“Extremism in the defense of liberty is no vice. And moderation in the pursuit of justice is no virtue.”
By Christopher Whalen
The opinions expressed are his own.
“A spectre is haunting Europe — the spectre of communism. All the powers of old Europe have entered into a holy alliance to exorcise this spectre: Pope and Tsar, Metternich and Guizot, French Radicals and German police-spies.”
This week in The Institutional Risk Analyst, “Will Devaluation and Default be the Themes for 2011?,” we feature a comment on the likelihood that sovereign defaults and devaluation will be the themes of 2010 in both Europe and the EU.
Yesterday I participated in a “Living in the post-bubble world: What’s next?” event with Nouriel Roubini. The key take-away from the discussion is that the U.S. and global economies are headed into a new period of instability and competitive currency devaluations.
In the wake of Institutional Risk Analytics’ comment last week about the lack of ideas inside the Obama Administration for resolving the economic mess, President Obama suggested new tax credit and infrastructure spending. Neither of these ideas is likely to become real, however, since the Republicans are expecting to take control of at least one house of the Congress in two month’s time.