The World this week with ESSA

Hand picked selection of economics content from around the web.
This week: Europe, US election coverage, the RBA’s monetary policy and the cost of free range chickens.
ESSA, 7 October 2012

World Economy

Europe

Greek Prime Minister Warns of Societal Collapse Like Weimar Germany; Citizens Storm Defense Ministry; – Global Economic Analysis
Greece is politically and economically bankrupt. Unemployment is 24.4% and destined to get much worse with the latest round of austerity measures. Yesterday, in a massive breach of security, Greek citizens stormed the defense ministry. Shortly afterwards the Greek Prime Minister issued a statement warning of societal disintegration without urgent financial aid, which you can read in the article.
Moody’s warns on Portugal’s bailout plan – FT
Probably hidden under the radar of most people, Portugal is still struggling on the life support  from the Eurozone countries. A recent study done by several credit rating agencies reveals the weaknesses in the Portugese economy and what needs to be done to prevent futher collapse.
US Election Coverage
Did Republicans deliberately crash the US economy? – The Guardian
Be it ideology or stratagem, the GOP has blocked pro-growth policy and backed job-killing austerity and all while blaming Obama. Is the goal of the Republicans – getting into office – coming at the cost of the greater American public? The Guardian discusses.
US unemployment rate hits Obama-era low – BBC
Following on from the article last week discussing the reliability of economic indicators, it would seem that the presidential candidates still have their eyes firmly on this all important percentage in their bid for the white house. A brief summary on the perspectives of the two sides.

Here in Australia

The RBA’s interest rate kryptonite – Business Spectator
An in depth look at the RBA’s monetary policy decisions over the past few years. Has the RBA made a mistake in raising the interest rate by 1.75% between 2009-2010, and what are the after effects that we are feeling now from that decision? Alan Kohler takes a look at all the possible implications from the exchange rate to the possible future course of the interest rate.
Mining contribution to remain strong – ABC
Is the Mining boom over? The Treasury Secretary, Martin Parkinson, says the mining industry will continue to increase its contribution to the nation’s economy.

For your interest

The Cost of a Happier Chicken: Who Pays? – Freakonomics
Animal rights activists often oppose agricultural reforms on the grounds that they make animal production more efficient – I.e. because reforms make it easier for capitalists to turn animals into food.  Improbably enough, industrial producers of animal products agree as poorly treated animals may not be productive. So that raises the question of, what drives animal welfare reforms and who are the real winners: The owners, the activists or…the animals?
The power of the informal economy – TED Talks
VIDEO Robert Neuwirth spent four years among the chaotic stalls of street markets, talking to pushcart hawkers and gray marketers, to study the remarkable “System D,” the world’s unlicensed economic network. Responsible for some 1.8 billion jobs, it’s an economy of under-appreciated power and scope. Hear his remarkable exploration of what is potentially the second largest economic network in the world.

Weekly Comic Strip

‘If Households budgeted like the GOP..” – Matt Bors

Some Background to put the comic into context: House Republicans won’t vote on jobs, but will vote to punish women
See you next week!
The ESSA team

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