europe

"...the economy is running on the fumes of the investments we made in public goods decades ago." -- Prosperity Economics: Building an Economy for All

As the Mongol army swept across the Asian steppes in the 13th century, psychological warfare was one of their most powerful weapons. Looking much like their victims, Mongol spies easily infiltrated towns in the army's path to foment panic. "The Mongols are coming! The Mongols are coming! They kill the women and rape the men! The Mongols are coming!" Just as the Mongols hoped, many towns surrendered without a fight.

Come to think of it, the relentless psychological messaging from Washington sounds a lot like that. Austerity. Fiscal cliff. Debt crisis. America could go the way of Greece. America is broke. Grand Bargain. Surrender Dorothy.

A government that has held power for many years is defeated in an election. On assuming power, the new party discovers that the old party has been spending a lot more than has been publicly revealed, leaving the state in an even sorrier shape than assumed.

Greece?

Yes, but according to the breaking news overseas, the United Kingdom as well. This is from the Times...

The government last night accused Labour of pursuing a “scorched earth policy” before the general election, leaving behind billions of pounds of previously hidden spending commitments.
The newly discovered Whitehall “black holes” could force even more severe public spending cuts, or higher tax rises, ministers fear.

Vince Cable, the business secretary, said: “I fear that a lot of bad news about the public finances has been hidden and stored up for the new government. The skeletons are starting to fall out of the cupboard.”

I have a Thanksgiving story for your consumption that has nothing to do with turkeys or pumpkin pie or crazy uncles.

Instead, in an effort to remind you what this holiday can really stand for, we’ll meet some people who are thankful today for simply being free.

It’s a short story today, but an especially touching one, so follow along and we’ll take a little hop across the Atlantic for a trip you should not miss.