Psst, Angela. It's time to listen to Carly Rae Jepsen on the euro crisis. She's a savant about it.
(Reuters/Kasia Cieplak-von Baldegg)
Hey, she's a popstar, and this is crazy, but is Carly Rae Jepsen a euro crisis genius, maybe?
I know, I know. The only thing more maddening than "Call Me Maybe" is the euro crisis. One is a banal string of saccharine statements, punctuated by swift choruses of action. The other is a pop song. And neither willgoaway.
But the lyrical stylings of Carly Rae Jepsen just might be a Rosetta Stone for the euro crisis. And you don't even have to play the record backwards to get the secret message.
First, let's make sure we'll all on equal footing. I'm jealous of the lucky few still unfamiliar with the earworm that is "Call Me Maybe." But I'm also spiteful. So here's the music video. You're welcome.
What a euro crisis savant. If it's still not obvious what macroeconomic wisdom she's distilling in these sugary beats, here are the eight lines from "Call Me Maybe" that best explain the euro crisis. Why eight? Because Carly Rae Jespen works in mysterious ways.
"I threw a wish in the well, don't ask me I'll never tell."
Europe had a dream. That dream was itself. It was of an integrated continent, of a United States of Europe. How it would get there? Nobody was ready to tell the full story.
There was an underlying logic to integration -- a logic that George Soros has pointed out is now broken. That logic was that Europe would use any crisis of integration to push integration further. But that process went into reverse in the fall of 2008. German chancellor Angela Merkel declared that each euro zone country was on its own when it came to bailing out its banks -- driving a stake through the heart of the common currency.
Now Europe faces a catch-22. The only way to save the euro is for Germany to agree to some kind of joint debt. But Germany doesn't want to give southern Europe money without getting a say over how that money is spent. And southern Europe doesn't want to give Germany a say over how it spends money -- unless it's for a genuine fiscal union. So round and round we go.
"I trade my soul for a wish, pennies and dimes for a kiss."
Southern Europe has traded budget cuts and labor market reforms for money. Some of that money has come from Germany. Some of it has come from the ECB.
This makes less sense than you think. The ECB is only supposed to have one job. That's maintaining price stability, defined as 2 percent annual inflation. But the ECB has unofficially abandoned this single mandate. No, it doesn't care about jobs! It cares about politics. Specifically, whether countries are doing what Germany has demanded. This is crazy, definitely.
Countries that pass the ECB's test get lower borrowing costs. Countries that don't, well, don't. Actually, that's not always true. Even countries that play nice aren't always rewarded. Ask Spain. Meanwhile, the economy is screaming for the ECB to do something, anything more.
"I wasn't looking for this, but now you're in my way."
Both Carly Rae Jepsen and history have well-developed senses of irony. The second Ms. Jepsen stops looking for love, she finds it -- only to belatedly discover that her crush isn't interested in the ladies. Meanwhile, the one time Germany didn't try to take over Europe, the continent landed in its lap.
This historical twist hasn't escaped George Soros. He sees the euro zone turning into a German feudal state. Creditors make the rules in a debt crisis. But remember: Germany didn't want this. That's why they've been so reluctant to do what needs to be done. The danger is that they'll wait too long -- that a political backlash in southern Europe will develop before Germany is ready to accede to eurobonds. Then the euro would die a chaotic death.
"It's hard to look right at you, baby."
Is there any doubt Carly Rae Jepsen is really talking about Spanish bank balance sheets here? Spain was Europe's Florida. It had a huge housing bubble. Then it had a huge housing bust -- but not enough of one. They've been much slower to admit how far housing prices need to fall. That's allowed banks to keep holding assets at waaaay overinflated values -- until recently. Now the game of pretend is ending and the game of bailouts is beginning. Ugly stuff. Look away.
"You took your time with the call, I took no time with the fall, you gave me nothing at all."
You won't find a more plaintive lament for Europe's periphery than this. During the boom years, capital poured into southern Europe. But then Lehman failed, the money spigot turned off, and southern Europe fell. Germany hasn't exactly rushed to bail them out.
Actually, it's a bit misleading to call them "bailouts". They're loans. Low-interest rate loans, but loans nonetheless. And loans that are often senior to other debt. That makes private investors wary about putting more capital on the line, because they're first in line for the inevitable losses. It's increased their debt, and made that debt riskier. In other words, they've basically gotten nothing at all.
"I beg and borrow and steal."
Sometimes even the cryptic Carly Rae Jepsen speaks plainly. This is one of those times. The line above is clearly about Greece.
For years, the government lied about the size of its budget deficits -- with some help from Goldman Sachs -- until reality finally intruded in 2009. That's when the begging and borrowing began in earnest.
Now Greece may find out if beggars really can't be choosers. The far-left Syriza party is neck-and-neck in the polls thanks to its platform to renegotiate Greece's bailout loans while remaining in the euro zone. Their calculus is that beggars with a trillion euros of leverage can indeed be choosers. It's a dangerous game of chicken, with the future of the euro potentially hanging in the balance.
"I didn't know I would feel it, but it's in my way."
Poor Italy. It's actually been responsible since the euro was introduced Italy has managed to stabilize its debt and move towards a primary surplus -- meaning that it's in the black minus interest payments -- despite its stagnating economy. And Italy did all that with Silvio Berlusconi as its prime minister. That deserves some sort of prize. But instead of a prize, Italy has gotten euro contagion. With Spain on the ropes, Italy is next.
"Before you came into my life I missed you so bad."
Ms. Jepsen isn't quite as paradoxical as she sounds. It's easy to miss something before it comes into your life -- if it leaves and then returns. Like Spain's peseta. Or Italy's lira.
The euro should be a real four-letter word nowadays. It prevents troubled countries from printing or borrowing money at the most inopportune time. And it makes them solve their uncompetitiveness problems in the most painful way possible: with wage cuts. Instead of devaluing the peseta, Spain has to force workers to take pay cuts in euros. That's an economic disaster. It makes both debt problems and unemployment worse.
The peseta is sounding better and better.
See, "Call Me Maybe" is really a deep meditation on the nature and ironies of the euro crisis. So here's a modest proposal. Let's lock up Angela Merkel et. al. in a room playing "Call Me Maybe" on repeat. They can't leave until they absorb Ms. Jepsen's insight and reach some of kind of deal. Or go crazy.
Conservatives once warned that Obamacare would produce the Democratic Waterloo. Their inability to accept the principle of universal coverage has, instead, led to their own defeat.
Seven years and three days ago, the House of Representatives grumblingly voted to approve the Senate’s version of the Affordable Care Act. Democrats in the House were displeased by many of the changes introduced by Senate Democrats. But in the interval after Senate passage, the Republicans had gained a 41st seat in the Senate. Any further tinkering with the law could trigger a Republican filibuster. Rather than lose the whole thing, the House swallowed hard and accepted a bill that liberals regarded as a giveaway to insurance companies and other interest groups. The finished law proceeded to President Obama for signature on March 23, 2010.
A few minutes after the House vote, I wrote a short blog post for the website I edited in those days. The site had been founded early in 2009 to argue for a more modern and more moderate form of Republicanism. The timing could not have been worse. At precisely the moment we were urging the GOP to march in one direction, the great mass of conservatives and Republicans had turned on the double in the other, toward an ever more wild and even paranoid extremism. Those were the days of Glenn Beck’s 5 o’clock Fox News conspiracy rants, of Sarah Palin’s “death panels,” of Orly Taitz and her fellow Birthers, of Tea Party rallies at which men openly brandished assault rifles.
Walk into the offices of Memac Ogilvy Advize, an advertising firm on the third floor of a car rental building in a business district of West Amman, Jordan, and you’ll be greeted with an immense black-and-white photo of Donald Trump’s face. The red cursive text printed across it reads: “We Trumped the awards.”
The sign sits behind a reception counter boasting a large trophy won at the Dubai Lynx 2017, an annual advertising competition where Memac Ogilvy won the Grand Prix for PR (a first for any Jordanian agency) along with four other silver and gold prizes, for trolling Trump in their ads on behalf of Royal Jordanian Airlines.
The House abandoned its legislation to repeal and replace the Affordable Care Act, handing President Trump and Speaker Paul Ryan a major defeat.
Updated on March 24 at 6:28 p.m. ET
To a man and woman, nearly every one of the 237 Republicans elected to the House last November made the same promise to voters: Give us control of Congress and the White House, and we will repeal and replace the Affordable Care Act.
On Friday, those lawmakers abandoned that effort, conceding that the Republican Party’s core campaign pledge of the last seven years will go unfulfilled. “I will not sugarcoat this: This is a disappointing day for us,” House Speaker Paul Ryan said at a press conference after he informed Republicans that he was ditching the American Health Care Act.
“We did not have quite the votes to replace this law,” Ryan said. “And, so yeah, we’re going to be living with Obamacare for the foreseeable future.”
"Where people are desperate, it is still America they count on, whether they love or scorn it, and America they blame when aid does not come."
After Donald Trump’s victory in the U.S. presidential election in November, a foreign ambassador accosted one of my deputies at the State Department, where from 2014 to early this year I served as theassistant secretary of state for democracy, human rights, and labor. “You must be so sad!” the man, a representative of a Central Asian government, said, grinning widely. “All this talk of elections being important, of democracy being important, and now look at you! Now even your new president says there were 3 million illegal votes in your election! … You must all feel so stupid these days.”
Since then, the global club of autocrats has been crowing about Trump. Sudan’s dictator Omar al Bashir praised him for focusing “on the interests of the American citizen, as opposed to those who talk about democracy, human rights, and transparency.” Iran’s Supreme Leader Ayatollah Khamenei thanked him for showing “America’s true face” by trying to ban Muslim immigration. The Cambodian government justified attacks on journalists by saying Trump, too, recognizes that “news published by [international] media institutions does not reflect the real situation.”
Speaking after the collapse of the Republican health-care bill, the president assigned blame to plenty of parties but cast himself as a mere bystander.
Speaking in the Oval Office Friday afternoon, President Trump surveyed the wreckage of the Obamacare repeal effort and issued a crisp, definitive verdict: I didn’t do it.
The president said he didn’t blame Speaker Paul Ryan, though he had plenty of implied criticism for the speaker. “I like Speaker Ryan. He worked very hard,” Trump said, but he added: “I'm not going to speak badly about anybody within the Republican Party. Certainly there's a big history. I really think Paul worked hard.” He added ruefully that the GOP could have taken up tax-reform first, instead of Obamacare—the reverse of Ryan’s desired sequence. “Now we’re going to go for tax reform, which I’ve always liked,” he said.
The Obama years left Republicans with excellent ratings from the Heritage Foundation, and no idea how to whip a vote.
The Republican Party’s marquee legislative initiative had just imploded in spectacular, and humiliating, fashion Friday afternoon when Paul Ryan stepped up to a podium on Capitol Hill. The beleaguered house speaker wasted no time in diagnosing the failure of his caucus. “Moving from an opposition party to a governing party comes with some growing pains,” he said. “And, well, we’re feeling those growing pains today.”
Ryan wasn’t wrong. The GOP’s inability to maneuver a health-care bill through the House this week—after seven years of promising to repeal and replace Obamacare—is, indeed, emblematic of a deeper dysfunction that grips his party. But that dysfunction may not be as easy to cure as Ryan and other GOP leaders believe.
Most of management theory is inane, writes our correspondent, the founder of a consulting firm. If you want to succeed in business, don’t get an M.B.A. Study philosophy instead
During the seven years that I worked as a management consultant, I spent a lot of time trying to look older than I was. I became pretty good at furrowing my brow and putting on somber expressions. Those who saw through my disguise assumed I made up for my youth with a fabulous education in management. They were wrong about that. I don’t have an M.B.A. I have a doctoral degree in philosophy—nineteenth-century German philosophy, to be precise. Before I took a job telling managers of large corporations things that they arguably should have known already, my work experience was limited to part-time gigs tutoring surly undergraduates in the ways of Hegel and Nietzsche and to a handful of summer jobs, mostly in the less appetizing ends of the fast-food industry.
Even after the failure of the Republicans’ health-care bill, there are still significant ways Trump and his allies can roll back the Affordable Care Act’s provisions.
At least for the moment, the American Health Care Act is dead.
After two weeks of last-minute changes, Congressional Budget Office estimates, and an escalating tripartite skirmish between two wings of the Republican Party and the Trump White House, House Speaker Paul Ryan announced late Friday afternoon that a floor vote on the GOP’s Obamacare replacement would be canceled and the legislation pulled. Facing a 17 percent national approval rating for the bill and loss of support from both the conservative Freedom Caucus and moderate Republicans, Trump and congressional lawmakers appear willing to walk away from health care for the moment. It’s a reprieve, at the very least, for Obamacare.
The Affordable Care Act’s supporters are celebrating, and it’s not hard to see why. The strategy of forcing Republicans to choose between keeping their repeal promises and keeping the most popular parts of the law looks like Sun Tzu wrote it at this point. For now, the projected consequences of the AHCA won’t come to pass: 24 million people won’t lose insurance coverage, premiums won’t quintuple for low-income near-elderly people, and Medicaid funding for states won’t be cut over the next decade. But even if the current congressional battle over repeal-and-replace is over—or temporarily postponed—Republicans still have plenty of tools at their disposal to dismantle key pieces of Obamacare.
New books point to gathering trouble in both Asia and Europe.
As the United States under President Trump recedes from world leadership, things are not looking so good elsewhere on earth. Two new books—with similarly morbid titles—have arrived to warn of big trouble ahead for both the European Union and the emerging economies of Asia.
The End of the Asian Century by Michael Auslin offers a point-by-point debunking of the “Asiaphoria” that gripped so many imaginations a decade ago. James Kirchick’s The End of Europe tours a continent in which democratic and liberal forces are losing ground to Russia-infatuated extremists of right and left. The conclusion left behind by a reading of the two together: The post-American world predicted by Fareed Zakaria a decade ago is shaping up as an exceedingly unstable and uncomfortable place.
Michael Anton actively courts controversy with his extreme views. But how much influence does he have in the White House?
Michael Anton warned last year that 2016 was the Flight 93 election: “Charge the cockpit or you die.”
Americans charged. Donald Trump became president of the United States. And Anton, the author of that now-notorious essay, is helping to fly the plane—running communications for the National Security Council.
Anton cuts a curious figure through the Trump White House. A thoroughly educated dandy, his writings are at the core of an effort to construct an intellectual framework around the movement that elected a president who has shown no inclination to read books and who speaks in an unpretentious New York vernacular.
"I’m a huge admirer,” White House chief strategist Steve Bannon said. “I think Michael is one of the most significant intellects in this nationalist movement.”