Author Archives: Yves Smith

Links 11/9/13

Yanis Varoufakis: Ponzi Austerity – A Definition and an Example

For a while now I have been arguing that Europe’s policies for reducing the public debts of fiscally stressed member-states can be described as a Ponzi austerity scheme. In this post I attempt precisely to define ‘Ponzi austerity’.

Is Google Assisting the NSA in Developing Psychological Profiles of Web Users?

Google sure looks like it wants to profile you psychologically.

Links 11/8/13

Student Debt is Crushing the Economic Future of the Young

If a bad job market wasn’t damaging enough, the cost of paying off student loans does much more harm to the long-term prospects of young people than is commonly realized.

Philip Pilkington: What Happened to Science and Research Funding?

Once again, if you want to understand what has gone wrong with the funding of research, economists bear a lot of the blame.

Gaius Publius: Japanese Mafia Feared in Charge of Fukushima Cleanup

Yves here. This post by Gaius not only reports on the latest rumors surrounding the Fukushima clean up (such as it is) but also the huge danger the site poses to Japan and the US if it is not stabilized.

Links 11/7/13

Michael Olenick: Obamacare Will Lead Me Either to Get Divorced or Leave the US

Yves here. While readers may contend that Michael Olenick’s case is an outlier and anecdotes are not the same as data, the extreme secretiveness of the Obama Administration combined with deliberately misleading statistics leads one to give some weight to anecdote in the absence of better facts.

Ilargi: Sometimes Humor Is The Best Way To Tell A Tragic Story

Yves here. This article is a portrait of official denial, which is then dutifully taken up and amplified by the media (well, not universally, but widely, as Ilargi’s post also demonstrates). It corroborates one of my pet theories: that we are at the end of an economic paradigm. The powers that be lack the will and imagination to do anything other than patch it up and put it back into operation. That simply assures more frequent breakdowns until the system is beyond repair.

Links 11/6/13

Your Humble Blogger Discusses the Pending Trade Deals and JP Morgan on Le Show!

I really enjoy speaking with Harry Shearer, both for his engaging manner and his thorough preparation. I also hope you’ll see fit to circulate this interview, since the more attention we can bring to this plan to legalize corporate pillage, the better.

Has QE Stimulated Credit?

Yves here. As much as the post below is a very useful recap of data in terms of the impact of QE, I need to hector “Unconventional Economist” for being pretty conventional. His headline question, whether intentionally or not, reinforces the notion that it was reasonable to think that QE, or super low rates generally (as in ZIRP) would lead to increase lending….

Bob Dreyfuss: American Death Spiral in the Middle East

Yves here. I thought it would be useful to feature a post on geopolitics, since America’s declining standing in the world plays directly into domestic politics. The classic guns v. butter issue is a big part of the coming budget battle. One of the reasons that both parties would like to reach a deal in December is that another round of sequester cuts will otherwise kick in in January.