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by afew (afew(a in a circle)eurotrib_dot_com) on Sun Dec 30th, 2012 at 12:43:43 PM EST
In 2013, the great global unraveling | Mark Leonard

The disparate prospects of each continent have little in common. To the extent that they can be linked by a single theme in 2013, however, it is the idea of the unraveling of the global economy and the political integration that supported it. After two decades of globalization, this year will see each of the big political theaters re-erecting barriers and focusing more on domestic repairs than on global expansion. The unraveling has its roots in longer-term trends, but it is set to step up in the next year.

There has been a remarkable stabilization within the euro zone since European Central Bank President Mario Draghi's intervention in the summer of 2012. But even as the euro zone integrates, the politics and economics of the wider European Union are likely to diverge. In practice, the measures toward an integrated banking union, increased parliamentary accountability and more incentives for reform could go hand in hand with the de facto economic and political disintegration of the EU. Economically, as Sebastian Dullien argues in a paper, "Why the euro crisis threatens the EU single market," there is a significant risk of a gradual unraveling of the EU's single-market system. A full euro zone breakup would shatter the euro, while a great leap toward political union could see shrinkage of the single market, as countries such as the United Kingdom withdraw from the heart of Europe.

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Dec 30th, 2012 at 01:15:36 PM EST
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Obama says failure to reach fiscal deal would hurt markets | Reuters

(Reuters) - Financial markets would be affected adversely if U.S. lawmakers fail to agree on a "fiscal cliff" deal before Tuesday, President Barack Obama said in an interview broadcast on Sunday, while urging Congress to act quickly to extend tax cuts for middle-class Americans.

Lawmakers are seeking a last-minute deal that would set aside $600 billion in tax increases and across-the-board government spending cuts that are set to start within days. If Congress does not make that happen, the first bill brought up in the new year would be to reduce taxes for middle-income families, Obama told NBC's "Meet the Press."

"Now I think that over the next 48 hours, my hope is that people recognize that, regardless of partisan differences, our top priority has to be to make sure that taxes on middle-class families do not go up. That would hurt our economy badly," Obama said in the interview taped on Saturday.

"We can get that done. Democrats and Republicans both say they don't want taxes to go up on middle-class families. That's something we all agree on. If we can get that done, that takes a big bite out of the 'fiscal cliff.' It avoids the worst outcomes," Obama added.

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Dec 30th, 2012 at 01:16:28 PM EST
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Democrats Reject Republican Offer to Avert Budget Changes - Bloomberg

Senate Majority Leader Harry Reid rejected the latest Republican offer to resolve the U.S. fiscal crisis as Minority Leader Mitch McConnell reached out to Vice President Joe Biden in an effort to break the impasse.

"The sticking point appears to be a willingness or interest or frankly, the courage to close the deal," McConnell, a Kentucky Republican, said on the Senate floor today. "I'm willing to get this done, but I need a dance partner."

Reid said Democrats won't agree to use a new inflation measure sought by Republicans for calculating Social Security cost-of-living increases as part of a short-term deal.

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Dec 30th, 2012 at 03:25:46 PM EST
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"Now I think that over the next 48 hours, my hope is that people recognize that, regardless of partisan differences, our top priority has to be to make sure that taxes on middle-class families do not go up. That would hurt our economy badly, screw over the poor and middle class, protect the obscenely wealthy, and continue THE EMPIRE (!!!)" Obama said in the interview taped on Saturday.

Reality speak for a change.

They tried to assimilate me. They failed.

by THE Twank (yatta blah blah @ blah.com) on Sun Dec 30th, 2012 at 04:25:13 PM EST
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Can someone, just for once, care a little less about the poor ickle lickle markets and just a bit more about the poor and jobless ?

I know that's a lot to ask an' all

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Mon Dec 31st, 2012 at 11:44:02 AM EST
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I'll ignore your request, and provide some more market news.
Venezuela is best-performing stock market for 2012

Government spending by the anti-capitalist Chávez administration helped the stock market rise almost 300%

by gk (gk (gk quattro due due sette @gmail.com)) on Mon Dec 31st, 2012 at 03:10:14 PM EST
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New year, old demons | Reuters

(Reuters) - Out with the old, in with the new has a fine New Year's ring to it. Unfortunately, the saying does not apply to the global economy: the uncertainty over U.S. fiscal policy that dominated the last weeks of 2012 is far from going away.

That uncertainty, which is causing businesses to draw in their horns, is likely to be reflected in two important December indicators this week - the Institute for Supply Management's manufacturing survey on Wednesday and the jobs report on Friday.

The ISM index probably rose to 50.2 from 49.5 in November, still well below the second-quarter average of 52.7, while the economy is expected to have added 145,000 non-farm jobs after a gain of 146,000 the month before, according to economists polled by Reuters.

The unemployment rate is likely to have ticked up to 7.8 percent from 7.7 percent. That figure is more important than ever since the Federal Reserve promised to keep monetary policy ultra-loose till it drops to 6.5 percent.

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Dec 30th, 2012 at 03:15:30 PM EST
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Dexia: second round of state aid gets green light | New Europe

On 28 December, the European Commission authorised additional state aid for the Dexia group, under the form a refinancing guarantee of €85 billion and a recapitalisation of €5.5 billion.

The Dexia group has already benefitted from state aid measures in 2008-2009 in the form of recapitalisation (€5.4 billion), refinancing guarantees (€135 billion) and impaired asset measures (€3.2 billion). The European Commission approved these aid measures, based on Dexia's restructuring plan which must be implemented until the end of 2014. The new  authorised aid granted by France, Luxembourg and Belgium, will be directed in completing the orderly resolution of the Dexia group, the sale of its subsidiary DMA (Dexia Municipal Agency) and the restructuring of Belfius (formerly Dexia Banque Belgique).

by afew (afew(a in a circle)eurotrib_dot_com) on Sun Dec 30th, 2012 at 03:30:12 PM EST
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