Category Archives: Global Economy

Trump Is (Sort Of) Right About Yellen

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Donald Trump this week said that Federal Reserve Board Chairman Janet Yellen won't raise rates because President Obama told her not to. Why he's (sort of) right. [Credit: CNBC]

Don­ald Trump this week said that Fed­er­al Reserve Board Chair­man Janet Yellen won’t raise rates because Pres­i­dent Oba­ma told her not to. Why he’s (sort of) right. [Cred­it: CNBC]

The media just can’t keep up with The Donald.

Cor­po­rate news-gath­er­ing out­lets do their best to repeat and ampli­fy his every off­beat utter­ance.  His accu­sa­tion that Mar­co Rubio is a “dis­as­ter with his cred­it cards” has rip­pled through the press and forced Rubio to respond.  Dit­to for Trump’s mock­ery of Jeb’s ener­gy, Carson’s reli­gion, Carly’s face, Kasich’s poll num­bers, Hillary’s mar­i­tal rela­tions  (“If Hillary Clin­ton can’t sat­is­fy her hus­band what makes her think she can sat­is­fy Amer­i­ca?”), Bernie’s men­tal health and the men­stru­al cycles of debate moderators.

But as they were buzzing about his sched­uled appear­ance on Sat­ur­day Night Live, the media large­ly over­looked what was per­haps Trump’s most hereti­cal accu­sa­tion of all. Con­tin­ue read­ing →

On Wind And Eagles

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Citing potential damage to protected species, a federal judge recently put a crimp in the Administration's forced march toward wind energy. [Credit: Daily Mail]

Cit­ing poten­tial dam­age to pro­tect­ed species, a fed­er­al judge recent­ly put a crimp in the Admin­is­tra­tion’s forced march toward wind ener­gy. [Cred­it: Dai­ly Mail]

Two strains of envi­ron­men­tal­ism col­lid­ed in a fed­er­al court­room this month, pit­ting pro­tec­tors of bald and gold­en eagles against advo­cates of the Oba­ma Administration’s forced march toward wind power.

The eagles won.

Con­tin­ue read­ing →

Can Greece Slip The Austerity Trap?

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Greek Prime Minister paid tribute to Greek patriots executed by Nazis during WWII. His message to the Germans was clear: we bailed you out, now it's our turn. [Credit: The Guardian]

Greek Prime Min­is­ter paid trib­ute to Greek patri­ots exe­cut­ed by Nazis dur­ing WWII. His mes­sage to the Ger­mans was clear: we bailed you out, now it’s our turn. [Cred­it: The Guardian]

Short­ly after his elec­tion last Sun­day as Greece’s Prime Min­is­ter, Alex­is Tsipras chose not lay a wreath on the Tomb of the Unknown Sol­dier in Athens’ Syn­tag­ma Square.  Instead, he went to a war memo­r­i­al in the Athens sub­urb of Kessar­i­ani where Nazi sol­diers exe­cut­ed hun­dreds of Greek Resis­tance fight­ers dur­ing the bru­tal Ger­man occupation.

Tsipras’s mes­sage was not lost on Angela Merkel and oth­er Euro­pean lead­ers: the world for­gave most of Ger­many’s debt; now it’s Greece’s turn. Con­tin­ue read­ing →

Tsunami And The Triumph Of Hope

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Ten years after a tsunami ravaged villages like this on the Indian Ocean Coast, towns have been rebuilt, lives repaired. [Credit: endignorance.org]

Ten years after a tsuna­mi rav­aged vil­lages like this that line the Indi­an Ocean coast­line, towns have been rebuilt, lives repaired. [Cred­it: endignorance.org]

A decade has passed since a tsuna­mi dev­as­tat­ed vil­lages in 13 Asian coun­tries, which remind­ed me that some­where I have a plas­tic sand­wich bag filled with rupees.

The rupees are among the memen­toes of a woman I cher­ished.  She went to Kudanku­lam, a fish­ing vil­lage on the south­ern tip of the Indi­an sub­con­ti­nent, ten years ago to pro­vide med­ical care to the tsunami’s sur­vivors. Con­tin­ue read­ing →

The Black Year Of Italian Olive Oil

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The black year of Italian olive struck those who farm these verdant Umbrian slopes, a metaphor for the challenges facing Italy's variegated traditions. [Credit: italianfoto.com]

The black year of Ital­ian olive struck those who farm these ver­dant Umbri­an slopes, a metaphor for the chal­lenges fac­ing Italy’s var­ie­gat­ed tra­di­tions. [Cred­it: italianfoto.com]

Months before the har­vest, Enri­co sus­pect­ed the worst.  His grove of 700 olive trees had been sub­ject­ed to an unusu­al­ly cool and wet August, ide­al breed­ing con­di­tions for the Bac­tro­cera oleae, a fly that deposits its eggs beneath the skin of olives.  The late Octo­ber har­vest con­firmed his fears: the flies had laid waste to his crop.

Enri­co didn’t press any olive oil this sea­son.  He wasn’t alone.  Pro­duc­tion in Enrico’s region of Umbria is off 45 per­cent, slight­ly worse than the nation­wide 35 per­cent decline. La Repub­bli­ca has dubbed 2014 “the black year of Ital­ian olive oil.”  In a coun­try where each inhab­i­tant annu­al­ly con­sumes an aver­age of more than 26 pounds of the gold­en nec­tar, it is a seis­mic cul­tur­al event, one more reminder of the exis­ten­tial threats con­fronting Ital­ian tra­di­tions. Con­tin­ue read­ing →

The Fed On The Road To Nowhere

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Economic policymakers may have us, as the Talking Heads put it in their 1985 hit, on the road to nowhere. [Credit: qednet.biz]

Eco­nom­ic pol­i­cy­mak­ers may have us, as the Talk­ing Heads put it in their 1985 hit, on the road to nowhere. [Cred­it: qednet.biz]

For­mer Fed­er­al Reserve Chair­man Ben Bernanke has been called the man who saved the world.  His extra­or­di­nary inter­ven­tions in the fall of 2008 have almost uni­ver­sal­ly been rec­og­nized as hav­ing pre­vent­ed a sec­ond Great Depression.

But a new study by the Swiss-based Bank for Inter­na­tion­al Set­tle­ments (BIS) sug­gests that Bernanke saved the world from a cri­sis that was at least part­ly of his own mak­ing.  Worse, it argues that the course he set and that his suc­ces­sor Janet Yellen and oth­er cen­tral banks are fol­low­ing will pro­duce anoth­er and per­haps graver crisis.

Gov­ern­ment mon­e­tary and fis­cal pol­i­cy­mak­ers have lost their way, the BIS argues.  So bad­ly that they don’t just need a new direc­tion.  They need a new compass.

Con­tin­ue read­ing →

Why Europe Hasn’t Joined Our Ukraine Crusade

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It typically costs $100 to fill a 12-gallon tank in Italy today. The country imports much of its oil from Russia. Which is why its government is reluctant to sign on to President Obama's anti-Putin campaign. [Credit: NWA online]

It typ­i­cal­ly costs $100 to fill a 12-gal­lon tank in Italy today. The coun­try imports much of its oil from Rus­sia. Which is why its gov­ern­ment is reluc­tant to sign on to Pres­i­dent Oba­ma’s anti-Putin cam­paign. [Cred­it: NWA online]

A gal­lon of unlead­ed gas costs near­ly $9 here in Todi, a tran­quil Ital­ian town whose roots stretch back mil­len­nia to pre-Etr­uscan times.  Diesel is a bit cheap­er at $8.50 per gal­lon, mean­ing that it costs $100 to fill a 12-gal­lon tank.

Which may help explain why Pres­i­dent Obama’s cru­sade to impose sys­tem­at­ic eco­nom­ic sanc­tions on Rus­sia has so far fiz­zled.  Euro­peans are unwill­ing to pay the costs that dis­rup­tions in trade with Rus­sia would impose on them.

One can hard­ly blame them. Con­tin­ue read­ing →

Could A Wealth Tax Solve the Problem of Government Debt?

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A recent IMF report suggests that this man's enormous wealth might help resolve the government's debt problem. [Credit: NY Post]

A recent IMF report sug­gests that this man’s enor­mous wealth might help resolve the gov­ern­men­t’s debt prob­lem. [Cred­it: NY Post]

The Inter­na­tion­al Mon­e­tary Fund (IMF) recent­ly report­ed that Euro­pean gov­ern­ments could reduce their debt back to pre-Great Reces­sion lev­els by con­fis­cat­ing 10 per­cent of the wealth held by their rich­est cit­i­zens. IMF isn’t rec­om­mend­ing that, of course.

They’re just sayin’. Con­tin­ue read­ing →

Economic Inequality Not Obama’s Fault

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The "Occupy Wall Street" demonstrations are a distant memory, but the economic disparities they decried still persist. [Credit: ABC News]

The “Occu­py Wall Street” demon­stra­tions are a dis­tant mem­o­ry, but the eco­nom­ic dis­par­i­ties they decried still per­sist. [Cred­it: ABC News]

Pres­i­dent Oba­ma has a new plan to revi­tal­ize the mid­dle class.  It almost cer­tain­ly won’t work, but that almost cer­tain­ly isn’t his fault.  Con­tin­ue read­ing →

How’s That Cyprus “Bail-In” Working Out?

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The Cyprus "bail-in" is no more popular today than when it was hatched last spring. [Credit: CNNMoney.com]

The Cyprus “bail-in” is no more pop­u­lar today than when it was hatched last spring. [Cred­it: CNNMoney.com]

You may remem­ber Cyprus, the Mediter­ranean island that grabbed inter­na­tion­al head­lines last March when its gov­ern­ment was com­pelled by Euro­pean author­i­ties to seize mon­ey that indi­vid­u­als and busi­ness­es had deposit­ed in the country’s two largest banks.

The “bail-in” of Cypri­ot banks, so called because it requires peo­ple who have deposit­ed their mon­ey in fail­ing banks to help save those banks by for­feit­ing some of their deposits, is a por­tent of bank res­cues to come.  Con­tin­ue read­ing →