Yearly Archives: 2012
John Kenneth Galbraith on the Moral Justifications for Wealth and Inequality
Mark Ames (via Joe Costello) recommended a 1977 documentary series written and hosted by John Kenneth Galbraith. This segment, “The Manners and Morals of High Capitalism,” discusses how the rising bourgeoisie and the new rich justified their lofty status. Kings could rely on God and the Great Chain of Being for their authority, but what about mere capitalists? Galbraith reviews the views of some of the leading defenders of this new order, and shows how their ideas have influenced our views.
Galbraith makes quite a few deadpan observations.
Read more...Links 10/13/12
Timing and Phantom Data: A Second Look at the Controversial September Jobs Report
By Hugh, who is a long-time commenter at Naked Capitalism. Originally published at Corrente.
The BLS jobs report covering September sparked controversy because of the large three-tenths of a percent drop in the unemployment rate, down to 7.8%. This fall corresponded to a reduction of 456,000 in the number of unemployed. As dramatic as this decrease was, it was dwarfed by an increase of 873,000 in the number of employed. This figure represented not only the 456,000 unemployed who supposedly found jobs but a further 418,000 who entered into the labor force from outside it. These data were all from the Household survey were fundamentally at odds with an anemic increase in jobs of only 114,000 from the larger Establishment survey.
Read more...Spain’s Unfinished Transition from Dictatorship to Democracy
Yves here. I thought this piece might serve to stimulate a broader discussion about institutional structures not just in Spain but advanced economies generally. I’m interested in getting informed reader comments on the author’s reading of the role that the “politicians” play, that they have invaded institutions that were designed to sit largely outside politics.
Read more...Links 10/12/12
Walmart, the Most Powerful Company in the World, Admits that Protests and Strikes Lead to Wage Increases
Matt Stoller is a fellow at the Roosevelt Institute. You can follow him at http://www.twitter.com/matthewstoller
For the first time ever, a strike is taking place in America aimed at the most powerful company in the economy: Walmart.
The possible strike could be very significant, because the target of the strike is the most important driver of the race to the bottom economy
Read more...Former FDIC Chief Sheila Bair Calls Romney “Misinformed” on Dodd Frank
This American Banker interview with Sheila Bair has the Republican former regulator describing how Romney isn’t up to speed on Dodd Frank. Not to worry, she also gets a dig in at Geithner too.
Read more...Nobel Peace Prize Committee Sets New Standard as Political Contraindicator, Awards the European Union its 2012 Prize
When I was young, one of the cartoons I enjoyed was Rocky and Bullwinkle. An occasional character was Wrong Way Peachfuzz, who made enough of an impression on other children to merit an entry in Wikipedia:
Read more...An Overlooked Currency War in Europe
Yves here. One of the not-suffiently-discussed topics in the financial media is the tug of war over currency values, with the need to do post crisis damage control as the cover. For instance, after the initial round of QE, Brazil and India complained vociferously about the dual impact of a weaker dollar and higher commodity prices (yes, Virginia, some economists do think financial speculation can influence commodity prices) on their economies. If Europe contracts while growth in the US and China are also decelerating, it isn’t hard to imagine that the currency front will heat up even more.
This piece by Daniel Gros illustrates, surprisingly, that one currency manipulator has managed to operate under the radar so far.
Read more...Links 10/11/12
IMF Suddenly Decides It Might be OK to Loosen Austerity Tourniquets Now that Gangrene is Setting In
While deathbed conversions might earn you a spot in heaven in some religions, they don’t carry you very far here on Planet Earth.
Christine Lagrade has taken too small a step in the right direction far too late to do much good.
Read more...More JP Morgan Whitewash
Via e-mail, some updates from Michael Crimmins, a bank compliance expert and member of Occupy the SEC, on the continuing failure of the media to portray the real significance of the JP Morgan London Whale losses: that it revealed glaring deficiencies in internal controls that warrant prosecution of Jamie Dimon under Sarbanes Oxley.
Read more...Pimco’s El-Erian Warns of Central Bank Put Bubble
Earlier today, El-Erian in the Financial Times released a short and apt note on the limits of the central bank put.
Read more...Can We Get Australian PM Julia Gillard to Give Debate Lessons in America?
Reader YY forwarded a fiery speech by Julia Gilliard, the Australian Prime Minister, attacking opposition leader Tony Abbot for his hypocrisy in attacking a member of her party over sexist text messages.
I’m featuring what might seem to be a topic of narrow interest as an object lesson in political discourse and skill levels overseas versus in the US.
Read more...