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Eloquently saying nothing

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  • The G20 statement managed to eloquently say nothing. It took twenty six paragraphs to say nothing. Growth is good (we know), currency wars do not exist (we know), and fiscal discipline is desirable in the long term (the Germans know, and presumably insisted on including).
  • Japan's Prime Minister Abe has been proclaiming all sorts of things about the yen and deflation. Deflation is a monetary phenomenon, he has learned (he has not learned, it would seem, that this can be caused by money demand as well as money supply issues).
  • Cyprus saw the first round of the presidential election give a plurality to the pro bailout opposition leader. The run off vote takes place this coming Sunday. Attention will focus on what the terms and conditions are for any bailout - with markets nervous about the precedent that they may set.
  • The UK Rightmove house price survey hit a five year high - possibly a consequence of funding for lending. We get the Bank of England minutes later this week. The Bundesbank gives us its monthly report today.

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