Commentary on a German-centric Euro, beware a bond market bust, closing down the internet, the case for austerity, navigating democracy in the Middle East and North Africa, and big government conservatism.

Financial Times -- What Ptolemy tells us about Germany and Greece
Ptolemy’s theory of the universe held that the earth was at its centre. All other celestial objects – including the sun – rotated around it.

Related.

Telegraph -- Eurozone's shocking prescription for Greece
Well there's a surprise.

One case for higher long term yields and weak bond market.

Calafina Beach Pundit – The Problem with Bond Yields
I'm always on the lookout for valuation discrepancies, and these two charts highlight the biggest potential discrepancy that I'm aware of today: Treasury yields are very low given the strength of the economy and the level of inflation.

 

Related.

Morgan Stanley -- Global Inflation: Merry-Go-Round Spinning Again?
In response to a slowing global economy and further downside risks emanating from the possibility of an escalating Eurozone debt crisis, central banks all over the world - and across the DM-EM divide - have been deploying their arsenal for a while now, and should continue to do so.

Internet freedom versus security. (ed’s note – false choice?)

Project Syndicate -- Is the Web Closing?
Within the tech community, there is much angst about whether the Web is about to be “closed.”

The case for austerity.

voxed -- Has austerity gone too far?
Numerous countries faced with debt problems have recently embarked on fiscal tightening. Yet it is not clear if this is a cure or a self-defeating strategy. This column argues that, where sovereign risk is high, fiscal tightening remains an important avenue to bring down deficits at a limited cost to economic activity.

On the Arab Spring. We are reminded that it took a couple of centuries to bring democracy to Mississippi.

World Affairs -- Arab Spring or Islamist Winter?
Mohamed Bouazizi, a twenty-six-year-old street vendor, is given credit for touching off the Arab Spring by setting himself on fire to protest the arrogance and corruption of the Tunisian government, but in fact the massive changes associated with this movement had been brewing for some time, with US policy toward the region playing a major role in their development.

The power of big government conservatism.

Telegraph -- Big government conservatives are more electable than libertarians – just ask Rick Santorum
Last night I found myself discussing Canadian politics with the talk show host, Charles Adler.