Tag: Euro

Contributor Post Created with Sketch. Member Post

 

Wow, that was a late night. If popcorn was available, it would’ve been passed. Of course, those in the free market, anti-elitist central gov’t, liberty minded crowd are whooping it up, as we should. Will there be reverberations? Yes. For starters, the British Isles may see another push for Scottish Independence. In fact, several other EU countries […]

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This morning the Governing Council of the European Central Bank (ECB) announced its monetary policy decision and set the global currency, metal, bond, and ultimately stock markets on a wild ride. The ensuing volatility demonstrates how dependent we’ve become on central bank policy and the negative implications therein. The ECB decision volatility was compounded by […]

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Contributor Post Created with Sketch. Greece Gets the Worst of Both Worlds

 

greek facepalm-225x300It appears Greece has ended up paying two costs. It chose first to spurn the EU through a referendum and has suffered a banking system shuttered and a major contraction in its economy. It then spins around and takes a deal that is to most observers worse than the one it turned down the previous week. So it pays for a financial crisis and for more austerity.

Heckuva job, Alexis.

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Contributor Post Created with Sketch. So is the Greek Crisis Over? Well…

 

Greece_Time_Shutterstock_500x293So Greece — in a “pre-chaos state,” according to France’s finance minister — is choosing the depression it knows over the depression it doesn’t. By all accounts, the new fiscal proposal from Greek Prime Minister Alexis Tsipras pretty much meets creditor demands in exchange for a $60 billion bailout to cover debt repayments between 2015 and 2018. The voters said “oxi,” but their leaders are saying “nai.”

As outlined by Bloomberg, the Tsipras government more or less conceded on budget targets, conceded on sales and corporate taxes (with some tax changes starting a year later), conceded on eliminating early retirement benefits for pensioners, and conceded on the sales of state assets. What’s more, according to the Financial Times, “none of the documents submitted to creditors, including Mr Tsakalotos’s letter and a separate missive from Mr Tsipras, contain any mention of debt relief.” And if debt relief does comes, it seems more likely Greece will be given more time to pay rather than less debt to pay.

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Contributor Post Created with Sketch. Bear Week Begins

 

grizzlyIf you’re just waking up, chances are you’re waking up to the news that you’ve lost money.

The Greece crisis is being likened to an economic Sarajevo. The markets are sinking faster than I can type. Asian stocks began tanking hours ago. (Last I checked, the Shanghai Composite Index was down 3.7%; the Nikkei 225 down 2.4%; Hang Seng down 2.7%; Sydney’s S&P ASX-200 down 2.3%; Seoul’s Kospi … well, you get the drift. By the time I hit “publish” these numbers are sure to be down further.) The European markets opened a few hours ago and … wow. Stampede city.

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Contributor Post Created with Sketch. Grecian Formula €1.55 Billion

 

An ATM in Athens. The sign says "empty."While we’ve been debating the Supreme Court, there’s been a whole lot of noise going on in Europe over the snap referendum the Greeks have called on their loans from the IMF, the European Commission, and the European Central Bank (hereinafter “the troika,” as they are commonly known in Greece and Cyprus — usually with an epithet as a modifier.)

Here’s a guide to what’s happening and what’s at stake, as well as a few thoughts on what we’ll see on Monday.

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Promoted from the Ricochet Member Feed by Editors Created with Sketch. The European Union is Imperilled by Elites Who Ignore Legitimate Problems

 

shutterstock_55503436Both the Euro Crisis (brought to the fore again by the recent Greek elections) and the anti-Islamic marches (originating in Germany but now moving around Europe) highlight two key problems facing Europe today: currency woes and immigration.

Let’s take the monetary crisis first. There are two competing narratives about who is to blame. One is that it’s Northern Europe’s (most conspicuously, Germany’s) fault for being too hard-working, productive, and thrifty. They keep their government spending in check and the people work hard enough to afford their social spending. In contrast, the Southern European countries—most conspicuously, Greece—are lazy, unproductive, and profligate. They produce very little but enjoy extravagant social programs courtesy of the German taxpayers. In order to fix their own predicament, the Greeks need to work harder and start living within their means.

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Contributor Post Created with Sketch. Whoa, Look at the Euro!

 

shutterstock_106463024For those of you thinking a life in Paris is glamorous, let me explain how I spent my typical glamorous morning: carefully going over the gas, rent, electricity, and grocery bills.

For those of you wondering, “How do I get to be an expert political analyst?” Well, that morning is kind of key. I’m paid in dollars, but I pay my bills in Euros. So “the falling Euro” is anything not an abstraction to me. If it really reaches parity with the dollar by the end of the year, as some predict, then I somehow managed, though the weirdest luck in the world, to move to a city I can afford to live in — this as opposed to Istanbul, which was too expensive for me — and my life gets a lot easier (by sheer dumb luck, as it happens, but I’ll say I predicted it, anyway. That’s how you get to be an expert analyst).

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