Tuesday, January 22, 2013

Tuesday roundup (01-22-13)


Bank of Japan Moves to Fight Deflation (The New York Times) Bank of Japan in boldest attempt yet to revive economy (Reuters) Credit-easing steps taken by Bank of Japan, Fed and other central banks, at a glance (The Washington Post) Back in Power, Abe Aims to Spend Japan Back to Economic Vitality (The New York Times blogs)

Central bankers should be brought to heel by elected parliaments: Intellectual fashion is changing. Central bankers around the world no longer command the charisma of a high priesthood. (The Telegraph) The Bank of Japan is coordinating policy with the Japanese government. That is a big deal. (The Washington Post blogs)

Bundesbank Chief Warns of Threat to Central Bank Independence (Agence France Presse) Weidmann says BoJ policy risks a currency war (City A.M.) Japan's Abe risks a familiar debt debacle (The Business Spectator) Euro zone has no general to fight a global currency war (The Globe and Mail of Toronto)

'Old people should hurry up and die', says Japan deputy leader: Taro Aso, Japan's deputy prime minister, has been forced to pedal back from a suggestion that old people should "hurry up and die" to save the state the cost of providing them with medical care. (The Telegraph) Let elderly people 'hurry up and die', says Japanese minister: Taro Aso says he would refuse end-of-life care and would 'feel bad' knowing treatment was paid for by government (The Guardian)

Rehn Backs Loan Extension for Ireland, Portugal (CNBC)

[UK] Austerity latest: spending up, deficit up. (The Spectator blogs)

Budget experts say prolonged debt-ceiling debate [in the US would be] a 'big mistake' (The Hill blogs) Suspending the debt ceiling is a great idea. Let’s do it forever! (The Washington Post blogs)

Fed President: Dodd-Frank Made 'Too Big To Fail' An Even Bigger Problem (The Huffington Post blog) Dallas Fed’s Fisher proposes restructuring of too big to fail institutions (Bank Credit News)

FDIC’s Hoenig urges removal of non-bank safety net, return to Glass-Steagall (Bank Credit News)

[UK] Defence Cuts: 5,300 Soldiers To Lose Jobs: A third round of redundancies will see the Army shrink to 80,000 soldiers - its lowest level since the 18th century. (Sky News)

Blockbuster to close [300] stores and cut [about 3,000] jobs (CNNMoney)

Cons on the rise as money troubles bite: Financial pressures on individuals have led to a resurgence in smaller-scale fraud, a new study suggests. (The Telegraph)

Nassim Taleb Talks Antifragile, Libertarianism, and Capitalism's Genius for Failure (Youtube)



     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

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