The Phaserl


World economy so damaged it may need permanent QE

by Ambrose Evans-Pritchard, The Telegraph:

Combined tightening by the United States and China has done its worst. Global liquidity is evaporating.

What looked liked a gentle tap on the brakes by the two monetary superpowers has proved too much for a fragile world economy, still locked in “secular stagnation”. The latest investor survey by Bank of America shows that fund managers no longer believe the European Central Bank will step into the breach with quantitative easing of its own, at least on a worthwhile scale.

Markets are suddenly prey to the disturbing thought that the five-and-a-half year expansion since the Lehman crisis may already be over, before Europe has regained its prior level of output. That is the chief reason why the price of Brent crude has crashed by 25pc since June. It is why yields on 10-year US Treasuries have fallen to 1.96pc, and why German Bunds are pricing in perma-slump at historic lows of 0.81pc this week.

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1 comment to World economy so damaged it may need permanent QE

  • rich

    A Tale Of Two Silicon Valleys: Wage theft, billionaires, and the rest of us

    Last month, a multiagency task force composed of federal, state, and local authorities busted open a major Bay Area wage theft operation, leading to arrests, raids, mug shots on the local news, and big speeches about the injustice and immorality of wage theft:

    “Businesses should not profit by stealing from their hard-working employees.”

    For months here at Pando, we’ve been reporting on Silicon Valley’s Techtopus, the wage-fixing cartel organized by Steve Jobs, George Lucas, Eric Schmidt, Bill Campbell, Meg Whitman and other superstar luminaries. According to experts’ models, just four Big Tech companies at the center of the Techtopus—Apple, Adobe, Google and Intel—effectively stole up to $3 billion in employee wages between 2005-2010. This doesn’t include the dozens of other companies who appear as co-conspirators, from Disney and Dreamworks Animation to IBM, Microsoft, Oracle, Dell, WPP, Comcast and others named in secret internal company documents first revealed by Pando.

    Here then is a stark example of justice in greater Silicon Valley,

    the political economy of the future:

    Get caught red-handed by the Department of Justice stealing an estimated $3 billion dollars in wages from tens of thousands of employees — and your “punishment” is an agreement with the DOJ “that does not constitute admission by the Defendants that the law has been violated or of any issue of fact or law.” And, no fine. Let me repeat that: $3 billion in stolen wages; no admission of guilt, no fine. The only punishment is an agreement to submit to periodic checkups on compliance with antitrust law as regards to illegal wage-fixing cartels. (See the DOJ settlement sections labeled “Required Conduct” and “Compliance Inspection.”) Only eBay was slapped — more like flicked — with a $3.75 million fine, and only because eBay kept brushing off the DOJ’s “threats,” presumably because they didn’t find the DOJ’s no-guilt, no-fine “punishment” of Apple, Google et al particularly frightening. Considering that eBay’s 2013 revenues totaled over $16 billion, on $212 billion in “enabled commerce volume” — a $3.75 million fine is worth less than the pocket lint in Pierre Omidyar’s Bermuda shorts.

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