Draghi: Joint Debt Not Essential for EU Plan
Former ECB chief tries to salvage his report after key parts were rejected by EU members.
Former ECB chief tries to salvage his report after key parts were rejected by EU members.
There are two quiet trends at work in the market for U.S. debt that analysts normally do not pay attention to. They should: if these trends continue, there will be turmoil in the market.
The growth in debt will only stop when the U.S. government is struck by a real fiscal crisis. Nothing else will work.
The EU wants to levy its own taxes. Here is why that is a bad idea.
New rules aim to make member states more resilient in the face of economic crises and increasing debt sustainability across the bloc.
The Hungarian economy has a lot going for it, but can it handle a big budget deficit and high inflation?
The U.S. government is doing everything wrong with its finances. Its current debt management strategy is downright stupid. Are they trying to fabricate a fiscal crisis?
The new debt-ceiling deal has its merits, but it also kicks the big spending reform can down the road. It also ignores the broader threat to the U.S. economy: de-dollarization. On that front, there is one event that could end dollar hegemony with one stroke of the pen.
The overall trend in the European economy points in the wrong direction. Therefore, it is a very bad idea to raise any taxes in the EU. It does not matter that the taxes the EU has proposed will fail to generate the revenue that the MEP tax grabbers are hoping for.
Politicians are known for two things: they never do what they should, and they always do what they shouldn’t. First, they do not prevent a debt crisis, then they aggravate it.
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