Barry Eichengreen on the European Debt Crisis

Source: Mark Thoma

One way this whole mess could go down, although it can still be avoided

Throughout 2011, after my rushed departure from the banking sector, I tried to warn local authorities of the dangers from the global slowdown and sovereign debt crisis. To no avail. To be fair, they could only see my bear side. They saw me on the run up to 2008, then I was shut down, and now again. Thus, I understand a bit their ignorance and their dismissal of me as a perma bear.

I could not convince them with economics. Maybe this visual aid will help (thank you GabiDragomir).

What do you think your taxes are used for?

I do not really read the news, just the titles. Most of the time is a waste of time. However,  sometimes it strikes a nerve.

Take this title from today’s ZF: Do you know what your taxes are used for? . This is advertised as a forum of experts that are going to explain to us the destination of the taxes paid in Romania. Some of the people in the panel are good economists (one is my partner in two companies ). Still, my question is : Do we need them to tell us about the destination of our taxes?

Chart of the Day

From http://www.chartoftheday.com:

Today’s chart provides some long-term perspective in regards to the gold market. As today’s chart illustrates, the massive bull market in gold that began in early 2001 is alive and well. In fact, as today’s chart illustrates, the pace of the gold bull market has only increased over time. Since peaking in early September 2011, however, gold has retreated. Each pullback has brought gold back down to support (green line) of its accelerated uptrend. Over the past two weeks, gold has declined once again and has crossed below the $1700 per ounce level and is once again testing support.