Mish / Mike Shedlock – IMF Halves Germany 2013 Growth Estimate; Still Too Optimistic – 4 June 2013

With most of Europe in a nasty recession, and significant parts of it (Spain, Greece, Cyprus, Italy) in an outright economic depression, I wonder why it took so long for the IMF to Reduce Germany GDP Forecast.

Germany’s 2013 growth prospects have been cut in half by the International Monetary Fund, as it warned that the outlook for Europe’s strongest economy could worsen if a eurozone recovery fails to materialise.

Mish/ Mike Shedlock – Simmering Feud Between France And Germany Erupts Into Verbal Warfare: France Tells Brussels To Shove It – 31 May 2013

The simmering feud between France and Germany erupted into a heated political exchange following Pressure on Hollande to take bold action to revive the French economy, calling for new pension and labour market reforms.

“The commission’s list of recommendations for Paris, which it expects to be delivered in return for allowing France two extra years to meet its budget deficit targets, covered all the hard issues the socialist government faces: cutting public spending; restoring badly diminished competitiveness, opening up restricted markets, reforming the tax regime and loosening tight labour market regulations.”

Mish/ MIke Shedlock – Christine Lagarde, Head Of IMF, In Court Facing Questions Od Embezzlement And Fraud – 24 May 2013

Christine Lagarde, head of the IMF, is in court today addressing her role in a $366 million payout to Bernard Tapie, a close friend of former president Nicolas Sarkozy who was also Lagarde’s boss at the time. Lagarde was Sarkozy’s finance minister. Reuters reports IMF’s Lagarde in court for French arbitration case.

IMF chief Christine Lagarde was questioned in court by French magistrates on Thursday over her role in a 285-million-euro ($366 million) arbitration payment made to a supporter of former president Nicolas Sarkozy.

Gloria Wendroff – The Heaven Letters – Am I My Brother’s Keeper? – 22 May 2013

God said:

The usual advice is: “Hands off.” You don’t bother someone who sees differently from you. What is his business is his business. The fact that he may cut his grass too short, water his garden too much or not enough, all this is not your concern. According to your frame of mind, he may eat the wrong foods and stay up too late or sleep too late. You are not here on Earth to improve another. Did you think you were?

Mish/ Mike Shedlock – Merkel Pins Cameron In Corner; Will Cameron Bury His Head In The Sand, Pretending To Not Notice? – 21 May 2013

UK prime minister, David Cameron, promised to hold a referendum on whether Great Britain should remain in the EU, but only on two conditions. The first condition, that Cameron be re-elected as prime minister is iffy enough. The second condition, that Cameron renegotiate the Lisbon Treaty, I said would never happen. And it won’t. German Chancellor Angela Merkel sealed the fate on that score as Berlin plans to streamline EU but avoid wholesale treaty change.

Mish/ Mike Shedlock – Folly of Preserving the Euro at All Costs; Should France Lead Breakup of Euro? – 20 May 2013

The Local, a website with German news in English reports Economists warn against German euro exit.

“Even a believable rumour that Germany would exit the euro would result in a massive capital flight from the countries of southern Europe to Germany.”

The southern European banking system would then collapse, bringing down entire economies with them, Schmieding said.

Mish/ Mike Shedlock – Hollande Asks ECB To Engage In Japanese Style Currency Debasement – 18 May 2013

French president Francois has had enough of austerity but claims he “cannot do it alone”. The Financial Times reports François Hollande goes on ‘offensive’ over stalled EU economy.

François Hollande promised an “offensive” to bring “more growth and less austerity” to Europe as he launched a bid to resurrect his presidency.

OnWIngsOfCare Flyover #7 Of Bayou Corne Sinkhole In Louisiana – 9 May 2013

Uploaded on 7 May 2013 by OnWingsOfCare1

Mish/ Mike Shedlock – Senior Eurozone Official : “As Spain Goes, So Goes Slovenia” – 7 May 2013

The spotlight is once again on Slovenia. Olli Rehn, the European commission’s economic chief is unhappy with economic progress in Slovenia and is threatening to put the country into an “excessive imbalances procedure” by the end of the month.
The problem is, Spain is in a similar “excessive imbalance” state prompting an unnamed eurozone official to state “As Spain Goes, So Goes Slovenia”. Please consider Brussels trains its sights on Slovenia.

Mish/ Mike Shedlock – Former Portugues Prime Minister Says “Portugal Cannot Pay Its Debts”, Calls For “Agentine-Style Default” – 14 April 2013

It’s rare to hear any bit of common sense from political leaders, but today I have a sterling example. Mário Soares, Prime Minister of Portugal from 1976-1978 and 1983-1985, and the 17th President of Portugal from 1986 to 1996 speaks the truth. Soares says “Portugal Cannot Pay Its Debts“. He calls for an “Argentine-Style Default”, and states “The desire to please chancellor Merkel is ruining the country.”

“Portugal can not pay what you owe and however much they impoverish people, however much they steal the money to people who have it, not be able to pay what you owe. And when you cannot, the only solution is not pay. ” The president of Portugal, Mario Soares socialist argues that it is impossible for Portugal to return all of its foreign debt. So has asked to make a Argentine-style default to avoid economic collapse. “Look at Argentina, was in crisis when he said we do not pay. ‘And something happened?” Asks Soares. “No, nothing happened,” he says in an interview with Antena 1, which airs tonight and that includes the Business Journal. Soares, who was also prime minister, has called for the overthrow of the government, has criticized the European Commission president, José Manuel Barroso and launched a series of warnings to the President of the Republic, Cavaco Silva. The former head of state also defended as imperative the change in government and an end to austerity. “This desire to be useful to Mrs Merkel, are ruining the country and forcing him to sell everything. In two years, this government has destroyed almost everything in Portugal,” he says. For Soares, “any politician with an ounce of common sense when booed-as are the government every day, calling them thieves, should have the dignity to leave. But they cling to power,” he concludes.

Sooner or Later

Sooner or later some politician is going to run on that exact platform and be elected. Alternatively, a politician will decide the same thing while in office.

Eurozone math practically guarantees that outcome. For further discussion, please see Eurozone Math; One Size Fits Germany; Door Number Two.

Mike “Mish” Shedlock
www.globaleconomicanalysis.blogspot.com / link to original article