One Minute Macro Update - Portuguese Contraction, EMU Letdown

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Crisismode's picture

What happens when the radioactive plume from Fukushima creates a million Japanese Zombies who want nothing more than to devour Eurobonds?

westboundnup's picture

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? 

Harlequin001's picture

They won't sell, they'll just print more yen...

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.

Thorlyx's picture

Instead they should print clean water, sound milk and healthy spinach.... oh, and also foolproof nuclear power plants.

Harlequin001's picture

'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 This is already so outdated.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...

 

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: http://www.psd.pt/?idc=4&idi=79230

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

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