Category Archives: Marshall Auerback

Populist Revolution? How a Bold New Voter Coalition Can Reshape the Nation

By Marshall Auerback
Cross-Posted from AlterNet.org

Minorities, independent women, gays, working-class white voters, and younger people overcame through high turnout a fierce social conservative block.

Photo Credit: Shutterstock.com

Tuesday’s election will be regarded as a pivotal one in US history. For 30 years the top 1 percent has manipulated the masses to vote against their own interests. It was able to do that because the feelings of the white middle and lower classes about social issues overwhelmed their economic considerations.

But something interesting happened this year: high levels of minority and young voter turnout, together with an increased Obama-tilt among all voters earning less than $50,000 a year, routed the GOP. In one sense, the election represents the triumph of the Reverend Jesse Jackson and his “Rainbow Coalition.” The Reverend Jackson was the first serious challenge of a black man for the presidency, and with his Rainbow Coalition, he ran for the Democratic nomination in 1984 and in 1988, with a platform that represented an anthology of progressive ideas from the 1960s. He attracted a large number of supporters, many of them from the white working-class. Each time his movement looked like it was gaining electoral traction, the Democratic Party establishment would invariably mobilize against him and elect feeble white liberals – Mondale and Dukakis – who plummeted to defeat by Reagan and George Bush Sr. Continue reading

Mario vs. Mariano Could Mean the End of Spain

By Marshall Auerback

The real weak link now in the Eurozone is Spain, where the data is a disaster. It is Greece writ large. And this is before Madrid, under Prime Minister Mariano Rajoy, has submitted to a new ECB program of agreed austerity in exchange for the ECB backstopping the nation’s bonds via a renewed Securities Market Program (SMP).

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Has ‘Super Mario’ Really Saved the Euro?

By Marshall Auerback

Germany’s Constitutional Court gave a green light on Wednesday for the country to ratify Europe’s new bailout fund, boosting hopes that the single currency bloc is finally putting in place the tools to resolve its three-year old debt crisis.

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Marshall Auerback Appears on BNN: ECB Bond Purchase Program

Marshall Auerback appeared on the September 6th episode of BNN’s Business Day discussing the ECB’s bond purchase plan. You can view it here.

 

“Misery”: A Postscript To “The Euro Is Not Unassailable”

By Marshall Auerback

This memorable scene in Misery is a perfect metaphor for the ECB’s much vaunted bond buying program.

In essence you have two distinct, but related problems: the solvency issue and the problem of deficient aggregate demand.

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The Euro Is Not Unassailable, Even With The ECB’s Bond Buying

By Marshall Auerback

There appears to be an emerging consensus that the euro will survive, especially now that Mario Draghi has apparently grasped the nettle and persuaded his colleagues that the ECB is prepared to initiate unlimited purchases of national government bonds in order to underwrite their solvency.  Of course, as usual
with the ECB, there’s a sting in the tail, the sting being additional “conditionality” (for which one can read more fiscal austerity) as a quid pro quo.  It’s like dealing with Hannibal Lecter.

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“Whatever it Takes” – How Far is the ECB Really Prepared to go to Save the Euro?

By Marshall Auerback

Re-reading Mr Draghi’s market-moving remarks last Thursday, one gains a sense that the European Central Bank chief recognizes that the ECB has a banking run on their hand. Most market participants have understandably focused on Mr Draghi’s pledge that the ECB was “ready to do whatever it takes” to preserve the single currency. “Believe me, it will be enough,” he told a conference in London.

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The Growing Pain in Spain

By Marshall Auerback

Just when you think that things can get no worse in Spain, they do. Take a look at this chart, courtesy of Credit Suisse via FT’s Alphaville

http://ftalphaville.ft.com/blog/2012/07/11/1080121/just-another-scary-spanish-capital-flight-chart/#comments

Yiagos Alexopoulos at Credit Suisse estimates that Spanish capital outflows are currently running at an annualised rate of 50 per cent of GDP. No question, the bank run is clearly accelerating, and one can easily understand why. The country is turning into a Little House of Economic Horrors. The alleged “rescue” of Madrid’s banks is a non-starter. 100 billion euros won’t begin to cover the scale of the problem on any honest accounting or “stress test” (and that’s before we get to the next phase of announced austerity measures). Continue reading

Greece and the Rest of the Eurozone Remain on the Road to Hell

By Marshall Auerback

So for the short term, it appears we won’t have a “Grexit”, which has led many commentators to suggest (laughably) that a crisis has been averted. Typical of this sentiment is a headline in Bloomberg today  “Greece avoids chaos; Big Hurdles Loom”. To paraphrase Pete Townsend, meet the new chaos, same as the old chaos. It is worth pondering how acceptance of the Troika’s program (even if cosmetic adjustments are made) will help hospitals get access to essential medical supplies (see here), whilst the government persists in enforcing a program which is killing its private sector by cutting spending and not paying legitimate bills, and an unemployment rate creeps towards 25 per cent and 50 per cent for youth.  Continue reading

Marshall Auerback’s Latest Appearance on BNN

Click here to view Marshall’s latest appearance on BNN’s Business Day.