Global Economics

The Dither Spring


“We are here today ready to conclude this long process,” Greek Finance Minister Evangelos Venizelos said. “I am optimistic, but in any case we need a clear political approval.”

“Governments can’t make more tax money available—that would overburden the states,” Fekter told reporters. “We in Austria would have problems getting it through parliament.”

—James G. Neuger and Chiara Vasarri of Bloomberg News, Greece Moves Toward Second Bailout, Feb 20, 2012 7:38 PM ET.

They’re having “problems” “moving.”

Greece and Austria seem to be modestly apart. The economists are not. Whatever the political economics of a given economist, all economists agree we are beyond economics. (Skidelsky!)

For me, it was a single Bloomberg headline while sitting on the TV set. Something about 7% fiscal drag. This suggests lower tax receipts…in both Greece and Austria, and for that matter Australia.

Politics is front-and-center and politics needs crisis to advance. (Read Tuchman.) We are in search of a catalyst to lead us to “political approval.”

The days are getting longer. March beckons. We search. Last year, we enjoyed an Arab Spring. Less Grecian catalyst, this 2012 may be the Dither Spring.

Keene hosts Bloomberg Surveillance 7-10 a.m. ET on 1130 AM in the New York metro area and nationally on SiriusXM 113.
More News: Greece euro crisis

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