Tag Archives: Sovereign Debt Crisis

Jul 15 2016

Britain’s Chancellor of the Exchequer Revolts Against Merkel


Armstrong Economics Blog

Re-Posted Jul 15, 2016 by Martin Armstrong

Philip_Hammond

The new British Finance Minister Philip Hammond, was appoint as  Chancellor of the Exchequer on July 13th, 2016. Hammond is a welcome relief and has come out and departed with Draghi and Merkel stating: “The markets need calming signals. You need to know that we will do everything necessary to keep on track the economy. “ Hammond came out and stated that it is time to rethink the economic policy of his country and in reality Europe. He stated rationally that the entire idea of  austerity was the appropriate response to the financial crisis of 2008. However, Hammond stated bluntly that the world is in a completely different position today. Effectively, Hammond outright fundamentally rejected the economic policies of Angela Merkel. What we are beginning to see is an economic revolution against the idea of Merkel’s austerity programs. From Italy and France, we are also hearing the same rebellion.

Jul 15 2016

May Becomes PM in Britain & Boris Becomes Foreign Secretary


Armstrong Economics Blog

Re-Posted Jul 15, 2016 by Martin Armstrong

May becomes PM

TEU Crisisheresa May became the new Prime Minister of Britain on Wednesday and formally met with the Queen to ask permission to lead her government. May is now embracing BREXIT as such members are dominating her cabinet and on top of that, May made the main Brexit campaigner Boris Johnson her foreign secretary. May is positioning Britain to exit the EU. This is fantastic news for Britain may survive rather than be dragged down by the collapse of the EU. This would be a restoration of economic sanity.

While the British pound will still move lower as the world economy implodes, forcing the dollar higher, the pound will survive compared to the euro which is off to the emergency room.

The Brits who though staying in the EU was doable will gradually see the real crisis unfold. As the EU banking system is in shambles, they will quickly see that extracting Britain from the EU was the only viable option.

Jul 14 2016

Rating Agencies Downgrade 24 Counties


Armstrong Econmics Blog

Re-Posted Jul 14, 2016 by Martin Armstrong

BIG BANG ECM 2015.75

The three main credit rating agencies have been downgrading government debt at an alarming rate, which confirms our computer models, albeit a tad late. The first half of 2016 has seen more sovereign downgrades since the crash of 2009. The first six months of last year saw Moody’s downgrade 24 governments, Standard & Poor’s 16 governments, and Fitch 14. This has included Saudi Arabia and Brazil.