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Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
“The actions I’m taking are not only lawful, they’re the kinds of actions taken by every single Republican president and every Democratic president for the past half-century,” Mr. Obama said. “To those members of Congress who question my authority to make our immigration system work better, or question the wisdom of me acting where Congress has failed, I have one answer: Pass a bill.”
The following graph was also presented to support the argument that accelerating global warming is not occurring, inferring that the interpretation of the data through 2006 was incorrect:
These authors are not recognizing an obvious pattern in the data (or they do see it but hope that their audience will not?). Econintersect has added additional lines to the IPCC graph above (extending trend lines to 2014 for data not shown since 2006).
And one more pattern not acknowledged by these incomplete examinations of the data:
Instead of the unsupportable contention that the current pause (or down zag) disproves the IPCC finding that global warming is occurring and accelerating, the correct questions would center on why the progression of the trend is happening in fits and spurts. The accumulation of greenhouse gases is a much smoother progression than the observed temperature response. See next two articles. What are the other interactions that modulate the effects of the greenhouse gases if they are behaving as postulated and as data over the past couple of centuries indicates? It is very correct to ask questions, but some questions lead to a progression of knowledge while others can lead to an inculcation of ignorance among the intellectually lazy.
For climate and weather news every week follow climate-economist Sig Silber at GEI News.
New York, Missouri patients test negative for Ebola virus (Reuters, Yahoo! News)
New Ebola Vaccine Trial Starts in Baltimore (NBC News)
Ebola Makes an Appearance in the Fed’s October Minutes (The Wall Street Journal)
Why Greenland is a better template for Scotland than any of its neighbours (The Conversation)
US, Turkey Still Not in Sync on Syria (abc News)
Anger over Israel mayor's ban on Arab workers (Al Jazeera)
Half of Occupy Central protesters ready to pack it in if asked by organisers (South China Morning Post)
Egypt Prosecutor Asks for Death Sentence for Morsi (abc News) Is this proper for the only freely elected president in the country's history?
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Fiscal austerity does not work in a liquidity trap and makes as much sense as putting an anorexic on a diet. Yet, "diets" are the very prescriptions that fiscal austerians2 have imposed (or plan to impose) in the U.S., U.K. and Eurozone. Austerians fail to realize, however, that everyone cannot save at the same time and that in liquidity traps, the paradox of thrift and depression are fellow travelers that are
When it comes to moral principles applied to the Great Financial Crisis (GFC), the authors point out that one faction's fairness is another's unfairness:
The fiscal authority has been rejecting the idea of principal forgiveness on moral grounds: it would be not fair to all those who made their payments faithfully and let those off the hook who purchased larger homes than they could afford. But policy paralysis due to concerns of moral hazard will only prolong the liquidity trap and delay recovery. And that is not fair, either.
The authors identify the conflict is between "rentier and laboring classes" and "swift resolution is key to a recovery".
The authors fault the fiscal authorities during and following the GFC for lack partnership with the central banks. They say that monetary stance has "willingly encourage[d] and accommodate[d] fiscal expansion to facilitate the private sector's deleveraging without depression". But the fiscal authorities, especially in Europe but also in Japan and the U.S., have been MIA.
Just as it did during the gold standard, acting responsibly relatively to orthodoxy will fail in Europe, and like Chancellor Churchill, Chancellor Merkel will likely come to regret insisting on Procrustean austerity and will ultimately come around to see it as the greatest mistake of her political life.
The mistakes of the Great Depression are being repeated:
On a more systemic level, Germany's refusal to inflate at the core while insisting on internal devaluation in the periphery is eerily similar to the frictions caused by the imbalance between gold surplus countries refusing to inflate and deficit countries unable to sufficiently deflate during the 1920s and early 1930s.
The authors include a graph which points out a fiscal contraction that resulted from the QE monetary easing of the Federal Reserve in the U.S. Securities that were held in the private sector paid coupons to private sector entities. But once on the Fed's balance sheet the interest payments accrued to the U.S. Treasury. This had an effect equivalent to a tax increase and was, in effect, a measure of austerity. The payments by the Fed were "money out of thin air" but that money was assigned to the reserve accounts of Fed member institutions where they are receiving only 0.25% interest, much less than the coupons of the securities purchased by the Fed.
Americans more worried about Ebola than obesity, cancer (Modern Medicine Network)
Wall Street is Taking Over America's Pension Plans (The Intercept) Hat tip to David Sirota.
OECD Economic Surveys: India 2014 (OECDi Library)
Uber Scandal Highlights Silicon Valley’s Grown-Up Problem (The New York Times
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