US embassy cables leak sparks global diplomatic crisis (Guardian)
WikiLeaks has dropped another political bombshell, publishing over 250,000 classified cables on issues ranging from war with Iran to Chinese censorship.
The Spanish Prisoner (NYTimes)
Paul Krugman explains how Spain’s decision to adopt the euro crippled its ability to respond to an economic downturn, and why there’s no backing out now.
EU rescue costs start to threaten Germany itself (Telegraph)
Angela Merkel’s government is in the difficult position of cutting spending at home while cutting checks to bail out struggling EU nations.
The Eurozone Endgame: Four Scenarios (Baseline Scenario)
Peter Boone and Simon Johnson evaluate the likelihood of the eurozone hanging together or splitting apart as a result of the current debt crisis.
Assets matter just as much as debt (FT)
Martin Wolf makes the point that nations shouldn’t be afraid to incur debt when they’re investing in projects that will generate long-term growth.
The Administration’s “Communication Problem” (Economist’s View)
Mark Thoma is disappointed that the Obama economic team is still debating whether unemployment is cyclical or structural instead of doing something about it.
Still the Best Congress Money Can Buy (NYTimes)
Frank Rich commiserates with voters who have given up on a political system that seemingly only responds to the demands and concerns of the fabulously wealthy.
Lame Duck Status Update (The Atlantic)
Chris Good checks in on the diverse assortment of goals that Congress has failed to accomplish since the midterm elections.
Sure, the government is just like your family (Salon)
While most politicians and pundits have bought into the same tired, misleading metaphor, the American people have their priorities straight.
Tax Hikes, Status Competitiveness, and Social Stratification (Naked Capitalism)
Yves Smith notes that one way to keep the rich from griping about their taxes going up is by pointing out that all their rich friends — and enemies — will pay more, too.
Ron in Reserve (TAP)
The GOP hasn’t fully embraced Ron Paul’s anti-Fed views, but Tim Fernholz thinks his new chairmanship could bring some much-needed transparency.
The Four Horsemen of the Teapocalypse (Foreign Policy)
Brad DeLong examines the intellectual roots of the increasingly prevalent argument that the proper response to a recession is to grin and bear it.