Options for Europe – Part 68 | Bill Mitchell – billy blog The title is my current working title for a book I am finalising over the next few months on the Eurozone. If all goes well (and it should) it will be published in both Italian and English by very well-known publishers. The publication date for the Italian edition is tentatively late April to early May 2014. You can access the entire sequence of blogs in this series through the – Euro book Category. I cannot guarantee the sequence of daily additions will make sense overall because at times I will go back and fill in bits (that I needed library access or whatever for). But you should be able to pick up the thread over time although the full edited version will only be available in the final book (obviously). Part III – Options for Europe Chapter 17 Overt Monetary Financing? Why is Overt Monetary Financing taboo and should it be? There is an urgent need for fiscal deficits at the Member State level to rise substantially. The substantive criticism of OMF is the obvious one.
The Debt Resistors’ Operation Manual A newer group grown out of Occupy called Strike Debt is making waves with their newly released Debt Resistors’ Operation Manual, available to read here with commentary from Naked Capitalism’s Yves Smith and available for download as a pdf here. Their goal is compelling, and they state it in their manifesto on page 2: We gave the banks the power to create money because they promised to use it to help us live healthier and more prosperous lives—not to turn us into frightened peons. They broke that promise. We are under no moral obligation to keep our promises to liars and thieves. This collective act of resistance may be the only way of salvaging democracy because the campaign to plunge the world into debt is a calculated attack on the very possibility of democracy. To the financial establishment of the world, we have only one thing to say: We owe you nothing. Here’s what I love about this manual and this Occupy group: Thank you, Strike Debt, we needed this. Like this: Like Loading...
China Pulls The Rug From Under Europe, Halts French Bank Transactions, Make A flurry of headlines out of China suggest global macro-economic volatility may be ready to take it to the next level. We discussed last week how China's oh-so-generous offer of help to Europe was merely a veiled threat playing US against Europe in a game of who-gets-the-funding. Well, tonight, it seems, they are making good on some of those threats. Aggravated by EU's lack of market economy recognition, they pull trading lines with French banks, express concern at the EUR's safety (preferring US Treasuries), and indicate a clear preference for bonds over stocks - all the while warning of growing trade tensions - consider the sabre-rattled. Initial comments from Commerce Minister Shen via Bloomberg: was quickly followed by the 'threat/promise': and then Reuters reports: And the piece-de-resistance of the night was, again from Reuters: China, the largest foreign holder of U.S. government debt, will keep buying U.S. Furthermore, as if he had just read our earlier debt vs equity post:
CUNY Administration Declares War On Rebel English Department URGENT UPDATE, September 16: I’ve spoken with a QCC faculty member who has confirmed the report below and added important new details on crucial elements of the story, including the vote count from the faculty meeting, the nature of the administration’s threats, and the department’s plans for the future. Please read and distribute today’s post before continuing. This is an astounding story. On Wednesday the English department at Queensborough Community College voted not to adopt a policy of the City University of New York to reduce composition course credits from four to three. Administrators didn’t like this. In an email sent to the department chair yesterday QCC Interim Vice President for Academic Affairs Karen Steele announced that because the English department insists on granting four credits for composition courses, those courses will no longer be offered by the college and QCC students will be sent to other CUNY campuses to fulfill their composition requirements. But they are.
Explaining US Hypocrisy on Ukraine | Consortiumnews U.S. government hypocrisy toward the Ukraine crisis has been breathtaking, as has the U.S. press corps’ stubborn refusal to see the hypocrisy (i.e. the Iraq War and many other U.S. interventions). William Blum looks at the reasons behind the double standards. By William Blum When it gets complicated and confusing, when you’re overwhelmed with too much information, changing daily; too many explanations, some contradictory … try putting it into some kind of context by stepping back and looking at the larger, long-term picture. The United States strives for world domination, hegemony wherever possible, their main occupation for over a century, it’s what they do for a living. And who threatens United States domination? Since the end of the Cold War the United States has been surrounding Russia, building one base after another, ceaselessly looking for new ones, including in Ukraine; one missile site after another, with Moscow in range; NATO has grabbed one former Soviet Republic after another.
Moody's applauds plan to let UC campuses set own tuition Ratings agency Moody's Investors Service applauded a new University of California, Berkeley proposal to give each UC campus more autonomy, particularly when it comes to setting tuition rates. Because its seats are so coveted, Berkeley has wanted to charge higher tuition and admit more out-of-state students than other campuses. The school's Center for Studies in Higher Education released a report last month that suggests giving the system's 10 schools greater ability to set policies that fit the "uniqueness of individual campuses." As we reported today, Berkeley has moved aggressively to admit more non-resident students, who pay a nearly $23,000 premium on top of full tuition, and fewer California residents than the school did prior to 2010. It is far from clear that UC Regents would consider giving up power to set tuition or admissions policies. The plan might bolster the schools' credit ratings, but not without a cost.
Unmittelbar betroffen: Die polnische Bank PKO hat Filialen auf der Krim geschlossen Was hat ein Schweinefuß mit der Krim zu tun? Und ist Stanislaw Karemba ein Opfer der Umwälzungen in der Ukraine geworden? Bis vor kurzem war Karemba noch Landwirtschaftsminister in Warschau. Dass er vergangene Woche seinen Platz im Kabinett räumen musste, lag an seinem mangelhaften Krisenmanagement bei der aus Weißrussland eingeschleppten afrikanischen Schweinepest in Polen. Aufgebrachte Bauern hatten protestiert, weil das von Russland verhängte Einfuhrembargo für polnisches Fleisch schon zu einem Preisverfall von 10 Prozent geführt hatte. Autor: Sven Astheimer, Jahrgang 1972, Redakteur in der Wirtschaft, zuständig für „Beruf und Chance“. Autor: Reinhard Veser, Jahrgang 1968, Redakteur in der Politik. Die Nerven sind angespannt, denn die Wirtschaftsbeziehungen zum Osten sind ein wunder Punkt für das größte der osteuropäischen EU-Länder. Mittlerweile schlägt man in Warschau vorsichtigere Töne an. Folgen
College Students: Your School Is Pimping You Out to a Bank High schools really, really need to begin teaching fundamental consumer economics, including the proper use of credit and and how it can help/hurt you in the long term. The best thing that can be done is to educate kids early on exactly what credit, loans and banking can to for them, because even slight missteps early on can ruin your life for many years to come. I don't mean some comprehensive class on economic theory that nobody will pay attention to, just the really critical, practical stuff, like explaining how credit scores/ratings work, what interest rates are, and how debt can either help you or hurt you. I knew nothing about any of this stuff coming out of high school, and I was very much the worse for it. And maybe if kids actually understood the basics of credit, interest and debt, they wouldn't think of themselves as victims of some 'system' after taking out massive student loans that will never pay themselves off (by avoiding loans they can't afford in the first place).
The "plan" outlined in a interview with Bloomberg is nothing more than a rehash of the plan that helped hurt the Soviet Union in the 1980's when a drop in currency revenue due to declining oil prices created substantial difficulties for the Soviet economy. Basically, Soros proposes that the US open up its strategic oil reserves and dump them all in the market. According to a Bloomberg report that he believes that "strongest sanction" against Russia "is in the hands of the United States" because US could sell crude from the Strategic Oil Reserve and depress prices . Today, during a panel discussion in Berlin, Soros stressed that the Russian government needs a price of over 100 US dollars per barrel in order to balance the budget. While the "Soros plan" looks good on paper it is nothing more than wishful thinking.
Get on the bus to stop student debt | Student Labor Action Project By Chris Hicks, National Student Labor Action Project Coordinator A month ago I was standing outside of Sallie Mae’s DC office with over three hundred students from all over the country asking for a meeting with Sallie Mae CEO Albert Lord, and Sallie Mae responded by calling the police and having 36 of my friends arrested. But we are the 99%, and we can’t back down – too much is on the line. That is why we are going to Newark, Delaware on May 24th for the Sallie Mae Shareholder meeting and we need you there! When we went to their DC offices, we wanted to ask them to forgive student debt, to stop lobbying against our interests, and to pay their fair share of taxes. Join us in telling Albert Lord… we won’t let an entire generation of students be sacrificed to build his bank account. Here is what you can do right now: Join us in Newark! It’s time to let the 1% hear us loud and clear – this is the 99% Spring and we will win.
Die Ersparnisse in Sicherheit bringen: Kundinnen vor einem Bankautomaten in Athen. Foto: Keystone Die Verhandlungen zwischen Griechenland und den anderen Euroländern sind am Montag ohne Ergebnis zu Ende gegangen. Am Freitag will man sich wieder treffen. Was wird als Nächstes passieren? Das Wahrscheinlichste ist, dass Griechenland bald Kapitalverkehrskontrollen einführen und den Bezug von Sparguthaben beschränken wird. Wie die Einführung von Kontrollen vor sich geht, konnte man in Zypern vor zwei Jahren beobachten. Das Beispiel Zyperns verdeutlicht auch, dass die Einführung von Kapitalverkehrskontrollen nicht zu einem permanenten Austritt führen muss. Kapitalverkehrskontrollen erleichtern es aber durchaus, eine neue Währung einzuführen. Wann werden die Kapitalverkehrskontrollen kommen? Das Tempo der Abzüge kann sich allerdings beschleunigen, wenn die Bevölkerung das Vertrauen verliert. Tags: Euro, Geldpolitik, Grexit, Griechenland
8 Reasons Young Americans Don't Fight Back: How the US Crushed Youth Resistance Traditionally, young people have energized democratic movements. So it is a major coup for the ruling elite to have created societal institutions that have subdued young Americans and broken their spirit of resistance to domination. Young Americans—even more so than older Americans—appear to have acquiesced to the idea that the corporatocracy can completely screw them and that they are helpless to do anything about it. A 2010 Gallup poll asked Americans “Do you think the Social Security system will be able to pay you a benefit when you retire?” Among 18- to 34-years-olds, 76 percent of them said no. How exactly has American society subdued young Americans? 1. Today in the United States, two-thirds of graduating seniors at four-year colleges have student-loan debt, including over 62 percent of public university graduates. 2. 3. 4. 5. 6. 7. 8. These are not the only aspects of our culture that are subduing young Americans and crushing their resistance to domination.
EconoMonitor : EconoMonitor » International Debt and Financial Crises The latest issue of the IMF’s World Economic Outlook has a chapter on global imbalances that discusses the evolution of net foreign assets (also known as the net international investment position) in debtor and creditor nations. The authors warn that increases in the foreign holdings of domestic liabilities can raise the probability of different types of financial crises, including banking, currency, sovereign debt and sudden stops. A closer inspection of the evidence that has been presented elsewhere suggests that it is foreign-held debt that poses a risk. The role of international debt in increasing the risk of crises was pointed out by Rodrik and Velasco (working paper 1999), who showed that short-term bank debt contributed to the occurrence of capital flow crises in the period of 1988-98. Why are debt liabilities more risky for countries than equity? These results have consequences for the use of capital controls and the sequence of decontrol.