Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Greece

Is Puerto Rico America’s Greece?

This article appeared online at TheNewAmerican.com on Monday, July 6, 2015: 

After running deficits every year since 1973 and paying for them by borrowing, the U.S. commonwealth of Puerto Rico has finally run out of options. On June 28, the island’s Governor Garcia Padilla admitted that its $73 billion “debt is not payable.… We will [shortly] be in a death spiral.” Padilla added: “There is no other option. I would love to have an easier option. This is not politics, this is math.”

The math is persuasive.

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Greeks Shout “NO!”

This article was published by The McAlvany Intelligence Advisor on Monday, July 6, 2015:  

Greek citizens shouted “No!” to further austerity measures for the hapless country in exchange for more of what got it into trouble in the first place: other people’s money. The lopsided 60-40 vote astonished telephone pollsters, who predicted a much narrower victory for Greek Prime Minister Alexis Tsipras of the far-left Syriza party. Although the issues were far more complicated than the referendum made it appear, the 68-word ballot question made it easy: do you want more increases in taxes, more cuts in pension benefits, another increase in the VAT … or not?  Translated into English, the ballot read:

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Greece to the EU: NO!

This article was published online at TheNewAmerican.com on Monday, July 6, 2015:  

In an astonishing blow to the European Union’s credibility, Greek voters, fed up with five years of austerity, continuing recession, 25-percent unemployment, and severe cuts in pension payouts, strongly said “No!” at the ballot box Sunday. The 68-word ballot question, rejected by 61 percent of the voters, reads (translated into English):

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Will Sunday’s Greek vote Signal the end of Monnet’s Dream?

This article was published at The McAlvany Intelligence Advisor on Friday, July 3, 2015:  

Greece’s Prime Minister Alexis Tsipras said that Sunday’s vote is only about accepting or rejecting the troika’s terms to restart the flow of bailout funds that has been keeping the Greek economy from tanking. He said that a “no” vote “does not mean rupture with Europe but a return to Europe with values.”

Most assuredly Sunday’s vote is likely to, in hindsight, turn out to be much more than that. Historians might write that Sunday, July 5, 2015, ended Monnet’s dream.

Monnet was the architect, the primary driving force, behind the failing experiment in Europe called the European Union. He was head of the first genuine European executive body,

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Greek Referendum to Determine European Union’s Viability

This article appeared online at TheNewAmerican.com on Thursday, July 2, 2015: 

Cover of "Confessions of an Economic Hit ...

The latest polls show that on Sunday Greek citizens are likely to reject the terms of the bailout from the troika — the European Union, the European Central Bank (ECB), and the International Monetary Fund (IMF) — but by a steadily decreasing plurality. Before Prime Minister Alexis Tsipras announced the referendum, polls showed voters were opposed to the bailout terms, 57 to 30 percent. When the banks closed and citizens were restricted to withdrawing just $67 a day from their ATMs and pensioners couldn’t cash their checks, polls showed a narrowing, 46 to 37 percent.

Tsipras repeatedly said that the referendum is only about accepting or rejecting the terms imposed by the troika, not about leaving the euro or the European Union: “No does not mean rupture with Europe but a return to Europe with values.”

Citizens weren’t impressed and

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Do Negative Interest Rates Portend a Negative Economy?

This article first appeared online at TheNewAmerican.com on Monday, May 4, 2015:

Last Thursday the London Daily Telegraph’s assistant editor, Jeremy Warner, reported an astonishing statistic: Almost a third of all government debt in the eurozone is paying negative interest rates. That’s more than $2 trillion in government bonds, and, it appears, investors are happy that they aren’t paying even more.

Fifty percent of French bonds now trade with a negative yield, while 70 percent of Germany’s bonds trade at a negative yield. More remarkably, in Spain, which was on the verge of insolvency just a few years ago, 17 percent of its government bonds now trade with a negative yield.

This is counterintuitive, which explains why Keynesians, those who believe that “demand” in an economy can be artificially increased by manipulating taxes and the money supply, have no explanation for it. In theory,

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Boston University Economist Calls Out Congress on Enormous Fiscal Gap

This article first appeared online at TheNewAmerican.com on Thursday, March 12, 2015:

Logo of the United States Government Accountab...

Logo of the United States Government Accountability Office

During his annual trek to Washington, D.C., to lecture Congress on its spendthrift habits, Boston University economist Laurence Kotlikoff took the gloves off this year. He dressed down Senator Mike Enzi, chairman of the Senate Budget Committee, along with the committee’s members:

Let me get right to the point. Our country is broke. It’s not broke in 75 years or 50 years or 25 years or 10 years.

 

It’s broke today.

 

Indeed, it may well be in worse fiscal shape than any development country, including Greece.

It isn’t just Enzi, or his committee, or the present Congress, that’s responsible for a fiscal gap that’s vastly larger than that projected by the Congressional Budget Office (CBO). It’s the idea that the country can borrow without limit because

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U.S. Government’s Interest Costs to Quadruple in 10 Years

This article first appeared online at TheNewAmerican.com on Thursday, February 5, 2015: 

On Tuesday, the Wall Street Journal reported that the federal government will be paying $800 billion annually just to service the interest on its massive debt by 2025, up from just over $200 billion currently. By 2021, those interest costs will equal what the government is projected to be spending on national defense, and on non-defense (so-called “discretionary” items), and will greatly exceed those two budget items just by 2025. The Journal also noted that “non-discretionary” items (so-called “mandatory” expenditures) will continue their inexorable march upward, from $2 trillion currently to more than $4 trillion by 2025.

Surprisingly, few eyebrows were raised over the announcement,

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Latest CBO Report shows Deficits Approaching $1 Trillion

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, February 4, 2015: 

English:

When the Congressional Budget Office issued its Budget and Economic Outlook 2015 to 2025 in January, few could be bothered to do a serious review of it as it seemed to contradict the present meme of the Goldilocks economy: job growth accelerating, interest rates low, consumer confidence improving, deficits shrinking, and so forth. Even those taking the time to look at it, scoffed at its conclusions. Said the CBO:

The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018.

Beyond that point, however, the gap between spending and revenues is expected to grow, further increasing federal debt … which is already historically high.

The CBO explained why:

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The Bubble in the Caribbean: Puerto Rico

This article was first published at The McAlvany Intelligence Advisor on Wednesday, October 30, 2013:

The complacency of municipal bond holders ended in July with the filing for bankruptcy by Detroit, an unhappy town of just 700,000 owing more than $18 billion to investors. Haircuts there have variously been estimated to be between 15 and 60 percent.

Since then, those holders have been looking around to find the next shoe to fall, and they have found it:

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Why are Puerto Rico’s Bond Prices Falling?

Despite the fact that Puerto Rican (PR) municipal bonds are triple-tax-exempt (no federal, state or local income taxes apply on their interest), those interest rates have skyrocketed since the Detroit bankruptcy first ended the complacency among municipal bond investors in July. High quality municipal bonds are paying little more than 1 percent annually but PR bonds, even though they remain investment grade (barely), have spiked

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University of California Study: The National Debt is really $70 Trillion

Professor James Hamilton, economics professor at the University of California, San Diego, just published his best estimate of the federal government’s “off-balance-sheet” liabilities and concludes that the real national debt, popularly estimated to be $16.9 trillion, is in fact more than four times larger: $70.086 trillion. This is because of decisions to

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Staff Report from the IMF Blames the European Union for Mishandling the Greek Crisis

The report from the International Monetary Fund is remarkable in its candor: efforts to bail out Greece were fumbled as the IMF, the European Commission and the European Central Bank all tried to promote their own agendas with little regard for the lowly Greek citizen.

Happily the disclaimer appeared on the front page:

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Taxpayer Protection Pledge Takers Now Breaking Their Promise

U.S. Senator Saxby Chambliss, of Georgia.

U.S. Senator Saxby Chambliss, of Georgia. (Photo credit: Wikipedia)

A defection on Thursday from Grover Norquist’s “Taxpayer Protection Pledge” by Saxby Chambliss, the senior Republican Senator from Georgia, triggered similar defections over the weekend. It also triggered a strong response from Norquist.

Said Chambliss: “I care more about my country than I do about a 20-year-old-pledge. If we do it his way then we’ll continue in debt, and I just have a disagreement with him about that.”

The pledge that Chambliss is breaking states:

One, [I will] oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses; and

Two, [I will] oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates.

This reflects the philosophy of Norquist and the organization he founded in 1985, Americans for Tax Reform, that “opposes all tax increases as a matter of principle.” Norquist explained why the pledge was

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Making Sense of Europe’s Nonsense

The official emblem of the European Parliament.

The official emblem of the European Parliament. (Photo credit: Wikipedia)

Anthony Wile is at it again. While most were caught up in the national election and the aftereffects of Hurricane Sandy and General Betrayus, Angela Merkel, the German Chancellor, explained what the implosion in Europe is all about. In speaking to the European Parliament last Wednesday, she shed all cover and told all who would listen what’s really going on:

Of course the European Commission will one day become a government, the European Council a second chamber and the European Parliament will have more powers – but for now we have to focus on the euro and give people a little more time to come along.

Wile has been saying this for years. That’s part of why his blog has grown so rapidly: he sees with a view and an insight that truth seekers appreciate. Out of 644 million active websites  Alexa ranks www.thedailybell.com at 16,991 in the United States. More than 6,700 people come to his Switzerland-based website every day. And his readership has grown 60% just in the last three months.

He’s like the 500-pound canary: when he speaks, people listen!

He notes that the European Union was always, from the very beginning, designed with

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Myths About the Marshall Plan

Logo used on aid delivered to European countri...

When establishment historians consider the Marshall Plan, its intents and purposes and alleged successes, they typically make at least two errors–one in logic and the other in history. First, they assume that since Europe began to revive at about the time the Marshall Plan was implemented then that revival must have been because of the plan, not in spite of it.

Second, they fail to make any mention of the forces in the background that had a much different purpose in mind: specifically, how to use the Marshall Plan to further their internationalist agenda.

One example of a “court historian” providing his readers with the accepted view of the Marshall Plan is Robert V. Remini, professor emeritus at the University of Chicago, and author of numerous books on the American republic’s early figures, such as Andrew Jackson, Henry Clay, John Quincy Adams and Daniel Webster. In 2005 Remini was appointed the Historian of the U.S. House of Representatives. Remini thus serves as the perfect example of someone who knows his history but fails to tell all he knows, especially when it comes to the Marshall Plan.

In his “A Short History of the United States” Remini had this to say about the Marshall Plan:

Secretary of State, George C. Marshall, then devised a plan, which he outlined in a speech at Harvard University on June 5, 1947, by which the United States would assist European nations to rebuild their shattered economies…

Between April 1948 and December 1951, the United States contributed a little over $12 billion to Europe…

By 1951 Europe had not only achieved its prewar level of production but its level of industrial production rose to virtually guarantee prosperity for the future…

There it is: the United States, out of the goodness of its heart, gave five percent of its gross national product with no strings attached to European nations to help them get back on their feet. And it worked!  Look! By 1951 Europe had fully recovered!

It is tempting to ascribe malevolent intentions to Remini. But that does not preclude asking some questions and pointing out some errors of commission and omission in his establishment view. For instance, who

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Eurozone Teetering on the Edge of Recession

The economic growth of Portugal, Italy, Irelan...

With economists predicting the start of an official recession in Europe, the latest numbers from the European Union’s statistics agency, Eurostat, show that the recession hasn’t been confirmed, at least not yet.

Without Germany’s slightly better economic performance in the first quarter, however, the recession would be official. Two quarters of “negative growth”—or rather shrinkage—is the usual definition of a recession, and it appears that the official declaration will have to wait until July. Germany was expected to grow at a paltry annualized rate of 0.1%—barely perceptible—but instead grew by a modest 0.5% in the first quarter, which followed a 0.3% contraction in the last quarter of last year. Some economists had the audacity to call this a “strong economic performance” by Europe’s powerhouse, but a closer look at the real numbers reveals how close a call it was and that it’s just a matter of time before the economists finally recognize the reality that

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French Elections: Austerity, No! More Spending, Yes!

François Hollande à Saint-Cyr-sur-Loire

By a three-point margin, French citizens replaced President Nicolas Sarkozy with the Socialist and Radical Left Party candidate, Francois Hollande. Hollande, a former mayor of Tulle (pop. 15,000) and then president of Correze (pop. 242,000), beat Sarkozy 51.9% to 48.1%, resulting in the first Socialist president of France since Francois Mitterand left that office in 1995. With Socialist Party majorities in the upper house of parliament and two-thirds of all French towns, a win by the party in the upcoming June elections in the lower house would give the Socialist Party “more levers of power than ever in its 43-year modern history,” according to NewsMax.com.

With such control, Hollande knows exactly what he is going to do: apply what France is already suffering from, only more so. He wants to spend more money even in the face of the agreement recently signed with German Chancellor Angela Merkel to cut spending in order to save the banks and the euro. His campaign slogan, “Austerity is not inevitable,” Hollande is persuaded that he can do the impossible: spend more and balance the budget at the same time. He plans to:

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Iceland Says “No” to Bank Bailouts, Enjoys Economic Growth

THE GRAND KREMLIN PALACE, MOSCOW. President Pu...

To look at the streets of Reykjavik, Iceland, an alien would be hard-pressed to see any aftereffects of the banking crisis that nearly bankrupted the country in 2008. The capitol of the 40,000-square-mile island just below the Arctic Circle between Greenland and the United Kingdom is the country’s largest city where nearly two-thirds of the island’s 320,000 inhabitants reside. Unemployment is down, economic growth is positive, and its streets are calm.

But it was the center of the financial crisis precipitated in 2008 when one of its three largest banks had a big loan payment coming due and couldn’t come up with enough krona to make it.

As Iceland’s President, Olafur Ragnar Grimsson, said in an interview with Business Insider International:

If a collapse in the financial sector can bring one of the most stable and secure democracies and political structures to [its] knees as happened [here] in Iceland, then what could it do in [other] countries?

When Iceland’s legislature decided to take over the country’s three largest banks—Glitner, Landsbanki, and Kaupthing—it was discovered that, despite all four credit rating agencies giving them A or better credit ratings, the banks owed an amount that approached six times Iceland’s gross domestic product (GDP). Grimsson, who has been President of this parliamentary republic since 1996, had a decision to make: pump government (taxpayer) funds into them to keep them afloat, or

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Group of 20 Balks, Stalls and Dithers

Español: Foto de familia de líderes del G20 en...

The Group of 20 meeting in Mexico City over the weekend decided that the best course of action was inaction, putting off making any decisions on how to “rescue” the European Union from its financial and economic difficulties until next month at the earliest. The statement justifying kicking the can down the road for another month or so was breathtaking in its obfuscation: putting off any decisions, it said, “will provide an essential input in our ongoing consideration to mobilize resources…” This is how finance ministers and world economic experts explain that, after two days of meetings, the best thing to do was nothing at all.

There were great expectations before the meeting ended that something of substance would come out of it. The plan was not only to pave the way for the second bailout of Greece but for each of the G-20 members (including the U.S. and most of the other industrialized nations on the planet) to pony up additional taxpayer funds to the International Monetary Fund (IMF) which would then be used, at its discretion, to bail out over-indebted countries like Greece, Portugal, Spain, and others as they need them. Expectations were that commitments totaling $1 trillion would be made before the end of the meeting on Sunday.

Plans went awry when Germany’s Chancellor Angela Merkel, responding to pressure from more sensible voices, said Germany would be unable to participate in any further assistance. This reluctance no doubt stems from the fact that the German parliament, the Bundestag, still hasn’t

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.

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