One Minute Macro Update - Portuguese Contraction, EMU Letdown

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Tue, 03/22/2011 - 07:46 | 1085254 Crisismode
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What happens when the radioactive plume from Fukushima creates a million Japanese Zombies who want nothing more than to devour Eurobonds?

Tue, 03/22/2011 - 07:47 | 1085259 westboundnup
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Better yet, what happens if Japan simply needs capital for reconstruction and elects to sell, oh say, 15% of the U.S. Treasury debt it holds? 

Tue, 03/22/2011 - 08:00 | 1085284 Harlequin001
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They won't sell, they'll just print more yen...

Tue, 03/22/2011 - 08:32 | 1085354 dussasr
dussasr's picture

Agree - selling treasuries gives you Dollars.  Exchanging them to Yen drives up the Yen at a time when they are trying to weaken it.  It's easier just to print Yen.  If provides cash and weakens the Yen at the same time.  Perfect plan - until it implodes.

Tue, 03/22/2011 - 08:34 | 1085363 Thorlyx
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Instead they should print clean water, sound milk and healthy spinach.... oh, and also foolproof nuclear power plants.

Tue, 03/22/2011 - 08:11 | 1085291 Harlequin001
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'as Japan continues to inject large amounts of cash into the financial system to help speed the recovery'... 

so, the recovery is 'speeding' is it?

'Japan all industry activity index rose 2.9% v 2.8%E in January.'... Yes but it came to a grinding halt in March. This is already so outdated.

'Additionally, German opposition to fiscal unity has been bolstered by opposition from smaller countries who would also be part of the “payer’s club” '

After the drubbing Merkel got in the last round I would be stunned, stunned I tell you if this didn't all end in tears very soon.

'till then I buy gold...


Tue, 03/22/2011 - 08:15 | 1085315 Tulli
Tulli's picture

The Portuguese government is expected to fall tomorrow after austerity pack 4.0 is rejected in parliament vote by the main opposition party PSD, throwing the Country into an election and a immediate need to be bailed out.

The statement from PSD is available here:

This inevitable next step in the Euro crisis will likely impact the Euro, as all eyes will turn to Spain.

Tue, 03/22/2011 - 08:33 | 1085359 gwar5
gwar5's picture

The international monetary system is on life support and the BOJ, EMU and The Bernank are all circle jerking to resuscitate it. Interesting concept.

Now that Japan and Portugal are on their backs the timing for a little quick action couldn't be better.

"It's 4 o'clock, do you know what your Bernank is up to?" -- Maria Bartiromo



Tue, 03/22/2011 - 09:57 | 1085642 99er
Tue, 03/22/2011 - 11:09 | 1085663 99er
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