By Jane Zhang
What’s all this about a euro crisis?
Fear not dear reader. I shall be sloughing it through those Economist articles so you don’t have to. When the Federal Reserve thinks the US economy is in trouble, they generally flood the markets with a little extra cash (it’s more complicated than this, but this simplification will suffice). Why doesn’t Europe do this? Well, because the Eurozone is a system of several countries adopting the same currency — this lowers transaction and trade costs. While the economies were still doing well, everyone was convinced the system was working. However, after the crisis it became clear that the central monetary authority, the European Central Bank (ECB), was largely handicapped because individual countries still had to vote to approve measures. Greece, for example, is in huge trouble. Germany, on the other hand, is doing just fine. Central bank policies must be the same throughout. As a voting party in a loose union, (never mind the main source of funds) Germany can object — and object it does.
However, the problem became so severe and the Greeks so deeply in debt that even their government bonds were rated as ‘junk’ because nobody believed they could be repaid. Investors were essentially worried that Greece was going to collapse because Germany (and to a lesser extent France) were not willing to do what was necessary to save them, only barely creating bail outs — and never without a large number of strings attached. This was not unfounded thinking — after all, why should they fund the poor decision-making of their peers? They were the hard-workers and Greece the prodigal son, returned home from partying a little too hard. However, their lack of action led to fears that the entire system of the euro was under threat — Greece’s woes were pulling the whole system down.
Over the summer, there were increasing calls for a “Grexit” or an exit of Greece from the euro. Greece could then devalue their currency to stave off collapse, and the rest of the EU could become more stable. However, even if Greece was the most toxic, there were fears about other economies as well. If Greece exited, what about Ireland, Portugal, Italy, and Spain? They too were all in deep straits. And Spain is the EU’s fourth-largest economy. If all these countries were forced to leave, many feared it would be a downward spiral the EU would not recover from. And the collapse of the euro? According to the former head of the World Bank, that “runs the risk of sparking a Lehman-style global crisis that will have dire consequences.”
Sources
http://www.nytimes.com/2010/04/28/business/global/28drachma.html
http://www.economist.com/blogs/charlemagne/2012/06/germany-and-future-euro-1
http://www.guardian.co.uk/business/2012/jun/16/world-bank-euro-collapse-crisis
http://www.nytimes.com/2012/10/05/business/global/european-central-bank-leaves-interest-rates-unchanged.html?pagewanted=2
http://www.ft.com/cms/s/0/558d7996-01af-11e2-8aaa-00144feabdc0.html#axzz28SkudCsX
http://online.wsj.com/article/SB10000872396390443507204578020323544183926.html
The Senkaku/Diaoyu Island Dispute: Part Three
Sources
http://www.washingtonpost.com/world/chinese-government-both-encourages-and-reins-in-anti-japan-protests-analysts-say/2012/09/17/53144ff0-00d8-11e2-b260-32f4a8db9b7e_story.html http://www.ft.com/intl/cms/s/0/aa82cf7a-6f68-11e1-b368-00144feab49a.html#axzz27guHsxfp
http://www.cnn.com/2012/09/20/opinion/china-japan-dispute-kingston/index.html
http://www.huffingtonpost.com/huff-wires/20120914/as-japan-politics/
The Other Side of War: A Lecture by Zainab Salbi
The Senkaku/Diaoyu Island Dispute: Part Two
Sources
http://www.globalsecurity.org/military/world/war/senkaku.htm
http://online.wsj.com/article/SB10001424052748703720504575376712353150310.html
http://www.eastasiaforum.org/2010/09/28/a-sea-of-trouble-in-sino-japanese-relations/
http://www.tandfonline.com/doi/pdf/10.1080/14799850902886617
Shirk, Susan. China: Fragile Superpower. New York: Oxford University Press, 2007.
http://www.theatlantic.com/international/archive/2012/09/the-history-behind-china-and-japans-anger-over-a-few-empty-islands/262702/
http://ajw.asahi.com/article/behind_news/politics/AJ201206090024
http://www.telegraph.co.uk/news/worldnews/asia/china/9534711/China-deploys-two-warships-after-Tokyo-announces-disputed-island-purchase.html
http://asiasentinel.com/index.php?option=com_content&task=view&id=4860&Itemid=214
http://www.wsws.org/articles/2012/sep2012/chjp-s26.shtml
http://www.bloomberg.com/news/2012-09-26/china-japan-foreign-ministers-meet-as-island-tensions-hurt-trade.html
The Senkaku/Diaoyu Island Dispute: Part One
This is the first part of a three-part series on the disputed territory in the East China Sea. Stay tuned for parts two and three!
Sources
http://news.yahoo.com/u-believes-japan-u-security-treaty-covers-disputed-031746983.html
http://www.taiwandocuments.org/sanfrancisco01.htm
http://heinonline.org/HOL/Page?handle=hein.journals/vajint14&div=17&g_sent=1&collection=journals
http://www.sdh-fact.com/CL02_1/79_S4.pdf
http://www.taiwandocuments.org/shimonoseki01.htm
http://www.chinadaily.com.cn/china/2012-09/25/content_15782260.htm
http://www.bbc.co.uk/news/world-asia-pacific-11341139
Brown at the Big Green
By Alison Flint
Voluntourism
By Mary Peng
Perhaps we will inspire in the children such a strong desire to learn that they will quit lounging in the streets and instead study to change their own lives. Or maybe we would drastically ameliorate the run-down medical facilities in the local community (of course the community could not do it without you) and enable tuberculosis patients to finally receive adequate treatment.
Gender Inequality and the Arab Uprisings
By Nick Donlan
Witness to History
By Grace Afsari-Mamagani
“That’s the power of the press,” he said.