Shrink the State. End the Fed. Balance the budget. Make a profit. Leave an inheritance.
Gary North
Europe is in a recession. France is in recession. Greece has been in recession for six years. Cyprus has been in recession for three years. Germany just barely pulled out this month. Spain has 27% unemployment. It’s getting worse in Europe. Yet this is where Keynesianism is supposed to work best. There are welfare states. [...]
Continue reading →Greece has a 60% unemployment rate for people in the 18-25 age bracket. Think of this. This is a generation that is unlikely ever to save their career plans out of the recession that has overtaken Greece and is getting worse. It will mar them for the rest of their lives. The experts said this [...]
Continue reading →The head of the European Union, whose name hardly anyone knows, says that the full union of 27 nations is inevitable. This will include monetary union, he says. Problem: the Eurozone’s monetary union has only 17 members, and is going to break apart. The experiment is a disaster. How will the EU pull 10 more [...]
Continue reading →Europe is the poster child of Keynesianism. The southern countries ran huge government deficits for a decade. There was a boom. But that boom has ended. Mediterranean nations are in depressions. These depressions are getting worse. Hans-Werner Sinn is a German economist. He is known as one of the most pessimistic economists in Europe. But, [...]
Continue reading →The recession in Europe has spread into every large nation. Still, price are rising. The European Central Bank is powerless. It has officially set lending rates at 0.75%. Still, the economies are crashing. Greece has a 27% unemployment rate. So does Spain. Now there is talk of a rate cut by the ECB. To which [...]
Continue reading →The big banks in the eurozone started pulling money out of Cyprus’ banks a year before the ultimatum. They made sure they got paid. Then the European Central Bank announced the ultimatum. At first, all depositors were to take the loss, but the parliament refused. So, they got the big depositors. These were private depositors. [...]
Continue reading →The Bank of Cyprus in 2011 was one of the highest-rated banks in the world. This year, it had to be bailed out by the taxpayers of the European Union, who had no say in the matter. Otherwise, it would have gone bankrupt. Yet in 2011, it was the biggest bank in Cyprus. What could [...]
Continue reading →Yesterday, I ridiculed the idea that the Cyprus bailout would be the last one. Within hours, Europe’s stock markets fell. So did the euro. The initial optimism collapsed. Why? Because the faceless bureaucrat who heads the faceless, unnamed EuroGroup admitted the truth: the rescue of Cyprus would serve as a model for the next round [...]
Continue reading →Bureaucrats are paid well to lie. They are paid well to tell the voters not to worry, that everything is fine. This lets politicians say the same. The banks in Cyprus remain closed. There is a $130 limit on daily withdrawals of currency out of an ATM. Capital controls keep depositors from wiring euros outside [...]
Continue reading →There will be a $13 billion bailout supplied by the European Union. Europe’s voters will not get to vote on this. The unnamed “Euro Group” of national finance ministers have agreed to the bailout. It answers to no one. The EU parliament has nothing to say about this. Banks on Cyprus will remain closed. Depositors [...]
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