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Open Think Tank Articles

February 26, 2012 | Restoring a NATO Community Through an Economic Opportunity

Joshua Daniel Shainess: The global recession should be viewed as an opportunity to renew a sense of unified identity among NATO member states. By promoting vibrant economies among its member states and avoiding unnecessary commitments NATO will restore its sense of shared community.

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October 4, 2011 | Security Despite Austerity: Improving Europe's Defense

Memo 34: Europe’s defense sector needs reform. To cut costs and improve capabilities, states should consolidate national priorities to enhance political cooperation, streamline their administrative structures, further integrate their militaries and create an open defense market across the EU.

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July 29, 2010 | Europe's Vision Deficit

Guy Sorman: Governments throughout Western Europe are suffering from a dearth of popular support. Leaders from the left, right and center of the political spectrum have all seen drops in approval ratings. They have proven themselves incapable of explaining the economic crisis to their citizens and lack vision.

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May 24, 2010 | Belgian Political Stability and its Implications for the US Economy

Paul Pass: In spite of the present media attention to the economic problems in Greece, a problem is brewing in the heart of Europe that European and American policymakers would be ill-advised to ignore. The possible break-up of the Belgian state might have severe repercussions on the stability of the European Union and negatively affect the US economy as well. For the sake of future transatlantic relations, the US and Europe should pay close attention to the developments in Brussels.

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March 30, 2009 | Global Development Still on Top of Transatlantic Agenda

Marie Grunert: The US and the EU have strengthened their commitment towards global development. Instead of a pretext to concentrate solely on the domestic scene and resort to protectionism, the economic crisis ought to be used as an opportunity to re-define the development strategies in light of the new challenges.

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February 15, 2009 | The Legacy of the Financial Crisis Awaits Us in 2020

Soyen Park: The financial crisis will bring about critical changes to the global order. New markets will emerge, the ECB may disappear, and leading financial institutions may become obsolete. Whatever the case, prudent, coordinated government policy is imperative.

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January 29, 2009 | A Supranational Approach to Rescuing the Global Economy

Memo 12: Atlantic Community members are in agreement that addressing the global economic crisis is intrinsically linked to engaging with the new world order. All nations and relevant parties beyond the Bretton Woods transatlantic partners must be part of the solution.

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January 22, 2009 | Socioecological Innovation: an Alternative Future

Jordan Levine: As populations increase and resources become scarcer, international relations stand to deteriorate. World leaders must combine global trade liberalization with data on the relationship between ecosystem function and human well-being. Mandatory life-cycle assessments are the best way of doing this.

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December 18, 2008 | Re-evaluating Economic Governance In the Financial Crisis

Maie-Brit Rüter: As the financial crisis threatens to also become an economic one, the recent Carlo Schmid Network conference left its most lasting impressions on topics addressing the crisis and possible remedial action. The conclusions: the international economic order is in urgent need of revision. Nevertheless, existing institutions should not be thrown out with the bathwater.

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October 16, 2008 | Too Much Political Meddling Will Only Prolong the Financial Crisis

Jens F. Laurson & George A. Pieler: The economic crisis has brought harmony to trans-Atlantic affairs. Europeans might secretly blame the calamity on US “Casino Capitalism,” but they know they are rowing in the same boat and so cooperation is the order of the day. The stock markets treat this as good news now, but it could easily do more harm than good.

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September 18, 2008 | Asking Financial Markets for a Viennese Waltz

Andreas Kern: This research note by Christian Fahrholz and myself depicts a new line of argument for the current global financial turmoil and especially the recent American financial crisis.

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April 7, 2008 | The $100 Barrel: Long Term Gains, Short Term Costs

Memo 5: Members of the Atlantic Community are more concerned about the short term consequences than the potential long term benefits of the current high oil price.

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Global Must Read Articles

September 3, 2012 | Think Tank 20: New Challenges for the Global Economy, New Uncertainties for the G-20

The Brookings Institution, along with its think tank partners, has published the fourth edition of Think Thank 20 entitled “New Challenges for the Global Economy, New Certainties for the G20,” which was written in anticipation of this year’s G-20 summit in Mexico. This edition provides a compendium of essays with the aim of explaining the stakes of the meeting by academics and practitioners

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June 5, 2012 | Rescuing Spanish Banks

The EU must find a way to salvage its banks and should start with Spain. ++ Spain’s banks are paralyzed amid losses incurred by real estate loans. ++ An injection of capital, 120 billion euros, is required. ++ The situation is only getting worse, as bank credit tightens, further increasing banks’ potential losses. ++ Spain’s response vis-à-vis the government-induced bank mergers has not

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May 10, 2012 | A Still-Strong Alliance

This essay examines transatlantic relationships over the past two decades and the reasons behind why the Western alliance has been able to survive despite predictions of demise. Particular emphasis is given to what the skeptics got right and what they got wrong, including Robert Kagan’s paper entitled “Power and Weakness.” Attention is also given to a new challenge confronting the Atlantic

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January 31, 2012 | An Irish View on the Fiscal Pact Treaty

Fiscal controls were not the cause of the Eurozone crisis and strengthening them will not solve it. ++ The debate over the crisis has been the worst of any Europe-related treaty, the current draft merely delays change for five years. ++ The “shut up and sign” approach is betraying the spirit of the union and Ireland needs to signal that it will not tolerate the “arrogant behaviour” of powers

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November 23, 2011 | Trench Warfare Rages in US Congress

The failure of the US congressional “super-committee” to agree on a comparatively small amount of budget cuts is both embarrassing and dangerous. ++ As parties now gear up for election campaigns, the public disgust with the battle line of Congress risks turning “poisonous.” ++ Both parties know that a balance of cuts and tax increases is the answer, but they are too

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September 30, 2011 | EU Should Tax the Financial Sector

In a time of economic turmoil, the European public finances are under threat and it is time for the financial sector to contribute its fair share. ++ Introducing an EU tax on financial transactions is the key to solving the current deficit crisis. ++ An EU-wide financial transaction tax would generate much-needed revenue for the EU budget and discourage the financial sector from conducting

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September 28, 2011 | Defence Spending in Europe: Can We Do Better Without Spending More?

“The situation of defence capacities in Europe is pretty dire,” concludes Fabio Liberti in his report for the French think tank Notre Europe. “The budgetary crisis that is afflicting member states of the Union is likely to mean more cuts in national defence budgets. The issue of improving the efficiency of spending in defence is therefore one that is being raised with a certain amount of

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September 14, 2011 | Britain Rejects EU Defense Proposal

An EU plan to create a defense-planning headquarters in Brussels has been met with harsh opposition in Britain. ++ As European countries struggle to balance budgets, British politicians see the proposed European project as costly and unnecessary. ++ While the UK is willing to play a central role in NATO’s foreign and defense policy, it is increasingly distancing itself from European

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April 30, 2010 | Holding Ratings Agencies Accountable

“If the crisis proves anything, it is that the agencies enjoy too much authority among investors and regulators. Any reform that would loosen their grip on bond markets deserves a shot.” ++ There are several ways to accomplish such reform. ++ Ratings agencies´ “regulatory licences,” as well as protections they enjoy under US securities law from investor lawsuits,

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March 11, 2010 | How to Better Prepare for the Next Financial Crisis

The financial crisis demonstrated that economic difficulties arise as a result of misguided financial as well as monetary policies. With the crisis a recent memory, the chances are good for tackling the root of the problem and reforming the old system, since both spheres are interconnected and hence need to be reformed in concert. For one, the formation of asset bubbles needs to be avoided and

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March 11, 2010 | European Economic Government Wanted

What used to be inconceivable, is today desirable and even essential. ++ As mentioned by the President of the EU, a European economic government should be the centre of all the EU efforts and attention for three reasons. ++ First, the crisis revealed the lack of coordination among national member states’ economies; second, the failed Lisbon strategy proved the EU needs to

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March 10, 2010 | Women Can Do It Better

Empowering women in Asia is not only a requirement for basic human rights but also an economic asset in recovery form the global recession. ++ It remains the best way to lower the illiteracy, malnutrition and child mortality rates in the long term. ++ A first report reveals that failing to do so costs Asia “roughly the equivalent to the GDP of Viet Nam” per year. ++ According to the Human

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September 15, 2009 | More Equity, Less Risk

Last year, the US government made the right decision in letting the Lehman Brothers go belly up. ++ Lehman’s crash stated an example, that the banking house cannot count on government aid at any price. ++ As long as bank managements can trust on taxpayers’ money they have no incidents to minimize risks, thus, in order to limit risks, banks should provide henceforth more equity and assets. ++ To

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August 4, 2009 | Europe Bouncing Back From the Brink

Europe survives the worst crisis of the last 50 years to bounce back stronger. ++ Renewed solidarity between EU members limited protectionism and encouraged interdependence as shown by the bailout of Latvia. ++ Lisbon Treaty cause is strengthened by united response from members. ++ Euro is now a possibility for Denmark, Sweden & Switzerland with membership offering protection from a future

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July 15, 2009 | Why Iran Will Not Profit from Its Black Gold

Despite controlling some of the most extensive oil resources worldwide, Iran is heading towards an economic crisis. ++ In order to use its oil reserves, the Islamic Republic needs new technologies for oil production and further processing. ++ “This is Iran’s Achilles’ tendon.” ++ Ahmadinejad has maneuvered the country into political alienation and can no longer count on foreign investment and

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June 8, 2009 | Why Protectionism Could Intensify the Crisis

The current economic
and financial crisis is often compared to the worldwide crisis of 1929. At the
time many countries reacted with increased tariffs and currency depreciation,
which resulted in severe international consequences. Today the danger that protectionist
measures could further intensify the crisis looms again. Subsidizing national
businesses has become increasingly popular, as

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May 6, 2009 | Stability in North Africa: Appearances Can Be Deceiving

Unlike
the countries on the Horn or in Central Africa, countries in North
Africa radiate stability. The rate of economic growth is on
average 5-6%. Abounding energy supplies and cooperation in the war on terror
have led to close partnerships with Europe and the US. But appearances can be deceiving.
In Morocco, Algeria, Tunisia
and Libya
socio-economic as wells as political tensions

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May 4, 2009 | Robust Germany is a Pillar of the Global Economy

Germany’s economic stimulus efforts are comparable to the US’. ++ Strong financial, social welfare and regulatory systems have allowed Germany to absorb the shockwaves from the crisis and the nation is now boosting the global economy. ++ German households are in hardly any debt meaning consumption will actually increase in 2009. ++ The stability of German consumption is now the world’s

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April 28, 2009 | Crisis Threatens Political Progress in Ukraine

The causes of the protracted economic and political crisis in Ukraine go deeper than most analysts admit. ++ Ukraine’s government, in the face of economic crisis, is paralyzed. ++ Democratic progress of the Orange Revolution is overshadowed by a weak rule of law, fragile property rights, and the constant problem of corruption. ++ The abnormally fierce political rivalries and murky divisions of

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April 27, 2009 | No Time for Protectionism Between US and China

The US and China need to seize the opportunity to be more open and cooperate to deal with the slump in trade between the two nations. ++ “Regrettably… trade measures by the US against China are on the rise.” ++ US pleas for the WTO to investigate imports of Chinese products will seriously test relations, but the need to foster positive ties has never been greater. ++ The two countries should

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April 16, 2009 | Neoliberal Capitalism Creates Missed Opportunities

President Obama has changed the face of the US drastically, both nationally and internationally.++ When it comes to approaching the economic crisis however, Obama is missing out on an opportunity to find feasible alternatives to the system and its inequalities.++ Polls suggest that Americans are more open than ever to negotiating the harsh capitalist system.++ Instead, Obama  and his team of

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April 15, 2009 | Protectionism Is Not the Answer

Governments must cooperate to stimulate their economies and resist protectionism in response to the economic crisis. ++ Protectionism is short-sighted and could destroy the positive aspects of economic globalization which have encouraged international growth. ++ Protectionism will not stop other forms of globalization and could lead to the spread of disease, friction in nations with high

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April 3, 2009 | The EU Should Be the Leader of a New Globalization

Is de-globalization the magic solution to escape the economic crisis? No, it would be the biggest mistake. ++ Protectionism and nationalism are false friends and, as history has proven, responsible for poverty and conflicts. ++ What we need is a new regulating framework based on ethical principles with the mantra  “liberty, responsibility, solidarity.” ++ As the most advanced example of

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March 27, 2009 | The Left's Missed Opportunity

The economic crisis has highlighted the failure of the US imposed model of deregulation, at least for the financial sector. ++ What a perfect occasion for the Left, whose mantra is state regulation, to re-enter the political scene. ++ Unfortunately this has not been the case. ++ Several European left wing parties such as the SPD, PSOE and PD, have been caught off guard recently by making a

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March 9, 2009 | Obama's Mortgage Plan is the Solution

Since the economic downturn began as a mortgage crisis, the focus should be on mortgages in order to find a solution to the financial crisis. ++ Mr. Obama and his administration seem to be aware of this; the Homeowner Affordability and Stability Plan announced last month is an effective strategy to tackle the mortgage problem. ++ Critics claim that this plan fails to punish those responsible by

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February 26, 2009 | A Fine Line Between Hope and Fear

The White House’s comparisons between the US’ current financial situation and the Great Depression have created a necessary climate of fear in the country. ++ This crisis is both alarming and systemic and America must face up to its bad habits if it is to make it through to the other side. ++ However, if Obama is to honor his campaign promises, this anxiety-discourse must also be

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February 25, 2009 | Berlusconi and Sarkozy: More Than Energy Friends

Berlusconi and Sarkozy have signed an agreement to increase cooperation over nuclear energy and enhance collaboration in related sectors. ++ Yet the get-together turned out to be a compliment race more than an energy agreement. ++ The two leaders extensively commented on their respective successes in dealing with domestic and foreign policy issues, albeit with poor empirical evidence. ++

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February 25, 2009 | Where is the Money to Help Eastern Europe?

Eastern Europe is acutely hit by the economic crisis and WB President Zoellick estimates that the region would need $120bn to recapitalize its banks. ++ Western Europe, as the main investor and credit provider in the region, is however not immune from the critical state of its neighbor. ++ Western European banks have thus started cutting money supplies to the East fearing that the incapacity of

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February 25, 2009 | Obama Will Save the World at the G-20

Obama is the only man who can bring about effective change and make the financial crisis a passed nightmare: “he is untainted, popular and leader of the country that, for good and ill, remains central.” ++ On the occasion of the G-20 he must recognize the US’ responsibility in triggering the chaos but explain that it is time to move away from the “blame game” and set priorities for the

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February 20, 2009 | Old Europe to The Rescue!

The liberalization paradigm, mantra of Eastern Europe in the 90s that aimed to speed up the integration process, is being questioned as the region is devastated by the economic crisis. ++ Old Europe had better help these new member states through measures such as contributions of loans and economic surveillance. ++ Mishandling the crisis would be detrimental for the whole European continent and

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February 20, 2009 | Politics, Not Deregulation, Caused the Crisis

Quotas for federal housing loans to poor Americans led to a huge increase in subprime loans. ++ Regulators could have stepped in, but thought that housing prices would increase steadily. ++ The crisis shows that we cannot help poor people by lending them more money than they can pay back. ++ The deregulation that has taken place has been exaggerated, and giving regulators more power would not

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February 18, 2009 | Afghanistan: Achilles Heel of Transatlantic Alliance

The pledge for a new era of cooperation made by Joe Biden during the Security Conference in Munich has been received with great enthusiasm worldwide. ++ Europe is, however, slowly realizing that the cost of Obama’s multilateralism outweighs the benefits. ++ Caught in an unprecedented economic tempest, the European partners will be forced to concentrate on domestic matters instead of sending

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February 18, 2009 | Upcoming Lost Decade for the World's Economy

Japan’s experience in the 1990s is no longer seen simply as a terrible recession but has become an example of how to recover from the current financial crisis. ++ What conclusions can be drawn to rescue our economies? ++ The balance-sheet deflation inside the US is far shallower than in Japan in the 1990s, but the global implications of the current crisis are far greater. ++ The US will not be

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February 18, 2009 | Disempowered Unions Explain Economic Crisis

“Misshapen economic codependency of the US and China” lies at the heart of the economic crisis. ++ E. Asian exports are being left to gather dust in US warehouses whilst the US is paralyzed by debt accumulated to compensate for the consumers it lost through offshore labor. ++ The “dysfunctional duo” have more in common than they think, as the impotence of unions in both

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February 10, 2009 | Fixing the Economy and the Planet In One Go

If the international community acts carefully, the economy and the climate can be healed in tandem. ++ Incentives to cut greenhouse emissions could “kick-start private investment and refuel the economy.” ++ To coordinate developing and developed nations, caps for specific sectors should be set. ++ CO2 capture and storage (CCS) should be promoted as a means for developing countries

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February 9, 2009 | Leaders, Fight the Economic Tempest Together

Whether or not the current economic situation is a depression depends on one’s definition of the term. ++ What is certain is that global trade and growth have been in freefall for the last couple of months. ++ The expected reaction from world leaders was coordination but this never materialized; instead “policymakers have wasted almost five months during which most of the debate has been

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February 6, 2009 | The World Stands Up Against Capitalism

People are sick and tired of having to pay for their governments’ mistakes; the time has come for elites to take responsibility. ++ It is customary in crisis times for “extraordinary politics” to enable politicians to adopt unpopular measures and people lose out. ++ Yet, as was the case in Argentina in 2002, the real target of the collective rage is no person but a whole system: capitalism. ++

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February 4, 2009 | Britain: Immigrants Are Target of Domestic Woes

When will people start to understand that immigrants are vital for a functioning economy and kicking them out of Britain would mean depriving people of doctors, nurses, teachers and so forth? ++ In addition, immigrants don’t just take national jobs, they also create them by spending in shops and making the economy run. ++ Free movement of labor is one of the legal requirements of EU membership.

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February 3, 2009 | From Globalisation to "Deglobalisation"

To date, the world has known globalization. ++ But the financial crisis has spurred talks on the new trend of deglobalization: shifting focus from the international level to the domestic one. ++ This does not seem to concern the Davos participants: globalization was reaffirmed and it was argued that the benefits of free market economics will always trump calls for protectionism. ++ While in

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February 2, 2009 | Financial Crisis Is Good News For Africa

The global economic crisis is in fact good news for aid-dependent Africa. ++ It is an opportunity for the continent to move towards the market-driven interventions which have enabled the rise of Brazil, India and China. ++ “Foreign aid has been the biggest single inhibitor of Africa’s growth,” fostering corruption, dependency and bureaucracy. ++ Focusing on the Chinese market

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February 2, 2009 | Tax Payers Pay for Stockholders' Mistakes

The Obama administration’s plan for rescuing the banking system is not the appropriate response to saving the financial system. ++ The problem goes beyond fairness considerations, “where taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right.” ++ Times have changed, Greenspan is no longer the Maestro and bankers are no longer

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February 2, 2009 | No Time For Tough Talk with China

Sino-US relations have not got off to a good start. ++ US Treasury Sec. Tim Geithner has branded China a “currency manipulator,” a careless move. ++ China is the US’ largest creditor and it is entirely plausible that it will act in its own interests and move its cash elsewhere if pushed. ++ The White House generally looks keen on taking a hard line with China, but now is no

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January 30, 2009 | Davos: Towards Unity or Towards Division?

Davos’ opening speeches have highlighted the opposing attitudes of the two orators. ++ They share only one thing in common, the target audience of their words: the absent USA ++ Putin heavily criticized the US for being the source of the crisis whilst China’s Wen Jiabao only indirectly alluded to it, instead stressing the importance of collaborating with the Obama administration to find a way

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January 29, 2009 | World Leaders Powerless in Davos

Klaus Schwab, President and Founder of the WEF, has stated that the 39th forum will be one of convalescence of the world economy. ++ Well, nothing is less sure. ++ Recently the crisis has hit both Asia and Brazil, both expected to be exempt. ++ The biggest problem is that confidence seems to have disappeared among the G20. ++ Behind the numerous statements advocating a global response and

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January 29, 2009 | PM Harper's Hobson Choice

Last seen clutching on to power by the skin of his teeth in the Fall, Canadian PM Harper has come back with a massive $2.5m bail-out plan. ++ “Can there be any greater act of capitulation for a former head of the anti-government National Citizens’ Coalition than actually increasing the size of government?” ++ This new budget is entirely void of ideology and marks a complete U-turn

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January 28, 2009 | Davos: a Message of Hope

The annual appointment in the Swiss mountains to discuss the future of the world economy arrives just in time to get to the heart of the financial crisis. ++ Unfortunately newly elected President Obama will not be present ++ At his inauguration speech, however, Obama reiterated his strong commitment to a market economy. ++ The same spirit ought to accompany the experts and politicians who

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January 28, 2009 | Beware of the "Fiscal Straitjacket"

The debate over the ways to revive the US economy has an explicit focus on the immediate and short-term: save the economy now. ++ But in the absence of a medium-term strategy, the stimulus plan will simply add to an already large deficit and the government will most likely find itself locked in a “fiscal straitjacket that could paralyze public sector action in critical areas for a decade

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January 28, 2009 | Mediterranean: Beware of the New Social Brigades

The Red Brigades, a communist inspired terrorist group which emerged in Italy in the 70s, have been substituted by new social brigades (NSB), a different name but no less nocuous. ++ Deprived of a strong political culture, NSB take advantage of social malaise to recruit followers. ++ The economic crisis provides conducive conditions for this new group to flourish; the most exposed countries are

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January 27, 2009 | What's With the Republicans?

Republicans are very slow to understand that their policies have worked against America. ++ Their illusions are reflected in their doubts over the President’s stimulus plan: they argue that it legitimates excessive spending at a time when the continuous shedding of labour requires conservative spending. ++ G.O.P policies which redistributed wealth to those on the top of the income ladder

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January 27, 2009 | UK Must Shed Neo-Liberal Fears

Nothing can stop increased unemployment, and the young will be hit hardest. ++ The labor market is a social institution which touches on all parts of society. ++ Some companies try to avoid laying off workers, wanting to re-train them instead, but the UK government is not supporting this. ++ We need state-subsidies for people who educate themselves instead of becoming unemployed, we need

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January 27, 2009 | Southern Europe Out of the Eurozone

The economic and political divisions between a “hard core” Northern Europe and a crumbling South are re-emerging in the midst of the economic crisis. ++ Euroskeptics argue that this will eventually lead to a departure of the “South” from the Eurozone, whilst europhiles predict that it will produce an even “wider euro area assuming the debts of the weaker nations.” ++ The

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January 27, 2009 | Finally, the End of Immigration

The financial crisis may produce an “automated” solution to migration: as jobs lessen immigration currents are reduced. ++ In the US, the numbers of those “caught trying to sneak in […] from Mexico is at its lowest level since the mid-1970s.” ++ While many are sighing with relief, it should be remembered that it is thriving nations which attract immigration flows. ++

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January 23, 2009 | Nationalize the Banks, For Good

It is a case of too little, too late for British PM Brown’s second banking-bail out. ++ The current halfway measures are a recipe for failure and “risk turning recession into slump.” ++ The solution is clear: nationalize the banks. ++ Calls for nationalization are coming from economist and CEOs alike, yet the Labour legacy leaves ministers allergic to the prospect of

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January 21, 2009 | President of Change or President of Continuity?

Worldwide, the state has recently reassumed a greater role in the economy, including firm sustainers of the neoliberal philosophy. ++ The adoption of Keynesian measures has been seen as an unavoidable step to counteract the undesirable consequences of excessive deregulation of financial markets. ++ These measures are, however, provisional and will disappear as soon as the crisis is tamed. ++

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January 12, 2009 | Obama Stimulus: A Necessary Paradigm Shift

President-elect Obama’s stimulus package, now roughly $800 billion, includes “politically expedient” tax cuts which “are widely recognized as packing very little bang for the buck” - $150 billion in business tax breaks and the promised tax cut for all families making $200,000 or less. ++ With a projected deficit of $1.2 trillion, a job loss rate of 510,000 per month and the ever increasing costs

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January 8, 2009 | Finally, a German Stimulus Package. Is It Worth It?

Berlin witnessed the end of a stalemate between the Christian and Social Democrats on a 31-billion-euro economic stimulus package, but “Germans may find that the chances of their country’s economic recovery were higher when the grand coalition was still paralyzed.” ++ An additional 100 billion euros will go to rescue failing companies. ++ Both parties are positioning themselves for upcoming Fall

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January 6, 2009 | Financial Crisis Sways German Electoral Campaign

Germany is getting ready for a year rich in elections at every level, concluding with the September legislative duel between Chancellor Merkel and FM Steinmeier. ++ A recent survey places Merkel in the lead; however, the financial crisis and its social repercussions make every prediction highly precarious. ++ The two candidates have therefore opted for officially starting the electoral campaign

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January 6, 2009 | End of Dollar Era, Back to the Gold?

Originating in the US, the economic recession has gradually affected all economies. ++ International responses vary from smooth European behavior, where the Bundesbank still plays a key role in shaping the ECB policies, to an aggressive macroeconomic stimulus program in the US, making several ponder its potential inflationary repercussions. ++  There is, however, no current currency

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January 6, 2009 | Obama Should End US Involvement In Afghanistan

Analysts and scholars warn that the problems that the US faces in Afghanistan - continued insurgencies, opium production, a US army demoralized and drained of resources given the wars in Iraq and Afghanistan - will compromise the success of any new deployments in the region. ++ In the midst of the financial crisis and with firm evidence that the US commitment in Afghanistan contributes to the

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January 5, 2009 | Rethinking Germany's Rescue Package

One of the conditions of Germany’s rescue package stating that salaries of top management ought to be limited to €500,000 a year found itself at the origin of several critiques. ++ Contested is the fact that “one cannot give the banks the freedom to decide whether to accept help and at the same time threaten managers with salary cuts.” ++ Dropping this restriction ought to be envisaged

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December 15, 2008 | China's Great Depression

The myth of decoupled markets is all but shattered. ++ Asian countries, especially China, who benefited from trade imbalances and western overconsumption, will have difficulty adjusting. ++ In reaction to these new economic conditions trade deficit countries could absorb the production imbalance through government spending; trade surplus countries could attempt to increase domestic consumption to

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December 12, 2008 | "The Real Obama"

Obama’s recent appointments have led to the conclusion that he intends to govern from the center. ++ His choices, however, are practical rather than ideological. ++ The centrist team will stabilize and pacify foreign policy and the economy so that Obama can focus on domestic transformation. ++ In fact, the recession will give him a carte-blanche to experiment with the economy. ++ Far from

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December 2, 2008 | The US Needs to Spend to Overcome Recession

Public spending, especially on infrastructure and new technologies, is needed to build up steam in this stagnant economy. ++ Building up more state debt and increasing the budget deficit is nothing to worry about right now. ++ Cutting back on spending would do nothing to lower short term interest rates, which are already close to zero. ++ A tight budget could bring long-term rates down a little,

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December 1, 2008 | German Complacency Poses Serious Threat

Germany’s persistent boycott of a coordinated European response to the economic crisis has serious implications both nationally and for the EU. ++ There will be no decision about a German stimulus package until February 2009 at the earliest – clearly too late. ++ Chancellor Merkel and Finance Minister Steinbrück are heading for a self-made depression. ++ The correct response would be

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November 21, 2008 | Who Needs the G8 Anyway

In view of the economic crisis rocking the international community, the G8 has lost its right to exist. ++ Emerging nations like India took part in the G20 summit, discussing new finance regulation structures. ++ G8 nations have to understand that in a world where the US economy is highly dependent on the Chinese market, the circle of key players has expanded. ++ Including countries like Brazil

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October 20, 2008 | Crisis is No Excuse to Dodge Climate Declarations

It’s tempting to use the economic slowdown as an excuse to dodge ambitious declarations for cuts in greenhouse gas emissions. ++ We mustn’t forget that our current economic problems are small compared to the possible long-term consequences of unchecked global warming. ++ The EU should lead the way; it if introduces an aggressive climate plan it will pressure the rest of the world

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October 17, 2008 | Avoid Knee-Jerk Opposition to Government Spending

While reports from stockmarkets dominate the news, what we should really worry about is the shape of our nonfiscal economy. ++ In the US retail sales and industrial production are falling quickly, and it seems like we are in for a much longer period of economic slowdown than we realize. ++ Now is not the right time to worry about the deficit: the only solution to this problem is more government

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October 16, 2008 | Old Maids turn to Match Sticks

Deregulated markets are to blame for the financial crisis; likewise, only governments can salvage the wreck. ++ We will not see another great depression, but rather a recession. ++ Neo-liberal economics will go the way of the dinosaur in favor of a return to the practicality of the Keynesian brand. ++ This pragmatism was present until a new generation rose in the 1980’s, apparently unaware

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October 10, 2008 | Gordon Brown: Global Fix for Finance

World’s financial systems are increasingly interdependent, and solutions to economic slowdown that used to be relevant are now “outworn dogmas.” ++ Cross-continental flows of capital make regional systems of supervision inadequate. ++ A global system of supervision needs to be introduced immediately. ++ The Financial Stability Forum and the International Monetary Fund need to

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October 9, 2008 | Unjustified Panic May Lead to Great Depression

The current breakdown in financial markets is driven by unjustified panic. ++ Restoring confidence in the financial systems should be the priority for American and European governments. ++ EU countries should offer a time-limited guarantee of the liabilities of the most systemically important institutions. ++ Coordination on how to proceed is necessary if banking systems are to reemerge healthy

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October 2, 2008 | Economic Crisis Provides Cover for Military Blunders

By odd coincidence, or perhaps providence, $700bn is roughly the same amount of money squandered on Bush’s “preposterous war in Iraq.” ++ Ironically, the greatest economic crises since the great depression means Obama and McCain won’t have to discuss the “greatest military crisis in America’s history since Vietnam.” ++ This has provided the cover for a strange narrative developing in the US:

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October 4, 2011 | Pamela, I agree that in order for European...

May 26, 2010 | I would like to add that, besides Greece,...

May 2, 2010 | For Germany to commit to a bail out without a...

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Gordon  Cinco
Gordon Cinco
Member since
October 11, 2009

Poll

Should NATO intervene in Syria?


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