Articles on the US debt ceiling, Japan’s next spending plan, patents and train accidents in China, Egypt’s revolution, and Jack Layton's cancer.

A reminder of how low taxes are in the United States. (ed’s note – has become?)

Globe and Mail – US: In A State of Denial over Taxes?
Tax has become a dirty word in the U.S. debt crisis debate.

Useful chart of US Federal government spending as a percentage of GDP, wars are expensive.

Thoughts on the real debt crisis in the United States.

Harvard Business Review – America’s Deeper Debt Crisis
How big would America's "debt crisis" be if we looked not merely at (largely artificial) financial costs, but at real economic — social, human, natural, personal, emotional, and more — costs? You probably don't want to know.

 

The negative impact on business and consumer confidence.

Washington Post – After the Debt Ceiling Standoff is Resolved
When the debt ceiling is finally increased, our political leaders should lose no time in trying to channel this surge of popular activism into a force to improve prospects for the economy.

Answering all your debt limit questions. Thanks to Ron and David of Victoria for asking.

New York Times – Q. and A. on the US Debt Ceiling
For a time it seemed safe for many people going about their summers to try to ignore the debt ceiling drama playing out in Washington.

Doug Noland on how the misreading of the causes of the Great Depression just might result in something as bad. (ed’s note – scroll down about halfway).

Prudent Bear – More on Moneyness
Most economists agree that the Great Depression was associated with a breakdown in the international monetary system. 

Quote worth understanding.

 “To UNDERSTAND THE GREAT DEPRESSION is the Holy Grail of macroeconomics.  Not only did the Depression give birth to macroeconomics as a distinct field of study, but also – to the extent that is not always fully appreciated – the experience of the 1930s continues to influence macroeconomists’ beliefs, policy recommendations, and research agendas.  And, practicalities aside, finding an explanation for the worldwide collapse of the 1930s remains a fascinating intellectual challenge.”  Ben S. Bernanke, Journal of Money, Credit and Banking, February 1995

Japan’s big spending plan. Thanks to Jeremy of Tokyo.

New York Times – Japan Proposes Aggressive Recovery Plan
Japan on Friday proposed an aggressive plan to spend 13 trillion yen ($167 billion) over five years in hopes of bringing about a swift recovery after its recent natural and nuclear disasters.

Patent disputes and broken trains in China.

Project Syndicate – Unsafe at any Speed?
At least 38 people were killed and more than 200 injured by the recent crash of two high-speed trains near Zhenzhou in Zhejiang, a province in China.

Related.

Economist -- Interrogating the Party
CHINA'S high-speed railway network, once a source of great pride for the Communist Party, has turned into an embarrassment. A collision between two trains on July 23rd near the coastal city of Wenzhou not only killed at least 35 people but also unleashed a torrent of online criticism of the network and the railway bureaucracy.  

In two well known cases, Russian 1919 and Germany 1933, the radical, uncompromising, well organsied minorities win the revolution end game.

Financial Times – Islamist Show of Force Deepens Egyptian Rift
Tens of thousands of Egyptians rallied in Tahrir Square in central Cairo on Friday in a massive show of force by Islamist groups seeking to shape the country’s political future after this year’s popular uprising that toppled Hosni Mubarak.

 

New York Times – Islamists Flood Square in Cairo in Show of Strength
Tens of thousands of Egyptian Islamists poured into Tahrir Square on Friday calling for a state bound by strict religious law and delivering a persuasive show of force in a turbulent country showing deep divisions and growing signs of polarization.
 

 

Economist -- Torrid post-revolutionary times
DURING the Egyptian summer tempers rise along with temperatures. Street fights erupt with alarming regularity.

Margaret Somerville on the illness and public officials. (ed’s note – we agree). Thanks to Nick of Victoria for asking.

Globe and Mail -- Is Jack Layton obliged to disclose his health details? No
All of us dread being diagnosed with what is often referred to as the Big C – cancer.