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Fundamental to the argument that Spain (or Greece, or anyone else) has a moral obligation to repay in full its debt to Germany are two assumptions. The first assumption is that “Spain” borrowed the money from “Germany”, and that there is a collective obligation on the part of Spain to repay the German collective. The second assumption is that Spain had a choice in what it could do with the German money that poured into the country, and so it must be held responsible for its having mis-used hard-earned german funds.

There was plenty of irresponsible behavior in every country, and it is absurd to think that if German and Spanish banks were pouring nearly unlimited amounts of money into countries at extremely low or even negative real interest rates, especially once these initial inflows had set off stock market and real estate booms, that there was any chance that these countries would not respond in the way every country in history, including Germany in the 1870s and in the 1920s, had responded under similar conditions.

The winners have been banks, owners of assets, and business owners, mainly in Germany, whose profits were much higher during the last decade than they could possibly have been otherwise

Russia pressures Moldova and Ukraine ahead of signing of E.U. Association Agreement

And in September, Russia declared that Moldovan wines did not meet Russian food-safety standards, removing access to a major export market for a key Moldovan industry. (Wines from pro-Russian autonomous regions of Moldova have been deemed safe for Russian palates, however.) Many Moldovans are convinced that the apples and grapes that grow on their nation’s gently rolling hills are the next targets. Russia is their main export market, and E.U. regulations will keep most of the fruits out of Europe even after the agreement is signed

Overall, 26 percent of Moldova’s exports go to Russia and 47 percent to the E.U.

Global flows in a digital age

Now, one in three goods crosses national borders, and more than one-third of financial investments are international transactions. In the next decade, global flows could triple,

we find that countries with a larger number of connections in the global network of flows increase their GDP growth by up to 40 percent more than less connected countries do. The penalty for being left behind is rising.

Europe’s dangerous addiction to Russian gas needs radical cure

“It really boils down to this: no nation should use energy to stymie a people’s aspirations,” Mr Kerry said in Brussels, just as Russia’s Gazprom raised the price it charges Ukraine for gas.

Bernstein Research has calculated that to do so, Europe needs to eliminate 15 bcm of residential and industrial gas demand, invest $215bn and incur $37bn of annual costs in the form of higher-priced energy. That works out as $160 for every single person in Europe.

A snapshot of Nigeria’s economy in 1990 gave little or no weight to fast-growing parts of the economy such as mobile telephony or the movie industry. At the time the state-owned telephone company had a few hundred thousand customers. Today the country has 120m mobile-phone subscriptions. On the old 1990 figures, the telecoms sector was less than 1% of GDP; it is now almost 9% of GDP. Motion pictures had not shown up at all in the old figures, but the industry’s size is now put at 1.4% of GDP.

The oil industry’s share of GDP is now put at just 14%, compared with 33% according to the old figures.

All international crises elicit predictions that, this time, the EU will finally be forced to grow up, and develop a real foreign policy strategy. Such expectations are usually disappointed. I don’t see why it should be any different, this time.

GUINEA: Winners and losers in Guinea’s bauxite industry

“Rather than making people richer, mining has made them poorer,” said Akoumba Diallo, a mining sector researcher. “It polluted their environments so they can’t grow crops or let animals feed near mining sites. And it is hard to get water anywhere because it’s contaminated.” With mining contributing to 85 percent of the country’s external revenue, and the World Bank estimating investments of up to US$20 billion in bauxite mining in Guinea over the next decade, the government is currently rewriting and renegotiating its mining contracts - unchanged for 25 years - with 15 companies to ensure Guineans are more likely to benefit from the wealth they spawn.

Mining companies are legally obliged to pay taxes to owners of the land they mine,

The declining American high school graduation rate: Evidence, sources, and consequences

Throughout the first half of the 20th century, each new cohort of Americans was more likely to graduate high school than the preceding one. This upward trend in secondary education increased worker productivity and fueled American economic growth (Goldin and Katz 2003)

Taking the lead in October 2007, when it issued a $750 million Eurobond with an 8.5% coupon rate, Ghana earned the distinction of being the first Sub-Saharan country – other than South Africa – to issue bonds in 30 years.

Nine other countries – Gabon, the Democratic Republic of the Congo, Côte d’Ivoire, Senegal, Angola, Nigeria, Namibia, Zambia, and Tanzania – followed suit. By February 2013, these ten African economies had collectively raised $8.1 billion from their maiden sovereign-bond issues, with an average maturity of 11.2 years and an average coupon rate of 6.2%. These countries’ existing foreign debt, by contrast, carried an average interest rate of 1.6% with an average maturity of 28.7 years.

Although the growth rate of coal slows from the breakneck pace of the last decade, global coal consumption by 2017 stands at 4.32 billion tonnes of oil equivalent (btoe), versus around 4.40 btoe for oil, based on IEA medium-term projections. The IEA expects that coal demand will increase in every region of the world except in the United States, where coal is being pushed out by natural gas.

“This report sees that trend continuing. In fact, the world will burn around 1.2 billion more tonnes of coal per year by 2017 compared to today – equivalent to the current coal consumption of Russia and the United States combined. Coal’s share of the global energy mix continues to grow each year, and if no changes are made to current policies, coal will catch oil within a decade.” 

The report notes that in the absence of a high carbon price, only fierce competition from low-priced gas can effectively reduce coal demand. “The US experience suggests that a more efficient gas market, marked by flexible pricing and fueled by indigenous unconventional resources that are produced sustainably, can reduce coal use, CO

Where Apple Products Are Born: A Rare Glimpse Inside Foxconn’s Factory Gates

The 1.4 mile-square Longhua complex, with its 140,000 employees, speaks to Shenzhen’s identity as a global manufacturing hub. The city, once a fishing village in the Pearl River Delta region, was designated as a special economic zone in 1980. Its population swelled from 30,000 to more than 10 million as rural workers migrated to the fast-growing city in search of opportunity.

Though Woo notes, by way of context, that 12 suicides per one million employees is lower than the U.S. suicide rate of 13 per 100,000