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.
It isn’t the only democratic institution that finds itself in danger.
Four years ago, as a speechwriter for President Obama, I commissioned a binder full of women.
A little context. It was the morning of the Al Smith Dinner, the election-year tradition in which both parties’ nominees don white-tie attire and deliver comedy monologues to New York City’s elite. Our opponent, Governor Mitt Romney had recently used the words “binders full of women” while discussing gender parity in government. Eager to mock the clumsy phrase, I asked a staffer on the advance team to put together a prop.
But our binder never saw the light of day. Obama nixed the idea. I remember being disappointed by the president’s decision, and wondering if POTUS was phoning it in. Of the jokes that did make it into the final draft, one in particular stood out for its authenticity.
“Light” events are some of the heaviest lifting in political life. Comedy is hard to begin with, and for the kinds of people involved in politics, jokes are vastly more difficult to write or deliver than “substantive” remarks. And for presidents or presidential aspirants, we’re talking about a special kind of joke. These eminent figures need to come across as “modest” and self-deprecatory, but only up to a humble-brag point. (That is, just enough so the audience and reviewers will say, “Oh, isn’t it charming that he’s willing to laugh at himself!”) Real comedy often includes a “what the hell!” willingness to say something that will genuinely shock or offend, which national politicians can’t afford to do. The White House Correspondents Dinner, the Gridiron, the Al Smith Dinner—any event like this is hard (as David Litt, a former member of the Obama speechwriting team, explains in a very nice item just now).
First there was McCain’s caving to Bush’s signing statement on his own torture bill, then his selection of an extremely unqualified and unvetted running mate, then he backed Trump until nearly the bitter end—even after Trump insulted his POW experience and his fellow vets with PTSD. And now, a shameless betrayal of constitutional principle that would have gotten far more attention this week if Trump hadn’t one-upped McCain with all his incendiary “rigged” rhetoric. Reader Don explains:
I don’t know if your readers have seen this yet, but it seems that McCain has announced that his fellow GOP Senators will not confirm any Supreme Court nomination by Clinton. Trump is an ignorant, narcissistic, nasty piece of work. But McCain used to be a guy who remembered and honored (at least sometimes) the old bipartisan traditions of the Senate. His statement is just outrageous and inexcusable. What he’s basically saying is that only Republican presidents get to appoint Supreme Court Justices.
I understand that their thinking is that they don’t want the bias of the Court to shift from conservative to liberal. But the Court has shifted back and forth over the years, and we have managed to survive those changes. Apparently, today’s Republican Party feels that the country somehow won’t survive a Democratic administration or a liberal Supreme Court.
We have what might be described as an asymmetric politics. One party disagrees with the other party’s policy domestic policy positions, but recognizes the legitimacy of an opposition party and accepts that the other party is patriotic and loyal to the country. The other party rejects the legitimacy and loyalty of the other party. The efforts to de-legitimize former President Clinton, President Obama, and likely future President Hillary Clinton are part of this effort. The refusal of the GOP Congress to allow Obama any legislative accomplishments was another part of it. I expect that a GOP House will adopt the same obstructionist tactics starting in 2017.
People predict that the U.S. population will continue to get younger, better educated, and less white. I hope our political experiment lasts long enough to see that day.
What began as a two-hour morning outage spanned well into the afternoon as Twitter, Reddit, Spotify, Github, and many other popular websites and services became effectively inaccessible for many American web users, especially those on the East Coast.
The websites were not targeted individually. Instead, an unknown attacker deployed a massive botnet to wage a distributed denial-of-service attack on Dyn (pronounced like dine), the domain name service (DNS) provider that they all share.
A distributed denial of service attack, or DDoS, is not an uncommon attack on the web, and web hosts have been fending them off for years. But according to reports, Friday’s attack was distinguished by its distinctive approach. The perpetrator used a botnet composed of so-called “internet-of-things” devices—namely, webcams and DVRs—to spam Dyn with more requests than it could handle.
The candidates are back on the campaign trail, following the third, and final, debate on Wednesday night.
It’s Friday, October 21—the election is now less than three weeks away. Donald Trump and Hillary Clinton are back on the campaign trail to deliver their final pitch to voters, ahead of Election Day. We’ll bring you the latest updates from the trail, as events unfold. Also see our continuing coverage:
The easiest way to take down the web is to attack people’s access to it.
For more than two hours on Friday morning, much of the web seemed to grind to a halt—or at least slow to dial-up speed—for many users in the United States.
More than a dozen major websites experienced outages and other technical problems, according to user reports and the web-tracking site downdetector.com. They included The New York Times, Twitter, Pinterest, Reddit, GitHub, Etsy, Tumblr, Spotify, PayPal, Verizon, Comcast, EA, the Playstation network, and others.
How was it possible to take down all those sites at once?
Someone attacked the architecture that held them together—the domain-name system, or DNS, the technical network that redirects users from easy-to-remember addresses like theatlantic.com to a company’s actual web servers. The assault took the form of a distributed denial-of-service attack (DDoS) on one of the major companies that provides other companies access to DNS. A DDoS attack is one in which an attacker floods sites “with so much junk traffic that it can no longer serve legitimate visitors,” as the security researcher Brian Krebs put it in a blog post Friday morning.
Science says lasting relationships come down to—you guessed it—kindness and generosity.
Every day in June, the most popular wedding month of the year, about 13,000 American couples will say “I do,” committing to a lifelong relationship that will be full of friendship, joy, and love that will carry them forward to their final days on this earth.
Except, of course, it doesn’t work out that way for most people. The majority of marriages fail, either ending in divorce and separation or devolving into bitterness and dysfunction. Of all the people who get married, only three in ten remain in healthy, happy marriages, as psychologist Ty Tashiro points out in his book The Science of Happily Ever After, which was published earlier this year.
Social scientists first started studying marriages by observing them in action in the 1970s in response to a crisis: Married couples were divorcing at unprecedented rates. Worried about the impact these divorces would have on the children of the broken marriages, psychologists decided to cast their scientific net on couples, bringing them into the lab to observe them and determine what the ingredients of a healthy, lasting relationship were. Was each unhappy family unhappy in its own way, as Tolstoy claimed, or did the miserable marriages all share something toxic in common?
Her “personal” comeback album uses retro references in songs that don’t quite communicate what makes her special.
“I want your everything as long as it’s free”—right there, in her biggest single, Lady Gaga nailed the eternal tease of pop music. In three easy minutes, you feel immortal, unbeatable, the ultimate person. You stand at the edge, the edge, the edge, but know you won’t tumble over. It was a proposition Gaga tested with ever-more gusto until the safety harness snapped for 2013’s Artpop, where each songs seemed to have six different choruses and 42 layers of synthesizer and zero filter on its lyrics about the insatiable need to feed off of human attention. Suddenly, the listener felt implicated; the rush became lurid; everything was no longer free.
Gaga then retreated into tribute performances and the grounding wisdom of Tony Bennett, resulting finally in her new album Joanne, a self-described return to pop “without makeup.” It used to be that although she was among one of the most famous performers in the world, most people wouldn’t have been able to identify her in plainclothes. Now she sits unadorned on her album cover, with the only controversial fashion choice for the related marketing campaign being a bit of underboob. Decent move, PR-wise, perhaps: Here I am, humbled by my Icarus fall. But musically, she has overcorrected and hired a team with more gimmicks than guts, resulting in a “personal” album that—while often enjoyable—seems like it’s trying to hide its personality.
Why her vow not to “add a penny to the debt” is an impossible pledge to keep
Hillary Clinton said nothing on Wednesday night that should derail her considerable chances of winning the presidency on November 8. But if she wins, one simple promise she repeated over and over again could come back to haunt her reelection bid in 2020.
“I also will not add a penny to the debt,” Clinton said toward the beginning of her final presidential-debate performance. She made a similar pledge two more times that night, and it’s a line she has used before on the campaign trail. It’s a short-hand reference to the fact that although she has proposed hundreds of billions in new federal spending for infrastructure, paid family leave, education, and other items, she would pay for those investments by raising an equal or greater amount in revenue through higher taxes on the wealthy and corporations.
The third episode of the new season is one of the most disturbing of the series.
Sophie Gilbert and David Sims will be discussing the new season of Netflix’s Black Mirror, considering alternate episodes. The reviews contain spoilers; don’t read further than you’ve watched. See all of their coverage here.
David, I agree with you that the ending of “Playtest” fell flat. After so many twists (bullies! spiders! spider bullies! Terminator hookups!), the end didn’t evoke pathos so much as a sense of absurdity. In terms of focusing on the evils of technology, though, it seems to me that Black Mirror has always seen technology as something with the potential to enable and encourage human evil, rather than something that’s inherently evil by itself. It takes our worst instincts as people, as societies, and magnifies them.