Tag Archives: International finance

With Sub-$60 Oil, Fracking & Tar Sands Losses Threaten Whole Financial System

With Sub-$60 Oil, Fracking & Tar Sands Losses Threaten Whole Financial System
A new financial crisis is threatening to dwarf the ‘subprime’ mortgage debacle, writes Paul Mobbs. Cheap money from central banks has fuelled some $1.3 trillion of risky investments in high-cost ‘unconventional’ oil and gas. Now, with oil sinking below $60, all that paper is turning to junk – and that’s putting the entire economic system at risk. By Paul Mobbs The Ecologist, December 17, 2014 Brought about ... Read more

“Vulture Funds” Seek Dangerous Precedent In Argentine Debt Case

“Vulture Funds” Seek Dangerous Precedent In Argentine Debt Case
Argentina this week requested that the U.S. Supreme Court review a lower court ruling that would compel the country to pay more than $1.3 billion to U.S. “holdout” bondholders that the Argentine president has called “vultures.” The case is being widely watched due to its immediate, as well as long-term implications. On one hand, economists worry that the lower court’s ruling could force Argentina back into default, potentially leading the ... Read more

Panic about world deflation

Panic about world deflation
Everyone seems to proffer good advice, sure that it will somehow palliate the situation. Few seem to be ready to admit that global effective demand is the real problem. But one senses that, just below the surface, they understand this. This is why they panic, because then their whole emphasis on "growth" — a cardinal faith — is undermined. In that case, the crisis becomes not cyclical but structural, to which one has to respond not with ... Read more