Friday, September 30, 2016

Christopher Colford — Toward a more durable form of globalization, beyond 'neoliberal' negligence


The World Bank approvingly notices "disruptive theory" in macroeconomics.

The World Bank
Toward a more durable form of globalization, beyond 'neoliberal' negligence
Christopher Colford | Communications Officer at The World Bank, in its Financial and Private Sector Development Network

Thursday, September 29, 2016

Radical Remaking of Economics, and What it Means — David Sloan Wilson interviews Eric Beinhocker

This year marks the 10th anniversary of Eric Beinhocker’s influential book The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. Like an earthquake tremor, Beinhocker’s book rattled the windows of the economic establishment by proposing a new foundation for the discipline that was paradigmatically different than its current foundation inspired by Newtonian physics.
Evonomics
Radical Remaking of Economics, and What it Means
David Sloan Wilson interviews Eric Beinhocker

Enrico Grazzini — Why Issuing Fiscal Money Could Help Exit The Italian (And Eurozone) Crisis


Along the lines that Warren Mosler proposed some time ago.

Social Europe Journal
Why Issuing Fiscal Money Could Help Exit The Italian (And Eurozone) Crisis
Enrico Grazzini

Alexander Mercouris — Joint Investigation Team on MH-17: Why the case is still open


Alexander Mercouris smells bullshit.

The Duran
Joint Investigation Team on MH-17: Why the case is still open

Sputnik — Nuclear Poker: Why the US Can't Trick Russia Into Changing Its Nuclear Doctrine


Interesting look at US and Russian military policy.

Accordingly, Alexandrov suggested that US lawmakers' proposal is based on the understanding that a nuclear war is unwinnable, and to try to trick Russia into abandoning its established doctrine.
"In essence, the US is repeating the technique of Leonid Brezhnev's Soviet Union, which unilaterally renounced the first use of nuclear weapons. This was done because at the time, the USSR had a significant superiority in conventional forces over NATO. As a result, the use of nuclear weapons was judged to be disadvantageous, since all of Western Europe could be captured without their use. In that situation, it's worth noting, NATO banked on the use of tactical nuclear weapons, which became a deterrent against possible Soviet attack."
Today, Alexandrov noted, the situation has been flipped on its head. Russia can no longer resist the combined might of NATO in a long war using only conventional weaponry. 
"Therefore, since the 1990s, our doctrine provides for the possibility of using nuclear weapons first in case of a serious threat to Russia's national security." "Thus, the Democrats' initiative is aimed at achieving strategic superiority over Russia, and possibly China," the analyst suggested. "Of course, Moscow should not give in to this kind of demagogy. Russia must continue to retain the right to use tactical nuclear weapons first," he emphasized.
Ultimately, Alexandrov noted, Russia has already taken the necessary measures to move to a new generation of nuclear weaponry, from the Iskander tactical missile complex and the Kh-101 strategic cruise missile, which has a range of 5,000 km, to new ballistic missiles capable of overcoming US missile defenses. "All of this has forced the US to maneuver in this way, and to try to outplay Russia in the nuclear field," the analyst concluded.

Graham E. Fuller — Democracy, the “Great Debates,” and China


Graham Fuller talks some sense.

Now let’s look at the other end of the spectrum. It’s interesting that China today is actually quietly touting to the rest of the world its own evolving system. Of course we recoil from the terrible catastrophes of Chinese regimes over most of the past century. But we shouldn’t lose sight of the fact that China has been concerned with principles of good governance going back some three thousand years, including Confucian principles of the responsibility of “cultivated” or educated people to govern wisely; that was probably as good as it got in that era. More important, the state bureaucracy was selected through massive nation-wide examination systems to choose the most qualified. The system had its good periods and bad, almost on a 300 year cyclical basis—breakdown and restoration.
Today China is creeping back again, this time from the disasters of Chairman Mao towards a semblance of order and rationality in governance. It has implemented a series of often unusually effective policies that are slowly bringing an ever rising percent of the rural and urban poor into the middle class and a slightly freer life.

Now, I don’t want to live in China particularly. But consider the daunting challenges of running this country: one that was left behind in the last century or so, invaded by English and Japanese imperialists, massively misruled under fanatic communists (not all were fanatic) for fifty years, and now presides over a population approaching 1.4 billion people. China’s leaders operate on the razor’s edge: meeting pent-up demand after decades of deprivation, managing the transition of millions of peasants who want to come to the cities, feeding and housing everyone, maintaining industrial production while trying to reverse the terrible environmental damage wrought in earlier decades, to maintain stability, law and order while managing discontent that could turn violent, and to maintain the present ruling party in power to which there is no reasonable alternative as yet. That’s quite a high-wire act.
So if you were running China today, what would you advocate as the best policies and system to adopt? Chances are few of us would simply urge huge new infusions of democracy and rampant capitalism. The delicate balance of this frail recovering system needs to be guided with care. But it is basically working—as opposed to looming alternatives of chaos and poverty.

China today suggests to developing countries that China’s own model of controlled cautious light authoritarian leadership—where leaders are groomed over decades up through the ranks of the party— may be a more reliable system than, say, the bread and circuses of the US. That’s their view.
No one system has all the answers. But it’s worth observing that by now the US probably lies at one extreme of a political spectrum of bread-and-circus “democracy.” Can the system be reformed? Ever more serious questions arise about the present system’s ability to meet the challenge of this century—along multiple lines of measurements.
And, as world gets more complex, there is less room for radical individualism, whistle blowing, and dissent. Vital and complex infrastructural networks grow ever more vulnerable that can bring a state down. The state moves to protect itself. The strengthening of the state against the individual has already shifted heavily since the Global War on Terror and even more so under Obama.
I’m not suggesting that China is the model to be emulated. But we better note how it represents one rational vision of functioning governance of the future—under difficult circumstances—at one end of the spectrum. The US lies at the other. Is there anything that might lie somewhere between these two highly diverse systems of governance?

Just sayin’.
In the spirit of disclosure, this is a view that I have espoused previously so I am biased in its favor. I am happy to see someone "on the other side of the fence" putting it forward for consideration in the policy establishment.

Democracy, the “Great Debates,” and China
Graham E. Fuller, former senior CIA official

Eduard Popov — Shooting itself in the foot: US legalizes lethal weapon deliveries to Ukraine


Things you should know.
Last week, the US Congress approved the Stability and Democracy for Ukraine Act, or “STAND for Ukraine.” As the Ukrainian Embassy in the US has reported, American congressmen unanimously supported the bill.

The bill’s list of means for supporting democracy in Ukraine includes the supply of lethal defensive weapons systems. The legislation will come into force following a vote in the Senate and its signing by the US President. From that point on, Washington will be able to officially supply lethal weapons to Ukraine.
Fort Russ
Shooting itself in the foot: US legalizes lethal weapon deliveries to Ukraine
Eduard Popov for Fort Russ - translated by J. Arnoldski

Also

Ukrainian shelling disrupts ceasefire, "disappoints" OSCE

Simon Wren-Lewis — Why was austerity once so popular?


A pretty good one. It argues indirectly for the need to educate voters that the currency issuer is the mirror image of the currency users, so their accounting statements are complementary rather than similar. Government deficits are non-government income and government debt is non-government net financial wealth in aggregate.

Mainly Macro
Why was austerity once so popular?
Simon Wren-Lewis | Professor of Economics, Oxford University

Greg Mankiew — Trumponomics


Greg Mankiw betrays his astonishing ignorance of monetary economics and the institutional structure of international finance. He thinks that the capital markets set US interest rates and determine the yield curve, so a shrinking trade deficit would reduce buyers of US Treasuries, driving up interest rates across the yield curve.
Their analysis of trade deficits, starting on page 18, boils down to the following: We know that GDP=C+I+G+NX. NX is negative (the trade deficit). Therefore, if we somehow renegotiate trade deals and make NX rise to zero, GDP goes up! They calculate this will bring in $1.74 trillion in tax revenue over a decade.
But of course you can't model an economy just using the national income accounts identity. Even a freshman at the end of ec 10 knows that trade deficits go hand in hand with capital inflows. So an end to the trade deficit means an end to the capital inflow, which would affect interest rates, which in turn influence consumption and investment.
As Professor Mankiw observes, this is a freshman error, and is he the one making it! Apparently he cannot distinguish between a model with simplifying assumptions and the real world. The good professor is describing a the world as he would like it to be, not the way it actually is at present.

The Fed sets the interest rate and the yield curve is a projection of the interest and expectations about future Fed rate policy. There is never a lack of USD existing as settlement balances to purchase Treasury securities because the amount of Treasury securities offered is equal to the reserves injected into the settlement system by government spending. Treasury security issuance simply serves to drain the excess reserves created by government spending from the settlement system as reserve accounts at the Fed into Treasuries, which are transferable time deposits held at the Fed.*

Furthermore, the Fed has the capacity to manage the amount of settlement balances in the settlement system so that all transactions clear. When the Fed is not paying IOR and doesn't choose to set the rate to zero, then it sets its target and lets quantity float, by using open market operations, for example.

There is nothing wrong with Professor Mankiw's model as an economic model. However, it is not representational model of way the real world works. While it might have relevance as a teaching gadget, students would be given the wrong idea if they were lead to conclude that the world works like that.

Greg Mankiw's Blog
Trumponomics
Greg Mankiw | Robert M. Beren Professor of Economics at Harvard University

* L. Randall Wray, Modern Money Theory: The Basics, at New Economic Perspectives


Robert Parry — The Official and Implausible MH-17 Scenario


As far as I can see, there is no entirely plausible scenario on the table this far. There is also no scenario that has a plausible account of both motive and execution of a plan. However, the situation is complicated by several factors. All the evidence available has not been revealed publicly for examination and likely will not "for security reasons." Secondly, the investigation was compromised by a party to events with a stake in the outcome of the investigation being included as a member of the investigative body.

Robert Parry suggests why the recent report is more disinformation in the ongoing information war. There are more reasons that Parry lists.

Consortium News
The Official and Implausible MH-17 Scenario
Robert Parry

Michael Brenner — US Foreign Policy Elite vs. the Evil One

There are four guiding principles:
—It is legitimate, even imperative, for the threatened democratic world, led by Washington, to use its power to forestall assaults on them.
–Traditional concepts of state sovereignty do not constitute an acceptable legal or political barrier to efforts at imposing that solution.
–The United States, therefore, is not a “global Leviathan” that advances its selfish interests at the expense of others. It is, rather, the benign producer of public goods.
–The privilege of partial exception from the international norms, including the right to act unilaterally, is earned by an historical record of selfless performance.
Consortium News
US Foreign Policy Elite vs. the Evil One
Michael Brenner | Professor of International Affairs at the University of Pittsburgh and a Senior Fellow at the Center for Transatlantic Relations, SAIS-Johns Hopkins, Washington, D.C.

See also

Consortium News
How the US Armed-up Syrian Jihadists
Alastair Crooke

Compare and contrast US police with China's police.

Andrew Batson's Blog
Daring to sympathize with China’s unhappy police
Andrew

Lars P. Syll — My philosophy of economics

A critique yours truly sometimes encounters is that as long as I cannot come up with some own alternative to the failing mainstream theory, I shouldn’t expect people to pay attention.
This is however to totally and utterly misunderstand the role of philosophy and methodology of economics!
As John Locke wrote in An Essay Concerning Human Understanding….
Science is a competition of ideas in an arena where evidence is the final arbiter.

Lars P. Syll’s Blog
My philosophy of economics
Lars P. Syll | Professor, Malmo University

"Inflation!" Sighting


Yeah but oil..... was.... at... $140... oh never mind.





MEPS - North American Steel Price Recovery is Brought to a Halt


Fed will interpret as "dove-ish!".


The recent North American steel price recovery has proved short-lived as regional values continued their downward trajectory, this month. 
The sustainability of the recent price rises, in the US, hinged upon supply-side considerations. The introduction of import barriers on a number of flat products initially supported the domestic producers. 
However, steel imports, into the US, are steadily rising, month-by-month, from countries not covered by the trade cases. The restrictions are unlikely to be strong enough to reverse the negative price tendency that exists currently.




Positive Earnings Guidance a bit above average for Q3


Data from FactSet. Should not be surprising.




MH17 Inquiry: “To Whose Benefit?”



As the findings of the Dutch “investigation” are released today, we present the concluding part of MH17 Inquiry’s video series.

Wednesday, September 28, 2016

Anatoly Karlin — A Couple of Things on MH17


I don't wish to draw any conclusions from the recently released report about the shoot down of MH17. First, the report proves no actual evidence but only refers to evidence. That evidence was proved by the Ukrainian government from military and intelligence sources. Secondly, Ukraine was a participant in the investigation even though it was a party involved.

However, Karlin offers a plausible account based on facts that are known and filing in some details. 

An account has to provide a motive. There is no plausible motive for either Ukrainian rebels or Russian personnel deliberately targeting a civilian aircraft.
Now consider the following two facts: 
First, MH17 was diverted to fly over contested airspace.
Second, it is known that MH17 was being trailed by two Ukrainian Su-25′s. (Some conspiracy theories allege that they were actually the ones who shot it down).
An alternate possibility, however, is that the Su-25 escorts and possibly the diversions were an intentional Ukrainian policy to increase the chances of an AA missile fired by an inexperienced rebel crew bringing down a civilian airliner. After drawing out the missiles, the Ukrainian fighters would engage their counter-measures and fly off, while the missiles would autonomously home in on the target with the much bigger radar signature – that is, MH17 itself. The resulting fallout would hopefully pressure Russia into withdrawing support for the rebellion.
Frankly this is the theory I consider most likely because it is more or less the only one that explains all aspects of the case.
It explains why the Americans have no released their intelligence. If it was to show the Su-25′s were directly or almost directly below MH17 then questions would be asked.
It explain why we have not seen a consistent or credible alternate theory from Russia.
Because there is none. While if it where to push this theory it would then have to admit that at the it is to some extent culpable.

And it would also explain the findings of the Dutch report. It might well be just true. But…

Nor would it in any case qualify as an act of terrorism.
It cannot qualify as an act of terrorism because as phone conversations between the rebels in the immediate aftermath prove, and as the US itself has admitted, the shooting down of MH17 if done by the rebels was based on the mistaken impression that it was a legitimate military target.
The Unz Review

Also

The lawyer for the victims families reminds that Ukraine was responsible for its air space, and it knowingly diverted the aircraft into a conflict zone on its territory.
“Our argument is that the Ukrainian government was completely aware of what happened on the ground, that there was a separatist movement. They obviously knew about the equipment they had. That the equipment could reach higher altitudes, because the government closed the airspace two days before the downing of MH17. It closed the airspace after the level of 6,600 meters which is not enough because given the size of the danger the whole airspace should have been closed,” Elmar Giemulla, the victim’s lawyer and leading expert on air law told RT.
When asked by RT correspondent Paula Slier if Ukraine “could be to blame” for the MH17 tragedy, Giemulla emphasized that “whoever shot or pushed the button of the missile – this is not relevant for my case,” because the aim of the lawsuit is to create a strong precedent in international civil aviation making government responsible for sky safety over its territory, the lawyer said, adding that “of course” the relatives of the victims want to find the responsible party as well.
Giemulla’s comments come the same day as a Dutch-led Joint Investigation Team (JIT) report concluded that the Buk missile that was allegedly used by the rebels in Ukraine to take down the Boeing was taken to Ukraine from Russian territory.
RT
‘Ukraine fully responsible for security of its own airspace’ – MH17 victims’ lawyer to RT

Paul Craig Roberts and Michael Hudson — Can Russia Learn From Brazil’s Fate?

… Brazil’s financial openness made Brazil an easy target to attack. One might hope that Vladimir Putin would take note of the cost of “economic openness.” Putin is a careful and thoughtful leader of Russia, but he is not an economist. He has confidence in neoliberal Elvira Nabiulina, Washington’s choice to head the Russian central bank. Nabiulina is unfamiliar with Modern Monetary Theory, and her commitment to “economic openness” leaves the Russian economy as exposed as Brazil’s to Washington destabilization. Nabiuina believes that the assault on the ruble is due to impersonal “global market forces,” not to Washington’s financial clout.

Nabiulina, an indoctrinated and propagandized neoliberal, is essentially a servant of Washington, not that she is aware of her role as “useful idiot.” She delights in the applause she receives from the Washington Consensus for leaving the Russian economy open to Washington’s manipulation. Being a neoliberal, she does not understand that Russia’s central bank can create at zero cost the money with which to finance productive projects in Russia. Instead, she thinks that the money entering the economy from the central bank is inflationary, but the money entering the economy from foreign sources is not.
Money is money regardless of whether it is made available by the central bank or by foreign creditors. As long as the money, whatever its source, is used productively, the money is not inflationary.

There is a huge difference between the money created by the central bank and the money created by foreign creditors. Money lent by foreign banks in the form or US dollars or euros must be repaid with interest in the foreign exchange in which the money was lent. Money created by the central bank to finance public infrastructure projects does not have to be repaid at all, much less with interest and in foreign exchange earned by exports….
Paul Craig Roberts
Can Russia Learn From Brazil’s Fate?
Paul Craig Roberts and Michael Hudson

Hans-Werner Sinn — Secular Stagnation or Self-Inflicted Malaise?


Hans-Werner Sinn calls for "creative destruction."
The only way out of the trap is a hefty dose of creative destruction, which in Europe would have to be accompanied by debt relief and exits from the eurozone, with subsequent currency devaluations. The shock would be painful for the incumbent wealth owners, but, after a rapid decline in the dollar values of asset prices, including land and real estate, new businesses and investment projects would soon have room to grow, and new jobs would be created. The natural return on investment would again be high, meaning that the economy could expand once again at normal interest rates. The sooner this purge is allowed to take place, the milder it will be, and the sooner Europeans and others will be able to breathe easy again.
Creative destruction = liquidation. As Sinn recognizes, it would blow up the EZ. Well, that one way to do it.

Project Syndicate
Secular Stagnation or Self-Inflicted Malaise?
Hans-Werner Sinn, Professor of Economics and Public Finance at the University of Munich, was President of the Ifo Institute for Economic Research and serves on the German economy ministry’s Advisory Council

SouthFront — Pentagon Refuses to Recognize Salafi Jihad as US Enemy

The US Special Operations Command (USSOCOM) demands of staff officers of US Marine Corps General Joseph Dunford, Chairman of the Joint Chiefs of Staff, to include Salafi Jihad to the list of US enemies. However, the officers oppose the demand.…
The Pentagon’s orders on this issue come from the highest levels, including from the US President himself. For that reason it is no surprise that SOCOM’s pushback has not yet created any effect on the forthcoming strategy.  
Dissent in the ranks between the people that do the fighting and dying and the political people.

Lord Keynes — A Proposal for an Alt Left Political Program


Incorporates PKE and MMT.

Social Democracy For The 21St Century: A Post Keynesian Perspective
A Proposal for an Alt Left Political Program
Lord Keynes

David Swanson - How We Could End the Permanent War State

The Neoliberals, the Neocons, who now call themselves the Liberal Interventionalists, have behaved so badly over the years, crashing our economy, bailing themselves out, or rather, helping themselves to our money, that maybe most people are now cottoning on to the con. The populist right - as represented by people like Alex Jones, the libertarians - like Ron Paul and AntiWar.com - as well various left and liberal groups have all had enough of it. And MMT, the Keynesians, and many other economists are all showing how standard economics doesn't work, and is probably just another con to enrich a tiny few. And now the new trade agreements along with the vulture funds have given US finance an even worse reputation than it already had. Everything stinks!

Bernie Sanders started a new movement, it's going to carry on.

http://www.counterpunch.org/2016/09/28/how-we-could-end-the-permanent-war-state/


Nevertheless I am here to suggest to you that, despite the fact that the war state with all its private allies appear to be riding as high as ever, the historical circumstances may now be favorable to a frontal challenge to the war state for the first time in many year.
First: the Sanders campaign has shown that a very large proportion of the millennial generations do not trust those who hold power in the society, because they have rigged the economic and social arrangements to benefit a tiny minority while screwing the vast majority – and especially the young. Obviously the permanent war state’s operations can be convincingly analyzed as fitting that model, and that opens up a new opportunity to take on the permanent war state.


Second: U.S. military interventions in Iraq and Afghanistan have been such obvious disastrous failures that the present historical juncture is marked by a low-point in support for interventionism reminiscent of the late Vietnam War and post-war period (late 1960s to early 1980s). Most Americans turned against Iraq and Afghanistan about as fast as they had against the Vietnam War. And the opposition to military intervention in Syria, even in the face of overwhelming media coverage that encouraged support for such a war was overwhelming. A Gallup poll in September 2013 showed that the level of support for the proposed use of force in Syria – 36 percent – was lower than that for any of the five wars proposed since the end of the Cold War.



Third, the very obvious bankruptcy of the two parties in this election have made tens of millions in this country – especially young people, blacks and independents – open to a movement that connects the dots that need to be connected.


With those favorable strategic conditions in mind, I suggest that it is time for a newly invigorated national movement to come together around a concrete strategy for accomplishing the goal of ending the permanent war state by taking away its means of intervening in foreign conflicts

I'm still having loads of problems with the Windows 10 update, so this was the best I could get this article to look today. I shall revert back to the older build soon.




Vyacheslav Scherbakov — Alternative for Germany

Although the “return to the German mark” theme was undoubtedly essential, the program’s developers sought to defend themselves from accusations of forming a “single issue party.” Therefore, they touched on a number of problems that, in their opinion, are troubling society. They included demands for a commitment to “A Europe of sovereign states” with a common internal market, demands for EU reform, and the “liquidation of the Brussels bureaucracy,” the strengthening of the democratic freedoms of citizens, and introducing a system of popular referendums along the Swiss model. The party also spoke out in support of families and especially pensioners and children: “Family solidarity support is an investment in our common future and an important part of inter-generational consensus.” An important component of such family support was determined to be an educational system including kindergartens, schools, and universities. At the same time, parents are to be responsible for the education and upbringing of their children and should be supported by the state. The situation with integrating immigrants had led to such programs so valued by AfG to be shut down. In a rather short section, special attention is devoted to the necessity of revising immigration laws. The immigration system of Canada is presented as one to be imitated: “It is necessary to put an end to indiscriminate immigration into our social system.”[6] On the same note, it is emphasized that persons persecuted on political grounds should be given priority right to asylum in Germany.…
Fort Russ
Alternative for Germany: The Genesis of a New "People's Party"? - PART 1

Alternative for Germany: The Genesis of a New "People's Party"? - PART 2
Vyacheslav Shcherbakov for Fort Russ - translated by J. Arnoldski

Paul Robinson — Neither war nor peace

To borrow a phrase from Leon Trotsky, the situation in Ukraine is ‘neither war nor peace’. The poll suggests that this is no accident. Ukrainians have no great appetite for war, but they are unwilling to take the steps required to bring peace. If they have ended up with something in between, it is because that is what they appear to prefer. As Nezavisimaia Gazeta concludes, Ukraine’s president Petro Poroshenko ‘cannot not take these circumstances into consideration’. At this stage, therefore, a major change in Ukrainian policy is unlikely.
Minsk 2. 0 is dead in the water.

Irrussianality
Neither war nor peace
Paul Robinson | Professor, Graduate School of Public and International Affairs at the University of Ottawa

James Kwak — This Inequality Chart Does Not Say What You Think It Says


Jason Furman obfuscates. James Kwak explains.
In summary, the economic factors that produce higher pre-tax income inequality—stagnant middle-class wages, high corporate profits, and booming asset markets—are alive and well, and it doesn’t seem the Obama administration has done much about them. The administration did pass the Affordable Care Act and let the Bush tax cuts expire for the rich, both of which helped mitigate the pre-tax inequality produced by contemporary American capitalism. But even if Barack Obama called inequality the “defining challenge of our time,” he has done little to tackle its fundamental causes. Let’s hope the next president does better.
Baseline Scenario
This Inequality Chart Does Not Say What You Think It Says
James Kwak
ht Mark Thoma at Economist's View

Also

Is Inequality Rising or Falling? 


John Helmer — Flashlight From Mh-17 Investigation — Dutch, Australian And Ukrainian Police Announce End Of Tunnel; Russian Generals Announce Tunnel Vision


MH17 conclusion in, results as expected. The Rooskies did it.

Dances with Bears
Flashlight From Mh-17 Investigation — Dutch, Australian And Ukrainian Police Announce End Of Tunnel; Russian Generals Announce Tunnel VisionJohn Helmer

Bill Mitchell — The planned destruction of Greece continues …


Bill is hot these days.
After all the hoopla last year with the rise and fall of Syriza one’s attention span strays from what is happening in Greece at present and how it demonstrates the continued (and permanent) failure of the Eurozone. We also become inured to badness after badness is normalised. I was reminded of the depth of the malaise in that nation last week when I was in Kansas City. I won’t disclose confidences but an influential person (in the Greek context) I spoke to now regard their previous support for remaining within the Eurozone as a mistake and they consider my assessment of the situation (which they opposed at the time) to be closer to reality. That was an interesting conversation and credit to them for being able to recognise an error of judgement. I was also reminded of the absurdity of the Eurozone when the IMF released its latest – Greece: Staff Concluding Statement of the 2016 Article IV Mission (September 23, 2016). This is normalisation of badness in bold! The current thinking is that the Greek unemployment rate will remain in double figures until at least 2050, that business investment has collapsed, real GDP is around 27 per cent below its pre-GFC level – and – more significant and accelerated austerity is required. If an organisation can exhibit psychopathy then the IMF has it!

On June 22, 2016, there was a press report – Greek Labour Minister Katrougalos says IMF wants ‘blood’….
Bill Mitchell – billy blog
The planned destruction of Greece continues …
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Tuesday, September 27, 2016

Switzerland Stays Most Competitive Nation as WEF Warns on Trade


More Darwin:

The World Economic Forum named Switzerland the most competitive nation for an eighth straight year...



Everybody knows its "survival of the fittest" and  looks like Switzerland gets the message; what's wrong with the ROW?



Tropical Storm forming off Leewards...


We will monitor this one over the next week to see if these scientists update their predictions over time due to changing conditions... or rather act like our economic policymakers and stand pat on their original prediction even in the face of changing conditions.





Pam and Russ Martens — The New Banking Crisis — In Two Frightening Graphs


Systemic risk associated with teetering Deutsche Bank.

Wall Street on Parade
The New Banking Crisis — In Two Frightening Graphs
Pam and Russ Martens