The sad fact of the matter is that Detroit suffers today from international trade and international financial policies of the past two decades that many leading international economists embraced.
Read more...Yanis Varoufakis provided the English translation of a new interview with James Galbraith published in Suddeutsche Zeitung. Galbraith focuses on institutional arrangements, the need for restructuring and reform, and constraints on growth.
Read more...Only a small part of the TransPacific Partnership is about trade as such. Most chapters are on other issues, like services, investment, government procurement, disciplines on state-owned enterprises and intellectual property.
Joining the TPP or similar free trade agreements will mean the country having to make often drastic changes to existing policies, laws and regulations, which will in turn affect the domestic economy and society.
Read more...The financial crisis was brutal for Germany, but the recovery was steep. A key element is the relentless drive to export. But the German “success recipe” looks to be losing its luster.
Read more...Yves here. Readers presumably know that the US departs from the practice of pretty much every country in the world in taxing its citizens on worldwide income. Spain is breaking new ground in making citizens and residents declare foreign assets…which most see as a precursor to taxation. And of course, a move to tax out of country income or assets will increase the interest of countries to do more intensive snooping into the financial affairs of their inhabitants.
Read more...Despite all the consternation in the US about Edward Snowden’s revelations about the extent and intensity of snooping in the United States, it isn’t clear that the surveillance industry is even breaking a sweat. But the government and public uproar in Europe about US snooping on its supposed allies may change that pronto.
Read more...This segment focuses on some elements of the Senate bill that appear to be under the radar as far as media coverage is concerned. First is that the bill does not provide a path to citizenship for a significant portion of the current illegal immigrant population (frankly that’s been a feature of past immigrant “reform” bills too; the Hispanic community may have been promised more than it was ever going to have delivered on this front). Second is that is includes a large budget to militarize the border with Mexico.
Read more...An Obama tour of Africa is likely to provide a marker of he is perceived in the rest of the world, although any negative reports are unlikely to get much play in our lapdog media. But since Obama was shunned in the recent G-8 conference, it’s going to be interesting to see how his African hosts muster up the appearance of enthusiasm during his visit.
Read more...The idea was to de-couple the banking from the debt crisis. The reality is that they propose to do nothing of the sort. And deposits are now officially at risk.
Read more...Yves here. As China has become more powerful economically, and is building up its navy (a substantial navy is a precondition of being a true superpower), some pundits have taken to anticipating a world where US cedes dominance to China over a protracted and likely unstable transition period, using the decline of the British Empire and the rise of American influence as a guide.
That’s unlikely to be the right frame of reference.
Read more...Has Sherrod Brown started to follow Obama’s lead in the bait and switch category? Elizabeth Warren showed a lot more spine than he did in an trade-related vote on Wednesday.
Read more...Japan’s attack in the Currency War was supposed to make it more competitive in international trade – but that, it failed to do. In fact, the opposite occurred.
Read more...OK, you remaining Obama fans: tell me why we should trust the biggest baiter and switcher in the history of the Presidency, particularly when he insists on unprecedented levels of secrecy? Because he has nice teeth and cute kids?
Read more...Yves here. The consensus view among experts, despite considerable public opposition in Germany, is that the German Constitutional Court will not upend the Eurozone bailout mechanisms by ruling in favor of challenges to their legality. This confirms the policy issue that Dani Rodrik flagged in 2007: you can’t have national sovereignity, democracy, and deep integration of markets at the same time. You can have at most two of the three. Sadly, Europe looks ready to settle on only one on that list.
Read more...Apparently, the most important criterion for getting an important post in the Obama Administration is telling Big Lies, better yet with data. Jason Furman claims Walmart is a “progressive success story.”
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