There is clearly a common denominator in the kind of “solutions” that the State comes up with to deal with the problems that it caused (and that’s most problems). Not only are these remedies worse than the disease, but they are always extremely simplistic, reductionist and they never, ever, take into account anything else apart from …
Category: Economics
“Inflation it is not an act of God”
INTERVIEW WITH GODFREY BLOOM: Over the last couple of years, the UK has been increasingly in the news – for all the wrong reasons. The cost of living crisis, in particular, has been monopolizing headlines at home and abroad. Of course, inflation is by no means unique to the country. To the contrary, it has …
“Bank walk”: The first domino to fall?
In early May, Reuters published a report that truly captured my attention. “European savers are pulling more of their money from banks, looking for a better deal as lenders resist paying up to hold on to deposits some feel they can currently live without,” the article reported. Over in the US, we see a very similar picture. …
France on strike
The roots of the injustice that brought over a million to the streets It is the core of a long running joke that the French love to strike more than they like to work – and for good reason. Demonstrations, strikes and even riots, have been a common occurrence for decades. However, this latest round …
A bank is a bank is a bank – Part II
Part II of II by Claudio Grass A real systemic crisis If there was one thing more telling than the bank failures themselves, it was the governments’ reaction to them. The sheer panic that shook US, Swiss and Eurozone officials was almost pitiable to behold. The way they all rushed to make statements denying that this …
A bank is a bank is a bank
Part I of II by Claudio Grass It might sound like an old-fashioned notion, the sort of thing that one reads about in period novels and romantically sighs “oh, the good old days”. It might sound like old timely advice, perhaps of the kind that our grandparents would have given to our parents: “It doesn’t matter if …
Banking crisis: The new bailout strategy
Part II of II To be fair, it is true, this time is different. Indeed, this time the rescue plan for the bust banks is not comparable to what we saw in 2008. In the US, the guarantee for deposits up to $250.000 comes from funds that are maintained by participating banks and not from the taxpayer. …
Banking crisis: The new bailout strategy
Part I of II The recent turmoil that has roiled the global banking sector has placed central bankers in an impossible position: Cut rates and avert a domino-style disaster in the industry and a possible deep and prolonged recession in the wider economy or stay the hiking course to combat the still untamed inflationary pressures? …
Modern Monetary Theory: Reality check
I’ve written extensively over the past years about the rise of Modern Monetary Theory (MMT) and all the terrible dangers it entailed from its very birth, not just for our economies, but for our societies too. Although it captured media interest and monopolized a lot of “expert” debates at the time, one wouldn’t be blamed for …
The “great Ponzi scheme” coming to an end?
In a recent conference, the EU’s Commissioner for Cohesion and Reforms, Elisa Ferreira, gave a dire warning: “We have a shrinking workforce all across Europe, all countries are losing their workforce.” Indeed, in just 10 years, the EU lost 5 million people in the working-age population, as the most recent report on demographic change by the …