The periphery of Europe – a flashpoint to the global economy

Introduction:  This is the fourth in a series of dashed off speculative opinions.  Normal procedure on the FM website for these topics would be 3 thousand word posts, supported by dozens of links.  I dont’ have the time to finish them, and too many of these outlines have accumulated in my drafts file.  Perhaps these will spark useful debate … Continue reading The periphery of Europe – a flashpoint to the global economy

A new sitrep, as we move into phase 3 of the financial crisis

Summary:  In response to the growing financial crisis, the government at last takes large-scale measures to stop the rip.  These move us ever farther from a free-market system, towards an increasingly centralized and government-dominated economy.  Taken in haste, we will have a long-time to consider the wisdom of these steps.  Few things so effectively panic … Continue reading A new sitrep, as we move into phase 3 of the financial crisis

“The changing balance of global financial power”, by Brad Setser

The 20th century was the age of the great democracies -- esp. the United States, the leader and largest -- and their triumph over Empires, fascism, and communism.  This century appears to be running in a different direction, as Brad Setser explains in the essay below.  We must either change course or learn how to adapt to … Continue reading “The changing balance of global financial power”, by Brad Setser

The US economic crisis – status report at 18 months

Brad Setser, economist at the Council on Foreign Relations, explains how we have weathered the economic crisis that started (arbitrarily) in December 2006.  He shows that we have avoided a recession or currency crisis, but at the cost of global imbalances growing even larger.  That just defers the date of eventually re-balancing, and ensures the cost … Continue reading The US economic crisis – status report at 18 months

Framing current events about the global economic and geopolitical system

The daily newspapers display events as string of beads.  Discrete, unrelated.  That masks the key to understanding what is happening:  the systemic drivers at work.  This is in my opinion not a series of isolated events or even a cyclical downturn.  We are experiencing a change in the fundamental structure of the global economic regime. You … Continue reading Framing current events about the global economic and geopolitical system