By Michael Birnbaum and Howard Schneider
BERLIN — Fears of renewed economic crisis in Europe flared Monday as officials took the unprecedented step of targeting bank deposits in Cyprus to help rescue the country’s ailing financial system.
Cyprus’ eurozone partners and the IMF agreed early Saturday to bail out Cyprus to the tune of 10billion euro ($13billion) – largely to prop up its flailing banking industry. But the deal, as usual, comes with strings attached. The one causing the most consternation is a levy on bank deposits held in Cypriot accounts. Here’s a look at how that will work – and the problems it may pose.
By Michael B.
The economic implosion of Europe is accelerating. Even while the mainstream media continues to proclaim that the financial crisis in Europe has been “averted”, the economic statistics that are coming out of Europe just continue to get worse.
By: A. Thomson & I. Billington
LONDON—The U.K. labor market continued to display a puzzling resilience with the total number of unemployed people falling by the largest amount in more than 10 years, official data showed Wednesday, but weak wage growth means the rise in employment is unlikely to boost consumer spending.
By Jim Brunsden
European leaders proposed an industry-financed fund to cover costs of winding down failing euro-area banks, seeking to deepen the bloc’s integration and limit fallout from future financial crises.
Europe is not just heading into another recession. The truth is that Europe is heading into a full-blown depression. The economy of the EU is actually larger than the U.S. economy, and we are watching it melt down right in front of our eyes.
By Angela Monaghan
The eurozone was dealt a fresh blow as Moody’s downgraded the its rescue funds and unemployment hit a new record high.
By Feliciano Tisera and Daniel Alvarenga
With 153 votes in favor of the greek parliament approved shortly after midnight local the expected package of austerity measures considered by the troika (EU, ECB and IMF) necessary to grant Greece another tranche of aid from 31.5 billion euro and “save the country from bankruptcy”
by: Ethan A. Huff
The European nation of Greece appears to be sliding ever so progressively into the abyss of total collapse, as illustrated by a recent government measure aimed at feeding the growing hordes of hungry, unemployed Greeks across the nation.
By ALEX BRITTAIN
The euro-zone economy declined further at the start of the fourth quarter, business surveys suggest, with sentiment in Germany—the euro zone’s biggest economy and key source of financial support—worsening markedly.
by MICHAEL HUDSON
Book V of Aristotle’s Politics describes the eternal transition of oligarchies making themselves into hereditary aristocracies – which end up being overthrown by tyrants or develop internal rivalries as some families decide to “take the multitude into their camp” and usher in democracy, within which an oligarchy emerges once again, followed by aristocracy, democracy, and so on throughout history.
By Timothy Ahmann
Federal Reserve Chairman Ben Bernanke said on Sunday it was far from clear that the U.S. central bank’s highly stimulative monetary policy hurts emerging economies, defending a policy raising concerns in China, Russia and Brazil.
Nearly nine out of 10 Britons want bankers put in jail if found guilty of fraud or manipulating financial markets, a survey shows today.
By Elizabeth Campbell
CHICAGO — U.S. milk production is headed for the biggest contraction in 12 years as a drought-fueled surge in feed costs drives more cows to slaughter.
About 8,000 demonstrators chanted anti-austerity slogans and hoisted banners warning Angela Merkel she was not welcome in Greece at a protest on Monday, the eve of a visit by the German chancellor.
By:J. Luis Martin
The reason why Spain is a riot both financially and socially goes beyond matters of economic policy. Spain faces a graver problem, its political institutions.
Over the past few weeks, Spain has received worldwide attention due to its deteriorating economy and growing outbursts of massive social protests.
By Pepe Egger
By: Susanne Posel
According to Deutsche Bank analysts Daniel Brebner and Xiao Fu, gold is “not really a commodity at all.” Berbner and Fu explain: “While it is included in the commodities basket it is in fact a medium of exchange and one that is officially recognized (if not publically used as such). We see gold as an officially recognized form of money for one primary reason: it is widely held by most of the world’s larger central banks as a component of reserves.”
Tens of thousands of workers, young people, unemployed and retirees took part in demonstrations in major cities of Portugal and Spain Saturday, in a mounting confrontation between the European working class and the savage austerity policies demanded by the bankers, big business and the European Union.