Austerity

Michigan Governor Declares Emergency in Detroit; Grabs Power from Locals

"Michigan Governor Rick Snyder plans to name an emergency manager to handle Detroit’s fiscal crisis, stripping power from local officials. Detroit has a budget deficit of about $327 million and more than $14 billion in long-term obligations, reports Bloomberg. Starting later this month, a manager will have the power to cancel labor contracts, cut spending and sell assets. This all is, of course, an attempt to prevent what could be the largest U.S. municipal bankruptcy. Snyder will act to protect Detroit's debt holders. However, the best thing that could happen to Detroit is for the city to declare bankruptcy and start fresh, rather than a Motown version of eurozone-type austerity." Continue reading →

Continue ReadingMichigan Governor Declares Emergency in Detroit; Grabs Power from Locals

Debt crisis: France puts brakes on austerity

"Finance Minister Pierre Moscovici said on Friday that France would ask its EU partners and the European Commission for an extra year to cut its public deficit below a targeted 3 percent of GDP, and would outline new savings measures soon. Mr Hollande said his government had brought down the deficit to 4.5 percent in 2012. The European Commission expects a French 2013 deficit of 3.7 percent of GDP. Spending cuts in 2014 would be made in the state budget, local budgets and the social security budget, Hollande said. Mr Hollande said France would continue to try and boost growth through public investment." Continue reading →

Continue ReadingDebt crisis: France puts brakes on austerity

Nervous Brussels urges Italy to stick to austerity

"The European Commission has urged any future government in Italy to keep on implementing deficit-cutting measures, despite the fact that over half the electorate voted for anti-austerity parties. 'Last Friday the Italians were speaking quite clearly about debt-reduction commitments as well as a series of other commitments. These Italian commitments remain in force and the commission expects compliance,' commission spokesperson Olivier Bailly said. His comments come after elections in Italy put former comedian Beppe Grillo, who ran on an anti-austerity ticket and has called for a referendum on euro membership, in kingmaker position." Continue reading →

Continue ReadingNervous Brussels urges Italy to stick to austerity

Italy’s anti-austerity ‘rebellion’ promises to spread

"Any doubts that Italians were fed up with tax hikes and economic reform vanished in an election that awarded more than half of the votes to anti-austerity parties. As Italian voters supported the anti-austerity parties, they also punished the centrist, pro-austerity alliance led by Mario Monti, the technocrat prime minister who replaced Mr. Berlusconi at the height of the Italian financial crisis in late 2011. Mr. Monti rolled out a series of tax hikes, including a hated property tax that Mr. Berlusconi vowed to kill, and attempted economic reforms that met with partial success. For that, his alliance got 10 per cent or less of the votes." Continue reading →

Continue ReadingItaly’s anti-austerity ‘rebellion’ promises to spread

ECB bailout plan in jeopardy as Italy’s voters reject conditions

"'The result touches us all,' said Spain’s foreign minister, Jose Manuel Garcia-Margallo. 'It is a jump into the void that bodes well for nobody, neither for Italy, nor for the rest of Europe.' Almost 57pc of the Italian vote went to parties that have vowed to tear up the EU austerity script. Together they control a majority of senate seats. The Five Star movement of comedian Beppe Grillo, which won 25pc of the vote, has called for a euro referendum and has a return to the lira as one of its manifesto pledges, while ex-premier Silvio Berlusconi has threatened to pull Italy out of the currency bloc unless the EU switches to a reflation strategy." Continue reading →

Continue ReadingECB bailout plan in jeopardy as Italy’s voters reject conditions

Locksmiths and firemen refuse to aid evictions in Spain

"Locksmiths and firemen in Spain are rebelling against a wave of evictions in the economic crisis by refusing to help bailiffs open ruined homeowners’ doors to throw them out. A wave of evictions of mortgage-holders ruined by the recession has prompted several suicides and sparked a protest movement that last week brought a motion to parliament for a law to end the procedure. With the locksmiths refusing to take part, some authorities have been asking the fire service to step in and break open the doors of those resisting eviction. [..] When the firefighters arrived they refused to open the door and some of them joined in the protest." Continue reading →

Continue ReadingLocksmiths and firemen refuse to aid evictions in Spain

France freezes spending to hit EU targets as slump deepens

"France is to freeze spending on defence, higher education and research in a frantic bid to meet European Union deficit targets this year, tightening fiscal policy yet further as the country slides into deep slump. The severity of the downturn has caught officials by surprise. Markit’s survey data for French manufacturing and services fell to 42.3 in February, plunging at the fastest rate since the financial crisis in early 2009. Anything less than 50 signals contraction. Markit warned that the country may be tipping into a 'downward spiral' as sliding confidence causes businesses to delay spending." Continue reading →

Continue ReadingFrance freezes spending to hit EU targets as slump deepens

Tens of Thousands Protest in Spain (as Santa Claus dies)

"On Saturday, tens of thousands marched in cities throughout Spain to protest deep bankster driven 'austerity' measures taken by the government. The people are clearly fed up. The sad part of this is that most have no clue as to what are the proper measures that should be taken to reverse the deteriorating economic situation. The only way Spain gets out of its deteriorating situation is by cutting the red tape that makes it difficult for businesses to operate, and to also cut taxes and government spending, so that the country moves away from its current bureaucratic mess and closer to a free market that can spur energy and creativity." Continue reading →

Continue ReadingTens of Thousands Protest in Spain (as Santa Claus dies)

U.S. Postal Service to cut Saturday delivery

"The U.S. Postal Service is set to announce that it will discontinue Saturday mail delivery in a cost-saving measure that is expected to save the agency up to $2 billion per year. According to the Associated Press, package delivery will continue six days a week, but regular mail will be limited to Monday to Friday delivery. The changes are slated to take place in August. Under the new plan, Saturday delivery to post office boxes will continue and post offices that are currently open on Saturdays will remain open." Continue reading →

Continue ReadingU.S. Postal Service to cut Saturday delivery

The Italian Patient: Resisting Berlusconi’s Charms

"Other populists are also gathering votes in the race to the finish line. One of them is Beppe Grillo of the protest movement 'Movimento 5 Stelle.' Grillo travels around the country on a 'tsunami tour,' hates Merkel, doesn't want to repay a cent of debt and is seriously calling upon Al-Qaida to bomb the parliament in Rome, saying that he would even provide the terrorists with the necessary coordinates. Polls estimate that Grillo has the potential to capture 20 percent of the vote. He could become the third-strongest force by securing the support of the sizable number of undecided Italians who are weary of politics." Continue reading →

Continue ReadingThe Italian Patient: Resisting Berlusconi’s Charms