It's almost as if Europe is trying to start a bank run.
Rather impressively, the botched bailout of Spain's banks wasn't even the most incompetent thing Europe's officials did on Monday. That honor goes to the guys who admitted that they have talked about instituting capital controls if Greece actually does exit the euro zone. Meaning: Europe will prevent people from moving their money across national borders -- and perhaps even from withdrawing it from ATMs -- if eurogeddon hits.
The first rule of capital controls is: Don't talk about capital controls. The second rule of capital controls is: Just do them -- secretly. Talking about them beforehand only broadcasts to everyone in Europe's periphery that they should move their money to a German bank ASAP, as otherwise their euros could soon turn into pesetas or lira. Of course, if people start pulling their money out of their home banks en masse, the only solution might be capital controls ...
In other words, talking about capital controls can set off a continental bank run that makes capital controls necessary.
That gives me a chance to resurrect one of my favorite euro-doom graphs. The chart below from the Institute of Empirical Economic Research at the University of Osnabrück shows how much countries owe or are owed by the ECB. It's a good proxy for how much capital flight there's been out of Europe's troubled economies. That blue line at the top is Germany. The orange and purple lines at the bottom? Spain and Italy.
If Europe wanted to guarantee that the Spanish bailout would fail, and accelerate the onset of the seemingly inevitable Italian bailout, they could hardly do worse than to start talking publicly about capital controls.
It's uncanny. They never miss a chance to do the wrong thing at the exact wrong moment.
Republican Roy Moore and Democrat Doug Jones are running for the seat formerly held by Attorney General Jeff Sessions.
Alabama voters will decide on Tuesday whether to send Republican Roy Moore or Democrat Doug Jones to the Senate in the race to fill the seat previously held by Attorney General Jeff Sessions. Polls in the closely-watched, and surprisingly competitive, race close at 8 p.m. Eastern.
Alabama is a deeply conservative state. But Moore’s campaign is embroiled in controversy and allegations of past sexual misconduct, creating an opening for a possible upset by Jones. Moore has a lead of 2.2 points in polling averages, but polls have been all over the place and the race could go either way.
Moore is a former Alabama Chief Justice who gained notoriety for defying federal court orders to take down a monument to the Ten Commandments and uphold the legality of same-sex marriage. He faces allegations of sexual assault from multiple women, including women who say they were teenagers when he made advances toward them. Moore has denied the accusations.
The president attacked a senator who has emerged as a crusader against all manner of sexual misbehavior by political leaders.
Just after 8:00 on Tuesday morning, President Trump whipped out his phone and fired off this incendiary, insinuating tweet:
Lightweight Senator Kirsten Gillibrand, a total flunky for Chuck Schumer and someone who would come to my office ‘begging’ for campaign donations not so long ago (and would do anything for them), is now in the ring fighting against Trump. Very disloyal to Bill & Crooked-USED!
It’s hardly surprising that Trump is miffed at Gillibrand. On Monday, the gentlewoman from New York publicly called on the president to step down in light of the multiple accusations of harassment and assault swirling around him. Having long pressed for the military to address its sexual-assault problem, Gillibrand has emerged more recently as a crusader against all manner of sexual misbehavior by political leaders: She was the first Senate Democrat to call on her Minnesota colleague Al Franken to step down, and she contends that elected officials absolutely should be held to higher standards than regular folks.
There’s a fiction at the heart of the debate over entitlements: The carefully cultivated impression that beneficiaries are simply receiving back their “own” money.
One day in 1984, Kurt Vonnegut called.
I was ditching my law school classes to work on the presidential campaign of Walter Mondale, the Democratic candidate against Ronald Reagan, when one of those formerly-ubiquitous pink telephone messages was delivered to me saying that Vonnegut had called, asking to speak to one of Mondale’s speechwriters.
All sorts of people called to talk to the speechwriters with all sorts of whacky suggestions; this certainly had to be the most interesting. I stared at the 212 phone number on the pink slip, picked up a phone, and dialed.
A voice, so gravelly and deep that it seemed to lie at the outer edge of the human auditory range, rasped, “Hello.” I introduced myself. There was a short pause, as if Vonnegut were fixing his gaze on me from the other end of the line, then he spoke.
Russia's strongman president has many Americans convinced of his manipulative genius. He's really just a gambler who won big.
I. The Hack
The large, sunny room at Volgograd State University smelled like its contents: 45 college students, all but one of them male, hunched over keyboards, whispering and quietly clacking away among empty cans of Juicy energy drink. “It looks like they’re just picking at their screens, but the battle is intense,” Victor Minin said as we sat watching them.
Clustered in seven teams from universities across Russia, they were almost halfway into an eight-hour hacking competition, trying to solve forensic problems that ranged from identifying a computer virus’s origins to finding secret messages embedded in images. Minin was there to oversee the competition, called Capture the Flag, which had been put on by his organization, the Association of Chief Information Security Officers, or ARSIB in Russian. ARSIB runs Capture the Flag competitions at schools all over Russia, as well as massive, multiday hackathons in which one team defends its server as another team attacks it. In April, hundreds of young hackers participated in one of them.
A good marriage is no guarantee against infidelity.
“Most descriptions of troubled marriages don’t seem to fit my situation,” Priya insists. “Colin and I have a wonderful relationship. Great kids, no financial stresses, careers we love, great friends. He is a phenom at work, fucking handsome, attentive lover, fit, and generous to everyone, including my parents. My life is good.” Yet Priya is having an affair. “Not someone I would ever date—ever, ever, ever. He drives a truck and has tattoos. It’s so clichéd, it pains me to say it out loud. It could ruin everything I’ve built.”
Priya is right. Few events in the life of a couple, except illness and death, carry such devastating force. For years, I have worked as a therapist with hundreds of couples who have been shattered by infidelity. And my conversations about affairs have not been confined within the cloistered walls of my therapy practice; they’ve happened on airplanes, at dinner parties, at conferences, at the nail salon, with colleagues, with the cable guy, and of course, on social media. From Pittsburgh to Buenos Aires, Delhi to Paris, I have been conducting an open-ended survey about infidelity.
Winning images and honorable mentions from the four categories: Wildlife, Landscapes, Aerials, and Underwater.
National Geographic has announced the winners of its annual photo competition, with the Grand Prize Winner Jayaprakash Joghee Bojan receiving a prize of $7,500 for his image of an orangutan in Borneo. National Geographic was once again kind enough to let us display the winning images and honorable mentions here from the four categories: Wildlife, Landscapes, Aerials, and Underwater.
Russian billionaire Yuri Milner says if the space rock 'Oumuamua is giving off radio signals, his team will be able to detect them—and they may get the results within days.
The email about “a most peculiar object” in the solar system arrived in Yuri Milner’s inbox last week.
Milner, the Russian billionaire behind Breakthrough Listen, a $100 million search for intelligent extraterrestrial life, had already heard about the peculiar object. ‘Oumuamua barreled into view in October, the first interstellar object seen in our solar system.
Astronomers around the world chased after the mysterious space rock with their telescopes, collecting as much data as they could as it sped away. Their observations revealed a truly unusual object with puzzling properties. Scientists have long predicted an interstellar visitor would someday coast into our corner of the universe, but not something like this.
H.R. McMaster previewed the administration’s new plan on Tuesday, which offers a striking contrast to the visions of other recent presidents.
The Trump administration unveils a National Security Strategy next week, but National-Security Adviser H.R. McMaster provided an advance glimpse of the plan on Tuesday.
A helpful way to understand where this still-new administration is leading is to compare McMaster’s bullet-pointed speech to the final Strategy documents released by two previous administrations, in 2015 and 2006, and note what is changing. McMaster spoke at a Washington conference hosted by Policy Exchange, a U.K. think tank that I chaired from 2014 until earlier this year. Granted, his short speech inevitably abridged the long-form document. Yet even allowing for that, the differences can be seen.
The Obama administration’s 2015 document addressed in some detail epidemics and climate change. The Bush administration committed the United States to supporting human dignity, opening societies, and supporting the building of democracy. The main lines of the Trump approach jettison these concerns. If McMaster fairly summarized the new approach, the United States will soon formally commit itself to a lonelier and less generous course.
In remarks at Berkeley, the professor suggested the need for greater limits on free expression.
Judith Butler worries that UC Berkeley risks dire consequences if it fails to put more limits on the sorts of speech and free expression that it allows on campus.
In remarks to a campus forum, “Perspectives on Freedom of Expression on Campus,” she argued against “free speech absolutists.” For instance, she believes incitements to violence should not be protected by the First Amendment. Of course, that view reflects longstanding law and is shared by the Federalist Society, the ACLU, the Foundation for Individual Rights in Education, and the vast majority of Americans, including most staunch free-speech advocates. Support for repealing all laws against incitement is almost nil, as is the constituency for literal free-speech “absolutism.”
Top picks from a year of personal stories, protest songs, and escapism
In a year when world events seemed to push pop culture aside—or else become pop culture itself—the albums that hit most deeply for me were about individuals, not issues. Many of the picks below are autobiographies of sorts, and even the more “political” records blend their songs of social crackups with ones of personal breakups. The other albums here offer much-needed escape, whether with guitar solos, rave immersion, or, in one case, a new word game: “raindrop / drop top.”
1. Kendrick Lamar, Damn
The title of Damn refers in part to a divine curse, which in turn ties in with the Black Hebrew Israelite theology the Compton rapper flirts with throughout his latest masterpiece. But Lamar raps about damnation as not only a spiritual state, but also an inheritance of history, of society, and of one’s own past. The dizzying “DNA”establishes the controlling metaphor: Each person is a double helix of information and attributes, containing War and Peace and war and peace. The album then makes clear he’s not interested in drawing cute contradictions, but in drawing out truth—or rather, truths next to truths next to truths.