Wolf Richter

Afghanistan: “There Will Be Civil War”

Delegations from 100 countries and organizations will meet on Monday in Bonn for a conference on Afghanistan—1,000 participants in all, including Hilary Clinton, Hamid Karzai, Angela Merkel, and 60 foreign ministers. Goal: “Laying the foundation for a better future of Afghanistan.” But just when official optimism gets frothy, classified documents surface that predict a dire future.

Indefinite Detentions of Americans Without Trial

A Cheneyesque banana-republic law passed another hurdle in the Senate on Tuesday. It would mandate that the US military detain terrorism suspects, including US citizens, even on US soil, and hold them without trial, possibly for life, in military facilities. It sounds like a dark part of a futuristic novel. But it’s actually part of the National Defense Authorization Act.

Japanese Micro-Steps Toward The End Of An Era

“Japan’s economy is likely to continue to face a severe situation for the time being, especially with respect to exports,” said the Governor of the Bank of Japan. He blamed the European debt crisis and the strong yen. But his bland central-banker language marked the end of an era.

The Consequences When Three Elements Collided

Alabama immigration law, a Mercedes-Benz executive from Germany, and Republican bifurcation on illegal immigrants: and the outcome was … flip-flopping.

When Bond Buyers Pull Out Their Calculators

As the euro debt debacle unfolded, Germany benefited from a reputation as safe haven: yields on its 10-year bonds dropped below the rate of inflation while yields spiked in other countries. So when it offered €6 billion in 10-year bonds at a record low yield of 1.98%, it expected them to fly off the shelf. They didn’t. “Disaster,” the media screamed worldwide. But….

Cutting The Deficit: They Won’t Because They Don’t Have To

The Supercommittee did what it was expected to do. They dug in their heels. Why? They didn’t have to make painful choices. Unlike Greece, the US has a miraculous money machine that takes care of the deficits. The emasculated credit markets watch nervously.

Euro Schizophrenia in Germany

My German contacts want to keep the euro. They’ve gotten used to it. They like it in their wallets. It’s so convenient for cross-border travel and commerce. And it has been strong. But now that the European bailout fund has descended into irrelevance, they fret about the euro’s future. They want it saved. And they’re increasingly willing to pay a price.

Cancer-Causing X-Ray Security Scanners Are Banned

But not in the US.
Just in time to make you feel better about holiday travels: airport security scanners that use X-ray technologies are acknowledged to cause cancer. No problem in the US; but now they’re banned in the EU.

European Bailout Fund For Greek Money Laundering And Fraud

The ink wasn’t dry yet on the European bailout fund when it paid $1.3 billion to bail out Proton Bank in Greece. Turns out, Proton had siphoned off $1 billion in a scheme of fraud, embezzlement, money laundering, and offshore front companies. Galling: the Bank of Greece knew of the criminal activity before the bailout. And then a bomb exploded….

Fixing The Postal Service Debacle

The Postal Service announced a staggering loss for fiscal 2011: $5.1 billion. Plus $5.5 billion for retiree health benefits that it should have paid in 2011 but deferred to fiscal 2012. Now it’s due. But there’s no money. Default? Nope. Congress will find a way to stick it to the taxpayer. But amazingly if run right, the Postal Service could be a decent business.