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ECB Research Bulletin:

In an economy with its own fiat currency, the monetary authority and the fiscal authority can ensure that public debt denominated in the national fiat currency is non-defaultable, i.e. maturing government bonds are convertible into currency at par. With this arrangement in place, fiscal policy can focus on business cycle stabilisation when monetary policy hits the lower bound constraint. However, the fiscal authorities of the euro area countries have given up the ability to issue non-defaultable debt. As a consequence, effective macroeconomic stabilisation has been difficult to achieve.

Translation:
- all members of the eurozone effectively use a foreign currency
- they can default, because they do not and cannot issue debt in their currency
- fiscal policy has thus been completely neutered

Ergo, national parliaments have a significantly smaller policy space compared to countries with their own currency. Our parliaments intentionally surrender power to unelected technocrats, even control of the national budget, which is the primary power available to any parliament anywhere.

"Sorry, lad. We cannot pay for healthcare/pension/infrastructure/education/wages/X, we have to maintain a balanced budget to appease the market." Yet it is still illegal to call for the guillotine...

Meanwhile, Japan doesn't give a fuck. The BoJ has been vacuuming up outstanding debt like there's no tomorrow. It currently holds in excess of 40% of all government debt, effectively canceling it. It's just book-keeping. The Treasury issues the debt, the CB buys the debt. Both are part of the consolidated government sector, ergo no debt. "Hyperinflation!", they scream. Can you hear them? Except Japan has been fighting deflation for two decades, with no end in sight.

Yet the inflation-hawks are still treated as persons of authority. Flat-earthers, the lot of 'em.

And my country wants the rest of Europe to sign on to the most moronic law in German history: the "Schuldenbremse", which makes running a deficit illegal at the constitutional level (except for undefined "emergencies"). They are either a) brainwashed, b) idiots, or c) straight up evil. And I'm not sure which one I prefer.

Hmm.

Europa Universalis II
Medieval: Total War
MOO2
Steel Panthers: World at War
Battle for Wesnoth

There's five to get us started.

Guys cheer up we are going to Europa.

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All these worlds are yours - except Europa
Attempt no landing there

8:18 – "Germany is very financially responsible".

The clip makes a few good points, twists others and omits some central issues. But I want to comment on the quote above most of all, because it forms the basis for all kinds of arguments and recommendations.

The claim that Germany is financially responsible stems from what has been paraded around domestically as the "schwarze Null" (black zero), meaning a balanced budget. Given how focused most economic debates are around the national debt or the current budget deficit, it shouldn't come as a surprise that not running a deficit evokes positive responses in the public. If there has ever been an easy sell, politically, it's this.

However, it's not that simple.

For instance, the sectoral balance rule dictates, by pure accounting identity, that the sum of public balance, private balance and external balance is 0 at all times. In case of Germany, this means that the balanced public budget (no surplus, just a fat zero) requires a current account surplus of the same size as private savings – or an accumulation of private debt. For someone to run a surplus, someone else has to run a deficit. In this case, foreign economies have to run a deficit vis-á-vis Germany, so that neither the German government nor the German private sector have to run a deficit.

The composition of each sector is another topic entirely, but the point remains: no surplus in Germany without a deficit in the periphery. If everyone is to be like Germany, Klingons have to run the respective deficit.

My question: is it financially responsible to depend on other economies' deficits to keep your own house in order? Is it responsible to engage in this kind of behaviour after having locked yourself into a monetary union with less competitive economies who have no way of defending themselves through currency devaluation?

Second point: capital accounts and current accounts are two sides of the same coin. If Germany runs a current account surplus of X%, it also runs a capital account deficit of X%. Doesn't explain anything, but it's the same for the countries at the other side of these trade imbalances. Spain's current account deficit with Germany meant a capital inflow of the same size.

Let's look at EuroStat's dataset for current accounts. Germany had run a minor current account deficit during the late '90s and a small surplus up to 2003. From then on, it went up, up, up. Given the size of Germany's economy within Europe, that jump from 2% to 7.5% is enormous. Pre-GFC, the majority of this surplus went to... yap, PIIGS. Their deficits multiplied.

Subsequently, capital of equals size flowed into these countries, looking for investments. No nation, none, can absorb this amount of capital without it resulting in a massive misallocation, be it stock bubbles, housing bubbles, highways to nowhere or lavish consumption. Michael Pettis wrote a magnificent account (Syriza and the French indemnity of 1871-73) of this and explains how Germany handled a similar inflow of capital after the Franco-Prussian war: it crashed their economy.

As Pettis correctly points out, the question of causality remains. Was the capital flow a pull or a push?

The dataset linked above says it all happened at just about the same time, in all countries. It also happened at the same time as Germany's parliament signed of on "Agenda 2010", which is the cause of massive wage suppression in Germany. Germany intentionally lowered its unit labour costs and undercut the agreed upon inflation target (2%). German employees and retirees were forced to live below their means, so the export sector could gain competitiveness against all the other nations, including those in the same currency union. Beggar-thy-neighbour on steroids.

Greece overshot the inflation target. They lived beyond their means. But due to their size, it's economically negligable. France stayed on point the entire time, has higher productivity than Germany and still gets defamed as the lame duck of Europe. Yet Germany, after more than a decade of financial warfare against its fellow members of the EU/EZ, is hailed as the beacon of financial responsibility.

Mercantilism always comes at the cost of others. And the EU is living proof.

Upvote for Galacduck!

My bet is that there's probably quite a lot of life out there. I'd be willing to put money on the possibility of life even within our solar system (Europa maybe?).

But equally, most of it is probably very simple. Evolution is an energy intensive process, and we are lucky that earth has an abundance of energy.

So let's say there 1,000,000 planets with life. It's quite possible that the chances of complex life arising are low, such that there might only be 10,000 planets with anything above single-celled organisms and maybe < 100 with intelligent life. So let's say that all 100 of these civilisations make it to our level of technology and a few maybe even beyond.
They would all probably be ~1000 light years from their next nearest neighbour.

Then there's the issue of timing. They might have evolved and died out a long time ago. It's possible that we will one day get a message from another civilisation that's already gone extinct and the message was sent millennia ago.

Given all that coupled with the incredibly brief period of time we've actually been listening, I'd be far more surprised if we had made contact.

Unless someone invents FTL, then everything changes.

Good catch, so was the SS Europa.

I'll never see Jupiter from the surface of Europa

All these worlds are yours except Europa. Attempt no landing there.

http://www.europarl.europa.eu/document/activities/cont/201403/20140307ATT80674/20140307ATT80674EN.pdf

That's Snowden's written testimony before the European Parliament.

Pop culture zombie apocalypse scenarios of the last 10 years in cinema and televisions' a metaphorical foreshadowing of what will happen in America after the first week of a national teamsters strike. No groceries for a couple weeks would make the Walking Dead look like some day care field trip. You too, Europa...

The zombies are already in place, you simply need to cut-off food supplies to activate them.

The European Parliament's Committee on Civil Liberties, Justice and Home Affairs had a hearing about NSA/PRISM/etc yesterday, with Jacob Applebaum and Alan Rusbridger amongst others. Greenwald was supposed to be videoconferenced in, but it didn't work for reasons unknown to me.

Two interesting bits of information:

1) Sweden is closely involved in the Fives Eyes program. They have an installation to monitor satellite communications and access to fibre optic cables that the members of Five Eyes don't have access to. No specifics were mentioned, but a quick glance at a map of long distance cables indicates to me that it's Russian communications they are interested in -- those run through Sweden.

2) Nations with access to PRISM/ECHELON besides the Five Eyes: France, Israel and Sweden. Likely to have access, though probably limited: Germany. Potential access, but unconfirmed: a total of thirty nations.

And, as a special bonus, the former chair of the special committee that authored the 2001 report on ECHELON said the following, paraphrased by me:

"If rentention of domestic communications meta data is deemed neccessary, the acquired data should not be stored outside of the respective nation. Normally, I'd say outside of the EU, but that just brings us back to the problem of GB and the GCHQ."

That's a high ranking EU official stating, on record, that GB cannot be trusted.

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