Brazil’s economy is slowing, but the government is increasing its primary surplus by cutting spending, which could slow the economy more. In June, industrial production fell by 1.6 percent, and economic activity fell for the first time since 2008. Although monthly figures are erratic and don’t necessarily indicate any trend, the overall picture raises questions […]
Subjects Archives: Financialization
A First Ever Default? Closing the Gold Window, Forty Years On
During the recent “Debt Ceiling” debacle, many warned that the failure to lift the debt ceiling would lead to a “first ever” US default and to numerous financial catastrophes, including the demise of the U.S. dollar as the world’s reserve currency. “First Ever Default?” Think again. Forty years ago this month, on August 15, 1971, […]
Venezuela and Iran to Raise Levels of Coordination at OPEC in View of Financial Crisis
Communiqué The president of the Bolivarian Republic of Venezuela, Comandante Hugo Chávez, communicated by telephone with the president of the Islamic Republic of Iran, Mahmoud Ahmadinejad, in the afternoon of the 15th of August, 2011. President Ahmadinejad said to President Chávez that, in this sacred month of Ramadan, he and millions of Iranians are praying […]
Unraveling the Unemployment Insurance Lifeline: Responding to Insolvency, States Begin Reducing Benefits and Restricting Eligibility in 2011
Excerpt: State lawmakers enacted a range of policies in 2011 to amend their unemployment insurance (UI) programs, most of them motivated by insolvent state trust funds. Most notably, six states passed unprecedented cuts in the duration of benefits, for the first time reducing benefit weeks to less than the decades-long accepted standard of 26 […]
Workers’ Assemblies: A Way to Regroup the Left?
Herman Rosenfeld is a member of the Canadian Socialist Project and the Greater Toronto Workers’ Assembly, a new initiative aiming to reinvigorate working class and radical politics in the city. He spoke to Tom Denning about the methods and activities of GTWA and the challenges it faces. Who initiated the GTWA, and with what […]
From Lender of Last Resort to Global Currency?Sterling Lessons for the US Dollar
Financial crises are bad news for the status of the currency in which the turmoil is denominated, right? So the US-made financial crisis must be bad for the dollar, right? And especially so because of the expansive dollar monetary policy that has ensued, right? Ambiguity on What “Strong Currency” Means Several economists appear to […]
Credit Rating Agencies
Rating Agency: “Don’t take it wrong, but some companies are paying me to come here to tell you that you have no future.” Juan Ramón Mora is a cartoonist in Barcelona. This cartoon was first published in his blog on 14 July 2011 under a Creative Commons license. Translation by Yoshie Furuhashi (@yoshiefuruhashi | […]
Price Formation in Financialized Commodity Markets: The Role of Information
Excerpt: The mid-2000s marked the start of a trend of steeply rising commodity prices, accompanied by increasing volatility. The prices of a wide range of commodities reached historic highs in nominal terms in 2008 before falling sharply in the wake of the financial and economic crisis. Since mid-2009, and especially since the summer of […]
On Using the Chained CPI for Social Security Cost of Living Adjustments
There has been considerable discussion of basing the Social Security cost of living adjustment (COLA) on the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) as a “painless” way of generating large budget savings. This view reflects serious confusion about what the switch to the C-CPI-U involves. (The switch would also lead to higher […]
Stop Digging: The Case against Jobs
Much of the left has, mostly without debating it, coalesced around “jobs” as a unifying political demand. The motivation for this is clear: one of the biggest problems the country faces is that there are 20 million people who are unsuccessfully seeking full time employment. But while it may seem obvious that the solution […]
Beyond the Crisis: Markets, Planning, and a Utopian Vision Inspired by the American National Football League
The Crisis, especially in Europe, is all-consuming. Every day our minds are hijacked by its latest twist. Here in Athens, a general strike almost brought the government to its knees and has kick-started a process that will, inevitably, lead to what can only be described as regime change. While history is preparing the next regime […]
Macroeconomic Policy Changes Have Helped Brazil Increase Growth, But Much More Is Needed
From 2004 to 2010, Brazil’s economy grew at an average of 4.2 percent annually, or more than twice as fast as it had grown from 1999-2003; or for that matter, more than twice as fast as its annual growth from 1980-2000. This was despite the impact of the world recession of 2009, which left Brazil […]
Macroeconomic Policy, Growth and Income Distribution in the Brazilian Economy in the 2000s
Executive Summary: The Brazilian economy grew by 4.2 percent annually from 2004-2010, more than double its annual growth from 1999-2003 or indeed its growth rate over the prior quarter century. This growth was accompanied by a significant reduction in poverty and extreme poverty, especially after 2005, as well as reduced inequality. This paper looks […]
The Meaning of Financial Liberalisation
The term financial liberalisation is used to cover a whole set of measures, such as the autonomy of the Central Bank from the government; the complete freedom of finance to move into and out of the economy, which implies the full convertibility of the currency; the abandonment of all “priority sector” lending targets; an end […]
Greece: PAME Occupies Finance Ministry, Calls for General Strike
Since early this morning, PAME members have symbolically occupied the Ministry of Economy and Finance, calling upon workers to rise up and stop the government’s barbaric anti-labor measures. All out for the demonstration today, Omonoia Square, 7 PM. General Strike! The All Workers Militant Front, PAME, is a coordination center of Greek trade unions, founded […]
Storming JPMorgan Chase Shareholders’ Meeting
Over 800 homeowners, clergy, and workers converged in Columbus, Ohio to directly confront JPMorgan Chase and deliver a message that Wall Street banks need to pay their fair share and stop foreclosing on America. For more information, visit <npa-us.org>, <ohorganizing.org>, and <showdowninamerica.org>. var idcomments_acct = ‘c90a61ed51fd7b64001f1361a7a71191’; var idcomments_post_id; var idcomments_post_url; | Print
The Euro Crisis as a Twin Recycling Problem: A New Rationale for the “Modest Proposal”
1. Introduction: The Twin Recycling Problems in Brief Europe’s crisis is caused by its institutional failure to confront two recycling problems: a debt recycling problem and a surplus recycling problem.
Congratulations to the People of Iceland!
10 April 2011 Congratulations to the people of Iceland! The Repudiate the Debt Campaign welcomes and applauds the decision of the people of Iceland to reject the bank bail-out that would subsidise the wealthy elite. They showed great courage in rejecting the terms and conditions and in resisting the pressure from the European Union […]
House Prices Continue Sharp Decline
The Case-Shiller 20-City index fell sharply again in December, dropping a full percentage point from its November level. This is the third consecutive month that it has fallen by at least 1.0 percent. It is now down by 4.3 percent from its peak in July. Nineteen of the 20 cities had a drop in prices. […]
In Opposition to Ohio Senate Bill 5
Testimony before the Insurance, Commerce, and Labor committee, 17 February 2011 Statehouse Mobilization against SB 5 and Kasich’s Anti-Worker Agenda Date: Tuesday, February 22, 2011 Time: 1 PM Location: Ohio Statehouse, 1 Capitol Square, Columbus, OH Click here for more info. My name is Sherry Linkon, and I’m John Russo. Thank you for giving […]
