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  • January 8, 2009 at 1:39 PM #14791
    SD Transplant
    Participant

    It’s been a while since I’ve seen such great Macro economic review in the press. I have been following the International Financial news latly, and this is a great summary of where we stand:

    http://www.ritholtz.com/blog/2009/01/report-from-paris/

    A few paragraphs that capture continous unrest for the big bone:

    “Russia, Ukraine, and the natural gas cutoff make it to the top of most lists. Putin is trying to unseat President Yushchenko and establish Russian influence over this pro-western country. This is consistent with Putin’s behavior regarding Russian expansionism. Readers are well advised to follow these events closely. The outcome will affect European economic policymaking.

    The natural gas cutoff is now impacting half the European Union member countries and reaching as far as Italy and France. The Ukrainians cannot pay what Russia demands, and their ability for energy substitution is quite limited. Either (1) the Russians have to relent and “back down” or (2) achieve political success in Ukraine and establish hegemony as they have in Georgia or (3) the EU members have to pay the bill and submit to this extortion. Stay tuned.”

    “Ranges of dollar-euro forecasts are as wide as I have ever seen in the ten-year history of the euro. I heard cases made for a dollar collapse, and a $2-dollar euro argued. Four hours later I heard the other side; he made a case for a $1.20 euro.”

    “The last point that struck me is how damaging the Madoff affair is to the image of the United States. Revelations like the failure of the Austrian Bank Medici are front-page stuff in Europe. Madoff’s tentacles reached far.”

    January 8, 2009 at 6:12 PM #326106
    patientrenter
    Participant

    I don’t understand why Europe and USA don’t just pay half the difference between what Russia is demanding and what Ukraine says it can pay.

    If Ukraine has to pay only half the increase, they should be able to afford some. And having to pay more than they want will incent them to become more energy-efficient. Right now, they are addicted to cheap energy. Over time, Europe and the USA can reduce the subsidy, and the Ukrainian economy will be forced to become more energy-efficient.

    January 8, 2009 at 6:12 PM #326619
    patientrenter
    Participant

    I don’t understand why Europe and USA don’t just pay half the difference between what Russia is demanding and what Ukraine says it can pay.

    If Ukraine has to pay only half the increase, they should be able to afford some. And having to pay more than they want will incent them to become more energy-efficient. Right now, they are addicted to cheap energy. Over time, Europe and the USA can reduce the subsidy, and the Ukrainian economy will be forced to become more energy-efficient.

    January 8, 2009 at 6:12 PM #326448
    patientrenter
    Participant

    I don’t understand why Europe and USA don’t just pay half the difference between what Russia is demanding and what Ukraine says it can pay.

    If Ukraine has to pay only half the increase, they should be able to afford some. And having to pay more than they want will incent them to become more energy-efficient. Right now, they are addicted to cheap energy. Over time, Europe and the USA can reduce the subsidy, and the Ukrainian economy will be forced to become more energy-efficient.

    January 8, 2009 at 6:12 PM #326516
    patientrenter
    Participant

    I don’t understand why Europe and USA don’t just pay half the difference between what Russia is demanding and what Ukraine says it can pay.

    If Ukraine has to pay only half the increase, they should be able to afford some. And having to pay more than they want will incent them to become more energy-efficient. Right now, they are addicted to cheap energy. Over time, Europe and the USA can reduce the subsidy, and the Ukrainian economy will be forced to become more energy-efficient.

    January 8, 2009 at 6:12 PM #326535
    patientrenter
    Participant

    I don’t understand why Europe and USA don’t just pay half the difference between what Russia is demanding and what Ukraine says it can pay.

    If Ukraine has to pay only half the increase, they should be able to afford some. And having to pay more than they want will incent them to become more energy-efficient. Right now, they are addicted to cheap energy. Over time, Europe and the USA can reduce the subsidy, and the Ukrainian economy will be forced to become more energy-efficient.

    January 8, 2009 at 7:50 PM #326126
    bsrsharma
    Participant

    I am not fond of Putin, but why did Ukraine forget that beggars can’t be choosers? If they can’t pay commercial rates other Europeans pay, isn’t it sensible for them to live on the good side of Russia.

    January 8, 2009 at 7:50 PM #326639
    bsrsharma
    Participant

    I am not fond of Putin, but why did Ukraine forget that beggars can’t be choosers? If they can’t pay commercial rates other Europeans pay, isn’t it sensible for them to live on the good side of Russia.

    January 8, 2009 at 7:50 PM #326468
    bsrsharma
    Participant

    I am not fond of Putin, but why did Ukraine forget that beggars can’t be choosers? If they can’t pay commercial rates other Europeans pay, isn’t it sensible for them to live on the good side of Russia.

    January 8, 2009 at 7:50 PM #326555
    bsrsharma
    Participant

    I am not fond of Putin, but why did Ukraine forget that beggars can’t be choosers? If they can’t pay commercial rates other Europeans pay, isn’t it sensible for them to live on the good side of Russia.

    January 8, 2009 at 7:50 PM #326536
    bsrsharma
    Participant

    I am not fond of Putin, but why did Ukraine forget that beggars can’t be choosers? If they can’t pay commercial rates other Europeans pay, isn’t it sensible for them to live on the good side of Russia.

    January 8, 2009 at 7:57 PM #326541
    bsrsharma
    Participant

    … USA don’t just pay half….

    I hope that was tongue in cheek! You realize US treasury is beyond bankrupt (-11T) to practice such generosity. Wait till treasury floats paper for 1.2T deficit this year and see what happens to $ and rates.

    January 8, 2009 at 7:57 PM #326644
    bsrsharma
    Participant

    … USA don’t just pay half….

    I hope that was tongue in cheek! You realize US treasury is beyond bankrupt (-11T) to practice such generosity. Wait till treasury floats paper for 1.2T deficit this year and see what happens to $ and rates.

    January 8, 2009 at 7:57 PM #326560
    bsrsharma
    Participant

    … USA don’t just pay half….

    I hope that was tongue in cheek! You realize US treasury is beyond bankrupt (-11T) to practice such generosity. Wait till treasury floats paper for 1.2T deficit this year and see what happens to $ and rates.

    January 8, 2009 at 7:57 PM #326473
    bsrsharma
    Participant

    … USA don’t just pay half….

    I hope that was tongue in cheek! You realize US treasury is beyond bankrupt (-11T) to practice such generosity. Wait till treasury floats paper for 1.2T deficit this year and see what happens to $ and rates.

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