Italy’s recent election was not that much of a shocker for Italians who have endured over 16 years of zero economic growth and youth unemployment around 27% or more, without much hope in sight. In fact, Italy’s underlying economic and employment problems are the same now as they were 16 years ago—too much debt and […]

Over the coming weeks, we’re going to be hearing a lot about the ‘fiscal cliff’: the threat that some 5% of GDP is going to be ripped out of the economy in a combination of tax hikes and spending cuts. A fiscal slow-down on that scale will almost certainly trigger recession. The CBO thinks so, though their numbers look […]

Accountable: A letter in the Sunday Times called for Osborne to begin spending cuts a year earlier than planned In February 2010, twenty economists published a letter in the Sunday Times calling on George Osborne to begin spending cuts a year earlier than planned. The key sentence of that letter stated that, ‘In order to be credible, […]

Those financial forecasters, like myself, who take a generally dark view of world affairs are known by a number of monikers: prophets of doom, killjoys, pessimists, Cassandras. And that last one is interesting. Cassandra, in ancient Greek myth, was the daughter of King Priam of Troy. After Helen, she was considered the most beautiful woman […]

Another day, another faux bailout. Today European finance ministers agreed to let the Spanish banks get the first €30 billion slice of their bank bailout.  Those same finance ministers are also set to approve a year’s delay in the deadline given to Spain for reaching a budget deficit of 3% of GDP. That won’t, of […]

Just as things were looking bleak, time ticking away, and tension rising … Cesc Fabregas scored for Spain. The tournament favorites hardly daunted their major rivals in their one-all draw against Italy, but they lived to play another day. Meantime, over the same weekend, another rescue act took place. This ‘rescue’ involved €100 billion of […]

It’s a strange world we’re living in. This newspaper reported yesterday that, ‘Britain and the US joined forces to urge Germany to create a central Brussels body that could assume sovereignty over individual countries’ budgets and fiscal policies.’ Under pressure: German Chancellor Angela Merkel doesn’t want a Euro superstate – and can’t afford to finance one anyway […]

Summer’s coming. An election campaign’s pending. Obama’s in favor of gay marriage. Mitt Romney’s trying to figure out his vice presidential pick. The mainstream media is trying to second-guess his choices even before they’re even made. But, guys, there are some big issues out here. You know, real ones that affect real things in the […]

Let’s not be too hard on George Osborne. He came into office with what was arguably a more difficult bundle of challenges than any incoming Chancellor had ever faced. Facing a challenge: George Osborne Flaky banks, a hideous deficit, soaring debts, public services that had become hooked on ladlefuls of new cash, and an economy […]