Japan’s Looming Singularity

The rise and rise of Japanese debt is far from benign, and the dynamic, we are convinced, will at some point become unsustainable. Unfortunately by the time we reach that point it will be too late. Indeed, given that we agree with Krugman…

In Search Of Lost Demand

Why is the global economy hamstrung by heavy debts and weak banks? Or put another way, why doesn’t deleveraging happen, and the weight of debt reduce, and why doesn’t the economy expand so the weak banks can once more become robust and…

Spain and the Owl Of Minerva

Simply cutting the deficit back and cleaning up bank balance sheets won’t get the economy back to growth. Indeed this habit of continually getting behind the curve, and trying vainly now that the economy is spiralling almost out of control…

Rescue Me

I guess we will never know whether or not Mariano Rajoy uttered the two magic words so effectively immortalized in song by Aretha Franklin that Saturday afternoon in late May as he cruised down the Chicago River in what Spanish media called…

Global Growth Is Slowing

So momentum is weakening across the entire global economy at the present point, not just in say Europe, or China. Global output is still growing but it is growing at an increasingly weaker pace. What could change that?

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