Thursday, March 12, 2015

Today's Links

Putin---We are often told our actions are illegitimate, but when I ask, “Do you think everything you do is legitimate?” they say “yes”. Then, I have to recall the actions of the United States in Afghanistan, Iraq and Libya, where they either acted without any UN sanctions or completely distorted the content of such resolutions, as was the case with Libya. There, as you may know, the resolution only spoke of closing the airspace for government aircraft, while it all ended with bomb attacks and special forces land operations.

 Our partners, especially in the United Sates, always clearly formulate their own geopolitical and state interests and follow them with persistence. Then, using the principle “You’re either with us or against us” they draw the whole world in. And those who do not join in get ‘beaten’ until they do








1--Get Ready for BRICS plus Germany, Pepe Escobar, RI


Just as much of Europe is stagnant German economic ties with Asia are growing rapidly. Eventually politcs has to catch up with economics


2--Japanese firms' mood worsens as yen slump rattles, dims outlook, Reuters


Confidence at big Japanese manufacturers worsened in January-March and is seen turning negative in the second quarter as a slumping yen ramped up the costs of raw material imports, a survey showed, complicating Tokyo's stimulus-driven campaign to revive the economy.


The yen skidded to 8-year lows against the dollar to above 122 yen on Tuesday, on expectations the Fed may raise rates as early as in June, heightening worries that an unrelenting drop in the Japanese currency could prove more harmful in the long run.
"It could be worrisome if the yen depreciation accelerates under the current deflationary circumstances where companies are unable to pass on costs, causing a profit-squeeze," said Takeshi Minami, chief economist at Norinchukin Research Institute.


3--The Mystery Of America's Missing Wage Growth Has Been Solved, ZH
The important math: production and non-supervisory employees, those not in leadership positions, represent 80% of the employed labor force. This is important when looking at the next chart which show the annual increases in hourly earnings just for production and nonsupervisory employees.
It is as this point that we ask that all economists avert their eyes, because it gets ugly:


As the BLS reports, not only is the annual wage growth of 80% of the work force not growing, but it is in fact collapsing to the lowest levels since the Lehman crisis!


4--The Mystery Of America's Missing Wage Growth Has Been Solved, cnbc


The continuing strengthening of the dollar is weighing on U.S. equity markets even though little has changed since Friday's positive jobs report, BlackRock's chief global investment strategist told CNBC on Tuesday.


"You've got the dollar up about 23 percent from the summer lows, and people are realizing this is starting to bite into earnings" BlackRock's Russ Koesterich said during a "Squawk Box" interview.
Read More Morgan Stanley sees US strength, 'slow grind' in Europe
A stronger dollar makes U.S. goods more expensive abroad and dilutes the value of earnings when American companies bring overseas profits back home. With price-to-earnings ratios already fairly extended, it will be harder for the United States to post gains this year without earnings growth, he said.
  
"The fundamentals are what they are and the reality is the U.S. is going to outgrow Europe and Japan, the path of U.S. monetary policy is very different than the rest of the world, and you've got a much lower current account deficit because of domestic oil production, all of which favor a stronger dollar over the next few years," he said.


5--Global finance faces $9 trillion stress test as dollar soars, AEP


The world is more dollarized today that any time in history, and therefore at the mercy of the US Federal Reserve as rates rise


6--Emerging-Market Currency Defenses May Come Up Short Over Long Term, WSJ


Intervention can provide short-term support but is no match for a soaring dollar


7--Ukraine’s economy, Economist

The new Greece in the east






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