HSBC should get their analytic facts straight. The German „old parliament“, not the newly formed one was called into session instead of letting the newly voted parliament decide on this 100x magnitude debt load for future generations. So, one could argue that the decision (though „legal“ in statutory terms, was pushed through by a non-mandated and „to be dissolved“ parliament.
This is very important because this kind of legal/constitutional maneuvering could be seen as legal but non-mandated.
Why is this so important?
Simple: because the new „coalition“, whatever it ends up to be now in Germany has decided to utilize a „lame duck parliament“ (in it‘s last days of office!) to load this amount of potential debt onto a unwitting population that certainly heard no such thing (or anything close to getting loaded with additional debt the size of 1000 Billion EUR all included as reported).
Do you honestly think this will be accretive long-term? Or is this not a sign of „last maneuvers“ in the Fiat realm? Who‘s gonna be able to
A) absorb that kind of new debt issuance (similar questions arise for US debt and many other countries as well)
B) will the tax revenue based on GDP ever be able to pay it off? Are we looking at a „century bond“ level madness right now?
So Macro is not dead, it was killed more likely by these lords of the debt roulette and the political maneuvering going on everywhere across the globe, especially so right now in EU, US.
Great roundup as ever Peter, thanks
Great set of slides Peter. Am sure you meant "clever chart FROM TS Lombard" rather than "clever chart FOR TS Lombard". I shall not tell Perkins!
Ha don't get him started!
HSBC should get their analytic facts straight. The German „old parliament“, not the newly formed one was called into session instead of letting the newly voted parliament decide on this 100x magnitude debt load for future generations. So, one could argue that the decision (though „legal“ in statutory terms, was pushed through by a non-mandated and „to be dissolved“ parliament.
This is very important because this kind of legal/constitutional maneuvering could be seen as legal but non-mandated.
Why is this so important?
Simple: because the new „coalition“, whatever it ends up to be now in Germany has decided to utilize a „lame duck parliament“ (in it‘s last days of office!) to load this amount of potential debt onto a unwitting population that certainly heard no such thing (or anything close to getting loaded with additional debt the size of 1000 Billion EUR all included as reported).
Do you honestly think this will be accretive long-term? Or is this not a sign of „last maneuvers“ in the Fiat realm? Who‘s gonna be able to
A) absorb that kind of new debt issuance (similar questions arise for US debt and many other countries as well)
B) will the tax revenue based on GDP ever be able to pay it off? Are we looking at a „century bond“ level madness right now?
So Macro is not dead, it was killed more likely by these lords of the debt roulette and the political maneuvering going on everywhere across the globe, especially so right now in EU, US.
Thanks 👍