Daily Archives: January 10, 2013

Barack Obama’s most cherished illusion during his first term was the possibility of co-operation with Republicans. Time and again, the president came to Congress bearing pre-emptive concessions – on his original economic stimulus package, his healthcare plan, and the 2011 debt ceiling fight – only to have the door slammed in his face by an obstructionist Republican party that viewed politics as a zero-sum game. Because Mr Obama has long seen himself as a conciliator, he was unwilling to let go his faith that if he only hewed to the path of moderation, his opponents would eventually have to meet him there. Read more

Whether they like it or not, central bankers are being dragged into the political fray. It is not so much an issue of whether independence is good or bad. Rather, monetary policy itself is no longer a job for technocrats.
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As the redesign of Europe churns along in 2013, some still fear that one or more eurozone states will take its leave. Others warn that individual European states will soon crack from within, as less familiar flags appear in places such as Catalonia, Scotland and Flanders. There are separatist pressures building within Spain and the UK, and Belgium’s unity remains fragile as well. But, at least for 2013, there is less to these warning signs than meets the eye. In fact, European separatism is one of 2013’s most important red herrings. There is virtually no chance that any of these independence movements becomes a full-blown phenomenon – at least this year. Read more