| Budgets will remain “neutral” in 2010, becoming “clearly restrictive as of 2011 when recovery is expected to gain momentum,” Luxembourg Prime Minister Jean-Claude Juncker told reporters today after chairing a meeting of euro-region finance ministers in Luxembourg. |
As if that's not enough the Bush tax cuts will expire on Jan 1, 2011 and a spending freeze goes into effect this October.
If you thought the last time down was ugly, that's gonna look like a picnic compared to what's coming.
Mike,
ReplyDeleteI just came across this:
http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html
There's also the graph on the front page of this site:
http://www.imr-ltd.com/default.asp
Yeah, aggregates aren't everything, but if this is true we may be in for worse than I thought.
I'm not even sure how M3's calculated.
Oh, the Fed still calculates this, but simply doesn't publish the M3.
ReplyDeleteI bet something is going down with Iran. The USA will try sanctions while simultaneously wagging the world into the fold by a major flight to the USD and quality.
ReplyDeleteIf Iran is caught with funds in Euros they are hosed, and if they switch to USD the funds will be frozen.
ok - maybe 5% chance, but heck of a rocky road
If the "big one" is going down, then the other "big ones" are going with ....
Goog,
ReplyDeleteSadly, I dont think they are that smart/knowledgeable about these issues to try to pull something like that off.