The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
The verdict is in. The Fed's emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed. Yields on two-year US Treasuries plummeted to 1.63pc on Friday in a flight to safety, foretelling financial winter.The debt markets are freezing ever deeper, a full eight months into the crunch. Contagion is spreading into the safest pockets of the US credit universe.
Yields on two-year US Treasuries plummeted to 1.63pc on Friday in a flight to safety, foretelling financial winter.
The debt markets are freezing ever deeper, a full eight months into the crunch. Contagion is spreading into the safest pockets of the US credit universe.
Granted, any attempt to rescue the credit system for the benefit of the "real" economy will make good on some (most?) of the speculative (hence inflationary?) asset bubble of the past five years, but I believe that is necessary.
A "Second New Deal" would ensure that measures are put in place to ensure the impact of inflation on the working poor, who had no part in causing this problem, is minimized, and that those responsible for the financial asset bubble pay the cost of that social support. We have met the enemy, and he is us — Pogo
I second your "Second New Deal" idea, though I prefer Chris' revolution.
Related remark - John Williams (shadowstats) predicted this past year's performance in December, 2006. I wrote to him the other day, trying to gauge any interest in co-ops or re-regulation. He's a sort-of libertarian, but he said that such approaches sound interesting to him now - except that it's too late. Stagflation = death this time - no way out.
Robert Reich has been preaching higher taxes on the rich and earned-income-credit for the poor lately. Sounds OK to me, too. paul spencer
I don't see why there would have to be no way out of stagflation this time around. We have met the enemy, and he is us — Pogo
As to John Williams' comment, I was just musing. Actually, I was amused that he would entertain the idea of co-ops or regulation, given his basic philosophy. Then he was sort-of emphatic that we were submerged in quick-shit. No, I don't agree with him about the future - just the present. paul spencer
by gmoke - Nov 28
by gmoke - Nov 12 7 comments
by gmoke - Nov 30
by Oui - Nov 3010 comments
by Oui - Nov 2837 comments
by Oui - Nov 278 comments
by Oui - Nov 2511 comments
by Oui - Nov 24
by Oui - Nov 221 comment
by Oui - Nov 22
by Oui - Nov 2119 comments
by Oui - Nov 1615 comments
by Oui - Nov 154 comments
by Oui - Nov 1319 comments
by Oui - Nov 1224 comments
by gmoke - Nov 127 comments
by Oui - Nov 1114 comments
by Oui - Nov 10
by Oui - Nov 928 comments
by Oui - Nov 8
by Oui - Nov 73 comments