Political Economy category archive
Nothing To Do, Nowhere To Go 0
My gut tells me that sequestrian dressage is starting to hit a rhythm, but it’s not mentioned in the report.
(snip)
The four-week average of claims rose to 354,250 from 343,000.
(snip)
Economists’ estimates in the Bloomberg survey ranged from claims of 330,000 to 400,000.
The number of people continuing to receive jobless benefits fell by 8,000 to 3.06 million in the week ended March 23.
I don’t have as much faith in monetary policy as Ben Bernanke seems to. From later in the story:
Federal Reserve Chairman Ben S. Bernanke and his colleagues reiterated March 20 they will press on with monetary easing until the labor market outlook improves “substantially.”
Growing demand will help to sustain employment amid concern about the impact of the automatic federal budget cuts, or sequestration, which were triggered last month as lawmakers failed to reach a compromise on ways to reduce the nation’s deficit.
Nothing To Do, Nowhere To Go 0
Disappointing, but look for more of this as the evul fedrul guvmint sequesters its employees.
(snip)
The less-volatile four-week moving average climbed to 343,000, up from 340,750, which was the lowest since 2008.
The number of people continuing to receive jobless benefits fell by 27,000 to 3.05 million in the week ended March 16, the fewest since June 2008. The continuing claims figure doesn’t include Americans receiving extended unemployment benefits under federal programs.
Pirates of the Mediterranean 0
Der Spiegel attempts to clarify what’s going on in Cyprus. The short version is that the banks blew it (sound familiar?) and now want the people who trusted them to pay the price. If you are puzzled by the headlines, I recommend the article highly.
A nugget on why there is pressure to tax the depositors–they are the only persons the banks have not yet screwed:
- The bank’s investors have already lost massive shares of their investments. In the fall of 2011, the three biggest financial institutions still had a market capitalization of €2.4 billion, but it has since fallen to €500 million. Since mid-2012, the Cypriot government has owned 84 percent of Laiki Bank. By then, private investors were only still in possession of shares that held a total value of several million euros. Major shareholders at other banks also have relatively little to contribute to any rescue package. Just take billionaire Russian investor Dmitry Rybolovlev, who owns 5 percent of the Bank of Cyprus. In recent months, he has had to sit back and watch as the value of his holding shrank to around €20 million.
- Holders of bank bonds were to be next in line to be held liable for the bailout. They lent money to the financial institutions and had to assume that, in the worst case, they wouldn’t get it back. In a passage that attracted little attention over the weekend, the Euro Group also announced that second-tier bonds would also be seized as part of the restructuring program. Those possessing Tier-1 guaranteed bonds would not be hit. Still, it is doubtful that this channel would suffice to raise the €5.8 billion needed. Cypriot banks have long relied on the gigantic deposits held in their accounts and have not needed to issue large quantities of bonds to raise cash. As such, there is a paucity of bonds that could now be seized as part of a restructuring program.
- This leaves the depositors. This is by far the largest single source of potential money. Statistics collected by Greece’s central bank suggest that some €68 billion is deposited in Cypriot banks. Around €25 billion of that sum originated from foreign depositors, a large share of them from Russia and Ukraine. This is where the so-called “one-off stability levy” rejected on Tuesday by the Cypriot parliament was supposed to be applied.
Nothing To Do, Nowhere To Go 0
Not too bad, but sequestration . . . .
(snip)
The four-week moving average of claims, a less-volatile measure, dropped to a five-year low of 339,750 from 347,250.
Honest Books vs. Dishonest Books 0
Via Bob Cesca’s Awesome Blog, where JMAshby points out:
The Dialectic 0
PoliticalProf has a theory.
The Party of Privilege 0
Robyn Blumner remembers that the Davis-Bacon Act, which mandates that federal contractors pay the prevailing wage in their areas, was sponsored by a Republican Representative and Senator, then signed by a Republican president.
That was then.
That was one of Romney’s top priorities. Because in the United States, where wages have stagnated for more than 30 years, nothing is more important for the president than to try to erode worker pay even more. Take that, 47 percenters.
But Romney was not breaking new plutocratic ground, just toeing the party line. Today’s GOP believes its solemn duty is to mow down workers’ rights and wage protections. The onslaught is incredibly well organized, particularly at the state level where the well-manicured hand of the American Legislative Exchange Council is all over it.
The Republican Party, now more than ever the party of privilege.
Read the rest.
Nothing To Do, Nowhere To Go 0
A little better.
(snip)
Those people collecting emergency and extended payments increased by about 136,500 to 1.92 million in the week ended Feb. 23.
Cheap! 0
PoliticalProf explains:
- We want out teachers to be the best in the world, but we pay them so little that teaching as a profession can’t compete for talent with higher-paying jobs.
- We demand that our food supply be safe, but always buy the cheapest we can find.
- We want good roads and good schools … but don’t want to pay property or fuel taxes to support them.
- We want to buy our stuff on Amazon (which is largely exempt from sales taxes) while wondering why local businesses die and local governments (which depend on sales taxes) don’t seem able to get our streets cleaned in the snow.
- We insist that our universities ought to charge low tuition while refusing to pay taxes to support universities.
I could live with all of this (and much more) if we weren’t so damned hypocritical about it.
Read the rest.
Austerity, Because Austerity 0
It’s certainly working out nicely in Europe. Der Spiegel reports (emphasis added):
Yves Daccord, Director-General of the International Committee of the Red Cross, said on a visit to New Delhi on Monday that the scope of food distribution had not been at its current level since the end of World War II.
More at the link.
Citizens Benighted 0
Synergy, explained by Robyn Blumner.
2) Politicians have to spend an inordinate amount of time angling for campaign dollars, and when donors and lobbyists hand over big checks, big favors are expected in return.
3) These issues are related.
Nothing To Do, Nowhere To Go 0
Wait till Republican sequestian dressage sweeps the nation. That’ll fix this.
(copy)
The less-volatile four-week moving average fell by 7,000 to 348,750, the lowest since March 8, 2008.
The number of people continuing to receive jobless benefits rose by 3,000 to 3.09 million in the week ended Feb. 23. The continuing claims figure doesn’t include Americans receiving extended unemployment benefits under federal programs.
The (Job) Creationism Myth: Dr. Wolff Exposes the Lie 0
The myth is a cover for greed, folks, and one of the most successful bits of P. R. hype in recent political memory.
Sequestrian Dressage 0
At New York Magazine, Kevin Roose explains the choreography in words of (almost) one syllable. A nugget:
Okay, so let’s use a different example: Imagine you have two tickets to the next One Direction concert, and you’re negotiating with your BFF John over who gets to sit closer to the stage. In order to motivate each other to reach a deal, you say, “Okay, John, if we don’t figure this out, we’ll tear up both tickets and go see my uncle’s crappy grunge band play in his garage instead.” And now, it’s the day of the show, and you and John still haven’t reached an agreement, and now you’re headed to your uncle’s house while Harry Styles is doing a soundcheck. Your uncle’s crappy grunge concert is the sequester.