The Myth of Austerity

by Philipp Bagus, Mises.org Many politicians and commentators such as Paul Krugman claim that Europe’s problem is austerity, i.e., there is insufficient government spending. The common argument goes like this: Due to a reduction of government spending, there is insufficient demand in the economy leading to unemployment. The unemployment makes things even worse as aggregate …

Stratfor: Gaza, Catalonia and Romantic Nationalism

By George Friedman Last week was spent obsessed with Gaza. In the end, nothing changed. A war was fought without an Israeli ground assault but with massive air and rocket attacks on both sides. Israel did not have the appetite and perhaps the power to crush Hamas. Hamas did not have the power to compel …

Euro Crisis: Are Germany and IMF Lighting a Fuse?

by Elliott Morss, Morss Global Finance Introduction In earlier articles, I have talked of the “weak sisters” (Greece, Italy, Portugal and Spain) together, arguing they will never be able to compete with Germany and other more “efficient” Eurozone countries. Of course, each weak sister is different. In this piece, I consider each separately and whether …

Dr. Draghi: Name Your Poison

by Marshall Auerback, New Economic Perspectives There appears to be an emerging consensus that the euro will survive, especially now that Mario Draghi has apparently grasped the nettle and persuaded his colleagues that the ECB (European Central Bank) is prepared to initiate unlimited purchases of national government bonds in order to underwrite their solvency.   …

Nothing has Changed for Greece

by Elliott Morss, Morss Global Finance Introduction Last fall, I said that Greece and the other “weak sisters” should leave the Eurozone. My argument was: the weak sisters (Greece, Italy, Portugal, and Spain) cannot compete with Germany; they need currencies that devalue against the German currency to stay competitive. Since then, nothing important has changed: …