Carmen Reinhart on Financial Repression:
- For the advanced economies, real interest rates were negative roughly ½ of the time during 1945-1980, resulting in a rapid reduction in debt. ~ IMF (pdf)
Steve Keen vs the Austrians ~ debunkingeconomics
If you own Money Market Funds, you may have exposure to French and U.K banks
Blowing a new bubble, or has the credit bubble merely undergone a metamorphis:
In fiscal 2011, the federal government held $2.7 trillion in assets and $17.4 trillion in liabilities ~ Mercatus
When states go broke ~ AEI
- David Skeel makes a persuasive case arguing states should be allowed to enter bankruptcy
- State employees would likely be more careful in their pension demands, wondering if promises are real.
- Some debt is extremely difficult to renegotiate outside of bankruptcy
- Sacrifices shared between employees, recipients of services and taxpayers.
- Default or government rescue only options currently should California face trouble, alternative preferable
China’s Aristocratic Class reasserting influence to protect business ties ~ NYT – little chance of reform without a crisis World:
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