3 February 2015   Leave a comment

The Greek government has offered to offer new “growth-linked” bonds to replace the current debt it holds (about 315 billion euros).  The purpose of this switch is to allow Greece to pay back the debt on a schedule that more closely links to its actual economic growth (as opposed to a schedule that is not at all linked to its economic growth).  This switch means that Greece’s creditors will still get full repayment, but not as quickly as is currently anticipated.   Does this switch make sense?  It actually does if one assumes that there is no way for Greece to pay back its current debt on schedule.  The question is whether Greece’s creditors will still demand what is clearly impossible, both economically and politically.  Paul Krugman believes that the offer is perfectly reasonable.

The Islamic State executed a Jordanian fighter pilot who was shot down in an attack against the IS.  The IS chose to burn the pilot alive and to broadcast a video of the execution.  Needless to say, the response of most of the world has been profoundly hostile, and Jordan has announced that it will execute several jailed militants in retaliation.  Jordan has also threatened an “earth-shaking” response.   The escalating spiral of violence is incredibly dangerous, and one hopes that cooler heads can determine a more effective response than tit-for-tat executions of jailed individuals.

The suspicions about the integrity of Argentine President, Cristina Fernández de Kirchner, deepened as it was determined that a murdered Argentine prosecutor had written out a warrant for her arrest in connection with a cover-up of the role of Iran in the bombing of a Jewish center in Argentina in 1994.   The controversy over the death of the prosecutor, Alberto Nisman, has exposed many irregularities in the administration of Argentinian justice.  The news about the warrant will unquestionably destabilize the political situation in Argentina.


Posted February 4, 2015 by vferraro1971 in World Politics

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