"I call it the destruction of shared prosperity hypothesis. ... [A]round 1980 the U.S. adopted a fundamentally flawed economic paradigm ... that abandoned full employment and severed the link between wages and productivity growth. ... Financial deregulation, regulatory forbearance, financial innovation, financial mania, and plain vanilla financial fraud kept the economy going by making ever more credit available, However, as the economy cannibalized itself by undercutting income distribution and accumulating debt, it needed ever larger speculative bubbles to grow. The house price bubble was simply the last and biggest bubble and was effectively the only way around the stagnation that would otherwise have developed in 2001." - an interview with Thomas Palley on the origins and prognosis for the crisis
Andrew Bacevich on the war: "So what tentative judgments can we offer regarding the ongoing [war formerly known as the global war on terrorism]? Operationally, a war launched by the conventionally minded has progressively fallen under the purview of those who inhabit what Dick Cheney once called “the dark side,” with implications that few seem willing to explore. Strategically, a war informed at the outset by utopian expectations continues today with no concretely stated expectations whatsoever, the forward momentum of events displacing serious consideration of purpose. Politically, a war that once occupied center stage in national politics has now slipped to the periphery, the American people moving on to other concerns and entertainments, with legal and moral questions raised by the war left dangling in midair."
Chris Hedges: Brace yourself. The American Empire is over. And the descent is going to be horrifying. Long, incredibly intelligent, insightful and pessimistic discussion of the current state of American politics and society, among other topics. Hedges is a long-time journalist, author and professor, winner of Pulitzer Prize and Amnesty International Global Award for Human Rights Journalism for his work at the New York Times. [more inside]
Yields of 2-year Greek government bonds have been skyrocketing today, and are currently at 76%. Credit default swaps show Greece with a 98% chance of default. Confidence in the Eurozone as a whole has been tanking recently after a series of setbacks that leave a political solution looking increasingly unlikely. There was a timely, gloomy discussion on RT yesterday on European and worldwide political/economic prospects
The talks between President Obama and House Speaker John Boehner "collapsed" Friday with little more than a week to go before the United States may effectively default on its debt. The two parties have been in ongoing negotiations for months over GOP refusal to raise the legal limit on national debt unless tied to a significant package of spending cuts - with some members and activists opposed to any increase whatsoever [more inside]