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Parchment in the Fire: Why Greece’s Syriza party is not sticking to the script on an IMF deal | Paul Mason | Paul Mason

Why Greece’s Syriza party is not sticking to the script on an IMF deal | Paul Mason | Paul Mason.

The leaked IMF document seen by Channel 4 News last weekend effectively signals a three-week endgame in the Greek debt stand-off.

The IMF thinks there is “no possibility” that Greece can meet €11bn worth of debt repayments due between June and the end of August. The Greek government is running out of cash.

Yanis Varoufakis, the finance minister, told Channel 4 News last night (see video below) that faced with the choice of paying €350m due on 5 June (Read more…)

Parchment in the Fire: Europe faces second revolt as Portugal’s ascendant Socialists spurn austerity – Telegraph

Europe faces second revolt as Portugal’s ascendant Socialists spurn austerity – Telegraph.

By Ambrose Evans-Pritchard

Europe faces the risk of a second revolt by Left-wing forces in the South after Portugal’s Socialist Party vowed to defy austerity demands from the country’s creditors and block any further sackings of public officials.

“We will carry out a reverse policy,” said Antonio Costa, the Socialist leader.

Mr Costa said a clear majority of his party wants to halt the “obsession with austerity”. Speaking to journalists in Lisbon as his country prepares for elections – expected in October – he insisted that Portugal must (Read more…)

Parchment in the Fire: ekathimerini.com | Greece toying with ‘chaos’ has Eichengreen urging lesser evil

By Lenka Ponikelska

Greece’s exit from the euro would unleash turmoil whose fallout will far exceed the cost of staying in the currency union, said U.S. economist Barry Eichengreen.

Reintroducing the drachma would solve none of Greece’s problems and instead set the stage for “even more chaos and uncertainty,” Eichengreen, a professor at the University of California, Berkeley, said in an interview in Prague on Friday.

“Staying in the euro zone will be costly and difficult for Greece and for Greece’s partners, but Greece getting out of the euro would be even more costly and difficult,” said Eichengreen, author (Read more…)

Parchment in the Fire: Would leaving euro be more of a catastrophe for Greece than staying? | Business | The Guardian

Would leaving euro be more of a catastrophe for Greece than staying? | Business | The Guardian.

Larry Elliot

Yanis Varoufakis rues the day when Greece joined the euro. The Greek finance minister says his country would be better off if it was still using the drachma. Deep down, he says, all 18 countries using the single currency wish that the idea had been strangled at birth but understand that once you are in you don’t get out without a catastrophe.

All of that is true, and explains why Greece is involved in a game of chicken with all the (Read more…)

Accidental Deliberations: Friday Morning Links

Assorted content to end your week.

- Matthew Yglesias points out that a particular income level may have radically different implications depending on an individual’s place in life, and that we can only address inequality by formulating policy accordingly: The median household income in the United States is about $52,000. So go ahead and picture a median-income household. What did you picture?

Did you picture a 25-year-old with a decent job who’s maybe worried about student loans but is basically doing okay? Or did you picture a married pair of 45-year-olds who are both full-time workers stuck in kinda crappy (Read more…)

PostArctica: Casseroles Tonight

Every Thursday night at 7, Casseroles in front of the church. Small but fun crowd tonight, hope to see you there soon!!

PostArctica: Thursday Night Casseroles

Weather was better, nice group of people, and the hilarious comedian, Fred Dube!

Quebecers protesting austerity continues every Thursday night at 7.

Parchment in the Fire: Are Creditors Pushing Greece Deliberately Into Default?

Are Creditors Pushing Greece Deliberately Into Default?.

 

Paul De Grauwe

The Greek drama has entered its endgame. The Greek government has to repay loans to the IMF and other public institutions in the near future but does not have the cash to do so. The lenders refuse to come forward in providing liquidity as long as the Greek government does not accept the conditions they impose.

We now hear from the finance ministers that the Greek government is unreasonable because it does not want to accept these conditions. These are that austerity be fully implemented and that the structural (Read more…)

Political Eh-conomy: Canada’s Austerity Consensus

I have a longer piece out in Jacobin today on tracing the roots of today’s austerity consensus in Canada to the 1990s. In a way, it’s me coming to terms with the last twenty years of Canadian political economy.

How exceptional is Prime Minister Stephen Harper and his crop of Canadian conservatives? For not just large- and small-l liberals, but also some leftists, the last decade has been an aberration — particularly compared to the alleged synthesis between responsible government and economic expansion that occurred during the 1990s. Yet while both public and elite consensus has shifted even further to the right since the (Read more…)

Parchment in the Fire: Greece: The Noose Tightens | Jacobin

Greece: The Noose Tightens | Jacobin.

There are only three options remaining for the Syriza government.

 

by Stathis Kouvelakis

Greek Prime Minister Alexis Tsipras.

 

Events in Greece have taken a dramatic turn, and insolvency is at the gates. On April 20, the Greek government issued a decree forcing local authorities to place cash reserves at the Bank of Greece.

Two days later, Dimitris Mardas, the deputy minister of finance in charge of state revenue, declared that €400 million were missing to pay for pensions and salaries at the end of the month. A few hours later, he (Read more…)

. . . → Read More: Parchment in the Fire: Greece: The Noose Tightens | Jacobin

The Progressive Economics Forum: The Conservatives, sound finance and the facts of recent history

Louis-Philippe Rochon

Associate Professor, Laurentian University

Co-Editor, Review of Keynesian Economics

 

With the tabling of a new federal budget on April 21, the Conservatives are trying to reinvent themselves as good economic managers, stalwart of sound finance. But after almost nine years in office, the data simply does not confirm this story. Mr. Harper’s more recent optimistic façade is a smokescreen that hides a dismal record on the economy.

Despite this fact, Conservatives have nevertheless traditionally portrayed themselves as fiscally-responsible tax cutters, job creators, and engineers of economic growth. At the same time, they have painted Liberals and New (Read more…)

Accidental Deliberations: Sunday Morning Links

This and that for your Sunday reading.

- Arjumand Siddiqi and Faraz Vahid Shahidi remind us how inequality and poverty are bad for everybody’s health: In Toronto, as elsewhere, the social determinants of health have suffered significant decline. As the report makes clear, the poorest among our city’s residents have borne the greatest portion of this burden.

These trends have affected the health of the poor in countless ways. They have constrained access to quality health care. They have increased susceptibility to harmful health-related behaviours, such as smoking. They have compromised the adequacy and stability of housing conditions. They have (Read more…)

The Progressive Economics Forum: Budget 2015: A tale of austerity past, present and future

Cross-posted from my blog.

I’ve been banging the drum of “slow-motion austerity” for a while and little in the 2015 federal budget suggests any change from the pattern of death by a thousand cuts. This budget is another is a series of unspectacular austerity budgets. Taken together, however, the cuts rapidly add up and budgets become more remarkable for the tenacity with they’ve made us pay to get to the present.

A long-term view focused on austerity is very different from much of the mainstream coverage of the budget with a tawdry focus on “goodies” for this group or that. While (Read more…)

Accidental Deliberations: Friday Morning Links

Assorted content to end your week.

- Jordan Brennan discusses the utter failure of past trade agreements to live up to their promises, making it all the more unclear why we should be prepared to accept a new wave of even more inflexible restrictions against democratic decision-making. The trade and investment liberalization regime led to rapid and relentless restructuring of North American corporate ownership by opening the door to the two largest merger waves in Canadian history. On the world stage, these merger waves led to higher levels of Canadian corporate ownership abroad. Domestically, heightened amalgamation activity created larger Canadian-based (Read more…)

PostArctica: Cold Casseroles

A small group of hearty folks showed up tonight despite the cold and threat of rain. Every Thursday night at 7 until further notice. Quebecers protesting austerity.

General event facebook page.

Verdun facebook page.

Political Eh-conomy: Budget 2015: A tale of austerity past, present and future

I’ve been banging the drum of “slow-motion austerity” for a while and little in the 2015 federal budget suggests any change from the pattern of death by a thousand cuts. This budget is another is a series of unspectacular austerity budgets. Taken together, however, the cuts rapidly add up and budgets become more remarkable for the tenacity with they’ve made us pay to get to the present.

A long-term view focused on austerity is very different from much of the mainstream coverage of the budget with a tawdry focus on “goodies” for this group or that. While the media should be (Read more…)

The Progressive Economics Forum: ROCHON on 2015 budget: Conservatives making a mockery of working Canadians

CONSERVATIVES MAKING A MOCKERY OF WORKING CANADIANS

Louis-Philippe Rochon

Associate Professor of Economics, Laurentian University

Co-Editor, Review of Keynesian Economics

 

Today, with great fanfare, Minister of Finance, Joe Oliver, tabled his much-delayed budget in the House of Commons. Despite the government’s best effort to confuse Canadians with tales of terrorism, the economy and job creation remains by far the single most important issue facing hard-working Canadians. Unfortunately, this budget, full of accounting tricks, will do very little to revive Canada’s moribund economy, and it contains far less in terms of good news for working Canadians.

In fact, Mr. Oliver, (Read more…)

The Progressive Economics Forum: ROCHON on the IMF and labour market deregulations

LABOUR MARKET DEREGULATIONS NOT WORKING: IMF

See original CBC column here.

Recent — and potentially watershed — International Monetary Fund (IMF) documents have cast doubt on the merits of labour market deregulation of the last three decades, with important consequences for Canada. But will anyone listen?

The last 30 years have not been kind to economic growth and wealth creation.

The economic “successes” of the neo-liberal era, from roughly 1980 to 2007, pale in comparison to the three decades that followed the Second World War with respect to almost every economic variable imaginable.

One of the core arguments of the neo-liberal era, adopted at one time by the (Read more…)

Accidental Deliberations: Sunday Morning Links

This and that for your Sunday reading.

- Paul Krugman laments how faith-based economics which value unmeasurable market confidence over any meaningful outcome continue to form the basis for disastrous austerity policies around the world.

- Bill Curry reports on the PBO’s latest study showing that the only reason the Cons are in a position to brag about a nominally balanced budget is their continued siphoning off of EI premiums which are supposed to be for the benefit of the many workers who have lost their jobs. And Andrew Jackson puts the Cons’ miserable jobs record in context.

- Meanwhile, (Read more…)

Political Eh-conomy: The Conservatives’ balanced budget legislation: Silly economics, smart politics

I wrote up the Conservatives’ new balanced budget law for Ricochet. In short, the law is really silly in terms of economics, but simply pointing out its economic stupidity is not enough, because the whole point is to shift the political consensus. Politically, it’s not that dumb. So rather than play games about who cut better and balanced budgets faster as many are doing, we need to look at the balance of economic power that drives these moves. The full piece is below:

The Conservative government’s balanced budget legislation is a classic attempt to shift the boundaries of acceptable public (Read more…)

Accidental Deliberations: Sunday Morning Links

This and that for your Sunday reading.

- PressProgress documents how the Cons are driving Canada’s economy into the ditch. And Michael Babad reports that economists with a better grounding in reality than Stephen Harper are begging the provinces not to impose the austerity demanded by the Cons.

- Kara Santokie writes that if the Cons’ balanced-budget legislation has any effect at all, it will be to attack Canada’s social programs when they’re needed most. And Louis-Philippe Rochon sees the false balance bill as standing out even among the Cons’ bad ideas.

- Dylan Matthews questions whether workers present and (Read more…)

Parchment in the Fire: New IMF research: No evidence that labour market deregulation increases growth

New IMF research: No evidence that labour market deregulation increases growth.

Filed under: Austerity Tagged: Labor Market reform, neoliberalism

The Progressive Economics Forum: ROCHON on balanced budgets

Balanced budget legislation will be disastrous for Canada

Louis-Philippe Rochon

Associate Professor of Economics, Laurentian University

Co-Editor, Review of Keynesian Economics

Twitter @LPROCHON

 

Finance Minister Joe Oliver’s latest muses about introducing balanced budget legislation is the worst policy for Canada, and will doom us to European-style crises and rob future generations of prosperity.

While the details of the specific plan are not yet available, the very idea of forcing governments in good or bad times to have a balanced budget is one of the worst economic ideas this government has had in its 9 years in office. To wit, (Read more…)

Accidental Deliberations: Thursday Morning Links

This and that for your Thursday reading.

- Alison picks up on Armine Yalnizyan’s important question as to whether the Cons have a Plan B other than hoping for factors beyond our control to boost oil prices. And Brad Delong argues that based on the foreseeable direction of our economy, we need a stronger public sector now than we’ve ever had before: (A)s we move into the twenty-first century, the commodities we will be producing are becoming less rival, less excludible, more subject to adverse selection and moral hazard, and more subject to myopia and other behavioral-psychological market failures.

The (Read more…)

The Progressive Economics Forum: ROCHON on the upcoming federal budget (April 2015)

THE FEDERAL BUDGET AND CANADA’S ANNUS HORRIBILIS

See Original post here for the CBC.

Canada’s Finance Minister Joe Oliver announced a new – and long overdue – federal budget for April 21. With the Canadian economy doing so badly, this budget will be crucial.

Will the minister do the right thing and give Canadians a budget that will stimulate the economy? Or will he continue with the government’s obsession of balancing the budget and further doom the Canadian economy to a recession?

The facts about the Canadian economy are not encouraging: increasing unemployment (a real unemployment rate of nine per (Read more…)