By Jesse Singal Venezuela is mired in a years-long economic free fall that has killed a lot of people, and which is in the process of killing a lot more. Last week, the humanitarian catastrophe there got one of its darkest twists yet: And it would be a bit of an oversimplification to blame the catastrophe only on socialism qua socialism.
January 12,1: Vilhjalm Antonsen An excellent analysis by Georg.
As the thinking goes, growth of gross domestic product (GDP), which measures the goods and services produced in an economy every year is essential to a country’s stability and prosperity. Canada in most meaningful ways enjoys a more free-market economy than does the United States, which is why our friends at the Heritage Foundation rank it several steps higher on their economic. The current growth run is the second longest in the years for which the National Bureau of Economic Research has done the analysis; the average expansion has run a mere 39 months.
I would characterize the problem more bluntly — what has destroyed Iceland has been rampant corruption, stupidity, greed and immorality among the crony business and political elite — corruption bordering on criminality.
I disagree slightly with several points or implications in the article. The banks grew only by borrowing, and this borrowed money filtered down to the domestic economy through mostly taxes and loans to domestic firms. So the growth was mostly debt-financed, not the result of greater output of real services and production.
Second, the article assumes that the banks fell due to unserviceable debt levels, lack of capitalization and liquidity, and the global credit crunch. Nearly all their investments turned out to be poor ones.
Most importantly they overpaid for nearly everything they bought. They borrowed money at relatively high interest rates and bought companies with relatively low profit margins retail consumer storesand companies most susceptible to contraction in slow-growth periods brokerage firms, banks, airlines, hotels, fashion, etc.
In addition, these investments were relatively illiquid and could not be easily sold to raise cash as the crisis unfolded in the past year. In the banks went to the Icelandic government and demanded hard foreign currency, and lots of it, and after the Icelandic government refused the banks started the foreign consumer banks Icesave et al as a means to keep the Ponzi scheme going.
This indicates that the banks were basically broke as early asonly a few years after nationalization. It is clear in retrospect that the banks were little more than poorly-run, amateurish hedge funds, with the principal aim of enriching the insiders who ran them, partly by enormous salaries, partly by inflated stock prices of the banks.
Third, Georg does not mention the lack of an independent media newspapers are owned by the political paries, or the oligarch businessmenwhich might have partially prevented the problems from developing as they did had the population been properly informed of all the details.
Their decisions have been almost uniformly terrible from first to last, starting with the expansion of the fish quotas and ending with the nationalization of the banks last fall.
If this had been done, the banks would have gone bankrupt in Iceland and the U. Since the crisis several Icelanders mostly living abroad have correctly identified some of the broader sociological factors behind the collapse: But the most basic problem was the inability of Icelandic society to restrain its worst, its most immoral individuals.
In any other western European country these persons would be sitting in jail on a variety of financial corruption charges.
If we look to the future, as matters stand now, anything of any value in country has or will be transferred to foreign creditors in exchange for retaining a basic but much reduced standards of living, with decreased health and welfare benefits, high unemployment and inflation, and so on, with many Icelanders emigrating.
The general population of Iceland will be little more than economic rentiers or serfs for the next years. I doubt very much that any of this will happen. Mostly likely, the Social Democrats will take over for the discredited Sjalfstaedisflokkur but will continue their general policies.
January 11,6: Niels Physchim62 Fully agree with your reaction.The an analysis of canada as currently sitting in an economic catastrophe 50 most an analysis of ebonics in schools and its role in the american history important an analysis of the central metaphor of human nature in a poison tree by william blake people in Canada.
Jul 10, · Overall economic losses are expected to be much higher. Michal Lorinc, an analyst within Impact Forecasting's Catastrophe Insight team, said: "June was one of the most active months thus far in for natural disasters.
torosgazete.com is an independent website produced by individuals who are dedicated to disseminating news and analysis about the current political situation in Venezuela.
Venezuela is mired in a years-long economic free fall that has killed a lot of people, and which is in the process of killing a lot more. Last week, the humanitarian catastrophe there got one of.
Nov 20, · Sitting in the lavish dining room of the Mandarin Oriental hotel in Jakarta in July, over an awkward meal of mushroom consommé and blanched scallops, officials from Indonesia’s Palm Oil. ICO projects, including EOS, analyzed by BitMEX and TokenAnalyst indicate that a massive Ether (ETH) selloff has netted $ billion.
The currently (relatively) small amount of unsold ETH sitting in the treasuries of ICO projects is mostly "unrealized gains." Notably, the EOS project developers have reportedly sold all their ETH holdings.