Tag Archive: labour costs

What Drives Government Bond Yields?

Private, Financial, Government Bond Debt
For us the five major drivers of government bond yields are: Inflation expectations and inflation: The by far most important criterion. High inflation expectations must be compensated via higher bond yields. The main driver behind inflation expectations is the wage development, this is the form of inflation that typically persists. Price inflation follows inflation expectations with a certain lag. Wealth: The higher the wealth of a country, the...

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Labor Costs to Total Expenses, Global Comparison

social insurance labor taxes of total manufacturing, uk, switzerland, norway, japan, australia, netherlands, us, austria, spain, italy, france, sweden, brazil
The conflict between labor and capital is a long and illustrious one, and one in which ideology and politics have played a far greater role than simple economics and math.

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Who Says No to Austerity and Global Imbalances, Must Say Yes to the Northern Euro

Eventually the euro will be abolished, a Northern Euro introduced: politicians and their economic advisors might just be waiting for a calm moment, especially with upcoming German inflation.

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The Fairy Tale of Rising Competitiveness in the European Periphery

2012-12-17

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2012-12-17

Euro zone Labor Costs Q3 2012
In our post we look on two questions concerning competitiveness for the European periphery: When will local production be cheaper than imported products? Do people have the money to buy these local products? It does not help reducing labor costs if local production costs still more than imported products. The second aspect is: even if …

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4 Different Solutions for the Euro Crisis: Can it Be the Northern Euro? A Discussion

2012-12-15

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2012-12-15

euro pièce Atlantico Northern Euro
The discussion about the future of the Euro: Among a Post-Keynesian, a European Etatist, an Austrian economist and an advocate of a Northern Euro on the French website www.atlantico.fr. The French paper is asking: “Sommet européen : créer un euro du Nord est-il le seul moyen de sauver l’Europe de l’austérité ?” Is the creation of …

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Euro Morons: Hyperinflation Successfully Avoided, Stagflation Successfully Created

2012-12-01

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2012-12-01

Stagflation
Keeping Greece in euro zone, eurocrats or better “euro morons” have successfully avoided a weak drachma and a following Greek hyperinflation. Instead they successfully created stagflation. Currently European HICP inflation is at 2.5%, far above the max. 2.0% official ECB mandate, but the euro is becoming weaker and weaker. German salaries are rising with 2.6% …

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The Eurozone crisis between euro-morons and zombie-bankers

Meuron Zombie Rybinski


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All roads lead to a euro zone break-up

2012-08-10

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2012-08-10

2 solutions for euro zone will work acceptable for Germany
For us all roads lead to a euro zone break-up and multiple sovereign defaults.   Our reasoning can be summarized as follows: Equities are worthless when associated debt becomes encumbered (risk capital takes the  first loss). Equity is not an asset; it is merely the remainder that is left over once debt is subtracted from …

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