Before the Greeks say goodbye to the great European experiment, both Athens and the EU need to gird themselves for the mother of all economic fall-outs.
Is Greece ready to go it alone?
That's become the guessing game du jour after anti-austerity parties captured a shocking share of the vote in the latest Greek elections. But don't expect the drachma to return any time soon.
It won't be easy for either Greece or Europe to prepare for a divorce. If it was, they'd have already done so. Greece needs to get its budget ready, and Europe needs to get its firewall ready. The politics are terrible for both.
THE BUDGET AND THE FIREWALL
Right now, Greece is running a primary deficit. That means the Greek government would still need to borrow money even if it didn't have any interest payments to make. A euro exit and default wouldn't solve its austerity problem. A euro exit and default would create an even worse austerity problem -- or an inflation one. Remember: Greece is getting piles of cash from Europe as part of its bailout. Greece would lose that money if it defaults. And they wouldn't be able to replace it. Nobody wants to lend to them now and likely won't for a long, long time. Greece would have to either cut spending and raise taxes much more, or print the difference. It's a choice between hyperausterity and hyperinflation.
A premature Greek exit wouldn't be much better for Europe. It would set off a potentially euro-ending bank run. Depositors in Ireland, Portugal, Spain and Italy would pull their money out of local banks and move it to "safe" countries like Germany. The logic is simple: If countries can leave the euro zone, then not all euros are created equal. Euros in Italian banks might turn into cheaper lira overnight. Euros in German banks would stay euros -- or maybe even turn into stronger deutsche marks overnight. Investors would see this and bet on a breakup. Borrowing costs would soar.
There would only be one way to prevent a meltdown: Throw money at it. It would be the mother-of-all-bailouts to deal with the mother-of-all-bank runs. (A firewall is just a bailout fund that you haven't used yet). The ECB would have to buy bonds directly from troubled governments. And the Germans would have to give bonds to troubled governments -- a joint eurobond. It would take such a complete show of financial support to convince markets that Europe was determined to save itself at any cost.
But just as there is an unbalance of payments between Greece and Europe, there is also an unbalance of challenges. Greece's primary balance is more of an economic problem than a political hurdle. Europe's firewall is more of a political hurdle than an economic problem. That makes this a dangerous game.
NO DRACHMA (YET)
Neither side is ready for a split. Greece doesn't have a primary surplus and Europe doesn't have a genuine firewall. That gives both every incentive to kick the can a bit more. So that's exactly what we should expect -- for now.
The problem is that people eventually get tired of kicking the can -- and convince themselves that they might not need to.
As Greece gets closer and closer to a primary surplus, it will ask for more and more from Europe. That's basically what far-left leader Alexis Tsipras wants to do now. But Europe doesn't want to give in too much. Besides, Europe could just bailout everybody after a default, like the U.S. did with TARP. It would be messy -- and far worse than setting up a firewall in advance. But the world wouldn't end. So both sides might think that they have more leverage than they actually do. That's how you lose a game of chicken.
The safest strategy is simply to stop playing the game. Europe should create a firewall, kick Greece out of the euro, but then provide bridge loans to the troubled country.
What would the American culture wars look like if they were less about “values” and more about Jesus?
Evangelical Christianity has long had a stranglehold on how Americans imagine public faith. Vague invocations of “religion”—whether it’s “religion vs. science” or “religious freedom”—usually really mean “conservative, Protestant, evangelical Christianity,” and this assumption inevitably frames debates about American belief. For the other three-quarters of the population—Catholics, Jews, other Protestants, Muslims, Hindus, secular Americans, Buddhists, Wiccans, etc.—this can be infuriating. For some evangelicals, it’s a sign of success, a linguistic triumph of the culture wars.
But not for Russell Moore. In 2013, the 43-year-old theologian became the head of the Ethics and Religious Liberty Commission, the political nerve center of the Southern Baptist Convention. His predecessor, Richard Land, prayed with George W. Bush, played hardball with Democrats, and helped make evangelicals a quintessentially Republican voting bloc.
The winners of the 27th annual National Geographic Traveler Photo Contest have just been announced.
The winners of the 27th annual National Geographic Traveler Photo Contest have just been announced. Winning first prize, Anuar Patjane Floriuk of Tehuacán, Mexico, will receive an eight-day photo expedition for two to Costa Rica and the Panama Canal for a photograph of divers swimming near a humpback whale off the western coast of Mexico. Here, National Geographic has shared all of this year’s winners, gathered from four categories: Travel Portraits, Outdoor Scenes, Sense of Place, and Spontaneous Moments. Captions by the photographers.
Many psychiatrists believe that a new approach to diagnosing and treating depression—linking individual symptoms to their underlying mechanisms—is needed for research to move forward.
In his Aphorisms, Hippocrates defined melancholia, an early understanding of depression, as a state of “fears and despondencies, if they last a long time.” It was caused, he believed, by an excess of bile in the body (the word “melancholia” is ancient Greek for “black bile”).
Ever since then, doctors have struggled to create a more precise and accurate definition of the illness that still isn’t well understood. In the 1920s, the German psychiatrist Kurt Schneider argued that depression could be divided into two separate conditions, each requiring a different form of treatment: depression that resulted from changes in mood, which he called “endogenous depression,” and depression resulting from reactions to outside events, or “reactive depression.” His theory was challenged in 1926, when the British psychologist Edward Mapother argued in the British Medical Journal that there was no evidence for two distinct types of depression, and that the apparent differences between depression patients were just differences in the severity of the condition.
Paul faced danger, Ani and Ray faced each other, and Frank faced some career decisions.
This is what happens when you devote two-thirds of a season to scene after scene after scene of Frank and Jordan’s Baby Problems, and Frank Shaking Guys Down, and Look How Fucked Up Ray and Ani Are, and Melancholy Singer in the Dive Bar Yet Again—and then you suddenly realize that with only a couple episodes left you haven’t offered even a rudimentary outline of the central plot.
An activist group is trying to discredit Planned Parenthood with covertly recorded videos even as contraception advocates are touting a method that sharply reduces unwanted pregnancies.
Abortion is back at the fore of U.S. politics due to an activist group’s attempt to discredit Planned Parenthood, one of the most polarizing organizations in the country. Supporters laud its substantial efforts to provide healthcare for women and children. For critics, nothing that the organization does excuses its role in performing millions of abortions––a procedure that they regard as literal murder––and its monstrous character is only confirmed, in their view, by covertly recorded video footage of staffers cavalierly discussing what to do with fetal body parts.
If nothing else, that recently released footage has galvanized Americans who oppose abortion, media outlets that share their views, and politicians who seek their votes. “Defunding Planned Parenthood is now a centerpiece of the Republican agenda going into the summer congressional recess,” TheWashington Postreports, “and some hard-liners have said they are willing to force a government shutdown in October if federal support to the group is not curtailed.”
The jobs that are least vulnerable to automation tend to be held by women.
Many economists and technologists believe the world is on the brink of a new industrial revolution, in which advances in the field of artificial intelligence will obsolete human labor at an unforgiving pace. Two Oxford researchers recently analyzed the skills required for more than 700 different occupations to determine how many of them would be susceptible to automation in the near future, and the news was not good: They concluded that machines are likely to take over 47 percent of today’s jobs within a few decades.
This is a dire prediction, but one whose consequences will not fall upon society evenly. A close look at the data reveals a surprising pattern: The jobs performed primarily by women are relatively safe, while those typically performed by men are at risk.
What if Joe Biden is going to run for the Democratic nomination after all?
Most Democrats seem ready for Hillary Clinton—or at least appear content with her candidacy. But what about the ones who who were bidin’ for Biden? There are new signs the vice president might consider running for president after all.
Biden has given little indication he was exploring a run: There’s no super PAC, no cultivation of a network of fundraisers or grassroots organizers, few visits to early-primary states. While his boss hasn’t endorsed Clinton—and says he won’t endorse in the primary—many members of the Obama administration have gone to work for Clinton, including some close to Biden.
But Biden also hasn’t given any clear indication that he isn’t running, and a column by Maureen Dowd in Saturday’s New York Times has set off new speculation. One reason Biden didn’t get into the race was that his son Beau was dying of cancer, and the vice president was focused on being with his son. But before he died in May, Dowd reported, Beau Biden tried to get his father to promise to run. Now Joe Biden is considering the idea.
It’s impossible to “solve” the Iranian nuclear threat. This agreement is the next best thing.
Having carefully reviewed the lengthy and complex agreement negotiated by the United States and its international partners with Iran, I have reached the following conclusion: If I were a member of Congress, I would vote yes on the deal. Here are nine reasons why.
1) No one has identified a better feasible alternative. Before negotiations halted its nuclear advance, Iran had marched relentlessly down the field from 10 years away from a bomb to two months from that goal line. In response, the United States and its partners imposed a series of sanctions that have had a significant impact on Iran’s economy, driving it to negotiate. That strategy worked, and resulted in a deal. In the absence of this agreement, the most likely outcome would be that the parties resume doing what they were doing before the freeze began: Iran installing more centrifuges, accumulating a larger stockpile of bomb-usable material, shrinking the time required to build a bomb; the U.S. resuming an effort to impose more severe sanctions on Iran. Alternatively, Israel or the United States could conduct military strikes on Iran’s nuclear facilities, setting back the Iranian program by two years, or perhaps even three. But that option risks wider war in the Middle East, an Iran even more determined to acquire a bomb, and the collapse of consensus among American allies.
Blame Prohibitionists, German immigrants, and factory workers who just wanted to drink during their lunch break.
Today’s discerning beer drinkers might be convinced that America’s watery, bland lagers are a recent corporate invention. But the existence of American beers that are, as one industry executive once put it, “less challenging,” has a much longer history. In fact, Thomas Jefferson, himself an accomplished homebrewer, complained that some of his country’s beers were “meagre and often vapid” nearly 200 years ago.
Jefferson never lived to see the worst of it. Starting in about the mid-1800s, American beer has been defined by its dullness. Why? The answer lies in a combination of religious objections to alcohol, hordes of German immigrants, and a bunch of miners who just wanted to drink during their lunch break, says Ranjit Dighe, a professor of economics at the State University of New York at Oswego.
In the footage, secretly recorded by an anti-abortion-rights group, an official from the organization discusses the procurement and cost of intact fetuses.
Updated on August 4, 2015, at 5:54 p.m. ET
Planned Parenthood’s handling of fetal tissue for research is the subject of a fresh video released Tuesday by an anti-abortion group.
In the latest video, the fifth released by Irvine, California-based Center for Medical Progress, an official from Planned Parenthood discusses the procurement and cost of intact fetuses. The video, we should warn you, is graphic.
Planned Parenthood calls the videos a “smear campaign.” It says the footage is highly edited, misleading, and takes discussions out of context.
The Center for Medical Progress has faced two court orders that block the release of future videos, but those orders are limited to footage recorded at meetings of the National Abortion Federation and those dealing with a tissue procurement company. Fox News adds: “Tuesday’s release, purely reliant on video taken inside a Planned Parenthood clinic, would not seem to violate either order.”