James Galbraith

Greece Isn't Fixed... By A Long Way

The bail out is a cynical ruse, not to benefit Greece as a whole, but to benefit the banks and other creditors (the ECB and the IMF) who should take their medicine and move on. The one thing keeping the whole blighted euro project in place is an arrogant denial of the facts. A loss of political face now is a small price to pay for a much better outcome that will disadvantage far fewer people than the disorganised chaos into which Euroland will descend if the current bunch of lunatics are not put back in the asylum. Is this a Europe we want to be part of?

Frontrunning: August 3

  • Deadline Draws Near for Puerto Rico (WSJ)
  • U.S. to defend Syrian rebels with airpower, including from Assad (Reuters)
  • Alpha Natural Resources to Seek Chapter 11 (WSJ)
  • Iran’s Rouhani Says Nuclear Deal ‘More Than What Was Imagined’ (BBG)
  • Cables Show Hillary Clinton's State Department Deeply Involved in Trans-Pacific Partnership (IBTimes)
  • Win or Lose, U.S. Stocks Get Biggest Earnings Bang Since ’12 (BBG)
  • Weaker China factories argue for more policy support as stocks swoon (Reuters)

Today's Financial Thermopylae Beckons - But Don't Count On The Greeks

The global financial system desperately needs a big, bloody sovereign default - a profoundly disruptive financial event capable of shattering the current rotten regime of bank bailouts and central bank financial repression. Needless to say, Greece is just the ticket: A default on its crushing debt and exit from the Euro would stick a fork in it like no other. But don’t count on the Greeks.

5 Things To Ponder Over Thanksgiving

With the "inmates in charge of the asylum" during this holiday shortened trading week it seemed to be an apropriate opportunity to share a virtual cornucopia of topics to consider while enjoying the delicious delicacies, and subsequent tryptophan induced comas, of a traditional Thanksgiving.

Watch Ron Paul Hearing On "Legislation To Reform Fed And Other Alternatives"

We skipped the first part of today's hearing by the Ron Paul-chaired Domestic Monetary Policy and Technology Subcommittee titled “Improving the Federal Reserve System: Examining Legislation to Reform the Fed and Other Alternatives” as one of the two panelists was Barney Frank, which immediately meant it would be a complete and utter waste of time, and everyone would walk away far dumber from it, with god likely not having mercy on anyone's soul. The second part however promises to be far more interesting featuring such names as John Taylor (not the FX Concepts Taylor or the musician), Peter Klein, James Galbraith and Alice Rivlin. While everyone knows wha has to be done about the Fed, the likelihood that this will happen before the Big Reset is zero, but at least people can talk, dream and speculate. Watch the live webcast for more of the latter.