Thanks to Republicans, the Next Economic Crisis Will Be Worse

The skyline of Manhattan, New York, January 24
The skyline of Manhattan, New York, January 24 (ANG/Matt Hecht)

Ten years after the collapse of Lehman Brothers, economists Brunello Rosa and Nouriel Roubini — who famously predicted the Great Recession — warn that the next financial crisis is already in the making.

Of the ten warning signs they see, six are due to the policies of the Republican government in the United States. Read more

EU Shields Companies from Trump’s New Sanctions on Iran

European Commission president Jean-Claude Juncker and American president Donald Trump answer questions from reporters outside the White House in Washington DC, July 25
European Commission president Jean-Claude Juncker and American president Donald Trump answer questions from reporters outside the White House in Washington DC, July 25 (European Commission/Etienne Ansotte)

The European Union has announced measures to protect companies that do business with Iran from American sanctions.

The BBC reports that an EU “blocking statute” bans European firms from complying with the sanctions, unless they get approval from the European Commission.

It also enables businesses to recover damages resulting from American sanctions on Iranian cars, gold and other metals. Read more

Macron Unveils Small-Business Reforms and Privatizations

Austrian chancellor Christian Kern and French president Emmanuel Macron visit Salzburg, August 23, 2017
Austrian chancellor Christian Kern and French president Emmanuel Macron visit Salzburg, August 23, 2017 (BKA/Andy Wenzel)

French president Emmanuel Macron has unveiled new economic reforms benefiting small- and medium-sized businesses:

  • Streamlining bankruptcy procedures.
  • Easing auditing requirements.
  • Advising companies on digitalization and exports.
  • Lifting the thresholds at which higher tax and social charges as well as employment rules kick in. Read more

Dutch Caribbean Caught Up in ConocoPhillips-Venezuela Oil Dispute

View of Willemstad, Curaçao, November 21, 2012
View of Willemstad, Curaçao, November 21, 2012 (David Kirsch)

The Dutch Caribbean have been caught up in a legal dispute between the American oil company ConocoPhillips and the government of Venezuela.

A judge has allowed Conoco to seize Venezuelan-owned and -operated refineries on the islands in order to collect $2 billion in compensation awarded by the International Chamber of Commerce for the 2007 nationalization of Conoco assets in the socialist-run country.

The seizure poses a “potential crisis” to the economy of Curaçao, Prime Minister Eugene Rhuggenaath has told Reuters. The Isla refinery, which processes 335,000 barrels of oil per day, accounts for a tenth of the island’s economy. Read more

Europe Can Stand Up to American Threats on Iran

Presidents Emmanuel Macron of France and Donald Trump of the United States speak in Paris, July 14, 2017
Presidents Emmanuel Macron of France and Donald Trump of the United States speak in Paris, July 14, 2017 (DoD/Dominique Pineiro)

Leonid Bershidsky is optimistic the EU can stand up to American threats and continue doing business with Iran. He writes for Bloomberg that the stakes are higher than President Donald Trump seems to realize:

With its influence on SWIFT, the Brussels-based payment-facilitation system, and its trade power, the EU is capable of blunting US sanctions. If they prove ineffective, and Iranians merely rally around their government as Russians have done in the face of American restrictions, the US may be exposed as less of a fearsome global policeman than Trump would like it to be.

Read more

Renationalizing British Utilities and Rail Would Be a Mistake

A Heathrow Express train is seen at Paddington station, London, England, March 7, 2013
A Heathrow Express train is seen at Paddington station, London, England, March 7, 2013 (Renaud Chodkowski)

Rising energy rates and railway fares in the United Kingdom are lending credence to the argument that privatization was a mistake.

YouGov last year found majorities in favor of taking energy, water and railways back into state ownership.

Telecom is the exception. Only 30 percent believe it should be run by the government.

The reason may be that the benefits of telecom privatization have been obvious whereas those of other privatizations are harder to discern.

Compared to the 1970s, however, utilities and railways provide a far better service today. Read more

Coal and Steel? Donald Trump Is Living in the Past

American president Donald Trump speaks on the phone during a flight on Air Force One to Pennsylvania, January 26
American president Donald Trump speaks on the phone during a flight on Air Force One to Pennsylvania, January 26 (White House/Shealah Craighead)

Donald Trump isn’t big on technology.

“I think the computers have complicated lives very greatly,” he said last year. (The computers.)

The whole, you know, age of computer has made it where nobody knows exactly what’s going on.

By “nobody”, he means himself.

On another occasion, the president said, “I’m just not a believer in email.”

By contrast, Trump has spoken at length about American coal and steel and his desire to revive the two industries.

This doesn’t make economic sense. Read more