Nov 23rd 2018
Vibrant capitalist economies have always depended on a carefully calibrated balance between government policy and private competition. Franklin Delano Roosevelt’s New Deal of the 1930s significantly extended the previously minimal role of the US federal government. But, rather than holding back growth and destroying private enterprise, it was followed by 30 years of spectacular capitalist development, spreading prosperity as never before and dramatically expanding the ranks of the American middle class. Ayn Rand’s free-market utopia, so beloved by climate-change deniers, is as detached from real-world complexities, and as likely to produce social and environmental disaster, as simplistic Marxist faith in the inevitable efficiency and incorruptibility of the state.
Nov 22nd 2018
Trump’s statement on his policy toward Saudi Arabia in the wake of the murder in Istanbul of dissident Washington Post journalist Jamal Khashoggi brought a profound shame on the United States that will, as FDR put it, live in infamy. Trump began by saying he was putting America first, but that was the last thing he was doing. He was putting his own personal predilections and policies, and perhaps profit, above the interests of the United States. Here are the ways he put America last:
Nov 21st 2018
.......the Trump administration’s disruptive behavior has left the French and German governments furious. But, beyond fueling anger, Trump’s attacks on other countries’ sovereignty are adding momentum to a new push for European political unification...........Trump’s actions are actually something of a godsend, because they have forced Europeans to accept that they must stand together in defense of their sovereignty and prosperity. A union of almost 450 million people (after Brexit) cannot allow a country two-thirds its size to treat it like a group of vassal states.
Nov 20th 2018
The world’s central bankers have begun to discuss the idea of central bank digital currencies (CBDCs), and now even the International Monetary Fund and its managing director, Christine Lagarde, are talking openly about the pros and cons of the idea. This conversation is past due. Cash is being used less and less, and has nearly disappeared in countries such as Sweden and China. At the same time, digital payment systems – PayPal, Venmo, and others in the West; Alipay and WeChat in China; M-Pesa in Kenya; Paytm in India – offer attractive alternatives to services once provided by traditional commercial banks.
Nov 19th 2018
They came in the middle of the night. At about 2.30am on May 11, Amal Fathy, her husband Mohamed Lotfy, and their three-year-old child were awakened by Egyptian security personnel. For hours, a special forces detachment of seven armed men in uniform and two plainclothes officers raided their home..........Amal, a former actress and fashion model, had posted a Facebook Live commentary expressing her anger about being sexual harassed two days earlier. In the 12-minute video,....
Nov 16th 2018
For while Iran has been receptive to Chinese investment in the past, it has equally sought European investment to balance this out and to prevent China from playing too dominant a role in the country. The sanctions have now made China’s dominance all the more likely. ..........possibly the most significant implication is how sanctions have led to widespread de-dollarisation, whereby the dominant global status of the dollar has been challenged. Since sanctioned states are no longer attached to the established system, it is easier for them to adopt an alternative way of operating. An example is the Petro Yuan – whereby China’s oil imports have been priced in yuan rather than in dollars – which has been adopted by oil-rich states targeted by sanctions, most notably Russia and Venezuela. The sanctions on Iran will only exacerbate this process.
Nov 12th 2018
It is clearly time for New Deal II. Instead of promising more tax breaks for the richest citizens, a more equitable fiscal policy could pay for necessary bridges and other public goods and services that would improve everyone’s life. Affordable health care for all citizens is a mark of a civilized society. The US is still a long way from that goal. The same is true of high-quality public education. It is grotesque that so many people who stand to benefit from such “socialist” policies are still persuaded to vote against them because they are supposedly “un-American.”
Nov 2nd 2018
The cold-blooded killing of the journalist Khashoggi, however gruesome, pales compared to the brutality and gross human rights violations Saudi Arabia is committing in Yemen. The Saudis are deliberately preventing food and medicine from reaching areas where children are dying from starvation or disease. Their indiscriminate bombings are killing thousands of innocent men, women, and children, leaving whole communities in ruin. The saddest part of this unfolding tragedy is that the US and other Western powers are supplying the Saudis with the weapons they need to massacre the Yemenites, who are trapped in this proxy war between Saudi Arabia and Iran (which neither can win), and the Yemenites will continue to pay with their blood.............Out of a total population of 28 million people, 22 million are in need of humanitarian aid. Nearly 5.2 million children are starving to death, and nearly one million are believed to be infected with cholera. Over 8 million people are facing famine, and 2 million are displaced and deprived of basic needs.
Oct 29th 2018
The nightmare election possibility for the Democrats is continued Republican control of both chambers. In that case, Trump will feel vindicated and more liberated than ever. He might then fire a raft of officials, treat immigrants still more harshly, and try to shut down Mueller’s investigation of his campaign’s possible collusion with the Kremlin and Trump’s probable obstruction of justice. The conventional wisdom may prevail, with the Democrats winning the House but not the Senate. But the polls have been fluctuating. And since Trump’s stunning election victory in 2016, most observers have become more cautious about predicting outcomes.
Oct 23rd 2018
As the Brexit negotiations peter out this week in Brussels, fevered Brexit fanatics – from Boris Johnson, David Davis and Jacob Rees Mogg in the Telegraph, to many others on Twitter – are ranting and raving about the most sensible thing Theresa May has done in two and a half years of Brexit negotiations by suggesting extending the transition period in an attempt at genuine compromise. This would be a good opportunity to remind ourselves of some salient facts. These Conservative MPs are speaking on behalf of the hardest of Brexiteers, a collection of somewhere between 60-80 of the Tory MPs. That’s somewhere between 60 and 80 MPs out of a total of 317 Conservative MPs in the House of Commons. And while having 317 MPs means the Conservatives are the largest party at the last election, they did not win enough of the votes to form a majority. Therefore, for all their bluster and bloviating, let’s just state clearly what the members of this small group are: they are a minority faction, holding a minority view, in a minority government.
Oct 23rd 2018
A billboard at a construction site, with a photo of an Ottoman-style mosque with four minarets and the flag of Turkey, was erected recently in the center of Pristina, the capital of Kosovo.
Oct 17th 2018
Yemen is a country of some 29 million persons, but over a third of them are at risk of starvation if Saudi and UAE bombing campaigns continue.
Oct 14th 2018
Now the Trump administration is eroding the dollar’s global role. Having unilaterally reimposed sanctions on Iran, it is threatening to penalize companies doing business with the Islamic Republic by denying them access to US banks. The threat is serious because US banks are the main source of dollars used in cross-border transactions. According to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), dollars are used in nearly half of all cross-border payments, a share far greater than the weight of the US in the world economy. In response to the Trump administration’s stance, Germany, France, and Britain, together with Russia and China, have announced plans to circumvent the dollar, US banks, and US government scrutiny. “Plans” may be a bit strong, given that few details have been provided. But the three countries have described in general terms the creation of a stand-alone financial entity, owned and organized by the governments in question, to facilitate transactions between Iran and foreign companies.
Oct 5th 2018
There are a lot of oddballs in US President Donald Trump’s entourage, but few are as odd – or as sinister – as 33-year-old Stephen Miller, Trump’s senior policy adviser. Miller resembles a type on the far right that is more common in Europe than the US: young, slick, sharp-suited, even a trifle dandyish. He is a skilled rabble-rouser, whose inflammatory rhetoric against immigrants and refugees – “We’re going to build that wall high and we’re going to build it tall !”– drives the crowds at Trump rallies into a frenzy. One of his crowd-pleasing notions is that migrants will infect Americans with terrible diseases.
Oct 3rd 2018
.....here we are in 2018, 40 years after Camp David. The Palestinian dream of an independent state is not only unrealized but is most likely unrealizable. With many Palestinians now favoring a one state solution......the once "Arab minority" is now a majority.....
Sep 25th 2018
The US stock market, as measured by the monthly real (inflation-adjusted) S&P Composite Index, or S&P 500, has increased 3.3-fold since its bottom in March 2009. This makes the US stock market the most expensive in the world, according to the cyclically adjusted price-to-earnings (CAPE) ratio that I have long advocated. Is the price increase justified, or are we witnessing a bubble?
Sep 23rd 2018
Global debt recently hit a new record high of 225% of world GDP, amounting to US$164 trillion. The world is now 12 points deeper in debt than the previous peak in 2009, with advanced economies’ ratios at levels not seen since World War II.
Sep 18th 2018
To understand them, it is worth looking at three reputable leaders who died this summer: former United Nations Secretary-General Kofi Annan, former British Foreign Secretary and NATO Secretary-General Peter Carrington, and US Senator John McCain. Having worked with Annan and for Carrington, I can vouch for their grace, honor, and commitment to truth. McCain plainly had the same qualities, not to mention a level of personal bravery far beyond what is expected of most of us (though it should be noted that Carrington was also a war hero). These leaders’ combination of honor and commitment to truth – two attributes that are intrinsically connected – is nowhere to be seen in Trump or Johnson.
Sep 18th 2018
From controlling the media to stoking nationalism, Russian President Vladimir Putin has always known how to keep his approval ratings high. But Russians’ lives are not getting any better, especially after the latest round of Western economic sanctions – and Putin’s declining approval rating shows it.
Sep 15th 2018
As we mark the decennial of the collapse of Lehman Brothers, there are still ongoing debates about the causes and consequences of the financial crisis, and whether the lessons needed to prepare for the next one have been absorbed. But looking ahead, the more relevant question is what actually will trigger the next global recession and crisis, and when. The current global expansion will likely continue into next year, given that the US is running large fiscal deficits, China is pursuing loose fiscal and credit policies, and Europe remains on a recovery path. But by 2020, the conditions will be ripe for a financial crisis, followed by a global recession. There are 10 reasons for this. First, the fiscal-stimulus policies that are currently pushing the annual US growth rate above its 2% potential are unsustainable. By 2020, the stimulus will run out, and a modest fiscal drag will pull growth from 3% to slightly below 2%.