Quotulatiousness

September 6, 2011

Stephen Gordon: no case for stimulus in Canada (yet)

Filed under: Cancon, Economics, Government — Tags: , , — Nicholas @ 12:15

As he points out in the article, Canadians who are calling for the federal government to indulge in US-style stimulus spending are not paying attention to the Canadian economy:

Employment in the U.S. is far below its pre-recession levels, and employment in the construction sector has been hit particularly hard. So there is a strong case to be made for a U.S. program of infrastructure spending — and many U.S. observers are making that case.

Neither of these conditions holds in Canada. Although unemployment rates have yet to return to pre-recession levels [. . .], the number of jobs lost during the recession has been recovered, and July employment levels were 1 per cent above their pre-recession peak.

Switzerland devalues the franc

Filed under: Economics, Europe — Tags: , , — Nicholas @ 12:06

In what appears to be a successful attempt to devalue their currency, the Swiss have announced that they will peg the franc at €0.83, or SFr1.20 to the euro:

The Swiss National Bank in effect devalued the franc, pledging to buy “unlimited quantities” of foreign currencies to force down its value. The SNB warned that it would no longer allow one Swiss franc to be worth more than €0.83 — equivalent to SFr1.20 to the euro — having watched the two currencies move closer to parity as Switzerland became a “safe haven” from the ravages of the eurozone crisis.

The move stunned currency traders, and sent the Swiss franc tumbling against other currencies. Jeremy Cook, chief economist at currency brokers World First, said it was “intervention on a grand scale”, and the start of a “new battle in the currency wars”.

“That was the single largest foreign exchange move I have ever seen … The Swiss franc has lost close on 9% in the past 15 minutes. This dwarfs moves seen post-Lehman brothers, 7/7, and other major geo-political events in the past decade,” Cook said.

Turkey approaching combat situation with Israel?

Filed under: Media, Middle East, Military — Tags: , , , — Nicholas @ 10:00

Strategy Page has a summary of the situation:

Turkey’s Islamic government has backed itself into a corner by demanding Israel apologize for defending itself when halting the 2010 blockade-breaking ships. The Turks demand an apology, compensation and an end to the blockade. This, despite the fact that Hamas (and many other groups in Gaza) are recognized as international terrorists and that Turkish activists on the ships were videoed attacking the Israeli boarding party. The Turks will not back down, and now threaten to send warships to escort yet another group of blockade breakers. This is pretty extreme, as the Israeli Navy has a lot more combat experience, and the Turks would be in waters long patrolled by the Israelis. This could easily escalate into an air war, another area where the Israelis have a lot more experience. The Arabs and Palestinians are all for this, as the Israelis have consistently defeated Arab forces, but the Turks are seen as much more capable. But are they capable enough?

Here are links to earlier reports on the flotilla incident, Turkey’s conspiracy theorists, and the very weird world of Turkish media.

Update, 8 September: Turkey escalates the threat level for combat with Israel:

Turkish warships will escort any Turkish aid vessels to Palestinians in the Gaza Strip, Recep Tayyip Erdogan, the prime minister, has announced.

He also said Turkey had taken steps to stop Israel unilaterally exploiting natural resources from the eastern Mediterranean, according to al-Jazeera’s Arabic translation of excerpts of an interview conducted in Turkish.

His comments came after Turkey’s ruling party said the country’s ties to Israel could be normalised if the Jewish state apologised for the killing of nine pro-Palestinian activists last year and accepted it should pay compensation to their families.

I am not a lawyer, but I’d imagine that an attempt to use naval vessels to break a legal blockade would be tantamount to a declaration of war. I have a hard time believing that Turkey is that eager to test Israel’s resolve (and military might).

Is the freelancing sector the “new industrial revolution”?

Filed under: Economics, Liberty, USA — Tags: , , — Nicholas @ 09:03

Sara Horowitz, founder of Freelancers Union, presents an anecdote-heavy but data-poor view of the surge in freelancing as “the Industrial Revolution of our time”:

It’s been called the Gig Economy, Freelance Nation, the Rise of the Creative Class, and the e-conomy, with the “e” standing for electronic, entrepreneurial, or perhaps eclectic. Everywhere we look, we can see the U.S. workforce undergoing a massive change. No longer do we work at the same company for 25 years, waiting for the gold watch, expecting the benefits and security that come with full-time employment. We’re no longer simply lawyers, or photographers, or writers. Instead, we’re part-time lawyers-cum-amateur photographers who write on the side.

Today, careers consist of piecing together various types of work, juggling multiple clients, learning to be marketing and accounting experts, and creating offices in bedrooms/coffee shops/coworking spaces. Independent workers abound. We call them freelancers, contractors, sole proprietors, consultants, temps, and the self-employed.

And, perhaps most surprisingly, many of them love it.

I’m in this category myself, as a self-employed technical writer. I buy my own tools, pay my own taxes (reminder to self: next tax installment due on the 15th), and — within reason — set my own working hours. Of course, my clients have a lot to say about when my working hours tend to be, so it’s more an extra degree of flexibility than it is total freedom. But it works well for me.

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