kent nickell
Well-known member
"""Now that we have established the existence of a force in rotational motion, it is possible to give it a name: centripetal force, or the force that causes an object in uniform circular motion to move toward the center of the circular path. This is not a "new" kind of force; it is merely force as applied in circular or rotational motion, and it is absolutely essential. Hence, physicists speak of a "centripetal force requirement": in the absence of centripetal force, an object simply cannot turn. Instead, it will move in a straight line."""
http://www.isn.ethz.ch/isn/Current-...0-B3DB-1461-98B9-E20E7B9C13D4&lng=en&id=96005
3 Feb 2009
Financial storm re-shaping Europe
There are signs that the EU's centripetal forces are as potent as ever. Iceland is being fast-tracked for EU membership, while there is speculation Denmark could turn its krone for the common currency. There are even calls for the Great Resister, Britain, to take up the euro, Mark C Partridge writes for Diplomatic Courier.
By Mark C Partridge for Diplomatic Courier
________________________________
European leaders arrived at the World Economic Forum with the intent "to develop effective solutions" to the global financial crisis. But after a week in the snow peaks in Davos, Switzerland, they descended from the mount empty-handed into a world still wrapped in turmoil.
European politicians are returning to their respective countries still searching for policies to ameliorate - never mind solve - the recession that is setting in. And the problems are only getting bigger.
Unemployment continues to climb, deflationary pressure is growing, property values are sliding, and both the British pound and the euro are tumbling on concerns over countries' ability to pay their debt obligations. Some are beginning to worry about defaults. And there is no end in sight; the consensus is that the economic picture will darken through at least the rest of the year.
The challenge of protectionism was added to the list just last week after the US House of Representatives passed a stimulus bill including so-called "Buy American" clauses. European leaders reacted with venom and threatened retaliation.
Germany's chancellor Angela Merkel worried "We must not allow market forces to be completely distorted … [which] could lead to distortion and protectionism." Such actions would truly and completely end the chances of the World Trade Organization's Doha trade deal.
In some sense, though, Congress is just ahead of the curve. While European politicians are preaching free-market ideals - with a healthy dose of Keynesianism, it should be noted - their constituents are increasingly fed up with the uncertainty inherent in free markets.
Job security, in particular, is an acute worry. Britain is increasingly looking like it did in the 1970s with strikes protesting foreign workers, while the French are taking to the streets demanding more financial support from the enigmatic Nicolas Sarkozy.
How EU leaders balance the populist demands of their peoples against their economic judgments will be critical in shaping the post-subprime world.
Politicians are hoping uniform policies will help sustain the EU. The European Central Bank is working on recommendations for financial bailouts. The aim is for countries to think about the collective group rather than favoring themselves, thereby avoiding what Britain's Gordon Brown has termed "financial protectionism."
One of the problems is that the ECB has less authority than the US' Federal Reserve; each member country has its own central bank. To be effective then, there is a need for coordination and consistency within the bloc, as well as with the Bank of England.
An example of this coordination is the emerging "bad bank" consensus. The idea is for an institution to take ownership, and thereby quarantine, all of the toxic assets that are infecting the world economy. Britain and Germany have promoted this angle, as has the US. Having multiple countries, particularly the most powerful ones, take similar actions will only increase the likelihood of their effectiveness.
However, uniformity is no panacea. Different countries face unique and specific challenges and the group's collective decisions will not suit everyone. For instance, Germany is surely suffering, not nearly as badly or in the same way as Ireland or Italy. Therefore, something that Berlin enacts cannot be blindly repeated in say Portugal. Indeed, some think the situation is irreversible and that countries will have to leave the euro.
While there is concern about the EU getting weaker, there are signs that the bloc's centripetal forces are as potent as ever. Iceland is being fast-tracked for EU membership, while there is speculation Denmark could turn its krone for the common currency. There are even calls for the Great Resister, Britain, to take up the euro.
Europe's response, like so much these days, is still developing. Whether the EU will look the same at the end of this crisis is unclear, but unlikely. What is more certain, though, is that if the EU can survive, it will be stronger than it was before.
http://www.isn.ethz.ch/isn/Current-...0-B3DB-1461-98B9-E20E7B9C13D4&lng=en&id=96005
3 Feb 2009
Financial storm re-shaping Europe
There are signs that the EU's centripetal forces are as potent as ever. Iceland is being fast-tracked for EU membership, while there is speculation Denmark could turn its krone for the common currency. There are even calls for the Great Resister, Britain, to take up the euro, Mark C Partridge writes for Diplomatic Courier.
By Mark C Partridge for Diplomatic Courier
________________________________
European leaders arrived at the World Economic Forum with the intent "to develop effective solutions" to the global financial crisis. But after a week in the snow peaks in Davos, Switzerland, they descended from the mount empty-handed into a world still wrapped in turmoil.
European politicians are returning to their respective countries still searching for policies to ameliorate - never mind solve - the recession that is setting in. And the problems are only getting bigger.
Unemployment continues to climb, deflationary pressure is growing, property values are sliding, and both the British pound and the euro are tumbling on concerns over countries' ability to pay their debt obligations. Some are beginning to worry about defaults. And there is no end in sight; the consensus is that the economic picture will darken through at least the rest of the year.
The challenge of protectionism was added to the list just last week after the US House of Representatives passed a stimulus bill including so-called "Buy American" clauses. European leaders reacted with venom and threatened retaliation.
Germany's chancellor Angela Merkel worried "We must not allow market forces to be completely distorted … [which] could lead to distortion and protectionism." Such actions would truly and completely end the chances of the World Trade Organization's Doha trade deal.
In some sense, though, Congress is just ahead of the curve. While European politicians are preaching free-market ideals - with a healthy dose of Keynesianism, it should be noted - their constituents are increasingly fed up with the uncertainty inherent in free markets.
Job security, in particular, is an acute worry. Britain is increasingly looking like it did in the 1970s with strikes protesting foreign workers, while the French are taking to the streets demanding more financial support from the enigmatic Nicolas Sarkozy.
How EU leaders balance the populist demands of their peoples against their economic judgments will be critical in shaping the post-subprime world.
Politicians are hoping uniform policies will help sustain the EU. The European Central Bank is working on recommendations for financial bailouts. The aim is for countries to think about the collective group rather than favoring themselves, thereby avoiding what Britain's Gordon Brown has termed "financial protectionism."
One of the problems is that the ECB has less authority than the US' Federal Reserve; each member country has its own central bank. To be effective then, there is a need for coordination and consistency within the bloc, as well as with the Bank of England.
An example of this coordination is the emerging "bad bank" consensus. The idea is for an institution to take ownership, and thereby quarantine, all of the toxic assets that are infecting the world economy. Britain and Germany have promoted this angle, as has the US. Having multiple countries, particularly the most powerful ones, take similar actions will only increase the likelihood of their effectiveness.
However, uniformity is no panacea. Different countries face unique and specific challenges and the group's collective decisions will not suit everyone. For instance, Germany is surely suffering, not nearly as badly or in the same way as Ireland or Italy. Therefore, something that Berlin enacts cannot be blindly repeated in say Portugal. Indeed, some think the situation is irreversible and that countries will have to leave the euro.
While there is concern about the EU getting weaker, there are signs that the bloc's centripetal forces are as potent as ever. Iceland is being fast-tracked for EU membership, while there is speculation Denmark could turn its krone for the common currency. There are even calls for the Great Resister, Britain, to take up the euro.
Europe's response, like so much these days, is still developing. Whether the EU will look the same at the end of this crisis is unclear, but unlikely. What is more certain, though, is that if the EU can survive, it will be stronger than it was before.
