Death Star Economics



A new hope: lifting the debt ceiling a 76th time

It’s T-52 days until the United States may or may not bump its head on the debt ceiling, ‘may not’ being the more likely option. Since 1960, the US debt ceiling, the limit of how much it can borrow, has been lifted 75 times, last in August 2011. So why is this still front page news? Probably because of the drama it brings and the attention that it diverts from Spain and Italy. So let’s be appreciative and talk about it for a bit. Now more than ever, Republicans are opposed to any new tax increases. And now more than ever, Democrats think that not enough has been done. Hmm. Technically, the US hit the borrowing limit that’s currently at $16.4tn on 31 December, but some miracle accounting postponed the deadline to March. read article

Thanks to Gerard Depardieu, who is a Russian citizen now, Francois Hollande is apparently reconsidering his 75% tax. He’s busy arguing about gay marriage with the Catholic Church anyway. read article

And in Japan, businesses will profit from almost $5bn in various government stimuli, including lending schemes for technology R&D, low-interest loans for SMEs and support for acquisitions of foreign companies. read article

In a perfect example of lobbying, the banks have convinced the truly unbiased Basel Committee on Banking Supervision to lower their super strict post-global-blow-up liquidity requirements. Someone [Scott Talbott] has done their job right. Lower liquidity standards mean that the  requirements for what qualifies as a suitable high quality liquid asset has been loosened  When Basel III first came up, the assets allowed were cash, T-bills, medium to fantastic corporate debt. This list is a lot longer now. Additionally, the full implementation of the new rules has been delayed until 2019 (originally 2015), meaning that banks will only need to comply with 60% of the requirements by 2015. read article

News from the same category: in a last cleanup after the US mortgage crisis, 14 major banks agreed to a $10bn settlement deal for “flawed paperwork and botched loan modifications“. Money from the deal will be used as cash relief for Americans whose homes were subject to foreclosure during 2009 and 2010. read article

Meanwhile, Google Executive Chairman Eric Schmidt and Bill Richardson, Governor of New Mexico, are in North Korea. Although Schmidt said this wasn’t a work trip, not even his co-traveller believes that his motives are that pure. After all, don’t be evil doesn’t mean don’t do business. read article

So long.


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2 Responses

  1. princess1960 says:

    hello and have a very nice week
    you see Russia allways more open mind and helping people they needed ..they like the culture the beauty and appeachad ..
    FRANCH ..i think HOLLAND acept ..poor wanted to make guy country ..( here i have one parenthesy) politice with religion doesn’t have nothing bwt .but i see needed aprovided from constitution WHY? this is clear theme of religion so what the F… whanted the politice to do…every thing have one limit but the political system to day doesn’t have ..for exussia they are rady to do everything ..we lose all the value of the life all become = (is not like this ) we needed to have limit..
    i don’t like Holland and every Holland ..who use the post to KEEP by not ”value ” human.
    he is bettre to see how the economi and foreign politice go ..
    -Japan i like this country ..and good follow from new gv
    NORTH KOrea ..this country is close but i think they have help from others countrie communist ex..for me KIM YOUNG is 29 y old so if is more open mind ..comunication online (internet) have to be free (here have international low)
    -BANK.. they is the problem ..needed regulatio disipline ..
    thank you

  2. antichrist says:

    The word ‘debt’ is anathema to Americans. They want everything but don’t want to cough up the moolah (That is nota reference to the departed the Fabulous Moolah, RIP)

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