Economy

 
 

Someone sent me an email Wednesday evening with some details on the Paul Krugman response to James Montier, which I discussed here. I had previously stated that the Krugman response was lacking meat. But it's actually worse than that. It's actually highly misleading and appears intentionally so.

 
 

At a recent White House science fair celebrating inventors, a Girl Scout who helped design a Lego-powered page-turning device asked President Obama what he had ever thought up or prototyped. Stumbling for an answer, he replied: “I came up with things like, you know, health care.”
Ah, yes. “Health care.” Remember when the president’s signature ObamaCare health insurance exchanges were going to be the greatest thing since sliced bread, the remote control, jogger strollers, Siri, the Keurig coffee maker, driverless cars and Legos put together?

 
 

It is being negotiated in secret.

 
 

The crisis in Venezuela is escalating, and it’s not funny anymore.

Socialist President Nicolás Maduro, successor to the Hugo Chavez regime, has announced he will use his “decree powers” to nationalize the country’s food distribution network. AFP reports:

Maduro has promised to nationalize food distribution in the South American nation beset with record shortages of basic goods, runaway inflation and an escalating economic crisis. . . .

 
 

CHICAGO (CBS) — Citing the city’s underfunded pension crisis, Moody’s Investors Service downgraded Chicago’s debt to junk bond status on Tuesday.
The Ba1 rating means that Chicago’s $8.1 billion in debt carries a substantial credit risk. That credit rating is also just a few levels above bonds that are in default.
“The Ba1 rating on Chicago’s debt incorporates expected growth in the city’s highly elevated unfunded pension liabilities,” Moody’s said.

 
 

The cost of federal regulation neared $2 trillion in 2014, according to a new report by the Competitive Enterprise Institute (CEI).

Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State, a report by Clyde Wayne Crews, CEI’s vice president for policy, also reveals that the U.S. debt now exceeds the size of China’s economy.

“Federal regulation and intervention cost American consumers and businesses an estimated $1.88 trillion in 2014 in lost economic productivity and higher prices,” amounting to roughly $15,000 per household, the report said.

 
 

“Nothing will change this week,” said Aris Karnachoritis confidently as the waitress handed out bottles of beer and frosted glasses to him and his friends.

Constantinos Neocleous, sitting beside him at a table on the beach at Vouliagmeni near Athens, nodded in agreement. “It’s not in anyone’s interests to have a crisis now,” he said.

Beyond the beach lay shallow waters of radiant turquoise. Children paddled. Teenagers romped. And from nearby, where a group of young men were playing beach tennis, came the comforting “plock-plock” sound of bat on ball.

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