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Bank of England Governor Mervyn King gestures during a speech

Inflation worries handcuff Central Bankers

With flagging economies and worries about austerity measures further crimping growth, about the last thing central bankers from the U.K. and Europe need to consider is combating inflation. But that is exactly what is being heaped upon decision-makers at the moment.
Portugal's Prime Minister Jose Socrates gestures during a meeting with China's President Hu Jintao at Necessidades Palace

Is default Portugal’s Manifest Destiny?

The daisy chain of events manifesting from the European fiscal crisis that initially consumed Greece then Ireland in its wake has skipped into Portugal. This is not being greeted by market participants as much of a surprise since this development had been foreshadowed for months. Portuguese bond yields had risen above 7%, roughly 4% higher than the benchmark 10-year German bund. This is the inglorious territory of Greek and Irish bond yields just as they were teetering on fiscal insolvency. ...
One Euro coins

What's next for the Euro?

Trading in currencies is basically a zero sum game. Rather than a stock or bond that can increase or decrease in value in absolute terms, and might move directionally the opposite of the equity or fixed income markets, currencies are all about relative movement. So in handicapping what might be the fate of the Euro currency in 2011, the question one has to ask is "In relation to what?"
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