In the New York times article (December 26, 2004), from Larry Rohter – Argentina’s Economic Rally Defies Forecasts – it is reported that the Argentinian economy has made a surprising comeback. Rohter writes “When the Argentine economy collapsed in December 2001, doomsday predictions abounded. Unless it adopted orthodox economic policies and quickly cut a deal with its foreign creditors, hyperinflation would surely follow, the peso would become worthless, investment and foreign reserves would vanish and any prospect of growth would be strangled. But three years after Argentina declared a record debt default of more than $100 billion, the largest in history, the apocalypse has not arrived. Instead, the economy has grown by 8 percent for two consecutive years, exports have zoomed, the currency is stable, investors are gradually returning and unemployment has eased from record highs – all without a debt settlement or the standard measures required by the International Monetary Fund for its approval.”
Mike Rhodes reported from California in Homeless attacked in Fresno that in February 2004, a “a coordinated multi-agency attack on homeless encampments earlier this month, the City of Fresno destroyed tents and other shelters used by the homeless … the Fresno Police Department … has returned to the tactic of not allowing the homeless to build any permanent structures. With thousands of homeless on the streets in Fresno, and homeless shelters able to provide only a couple hundred beds, a majority of the homeless have been turned into criminals. If you are homeless and can’t get into a shelter, you are breaking the law if you try to sleep anywhere in this city. This new policy penalizes the homeless and criminalizes poverty … There have also been public service announcements telling the community not to give money to the homeless … ”
In the New York Times, December 27, Brent Staples explains – Why Some Politicians Need Their Prisons to Stay Full – and outlines how public spending can clearly be a tool for essential job creation underpinning regional development. The problem is that it seems the Americans haven’t quite got it right.
In the UK Financial Times article by Darryl Thomson, Dollar falls to fresh lows in thin festive trade posted December 24, the continued slide of the USD against the Euro is put down to “disappointing US economic data” (mostly sharp slowdown in new home sales). However, a so-called currency strategist claims it is the “deficits rather than the data which were weighing on investors minds”. The hoary old neo-liberal twin deficits attack on public spending is making a comeback.
In the PMs xmas message he says that as Australians we enjoy “a prosperous and successful society, there are more Australians in work than ever before, our living standards are high and we are warmly regarded around the world” and that we should not to forget our less fortunate citizens.
Recently released ABS Statistics show that household debt has hit a record $815 billion but the growth is slowing as the property slowdown deepens.
December 24 - things have gone quiet. But not at the Centre of Full Employment and Equity (CofFEE). Today we launch our own CofFEE blog which will catalogue what we think of various things that happen in the economy, in…