The US Economy Can’t Take QE
Yves here. This post gives a good recap of where QE is and isn’t having an impact on the economy, and the “isn’t”s clearly prevail.
Read more...Category Archives: Economic fundamentals
Yanis Varoufakis: What Europeans Should Know About the Current Situation in Greece
Yves here. In an interview with Edward Geelhoed, Varoufakis gives an urgent, sobering picture of the conditions in Greece, which contrasts dramatically with the claims made by Eurozone politicians.
Read more...Satyajit Das: The End of Trust? Part II
Yves here. Das continues his discussion of the impact of the erosion of trust (see here for Part I). Here he focuses on the political impact on international dealings and national politics.
Read more...Mathew D. Rose: Is It Time to Pull the Plug on the EU?
“Success is relative” wrote T. S. Eliot in his play The Family Reunion, “It is what we can make of the mess we have made of things.” This is an apposite description of the current “success” in the EU. A financial and political disaster has been transformed into a permanent calamity.
Read more...Wolf Richter: Strung-Out Consumers, Desperate Retailers, Crummy Sales
During this festive time of the year, the whole world is intensely focused on American consumers, watching their every move under a digital microscope to parse if the universe is going to live or die. Retailers and the media joined forces to create hoopla and excitement and frenzy and the perception of once-in-a-lifetime deals. Stores opened on Thanksgiving, stayed open late at night, and opened early in the morning. And consumers dove right into this extravaganza.
Read more...Servaas Storm: Some Remarks on “Larry Summers, Secular Stagnation and the Crisis of the New Consensus Model”
It is truly ironic to see Lawrence Summers and Paul Krugman promote sustaining asset price inflation as the only viable option left to get away from secular stagnation.
Read more...The European Balanced Budget Disaster
In the immediate aftermath of the financial crisis, most European governments allowed the automatic stabilisers to kick in and implemented some mild discretionary measures, despite the strictures of the Stability and Growth Pact (SGP). But it was not long before the siren calls for “fiscal consolidation” arose…
Read more...Olivier Blanchard: Monetary Policy Will Never Be the Same
The global crisis changed the face of monetary policy. This column, written by the IMF’s chief economist, reviews the main changes. It draws on contributions to a recent IMF conference on the topic.
Read more...Michael Hoexter: Loathsome Wall Street Deficit Hysterics: ‘Blame the Old and Sick, Not Us’ – Part 2
While Pete Peterson and Bob Rubin have couched their campaign against Social Security and Medicare in the moral vestments of “fiscal responsibility”, they gloss over the macroeconomic financial reality of government and the requirement for deficit spending to maintain growth of the national and world economies. The moral fervor that they apply is inapplicable to government programs: while it may seem real to them or the gullible politicians they influence, the moral outrage they hope to play on is based on false and inhumane premises.
Read more...Identity Politics and the Stoking of Generational Warfare
I have to confess I find stereotyping annoying, and in almost all cases, it’s a poor substitute for more careful analysis and characterization. Yet it is marvelously effective in politics, as Karl Rove proved.
Read more...Mario Seccareccia: Larry Summers, Secular Stagnation, and the Crisis of the New Consensus Model
Over a week ago Lawrence Summers stunned the world of economics by the remarks he made at the IMF‘s 14th Annual Research Conference on the Economic Crisis, where he pronounced the dreaded “SS” words: “secular stagnation”.
Read more...Wolf Richter: French Megabank – “Germany Should Leave The Eurozone”
France’s government is struggling to stay relevant….and Groupe BPCE may have provided an answer by telling Germany to pay up or exit the Eurozone.
Read more...Yanis Varoufakis: The Emerald Isle Remains in Chains
A conversation with Phil Pilkington on Europe’s disgraceful triumphalism regarding Ireland’s ‘exit’ from its ‘bailout’
Read more...Ilargi: QE, The People And The Damage Done
A report issued by McKinsey Global Institute last week on the real world impact of QE warrants more scrutiny than it has gotten so far.
Read more...Krugman, Following Summers, Endorses Asset Bubbles
We have now passed the event horizon into a world run by Dr. Pangloss. In a Sunday afternoon post, Paul Krugman enthusiastically endorses an IMF presentation by Larry Summers which depicts asset bubbles as necessary and desirable. And that means they both agree they should not only continue, they should be encouraged.
Read more...