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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
In a few hours, our European leaders will emerge from their meeting, with a, supposedly, comprehensive package by which to deal with the euro crisis. Personally, I am not holding my breath. It is not that such a package is hard to put together (goodness knows this blog has made a meal of the availability […]
As Europe awaits with bated breath tomorrow’s ‘Comprehensive Solution’ to the European crisis, my good friends and colleagues Riccardo Bellofiore and Joseph Halevi kindly offered the following thoughts on the subject.
Regulars of this blog will know that 31st January 2011 was my deadline for finishing my new book, THE GLOBAL MINOTAUR: America, the True Oirigns of the Financial Crisis, and the Future of the World Economy. Well, I missed my deadline. By two hours and thirty six minutes! As deadline misses come, it was not […]
The BBC Radio 4 program Broadcasting House (a Sunday morning magazine program), hosted this radio essay of mine. The text is also available here.
Only yesterday, I was asked by BBC Radio 4 to produce a short comment on how seismologists differ from economists. The idea originated from a comment I made some time ago that both disciplines are terrible at making predictions but economics is, in fact, worse (in another important regard). The piece will be broadcast on […]
In response to my post Why is Europe dithering? George Krimpas sent me the following. It may well be he is right. But what does everyone else think?
The rumour of a buy back of the Greek debt began with an email sent by German daily Die Zeit. My last post explained why this idea ought to be treated with contempt. Soon after, Die Zeit Online featured an article by Mark Schieritz that makes the same point. Here is a summary of his argument: The […]
A recent report by German daily Die Zeit filled the newspaper columns and our television screens with rumours of a brilliant solution for the Greek debt. And when Reuters and Bloomberg beamed it around the world, false promises of a final resolution for the euro crisis began to spread like a bushfire. In this post I […]
So, Europe’s leadership, under German pressure, decided to postpone any decision on how to tackle the euro crisis until the end of February, or even March. Hiding behind the ECB’s agonising and costly attempts temporarily to contain the periphery’s spreads, the eurozone has decided to do what it is best at: To dither a little […]