Wednesday, March 14, 2012

It's The Economy Stupid: Import Prices & GREECE

Import Prices & GREECE (because you just haven’t heard enough about Greece lately)

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

MBA Mortgage Applications

MAR 9

-

-2.40%

-1.20%

-

Import Price Index MoM

FEB

0.6%

0.4%

0.3%

0.0%

Import Price Index YoY

FEB

5.8%

5.5%

7.1%

6.9%

Current Account Balance

4Q

$-115.0B

$-124.1B

$-124.1B

$-107.6B

 

 

Greece.  Yes, Greece.  Gonna flog that whipping boy again.  Keep in mind that the defaults that occurred in South America in the ‘80s were littered with numerous countries that defaulted multiple times.  The European Commission, the European Central Bank and the International Monetary Fund estimate that Greece’s debt level could fall to around 117% of gross domestic product by 2020

 

Wait.  What?  Yep, you read correctly, by 2020.  2020, not 2012, not 2013, 2020.  Talk about voodoo economics.

 

In order to get there, this troika of economic soothsayers says the country will have to cut spending by another 5.5% of gross domestic product in the coming two years to meet all of their fiscal targets.

 

Never mind that their economy is in a shambles.  Over look that they are going to get more loans (DEBT). Greece is going to cut their budget, begin collecting all their taxes, lower unemployment (18%), create new jobs, and turn their economy on a dime!

 

I have more faith in the Mayan calendar.

 

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

 

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