Tag: balanced budget rule

  • UNDERSTANDING THESE TIMES IN WHICH WE LIVE

    Translated from the French by Tim Gupwell.

    In the Wall Street Journal today:

    Since the beginning of the crisis in 2007, one thing has become clear in European politics: the outgoing parties are not voted back in. Confronted by the incapacity of the governments and the majorities in place to resolve the problems of the moment, the electors – at least, those increasingly few and far between who still go to the trouble of travelling to the urns – vote for the opposition, whoever it may be.

    In these conditions, the merry go-round can only make a restricted number of … Read the rest

  • SPAIN : THE MARKETS ARE EXPECTING NEW DEVELOPMENTS SOON

    Translated from the French by Tim Gupwell

    Exceeding 6% on 10 year debt is already dangerous. According to the terms of the balanced budget rule, this signifies that a nation will require growth of around the same amount, whereas in fact Spain has registered a negative growth since the beginning of the year! So, 7.567% at 10.15  this morning! As the German 10 year Bund stands at 1.255%, this means that for Spain over 10 years there is a risk premium (for the possibility of the debt not being repaid) which can be reckoned at 6.312%.

    © Bloomberg… Read the rest

  • Le Vif/L’Express, « There is ALWAYS an alternative », June 22, 2012

    This is an exclusive preview – in English! – of my column which will be published in the Belgian weekly Le Vif/L’Express this coming Thursday

    The phenomenon is the way in which things manifest themselves to us, and this can be real – either with things appearing as they really are; or it can be deceptive – with things appearing other than they really are – such is the case for optical illusions for example which suggest a false reality. Where the Greek language said phainomenon, latin said apparentia, appearance, with the same two nuances as for phenomenon … Read the rest

  • APPEAL TO ALL THE PARLIAMENTARIANS WHO ENVISAGE VOTING THE “BALANCED BUDGET RULE”

    Translated from the French by Tim Gupwell.

    The inept formulation of the financial stability pact, as well as the “balanced budget rule” which is derived from it, require (as I recalled in a recent column for Le Monde-Économie) a nation’s growth rate to be equal or superior to the level of the “average” coupon demanded by capital markets for its debts. Obviously, the lower the growth, the more a nation’s economy will be in danger, and the more an economy seems to be at risk, the more the capital markets will demand a higher “risk premium” component in the … Read the rest