What We Read Today 06 June 2014

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 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.

• Draghi Unveils Historic Measures Against Deflation Threat (Jeff Black and Stefan Riecher, Bloomberg) The ECB took a key interest rate negative today as they intensify their fight against deflation. Draghi says there is more to come. More discussion of this ‘behind the wall’. See also Edward Harrison in GEI News.

• Here’s The Simple Reason Congress Hasn’t Fixed The VA (Ryan Grim, The Huffington Post) Short answer: Other lobbies have much more money. But eventually public embarrassment can overcome the lure of money: Senators reach bipartisan deal on bill to fix VA (Ed O’Keefe, The Washington Post)

• Fixing Benchmarks (Paul Amery) Even Central banks (especially in Asia) are in the “fixing” business.

• China Angry About U.S. Tariff Hike On Solar Panels (Andy Tully, OilPrice.com) China has “sharply criticized” the announced U.S. decision to raise import tariffs on solar panels made in China. Tariffs will be increased to at least 18.56% and as much as 35.21% “depending on the practices of each Chinese manufacturer“. The U.S. charges that China provides unfair government subsidies to some of its solar technology products. See also U.S. Imposes Steep Tariffs on Importers of Chinese Solar Panels (Diane Cardwell, The New York Times)

• (What’s Left of) Our Economy: Cheap Imports Backfire on America’s Retailers (Alan Tomelson, Reality Chek) Hat tip to Fabius Maximus.

It’s really no exaggeration to call this the most spectacular and grimly hilarious irony of the current era of U.S trade and globalization policy: Wal-Mart is running into big-time trouble because it can’t cut even its rock-bottom prices low enough to make them affordable for its low-income-dominated customer base.

• The Snowden Effect: 8 Things That Happened Only Because Of The NSA Leaks (Matt Sledge, The Huffington Post)

• Vermont Passes Call for Convention to Overturn Citizens United! (Rootstrikers) Hat tip to Naked Capitalism. Vermont becomes the first state to call for a constitutional amendment that would overturn the Supreme Court decision on Citizens United. This organization is calling for petition signers to support efforts in other states. Presently they state California, Hawaii, Massachusetts, New Jersey, New Mexico, Rhode Island, Connecticut, Maryland, Colorado, Oregon and Montana also have efforts underway to call for a constitutional convention. For more details see Vermont Just Took a Radical Step To Get Money Out of Politics (Tom McKay, PolicyMic). McKay points out that no constitutional convention has ever been convened by public petition. Previous amendments were passed by super majorities in the House and Senate and then ratified by the states.

Today there are 12 articles discussed ‘behind the wall’.

There are six articles discussing the ECB action and other Eurozone economic news.

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