Links September 4

Global Macro:

  • Why dictatorships build stuff that crumbles. Jay Ulfelder
  • And why democracies get into so much debt. The Economist
  • So which is the best system of government? Unsurprisingly, it’s Sweden’s. Der Spiegel.
  • Meanwhile in Tehran, non-alignment gets a new lease of life. Bloomberg

United States:


  • Use a European Banking Union as the condition for rescue, Mr Draghi. Wolfgang Munchau
  • And make it quick, before Greece is beyond help. Financial Times. Already, only 26% of Germans believe the loans will be repaid.
  • Meanwhile, David Cameron eyes a cabinet reshuffle. Guardian. Or is that eyes a deckchair reshuffle?
  • Europe has reached a make or break point: Barroso. Wall Street Journal. How many times has he said that before?


  • China hype is giving way to realism. Michael Pettis in Lowy Interpreter
  • And the article he was responding to. Stephen Grenville in ibid.
  • Asia’s manufacturing slump deepens. Wall Street Journal
  • Hu Jintao ally Ling Jihua sidelined. Bloomberg. The horse trade continues.
  • Chinese skyscraper boom is a ‘craze’, ‘inadvisable’. Xinhua
  • China’s steel traders expose banks’ bad debts. Reuters
  • How the Party polices its own. The Economist
  • Check back later for our very comprehensive China links by Sinocism


  • RBA grapples with the post-boom reality. Wall Street Journal. It’s what everyone is talking about: how did they not see it coming?
  • Aussie retail sales fall by biggest margin since 2010. Bloomberg
  • Goodman Fielder to sell or close at least 15 factories. The Australian
  • And Julia Gillard announces education ‘crusade’. Financial Review
  • Etihad doubles its Virgin Australia stake. Business Day. Do they read Macro Investor?


  • Pirate Bay co-founder arrested in Cambodia. Wall Street Journal. Faces extradition in Sweden, just like old mate Assange.
  • Obituary: Sun-Myung Moon, 1920-2012. Time
  • And what will Rev. Moon’s death mean for the Washington Times? Washington Post. Conspiracy theories will never be the same again. RIP.
  • How Syria’s rural economy is adapting to ongoing war. Reuters


  1. Jim Rogers says QE3 is happening. Need to check that one as he says the FED balance sheet is expanding. I wonder what they are buying now?

  2. What’s the use of a ‘crusade’ throwing money at education if you have the wrong people teaching the wrong things?

    We need more ‘social science’ and ‘human movements’ etc etc like a hole in the head.

  3. Etihad doubles its Virgin Australia stake. Business Day. Do they read Macro Investor?

    Cubbie, Virgin…just keep selling the assets to fund current consumption. The coming (likely)smash in the dollar will make it all teh cheaper.