Tag Archives: European Union

Good News Coming On The Deficit. Well, Sort Of.

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Syriza party leader Alexis Tsipras hopes to prevail in today's Greek elections, which could mark a turning point in his nation's struggle against a crushing load of debt. Meanwhile, U.S. government deficits are improving. Sort of.

Syriza par­ty leader Alex­is Tsipras hopes to pre­vail in today’s Greek elec­tions, which could pro­voke a show­down between Euro­pean lead­ers and Greece, which strug­gles under a crush­ing load of debt. Mean­while, U.S. gov­ern­ment deficits are improv­ing. Sort of. [Cred­it: BBC]

On Tues­day morn­ing, the Con­gres­sion­al Bud­get Office will announce that the fed­er­al deficit con­tin­ued to decline last year.

The announce­ment will trig­ger an orgy of self-con­grat­u­la­tion in Wash­ing­ton.  The Admin­is­tra­tion will claim that its poli­cies have been vin­di­cat­ed.  Repub­li­cans also will take a bow, tout­ing spend­ing con­straints they’ve imposed since win­ning the House majority.

But you’ll hear noth­ing from the Wash­ing­to­ni­ans who most deserve cred­it for reduced deficits: the Fed­er­al Reserve Board of Gov­er­nors.  By hold­ing inter­est rates near zero and lend­ing tril­lions in free mon­ey to the Trea­sury, the Fed has allowed the gov­ern­ment to reduce deficits even as it gorged on debt. Con­tin­ue read­ing →

On Ukraine, President Obama Should Heed Merkel

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Russia has seized control of Crimea, the southernmost portion of Ukraine. Resolving the crisis peacefully requires adult leadership. [Credit: Washington Post]

Rus­sia has seized con­trol of Crimea, the south­ern­most por­tion of Ukraine. Resolv­ing the cri­sis peace­ful­ly requires adult lead­er­ship. [Cred­it: Wash­ing­ton Post]

In deal­ing with the Russ­ian incur­sion into Ukraine, Pres­i­dent Oba­ma will hear no bet­ter advice than this: lis­ten to Angela Merkel.

A week ago, it appeared that Ukraine would prove an embar­rass­ment for Russ­ian Pres­i­dent Vladimir Putin. Demon­stra­tors in Kiev demand­ed the res­ig­na­tion of the country’s Russ­ian-backed Pres­i­dent, Vik­tor Yanukovych, reject­ing a ten­ta­tive set­tle­ment with protest lead­ers that would have allowed him to retain pow­er tem­porar­i­ly. Yanukovych fled to Rus­sia and a tran­si­tion gov­ern­ment was formed in Kiev, which prompt­ly charged him with mass mur­der. 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 →

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 →

Cyprus: Euro Saved! But things are not so good for Cypriots who saved euros

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CyprusDid you cash a check today?  Or with­draw mon­ey from your sav­ings account?  Or use your deb­it card to buy a sand­wich?  If so, many Cypri­ots wish they were you. Con­tin­ue read­ing →