A very interesting video by an Irish economist explaining how the current reduce government spending ("austerity") approach to the Eurozone debt and currency crisis is doomed to fail. It is doomed because cutting government spending in a recession only makes the recession worse, which in turn, reduces tax collections which then makes the government deficits … Continue reading David McWilliams Explains Why Austerity Is Doomed In Europe
One area I haven't commented on much is the ongoing European "debt crisis". The Greek debt crisis is a part of it, but it's only the tip of the iceberg. The roots are much deeper. One reason I haven't commented is because it's fairly complex and requires a lot of background explanation which I haven't … Continue reading Warning: More Bank Bailouts Possible
It's now Monday morning, Aug 8. It's been roughly 60 hours since S&P downgraded the rating on U.S. government bonds. In that 60 hours the media, particularly TV talking head channels, have been breathlessly awaiting what they felt was a certain market panic on Monday. Clearly interest rates would go up they said. They were … Continue reading The Market Shrugs Off Rating Downgrade, Market Is Worried About Real Economy.
Poor Ireland. For some unknown reason, the Irish seem doomed to suffer under the misguided rule of others, despite being the source of great music, culture and a brew so good For centuries, the oppressor was the English. In this century Ireland has fallen under the boot of the bankers and The Powers … Continue reading Ireland: “Responsible” Policy Punishes Citizens for Bankers’ Sins
European leaders (read banker-types) insist on austerity (read lower real wages and services for middle and lower classes) in the midst of 10% and rising unemployment. Dangerous mix. The one good sign is that the ECB is actually buying govt bonds, including Greek bonds, despite it's public hard-line position. From Calculated Risk: Europe Update: Strikes … Continue reading Europe Update: Strikes in Spain, UK Austerity, ECB Bond Purchases
The Baseline Scenario concludes with a warning that Goldman must be dealth with: And the US government, at the highest levels, has to ask a fundamental question: For how long does it wish to be intimately associated with Goldman Sachs and this kind of destabilizing action? What is the priority here - a sustainable recovery and … Continue reading Why do we always find Goldman, Sachs where there’s trouble?