by Elliott Morss
Editor's Note: We all know the story: Greece has been living beyond its means for more than a decade. As a consequence, it is running out of money. And as Econintersect's Dr. Elliott R. Morss has documented in an earlier piece, Greece has entered into an unemployment-generating program in return for IMF/EU financial support. The program is not popular in Greece: the government barely got the IMF/EU austerity package though the Greek parliament. There have been riots, and there will be more riots.
One might ask whether this austerity program is the best policy for Greece? Dr. Morss examines this question below in the form of a letter to President Papoulias.
by Dirk Ehnts
I was at a conference in Madrid last weekend and later on in Valencia. In both cities, protesters (‘Los indignados’) were camping on the main square, Puerta del Sol in Madrid and Plaza de Ayuntamiento en Valencia. Here are some numbers from Eurostat concerning unemployment (Unemployment rates by sex, age groups and nationality (%), upper graph 15-19, lower graph 15-24, source):
Guest Author: Frank Li (Bio at end of article)
BRIC (Brazil, Russia, India, and China) held its first annual meeting in Russia in 2009, and its second in Brazil in 2010. China hosted the third one this year (in April), when BRIC became BRICS (“S” for South Africa). The five BRICS countries are now known as the “emerging economies.” But are they equal and how may you take advantage of them in business? My answers are very simple:
by Michael Pettis
Last week a friend sent me an interesting article that came out in one of the MIT magazines. According to MIT News:
A recent study released by the MIT Joint Program on the Science and Policy of Global Change quantifies the damage to the Chinese economy caused by a lack of air-quality control measures between 1975 and 2005. Not surprisingly, the MIT researchers found that air pollutants produced a substantial socio-economic cost to China over the past three decades.
by Rick Davis
(In a number of recent articles we have explored potential "unthinkable" solutions to both the U.S. sovereign debt problem and the fiscal consequences of a suddenly balanced U.S. Federal budget -- given that a balanced budget would suck about 14% out of the country's GDP, meeting the clinical definition of a depression. We discussed the historical backdrop to sovereign debt end-games, and solutions possible without major regime change, others requiring modest regime change, yet more that involve radical regime changes,