Trevor wrote:I heard about the Soviet Union that their private plots, which were only two percent of their land, produced nearly half of their food supply. Says a lot about how well socialism actually works.
As for big business, they don't give a damn about regulations that are passed. It just means that it's harder for smaller businesses to expand. After all, they've got legions of lawyers that can find every loophole in the book, sometimes put there due to their political connections.
That may not matter Trev.
So while futures on this side of the pond now actively ignore everything that is happening in Europe, the EURUSD has tumbled overnight. Yet if Europe is any indication, the collapse in the world's largest economic block is not only not slowing but is accelerating as the region tried hard to get back to a viable debt ratio: something the US will not do until it is far too late. z/h The peg issue has the dragon chasing its tail and I have as many doubted the outcome of this repressionary nature. As was forwarded from Hugh, other than Irony and paradox, currency peg and the repression to maintain it
A few weeks ago I was unaware of the extent of the cratering and will just as many see the extent. Again debt is a future claim to labor and in context to repressionary saturations it explains the durations we are witnessing to nominal leakages from per capita wage. It amplifys the inability to clearing mechanisms even the Germans Banks are decrying. http://www.ekathimerini.com/4dcgi/_w_ar ... 012_440062
Bolivia has said it will expropriate the assets of Spain’s Red Eléctrica, sending armed troops to its headquarters in the second nationalisation of a Spanish company’s business in Latin America in two weeks. In a move likely to trigger further unease for Spanish companies operating in the continent following seizure of Repsol’s YPF unit in Argentina last week, Evo Morales, Bolivian president, on Tuesday announced the state would take control of Transportadora de Electricidad, the Spanish electricity grid’s Bolivian subsidiary.http://web.mit.edu/krugman/www/japtrap.html
The way to make monetary policy effective, then, is for the central bank to credibly promise to be irresponsible - to make a persuasive case that it will permit inflation to occur, thereby producing the negative real interest rates the economy needs.