Author: Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.

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Here are my most recent posts

Yanis Varoufakis on fiscal waterboarding and Ponzi austerity

Yanis Varoufakis had a long interview on RT’s Boom Bust yesterday going into detail behind his political candidacy and what he expects SYRIZA to do regarding the unsustainable debt burden that the Greek government now has. Overall, despite his problems with the eurozone’s institutional structure, Yanis believes Greece leaving the eurozone would be a catastrophe for the simple fact that it does not have a currency and any attempt to leave would be seen as a prelude to a massive devaluation, inviting capital flight on a grand scale. This would be a catastrophe for the Greek banking system and wider economy.

Consumption taxes, inflation and low wage growth in Japan lead to recession

Consumption taxes, inflation and low wage growth in Japan lead to recession

If wages in Japan are stagnant, how is increasing inflation going to help wage earners afford a better stream of good and services? It won’t. Ultimately, what we need to see are policies which maintain wages for median and lower-income wage earners with the greatest marginal propensity to spend. Without this, in a demographically challenged and indebted private sector, so-called secular stagnation is almost a certainty.

Central banks, inflation, currency wars and the Japanese experiment

Central banks, inflation, currency wars and the Japanese experiment

This is going to be a relatively short note focused on what is going on in Japan because of the news that Japan has ramped up its program of quantitative easing to new heights. Coming on the heels of the US Federal Reserve’s announcement that it would stop expanding its balance sheet with large scale asset purchases, the Bank of Japan’s announcement was music to the ears of Japanese equities investors. And shares in Japan promptly rose 4.8% on the news. The larger question, however, is whether QE is effective either at shaping future inflation or inflation expectations or at increasing nominal and real GDP. The evidence is equivocal. And so Japan presents a unique opportunity to see the limits of monetary policy tested.

Some brief thoughts on private debt, financial fragility and economic growth

Some brief thoughts on private debt, financial fragility and economic growth

This is an abbreviated post from our subscription series at Credit Writedowns Pro. I am very interested in the intersection of private debt, financial fragility and economic growth because I believe this intersection is pivotal in understanding whether the secular forces which led to the Great Financial Crisis have been arrested. I want to use Ireland as a jumping off […]

Links: 2014-08-04

Links: 2014-08-04

China dumps Symantec, Kaspersky Lab from approved vendors – CNET ekathimerini.com | Moody’s upgrades Greece by two notches China Services Index Drops to Six-Month Low on Property – Bloomberg We owe five times more than we did in 2008 – Independent.ie Enough Russian Roulette with Nuclear Fire | Ian Welsh BES seniors fly; sub capitulates | Capital City | IFRe […]

Links: 2014-08-01

Links: 2014-08-01

Puerto Rico Power Authority in Deal With Banks to Defer Loan Payments – WSJ Argentina accuses US of judicial malpractice for triggering needless default – Telegraph History Suggests China Is on Verge of Banking Crisis – China Real Time Report – WSJ China’s factories spring to life as global trade reawakens | Reuters Europe’s ‘sick man’ France dealt another blow […]

Links: 2014-07-31

Links: 2014-07-31

FYI: After the tech links, there is at least one link in this lot that I do not endorse but do think is required reading. Android crypto blunder exposes users to highly privileged malware | Ars Technica Tor received $1.8 million in US federal funds last year, while the NSA tried to crack it | The Verge Twitter’s Big Second […]

US GDP numbers and Russian sanctions scenarios

US GDP numbers and Russian sanctions scenarios

The bottom line here is that I have been and still am bullish on the cyclical prospects in the US, UK and Spain in particular. The US jobless claims numbers are unusually low and that tells you that slack in the labour market is declining. Moreover, we are likely to see inventory builds here, adding to more momentum. Nonetheless, I do have two caveats for the US.