Yves here. We ran an earlier post by Ashoda Mody, he argued that Eurozone was failing in resolving its recurring crises successfully. That is a coded way of saying that the odds of breakup are rising. Needless to say, that view elicited a lot of commentary from his readers. Mody addresses their reactions and objection below.
Read more...This video is a great, accessible discussion by Michael Hudson on the Real News Network about how the widely-touted EU deal with the Ukraine is actually an exercise in looting by kleptocrats. Hudson explains that unlike earlier pacts, the EU is making no investment in Ukraine, nor is it allowing Ukraine, which has an agricultural producing region, to have the benefits of the CAP that French farmers enjoy. Hudson point out that the supposed benefit of Ukraine having access to the EU for exports is a smokescreen, since Ukraine is going to lose its main export market, Russia, and the Europeans don’t want to buy Ukraine’s products. Hudson contends that this deal is a de facto takeover, with kleptocrats to be installed in key governmental positions. He anticipates that the result will be mass unemployment and unrest.
Read more...If you thought tax havens were limited to tax haven destinations like Switzerland and the Caymans and the Isle of Man, think again. European governments happily accommodate tax schemes that allow the wealthy to shift funds into super low tax vehicles. Yet at the very same time, ordinary citizens are being broken on the rack of austerity.
Read more...Yves here. This post is an understated version of a reading that a well-connected colleague gave me after spending three weeks in Europe: that the Eurozone is headed towards breakup.
Read more...The New York Times has provided us with an invaluable column about the interactions of the EU’s rightist and ultra-rightest parties. It is invaluable because it is (unintentionally) so revealing about the EU’s right and ultra-right parties and the NYT’s inability to understand either the EU economic or political crises. The NYT article illustrates its points by presenting a tale entitled “A German Voice, Hans-Olaf Henkel, Calls for Euro’s Abolition.” It treats Henkel, an open racist and austerian, as a reputable figure, apparently because he is wealthy.
Read more...Europe’s “recovery” looks more like a mirage than the real thing.
Read more...the Russian move to stop supplying gas to the Ukraine unless it pays upfront is an important, if expected, development, But how is this standoff likely to play out?
Read more...Deflation proves that austerity policies are failing, but the media is doing a remarkable job of keeping readers confused and ignorant.
Read more...Despite the alarming results of the European elections last week, Angela Merkel remained unflinching. That is a cause for concern. European politicians believe the solution to voter ire is better messaging, as opposed to a change in policy.
Read more...Spain’s conservative government, eager to change the media’s emphasis on its repudiation in recent EU elections, has launched a media campaign stressing its adoption of an aggressive “stimulus” program. But once you get past the hype, this new program is the same old failed austerity snake oil.
Read more...The US press and newscasts make it appear that Europeans have voted against poor immigrants and foreigners. What they voted against was the super-rich, the oligarchy.
Read more...The West needs to curb its enthusiasm over the recent elections in the Ukraine. Gazprom is tightening the energy screws next week.
Read more...The sorry tale of the supposedly restored Spanish zombie bank Catalunya Caixa.
Read more...How supranational and pan-European institutions, along with US meddling, have vitiated democracy in Europe.
Read more...Russia and China, along with other developing economies, are exploring ways to create an Eurasian alliance to go toe-to-toe with the US economic hegemony.
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