Sad reality
MADRID | By Alex García and @Mi_Bombin
In the World
Austerity, The Savings Paradox or The Confederacy of Dunces
MADRID | By Luis Arroyo | Some people consider the external surplus of southern countries in the EU as the ultimate proof that the austerity process was a success. But they are wrong. The reality is that everybody is increasingly saving more money –even wealthy people… but nobody is consuming.
NSA Spying Scandal: Obama Puts In Place PR Damage Control
NEW YORK | By Ana Fuentes | As the NSA spying scandal spreads, the White House is profusely working on damage control. Last night it reported that no final decision has been made, but many officials are already talking of cutting the NSA wings in some way. To reinforce this message, yesterday President Obama came off as special guest on Fusion, a new cable channel for millenials and a highly anticipated television release. Also, Senate intelligence committee chair Diane Feinstein, who used to be a loyal defender of NSA activities, called for a total review of its powers.
China’s Property Bubble: Pick Your Poison
BEIJING | By Andy Xie via Caixin | Officials are showing little enthusiasm for dealing with the property bubble, and if they do not act, market forces will do it for them.
U.S. spying scandal: The real transatlantic confidence crisis
MILAN | By Alessandro Plateroti at Il Sole 24 Ore via Presseurop | Viewed from Europe, the NSA spying scandal is eroding US credibility and standing. But from the other side of the Atlantic, it is the EU’s continuing inability to solve the economic crisis that is worrying American decision-makers.
OPEN DEBATE: Nominal Stability- Christy Romer ‘strikes’ again
SAO PAULO | By Marcus Nunes | Friday evening Christina Romer gave the Sumerlin Lecture at Johns Hopkins University. The lecture was called “Monetary Policy in the Post-Crisis World: Lessons Learned and Strategies for the Future.” She touches on many bases, some suspect, like when she says “Financial stability is job number one of any central bank. Without that-nothing else matters”. Saying “Nominal stability” would have been closer to the thruth.
U.S. Spying on EU: Is White House Damage Control Version Credible?
NEW YORK | By Ana Fuentes | According to the White House, during the almost 5 years that the NSA was eavesdropping EU leaders, Obama had no clue. How can the leader of the most powerful economy in the world, who commands drone attacks and missions to the outer space, not know that their intelligence services are monitoring its European partners?
Inflation… Trapped!
SAO PAULO | By Marcus Nunes | One thing MMs have been saying for a long time is “stop talking about inflation”. But everyone else insists on doing so and now they are trapped.
Starbucks in China: Prices Are as Plain as Black Coffee
BEIJING | By Qiao Xinsheng at Caixin | Why is a latte more expensive in Beijing than London? Because China is an emerging economy forcing hidden costs on companies and Britain isn’t.
China: Deflating Property Bubble Fears
NEW YORK | By Junheng Li at Forbes via Caixin | The assumption that China’s housing market is out of control ignores many facts, most importantly that homeowners are not deeply indebted.