Tuesday, July 7, 2015
Stiffed: The ECB is not going to give Greece any more money. Period. Come Thursday the ATMs and banks will simply have no euros to dispense – no matter how much money a depositor “has” in the bank. It seems unlikely the Greeks will follow the script very quietly.
The Big Band Aid: The latest fast track authorization (the TPA) doesn't cover just the Trans Pacific Partnership, it also covers the Transatlantic Trade and Investment Partnership, the Trade in Services Agreement, the Environmental Goods Agreement, and any other new trade initiatives over the next six years. It wasn't a blank check for Obama, it was a blank checkbook for the Executive Branch through 2022.
The New Math: Once reality settles in and Greek debts begin being written down, or off, Italy, Spain, Austria and perhaps France will realize they cannot afford to write off 30% or 50% of the money they foolishly sent to Athens. Can the ECB? How widespread will depositor haircuts be before the depositors become protesting citizens in the streets? What various entities can and cannot afford remains to be seen.
Baby Step: Some are now advocating “all-payer rate setting” throughout the American healthcare system. This would entail establishing a set price for any given medical service or procedure that would be charged to all payers – private individuals, insurance companies, businesses and the government. This would seriously diminish the advantage of having insurance and thus will not happen. Smacks too much of the first step towards a single-payer system, which isn't going to happen either.
Noted: Bernie Sanders “didn’t need billions of dollars to earn the trust of voters in New Hampshire, or cut Hillary’s lead to only 8 points.” Maybe that's because Bernie can give an hour-long stump speech that is focused on issues and specifics, instead of Ms. Clinton's pablum.
The Farm Team: Politicians in Europe and North America are enthusiastic about imposing austerity on those who don't vote for them because the narrative about punishing the poor, the weak and the foreign goes over well among their constituents with money. That over two-thirds of economists say these policies are damaging, not strengthening, the afflicted economies doesn't matter, they only represent a handful of votes.
Back To The Basics: Australia's Agriculture Minister wars that “gay marriage could damage our cattle exports.” Just what is it they do, down there, in the Outback?
Porn O'Graph: Why not tax the poor, there are so many of them...
Posted by Charles Kingsley Michaelson, III at 7:49 AM