What will the Greek Government Look Like on Monday?

The capitulation of Greek Prime Minister Tsipras to the demands of the official creditors has split the Syriza coalition.  About a quarter of the party refused to make the apparent U-turn with the Prime Minister.  Those that were part of the cabinet have been replaced.  However, they retain their seats in parliament, and apparently obstructing the government's efforts. 

Featured Articles

Additional Thoughts on the FOMC Statement

The US dollar is broadly firmer in the wake of the FOMC statement, but there are some notable exceptions. The market appears reluctant to sell sterling ahead of next week's MPC meeting, where hawkish dissents are likely.  There will also be the immediate release of the minutes, and new macro-forecasts.  The Australian dollar is resilient in the face of a drop in building approvals nearly twice what the consensus expected (-8.2% vs -4.4%), and the continued fall in gold, copper, and Chinese stocks (Shanghai -2.2%).

Read more

Outside the Box Reforms for China's SOEs

SOEs contribute to 23.4 percent of industrial revenue and 21.6 percent of profits — a significant drop from more than 80 percent of both industrial revenue and profits at the start of the reform and opening up in the late 1970s. In 2014, 88 Chinese SOEs were included in Fortune Global 500, Fortune magazine’s annual list of the top 500 corporations worldwide by revenue.

Read more

Debt is the fatal disease of republics, the first thing and the mightiest to undermine governments and corrupt the people.
Wendell Philips
He who controls the money supply of a nation controls the nation.
James A. Garfield
The moment that government appears at market, the principles of the market will be subverted.
Edmund Burke