Latest posts

Debt

Has Germany’s bubble finally burst?

As recent economic data shows, the German economy is dramatically slowing. Exports experienced their biggest fall for five years, growth forecasts for the next year have been downgraded by research institutes. It is quite possible that the country is already in recession. These are not just cyclical developments. A much bigger swing is on the way, which will end all talk about the economic powerhouse in the heart of Europe. [...]

Do market fundamentals still matter?

In an ideal world, an economic liberal like myself would happily enter a debate supporting the moot that it is financial fundamentals driving investment markets. But it is not an ideal world, neither for economic liberals nor for investment markets. [...]

Why government spending doesn’t pay

Markets are very good mechanisms for allocating resources via the price mechanism. By destroying the price mechanism, and by also undermining the incentives to disciplines of the market place, government almost by definition weakens the economy’s potential. [...]

A German levy to tax all friendship

The Bundesbank has put forward its own proposal on how to deal with acute debt crises in the future. On closer inspection, it is plain to see that the Germans are as orthodox as ever. [...]

Stopping the growth of government

Shrinking government spending and government debt is vital if we want future generations to enjoy prosperous lives. Unfortunately, given the mechanisms of representative democracy in an ageing society, this looks like an impossible task. [...]

Fire and ice on Europe’s debt march

At the moment, the only countries able to function with the euro are those of the healthier euro core. They should allow the other eurozone members to depart from monetary union. Otherwise we will never be able to see some actual green shoots in Europe. [...]

Brutal data on a Western debt march

At the moment, monetary policy presents itself as part of the solution to the West’s sovereign debt crisis. If current policies continue much longer, it will become clear that it is part of the problem. [...]

America’s real choice

What the United States can least afford is four more years of election campaign-style politics. Both camps must work together to avert fiscal disaster. But are Democrats and Republicans willing to cooperate for positive change? [...]