing more should be done to create jobs, that, on the contrary, there should be a turn toward fiscal austerity.

[...] Job creation effectively dropped off the agenda.

OMG!
Do remember those strict fiscal austerity measures the US has engaged in last summer?!