How exactly did the US Treasurer, Tim Geithner, recapitalise US banks? A comparison with Europe's 'strategy'

, 18/03/2011

In my last post, I compared the US and the EU approach to the post-2008 banking crisis, suggesting that Europe perpetuates the zombie state of its banks. Here are relevant extracts from Chapter 7 of my forthcoming Global Minotaur:

What should we do with Europe's zombie banks?

, 16/03/2011

I think that regular readers  can predict my answer. It is the one that in fact any banker would, in a fit of honesty, give you: Non-performing loans must be deleted from the banks’ books. Same with derivatives that stand no chance of finding a market/buyer. These nonperforming paper assets weigh banks down and ensure […]

Modest Proposal 2.0, as presented at the European Party of the Left Athens Conference, on 12th March 2011

, 15/03/2011

This post is for those of you who wanted to read my presentation of the Modest Proposal  Version 2.0  at the conference on the Debt Crisis organised by the European Party of the Left, 12th March 2011,  in downtown  Athens. The text follows. (As it happened, a dearth of headphones meant that most of the […]

Tobin's tax and the parlous state of our European democracy

, 15/03/2011

Did you know that the Greek government managed, through heroic and brilliant bargaining, to extract from the latest Eurozone Summit an agreement that the Tobin tax will, at long last, see the light of day – at least in the eurozone? Well, nor did I. But apparently, this is precisely what happened, if the Greek […]

The ECB's new role, as foreshadowed in the Modest Proposal: Q&A with a reader

, 14/03/2011

In this post I continue my Q&A with Manos Makrakis on our Modest Proposal 2.0. Tomorrow I continue with some important points raised by Jan Toporowski. 

Breaking News: No Redemption for Greece, for Ireland or for Europe. And an interesting query regarding the ECB's role under the Modest Proposal

, 12/03/2011

Sad news from the EU summit (that the media are presenting as yet another ‘breakthrough’): Just  heard the news that our EU leaders are making progress in reaching an agreement on extending the Greek EU-IMF loan repayments by a few years and reducing the interest rates for Ireland by 1%. The possibility of allowing the […]


, 11/03/2011

A few months ago, Stuart Holland and I tabled our Modest Proposal for Overcoming the Euro Crisis. Then we gave it a redux for the New Year. As the Crisis is deepening, and in view of the forthcoming 25th March EU Summit which, we were promised, was meant to culminate into a Comprehensive Solution for […]

The Minotaur’s Global Legacy, Part E – The rise of China

, 08/03/2011

In today’s post I conlcude the region-by-region assessment of the impact of the Global Minotaur’s demise post-2008. Previsously, we delved into the triangular relationship between Japan, East Asia and the USA, recalled Germany’s peculiar engagement with the rest of Europe (see here) and, lastly, re-visited the eurozone crisis.

The Minotaur’s Global Legacy, Part D – A brief history of a very European debacle

, 07/03/2011

The  region by region assessment of the impact of the Global Minotaur’s demise post-2008 today proceeds to an analysis of the eurozone crisis. Having just looked at the story of Germany’s European engagement (see here), and after having scrutinised the triangular relationship between Japan, East Asia and the USA), we are (I hope) ready for a […]

The Minotaur’s Global Legacy, Part C – Germany's Europe

, 06/03/2011

The  region by region assessment of the impact of the Global Minotaur’s demise post-2008 continues in today’s post  with a close look at Germany and its attempt to remould Europe in its image. (The last posts looked at developments in the triangular relationship between Japan, East Asia and the USA).

The Minotaur’s Global Legacy, Part B – Wounded tigers: Japan, America and the South East Asian crisis

, 05/03/2011

Today I continue with a region by region assessment of the impact of the Global Minotaur’s demise post-2008. The last post looked at Japan. This one focuses on the nexus between Japan, SE Asia and the USA

The Minotaur's Global Legacy, Part A: The Dimming Sun

, 03/03/2011

On 25th March, European leaders have promised us a comprehensive solution to the eurozone risis. I am not holding my breath but, at the same time, I am redrafting the Modest Proposal for resolving the crisis. It will appear in this blog next week. In the meantime, I return to my Global Minotaur theme. The […]

The Road to Bankruptocracy: How events since 2009 have led to a new mode of reproduction

, 02/03/2011

Today I am continuing the narrative of my forthcoming book  The Global Minotaur. The last post on the matter chronicled the Crash of 2008 (for all the previous posts on the Minotaur click this archive). My  chronicleended abruptly and arbitrarily toward the middle of 2009. It reads like a breathless horror story. Unlike its Hollywood equivalents, […]

Of Debts and Faultlines: Greece and the Euro Crisis in a Global Context

, 28/02/2011

On Thursday 24/2, a one day workshop was organised by the European Union Studies Centre and the National Seoul University (S. Korea) at the latter’s campus in Seoul. The title of the workshop was:  Crisis and the future of European Integration: Implications for Asia. I was honoured with an invitation to open the workshop. Here […]

The Crash of 2008 – lest we forget

, 26/02/2011

So far (see the category The Global Minotaur), we have seen examined the constituent parts of  the peculiar global surplus recycling mechanism of the second postwar phase (to which I have given the label Global Minotaur). We saw how it caused financialisation and the global imbalances that everyone is talking about today. Then, all of […]

The fifth of the Global Minotaur's Handmaidens: Toxic economic theory

, 22/02/2011

The last two posts examined  four important contributors to the Global Minotaur: to America’s astonishing pre-2008 capacity to attract financing from the capital surpluses of the rest of the world sufficient for the purposes of funding its expanding twin deficits. They were, in turn, (a) the mergers and acquisitions drive, (b) hedging and leverage, (c) The Wal-Mart business model […]

The Minotaur’s Handmaidens Part B: The Wal-Mart business model and Wall Street’s toxic money

, 18/02/2011

In The Minotaur’s Handmaidens Part A, my last post, I looked at two important contributors to the Global Minotaur: to America’s astonishing pre-2008 capacity to attract financing from the capital surpluses of the rest of the world sufficient for the purposes of funding its expanding twin deficits. These two contributors were, on the one hand, the […]

The Minotaur's Handmaidens Part A: Mergers and take overs, Hedging and Leverage

, 16/02/2011

The last post presented the Global Minotaur as a peculiar, yet powerful, Global Surplus Recycling Mechanism (GSRM). Now, I move on to a discussion of the various submechanisms by which the US twin deficits managed to attract financing from the capital surpluses of the rest of the world so that this strange GSRM could operate […]

The Global Minotaur as a most peculiar Global Surplus Recycling Mechanism

, 15/02/2011

Continuing with the story of the Global Minotaur, today’s post looks at it as a most peculiar Global Surplus Recycling Mechanism .(to get up to speed on what this mechanism might be all about, click here) Following the collapse of the Global Plan in 1971, by the end of the 1970s America’s twin deficits had started […]

What attracted so much capital to New York, prior to 2008? The Global Minotaur’s charms

, 13/02/2011

My last post introduced readers to the Global Minotaur, the dynamic by which America’s twin deficits became a mighty ‘beast’ that performed to crucial functions after 1971: First, they provided Japan and Europe with the requisite demand for their industrial surpluses. Secondly, to finance these deficits (US government and trade deficits), the United States managed […]

Surplus recycling, currency unions and the birth of the Global Minotaur

, 10/02/2011

In yesterday’s post, I began to tell the tale of how the USA planned and implemented a Global Plan for the world economy, placing the US administration at the heart of a global Surplus Recycling Mechanism. Today, I have two offerings: One is a brilliant paper by George Krimpas which states the case for such […]

What is a Surplus Recycling Mechanism? An idea going back to Bretton Woods

, 09/02/2011

In yesterday’s post I claimed that Mrs Merkel is right on almost everything except that she seems unaware of the fact that her own wishes will only come true if our currency union is equipped with something that I called a Surplus Recycling Mechanism (SRM). What is an SRM? And why am I saying that […]

My Merkel, right and wrong

, 08/02/2011

Mrs Merkel is right on a number of counts and unless the rest of us, Europeans, acknowledge the strength of her case, there will be no progress in sorting out the mess otherwise known as eurozone. The trick will be to grant her her dues but, also, to point out the logical conclusion of her […]

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