Category Archives: Economics

From your pocket to the Bank

March 02

ARGENTINA’S GDP GETS BOTOX

Argentina’s nubile president Cristina Kirchner says she ‘was born wearing makeup’ however, vanity is hardly Ms. Kirchner’s only sin.  The veracity of her finance minister’s reported GDP growth rate is questioned by everyone including the all important IMF.  In fact, IMF head Christine Lagarde (an alluring woman for her age as well) has given Ms. […]

Dante Ruffalo Alicia Moritz January 28

STICK TO THE EURO, NOT THE GYRO

The Troika is a reference to the International Monetary Fund (IMF), European Central Bank (ECB) and the European Commission (EC).  The troika is the economic powerhouse in charge of the bailout funds for southern European nations.  They are not a well liked group by citizens in these desperate countries because they control the purse strings […]

Dante Ruffalo Alicia Moritz January 28

How QE Works and Why Europe is now using it

Although Mr. Bernanke is now retired from Chair of the Fed, Janet Yellen, his successor, has vowed to follow through on his monetary policies.  In fact, she was chosen to head the bank specifically for this reason. Quantitative Easing (QE) has been politicized in a manner which has distorted what it actually is.   Phrases […]

alicia moritz dante ruffalo January 28

IOU MRS. MERKEL

The Eurobond is a form of mutualized debt subsidized by member states of the European Union.  A comparison to the United States is when China buys our ‘debt’ they are actually buying bonds that are secured by the collective economic output of the 50 states.  Similarly, a Eurobond is a debt instrument like U.S. bonds, […]

April 06

CUBA- OPEN FOR BUSINESS!

This week Cuba announced surprising economic liberalisation allowing for the first time foreign investment in certain sectors, lowered corporate tax rates and slightly reduced government intrusion.  Raul Castro hopes to revitalize his country’s economy and in so doing, thaw U.S.- Cuban relations. This begs the question- what threat does the diminutive communist island pose to […]

March 30

TEA PARTY DOLTS CHAFE MS. LAGARDE

The IMF plays a key role in global economic stability.  To summarize what it does, the IMF maintains the ability of small countries (exporters in the context of globalization) to continue selling cheap goods (such as Nike shoes) to rich countries like the U.S. for prices less than what it would cost to manufacture the […]

Dante Ruffalo, Alicia moritz March 24

HOW ABOUT TRYING SANCTIONS THAT WORK?

The EU, as a whole, imports about one third of its oil and gas from Russia making it difficult for the monetary union to back sanctions against Mr. Putin.  Further, former Eastern European countries are significantly more reliant on Russia as their fuel source with Lithuania importing over 90% of its fuel needs from the […]

dante Ruffalo alicia moritz March 19

WHAT ALAN GREENSPAN AND LIBOR HAVE IN COMMON

My all time favorite quote from former Fed Chairman Alan Greenspan is ‘I underestimated the extent to which market participants would behave irrationally.’ Said to Congress by the 88-year-old in a grave tone one would think it to be an honest admission. That however, is hardly the case.  Let me explain what a ‘market participant’ […]

Alicia Moritz Dante Ruffalo March 14

CRIMINY CRIMEA!

Mr. Putin wants nothing more than to be recorded by history as the man who reassembled the USSR and brought home to mother Russia the lost rapscallion of Perestroika and Mikhail Gorbechav.  Sunday’s vote in Crimea is his next and greatest step because, if successful, annexation of Crimea by Russia creates a very dangerous precedent […]

Dante Ruffalo Alicia Moritz March 02

BITCOIN: UNDERSTAND CURRENCY BEFORE YOU GO CREATING ONE

The digital currency Bitcoin is fascinating in design.  It is comprised of an elegant equation, the solution to which yields a unit that is limited in supply to 21 million.  Super computers, kept cool near the arctic circle in Iceland, work ceaselessly, processing the equation in what is called ‘Bitcoin mining.’  It is a libertarian […]

Alicia Moritz Dante Ruffalo February 28

SOBERING LOOK AT ITALIAN ECONOMICS

Italy is not alone among southern European countries with economic strife.  In fact, they are relatively well off compared to neighboring Greece, Spain and Portugal.  But that isn’t saying much. Italy’s GDP growth for 2013 was -1.8 percent.  Unemployment remains above 12.7 percent and the 10-year-government bond rate is 3.59 percent. Although these numbers are […]

Hugo Chavez Dante Ruffalo Alicia Moritz February 28

Chavez is Gone but his economics are not

Venezuelans are protesting in violent opposition to president Nicolas Maduro who incorrectly thought carrying his predecessor’s economic policies forward would bring him the same charisma as Hugo Chavez. These policies began when Chavez nationalized most businesses 13 years ago reducing production leading to Venezuela being ranked as having the lowest property rights in the world. […]

Dante Ruffalo Alicia Moritz February 28

UKRAINE POLITICAL CRISIS TURNS ECONOMIC

The Ukraine’s recent political crisis, albeit significant, has detracted from an underlying problem which persists and is a large part of the reason for the conflict. The Ukraine acting president says the country will return to a path of European integration.  This was the direction the Ukraine was headed before Valdimir Putin coaxed the former […]

Dante Ruffalo Alicia Moritz debt ceiling February 27

WHAT THE DEBT CEILING IS NOT

The debt ceiling DOES NOT CONTROL SPENDING. I put this in caps, not to be impolite, but to correct an egregious mistake the media has allowed certain politicians to propagate. The debt ceiling is an arbitrary limit on the issuance of debt by the Treasury.  When politicians say they won’t raise the debt ceiling because […]

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