Dec 24, 2014 12:21 UTC

Euro zone will flit between crisis and catharsis

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The euro zone will flit between crisis and catharsis in 2015. Populist parties are on the rise, the economy is stalling and governments are paralyzed by their divisions. On the other hand, the euro zone has stronger banks and an activist European Central Bank. There is cause for hope, but it is tiny.

COMMENT

Populism isn’t the threat.

The threat is the cabal of bankers, IMF, ECB and EU who want bailouts for the rich to be paid for by austerity on everyone else.

Banks are not better than they were, stop believing in this illusion.

And countries that have limited to no population growth will have limited to no economic growth.

Please stop peddling obsolete economic theories based on perpetual economic growth (only possible with perpetual population growth and debt expansion. The system itself isn’t sustainable. Stop advocating bailouts for the rich.

Posted by marvri75 | Report as abusive
Dec 24, 2014 12:01 UTC
Edward Hadas

Inflation could make a surprise comeback

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By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Remember when inflation was a threat? In the 1970s, citizens of the developed world thought price-wage spirals would keep accelerating until they brought economic ruin. The average U.S. rate in that decade was 7 percent. More recently, other countries have had to deal with high inflation’s destabilising effects. But now, across the globe, one of the oldest economic bugbears shows few signs of life.

COMMENT

The author makes a good case. The central bankers are trying to prevent outright deflation in nearly all countries. Creating such large amounts of excess reserves is apt to result in high inflation if average people start borrowing again. Look for a crazy lending scheme for the average person to become ensnared in first. That should reduce excess reserves, increase money velocity and cause inflation surprises.

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Dec 24, 2014 05:08 UTC

Cheaper oil no friend to Asia’s households

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Cheaper fuel sounds like something no household would turn down. Yet falling energy prices are presenting Asia with a worrying prospect: wage growth may slump just when extra income is most needed.

Dec 23, 2014 19:56 UTC

Bank cyberinsurance is overdue to come of age

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By Richard Beales

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

A high-profile hack at JPMorgan – to say nothing of monstrous breaches at Sony and Home Depot – has made cybersecurity a daily concern for executives at big banks and corporations. One partial protection is to take out insurance. It’s a confusing market, but growing fast. With a U.S. government campaign on top of all the publicity, coverage may become standard.

Dec 23, 2014 19:53 UTC

Positive U.S. momentum could grow in 2015

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By Daniel Indiviglio

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The United States may finally have the recovery it’s been waiting half a decade for. Just a few months ago, risks from abroad felt worrisome. They now pale in comparison to the tailwinds, provided by robust growth and hiring. If housing finally ticks up, even scheduled interest rate hikes look easy to shake off.

Dec 23, 2014 15:57 UTC
Edward Hadas

Even a weaker Islamic State will drag on economy

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By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The rise of Islamic State showed just how narrow purely economic readings of politics can be. The radical group draws support from all social classes and has no economic agenda – it does not promise earthly prosperity nor exploit anyone’s material interests. All the same, its ability to disrupt politics in the already fragmented Middle East could have serious consequences for output and growth.

Dec 23, 2014 15:49 UTC

Meddling will be central banking’s new mantra

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Central bankers in rich nations have a new mantra: meddle. In a world of ultra-low interest rates, dormant inflation and uncomfortably high leverage, the monetary authorities have to tinker with anything that can have consequences for financial stability.

Dec 23, 2014 12:54 UTC
Edward Hadas

Stick with BRIC

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By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The BRIC ideal is worth keeping. While all four members of the most popular emerging nations club – Brazil, Russia, India and China – face some troubles, the basic idea behind the grouping looks sound.

Dec 23, 2014 05:55 UTC

India’s growth spurt could be for real this time

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

India’s decade-long obsession with GDP expansion has proved a costly misadventure. In recent years, inflation has surged even as growth has slowed, damaging the balance sheets of corporate borrowers as well as state-run lenders.

Dec 22, 2014 22:06 UTC

First case against algorithm could reboot U.S. law

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By Reynolds Holding

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

A new test is coming for U.S. law: the first criminal case against an algorithm. The prosecution of an energy trader essentially turns on whether one computer program duped another. Proving intent seems futuristic at best where software is the de facto defendant.