“Sir, What could be more appropriate than rebranding euro bank notes with Europa* to improve security? The euro’s strength is a myth and its bosses’ attempted seduction is all bull.”
- Clark McGinn, Dublin 4, Ireland, in a letter to the Financial Times, 10.11.2012.
*Europa, in Greek mythology, after [...]
The unremitting deterioration of the eurozone’s sovereign debt landscape continues to fuel uncertainties about the longevity of the euro as a hard currency. Such uncertainties are not only leading to capital flight from the EMU’s periphery to the core and destabilizing markets worldwide, but they are also beginning to frighten southern European savers into seeking refuge [...]
Greece was able to float enough new debt to pay its old debt and avoid default. What a charade. They got the money from the bailout fund and used it to pay back the bailout fund:
The auction, which attracted more than €4.2 billion in bids, was more show than substance, mainly reflecting Greek banks’ [...]
Mario Draghi today promised to do whatever it takes to fix the euro. ”Believe me, it will be enough.” I don’t know why anyone would believe him, but that is not the point of this article.
There is a Monetarist premise that is accepted almost universally today: the value of a unit of currency is [...]
Spain’s banking reform: a bailout of the status quo
If a couple of months ago we warned about the eerie similarities between Mexico’s 1994 financial fiasco and what is now taking place in Spain, the latest details on the Spanish financial sector bailout continue to remind us not to underestimate politicians’ readiness to undermine whatever is [...]
The debate on how to deal with false or misguiding campaign speech is neither new nor likely to be resolved soon, but as Europe’s economic crisis continues to deepen, and as social and political tensions rise, elemental questions of democracy once limited to seemingly distant European Union institutions are now spilling over to national governments.
In the [...]
“Bold, new”, but ineffective, moves by central banks today signals the fragile nature of the state of the worlds’ economies. They cut rates again in order to stimulate growth. Push interest rates low enough, they believe, and prosperity will follow. Unfortunately, they have misunderstood the nature of this economic crisis and are doing the opposite [...]
Krugman-in-Wonderland Paul Krugman is in Spain this week, most likely telling the Spaniards what they want to hear: The European Central Bank can end the country’s unemployment miseries painlessly by buying near-unlimited amounts of Spain’s government bonds and then floating massive amounts of new euros around the world. Yes, for the umpteenth time, Krugman insists that if [...]
“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create [...]