... but the beatings will continue until bond yields improve!
Let's try a thought experiment. Imagine you walked into the bank, told them you were going to be taking pay cuts for the next few years, and then asked for a loan. You'd be laughed out of the office or else pay an interest rate so high that "usurious" wouldn't do it justice. The logic is simple: If you're in debt and your income is shrinking, it's mighty hard to pay back what you already owe.
It's not any different when it comes to countries that can't print their own money. That brings us to Spain.
The following charts (courtesy of Reuters) show overall and youth unemployment across the euro zone. Spain tops both measures, with truly depression-level joblessness.
Nearly a quarter of Spain's population is unemployed. Half of its youth are out of work. And it's only going to get worse. Spain is supposed to trim its deficit by some 5.5 percent of GDP over the next two years. That's not a recipe for growth. Just ask the IMF, which downgraded its projections for Spain's economy back in January.
What matters for a nation is its GDP. That's a country's equivalent of personal income. If Spain's GDP is set to fall for the foreseeable future -- and it is -- then who would want to lend to Spain? The markets gave their answer -- practically nobody! -- and ECB was forced to fill the void by giving Eurobanks free money to then invest in sovereign debt. Yields came down. European policymakers declared "Mission Accomplished."
But now the free money is gone. It's unsurprising that Spanish borrowing costs are surging again.
Unsurprising to everybody who isn't a Eurocrat, that is. Consider this mind-boggling quote from the chairman of the euro zone finance ministers, Jean-Claude Juncker:
I invite financial markets to behave in a rational way. Spain is on track.
On track? For national bankruptcy, yes. But for recovery, absolutely not. Juncker's quote betrays a fundamental misreading of what is making markets anxious. He thinks markets shouldn't worry because Spain is going to follow through on its budget cuts. But markets are worried that Spain is going to follow through on its budget cuts. Austerity would almost certainly shrink the economy and make the country's unconscionable unemployment even worse.
If you're persuaded by my opening analogy, you can see why lenders are so concerned about growth. It's why they don't actually like austerity. But just today, the Bundesbank -- Germany's national central bank, and the real power behind the ECB -- came out and told countries not to worry about growth. Telling a country in a debt crisis like Spain not to worry about growth is like telling man in debt to not worry about finding a job. The most polite way to characterize this advice is "delusional."
To crib from Keynes, Europe's policymakers have blundered in the control of a delicate machine, the workings of which they do not understand. They're not evil. But they're almost certainly wrong. Rather than consider the possibility that the economy might work differently than they think, they have settled on a simple message: The beatings will continue. Unfortunately, morale will continue to not improve. Eventually, you have to think leaders in Europe's beat-up countries will begin to wonder if life might be better outside the euro zone. Hopefully, the ECB will come to its senses first.
The talk-radio host claims that he never took Donald Trump seriously on immigration. He neglected to tell his immigration obsessed listeners.
For almost a decade, I’ve been angrily documenting the way that many right-wing talk-radio hosts betray the rank-and-file conservatives who trust them for information. My late grandmother was one of those people. She deserved better than she got. With huge platforms and massive audiences, successful hosts ought to take more care than the average person to be truthful and avoid misinforming listeners. Yet they are egregiously careless on some days and willfully misleading on others.
And that matters, as we’ll come to see.
Rush Limbaugh is easily the most consequential of these hosts. He has an audience of millions. And over the years, parts of the conservative movement that ought to know better, like the Claremont Institute, have treated him like an honorable conservative intellectual rather than an intellectually dishonest entertainer. The full cost of doing so became evident this year, when a faction of populists shaped by years of talk radio, Fox News, and Breitbart.com picked Donald Trump to lead the Republican Party, a choice that makes a Hillary Clinton victory likely and is a catastrophe for movement conservatism regardless of who wins.
The 49ers quarterback won’t stand for the national anthem anymore.
San Francisco 49ers quarterback Colin Kaepernick’s refusal to stand for the national anthem before games as a protest against recent high-profile incidents of police brutality and racial injustice have been met with criticism and protests, but is an important step for a league where professional athletes rarely speak out on such issues.
Kaepernick was noticed sitting down during the playing of “The Star Spangled Banner” in a preseason game Friday. When asked by a reporter about his actions, he said:
I am not going to stand up to show pride in a flag for a country that oppresses black people and people of color. To me, this is bigger than football and it would be selfish on my part to look the other way. There are bodies in the street and people getting paid leave and getting away with murder.
What looks at first glance like an opening up of possibilities is actually an attack on the human imagination.
You might not like what I’m about to say about the multiverse. But don’t worry; you’ve already had your revenge. If there are an infinite number of parallel universes, there will be any number of terrible dictatorships, places where life has become very difficult for people who like to string words together. Somewhere out there, there’s a society in which every desperate little essay like this one comes with a tiny, unremarkable button: push it, and the author will be immediately electrocuted to death.
Maybe your hate is more visceral—you already know I’ll die some day, but you want to see it happen; you need to see me groveling. You can if you want. Fly upwards from the plane of our solar system, keep on going, through the endless huddles of galaxies, never forgetting your purpose, until space and time run out altogether. Eventually you’ll find yourself in another universe, on a damp patch of grass and broken concrete, unwatched by whatever local gang or galactic empire rules the city rising in foggy shapes beyond the marshes. There, you’ll see a creature strangely similar to yourself, beating me to death with whatever bits of scrap are lying around.
As pay TV slowly declines, cable news faces a demographic cliff. And nobody has further to fall than the merchant of right-wing outrage.
Updated at 12:05 p.m.
October 7, 2016, will be the 20th birthday of the Fox News Channel, and at the moment, the network is experiencing the soap-operatic highs and lows typical of any teenager on television. In many ways, the summer of 2016 may go down in Fox News history as the company’s nadir. Its founder and leader Roger Ailes has been dishonorably dispatched, the remaining executives are dealing with a flurry of sexual harassment lawsuits, and one of its most public faces, Sean Hannity, has ignominiously remodeled himself as a gutless Trump whisperer.
And yet Fox News’ fortunes are ascendant, at least in the most quantifiable sense. The network’s annual profit in 2015 soared by about 20 percent. For the first time ever, Fox News has been the most-watched cable network among both primetime and daytime viewers for several months, with a larger audience than its nominal rivals, CNN and MSNBC, combined. Led by “The O'Reilly Factor,” Fox News doesn’t just have the best-rated news show on cable television; according to The Wrap, it has the 13 best-rated news shows on cable television.
Marketing ditties once had a distinctive, hokey sound, but today’s advertisers have ditched them for standard pop songs.
Most Americans can recite their share of jingles. Perhaps they can’t remember their partner’s cell phone number, but they know every digit required to reach Empire carpet. Or every word of “I’m a Toys ‘R Us Kid.” Or that the best part of waking up is Folgers in their cup.
And yet, despite its effectiveness, the jingle has become a relic of the mid-20th-century commercials it once dominated. Today’s pop songs and yesterday’s classics have effectively replaced the jingle: A Kanye West song plays in an ad for Bud Light Platinum, Lady Gaga’s “Applause” is a party anthem for the Kia Soul’s spokeshamsters, and a Bob Dylan track helps advertise Victoria’s Secret. Amid all this, Oscar Mayer decided to retire two of the most popular jingles of all time, “My Bologna Has a First Name” and “I Wish I Was an Oscar Mayer Weiner.” In 2010, the company announced a new ad campaign, sans the old tunes. “What we did not want to do was write jingles,” an ad exec told The New York Times.
A new anatomical understanding of how movement controls the body’s stress response system
Elite tennis players have an uncanny ability to clear their heads after making errors. They constantly move on and start fresh for the next point. They can’t afford to dwell on mistakes.
Peter Strick is not a professional tennis player. He’s a distinguished professor and chair of the department of neurobiology at the University of Pittsburgh Brain Institute. He’s the sort of person to dwell on mistakes, however small.
“My kids would tell me, dad, you ought to take up pilates. Do some yoga,” he said. “But I’d say, as far as I’m concerned, there's no scientific evidence that this is going to help me.”
Still, the meticulous skeptic espoused more of a tennis approach to dealing with stressful situations: Just teach yourself to move on. Of course there is evidence that ties practicing yoga to good health, but not the sort that convinced Strick. Studies show correlations between the two, but he needed a physiological mechanism to explain the relationship. Vague conjecture that yoga “decreases stress” wasn’t sufficient. How? Simply by distracting the mind?
The European Commission ordered Ireland to recover up to 13 billion euros ($14.5 billion) from the tech giant over what it called “illegal tax benefits.”
NEWS BRIEF Ireland’s tax incentives to Apple are illegal and Dublin must recover up to 13 billion euros ($14.5 billion) from the American tech giant, the European Commission ruled Tuesday.
Here’s more from Margrethe Vestager, the commissioner in charge of competition policy:
Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules. The Commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014.
Why did the company trend a false article about Megyn Kelly?
Oh, Facebook. Just when the company seems to have avoided the responsibility of being a news organization (and all the attendant controversy), it finds itself back in the editorial muck.
Last week, Facebook made a surprise overhaul of its “Trending Stories” feature, the sidebar that highlights some of the most popular news stories on Facebook. Where the company had previously provided a short, human-written summary of the news at hand, it now only described the story in a one or two-word phrase: “#Toyko2020: Japanese Prime Minister Appears in Surprise Performance During Rio Ceremony,” became just “#Tokyo2020.”
Facebook’s decision to simplify the feature seemed like an attempt to wriggle out of editorial responsibility: What had been a messy human-led process would now become an algorithm-guided one. The company also laid off the 26 employees who had run the feature—19 curators and seven copyeditors—with little warning on Friday, according to Quartz.
Hillary Clinton has her problems, but Donald Trump is unfit for the presidency.
On one hand, there’s former Secretary of State Hillary Clinton, who oversaw “grossly inadequate” security at a diplomatic facility in Benghazi, Libya, the site of a deadly September 11, 2012, terrorist attack.
Practices meant to protect marginalized communities can also ostracize those who disagree with them.
Last week, the University of Chicago’s dean of students sent a welcome letter to freshmen decrying trigger warnings and safe spaces—ways for students to be warned about and opt out of exposure to potentially challenging material. While some supported the school’s actions, arguing that these practices threaten free speech and the purpose of higher education, the note also led to widespread outrage, and understandably so. Considered in isolation, trigger warnings may seem straightforwardly good. Basic human decency means professors like myself should be aware of students’ traumatic experiences, and give them a heads up about course content—photographs of dead bodies, extended accounts of abuse, disordered eating, self-harm—that might trigger an anxiety attack and foreclose intellectual engagement. Similarly, it may seem silly to object to the creation of safe spaces on campus, where members of marginalized groups can count on meeting supportive conversation partners who empathize with their life experiences, and where they feel free to be themselves without the threat of judgment or censure.