Conservative Blog & News

Angela Merkel is Bluffing

SODOM & GOMORRAH: Angela Merkel's panel of economic advisors have criticized the German Chancellor's efforts at expanding the European Commission's control over member-state budgets. Calling it politically improbable, the group claims that Merkel's efforts have no hope of realization. Perhaps that's the point.

I mentioned ...

Retail Purchases in the US Continue Decline

SODOM & GOMORRAH: Bloomberg news reports that retail sales in the United States "unexpectedly" decreased by 0.5% in June. Unexpected by whom?

For the third straight month, the US Commerce Department reported that retail purchases have fallen. The 0.5% decrease in June was greater than the 0.2 ...

It's Not a Choice Between Inflation and Depression

SODOM & GOMORRAH: The German chancellor Angela Merkel is one of the few world leaders who isn't being completely idiotic about the financial and economic crisis brewing in Europe. Much to the ire of others, Merkel has resisted political pressure to adopt a more inflationary policy because she feels ...

The Greece Default is Here

SODOM & GOMORRAH: It's happened - despite all the hand-wringing, apologizing, and bailing out, the Greece default has happened.

Late Friday, a group of dealers in credit default swaps decided that Greece's recent bond swap constituted a "credit event". The yes vote by the International Swaps and Derivatives Association ...

A Currency to Rival the Euro

SODOM & GOMORRAH: The first cracks begin to appear in the Eurozone; financially distraught Iceland considers adopting a new currency.

The Economist reports that Iceland is debating whether to move away from the krona and adopt a different currency. Canadians are likely to be thrilled by the idea, since the ...

Five European Countries Downgraded by Fitch Ratings

SODOM & GOMORRAH: Spain, Italy, Belgium, Slovenia, and Cyprus were downgraded by Fitch Ratings. The agency claims that the Eurozone countries lack the appropriate financial flexibility to deal with the regional debt crisis. Surprise.

Italy was cut two points from an A+ rating to an A-. Spain was also lowered ...

The Rise of State-Owned Enterprises

SODOM & GOMORRAH: A special report in this week's Economist on state-owned enterprises in emerging markets validates one of my theories - classical, small-state liberalism eventually morphs into the modern, welfare-state governments that we see today. The moral is that any time material interests dominate the political, the former will ...

The Greek Debt Crisis Worsens

SODOM & GOMORRAH: The European Union continues to struggle to cope with the massive financial black-hole that is Greece. In short, default is both inevitable and the only real solution.

In December, the International Monetary Fund reviewed the Greek economy and released a set of findings that shows how impossible ...