Portugal's justice problem - a conceptual view

This is a great interview published to the Scientific Coordinator of the Portuguese Permanent Justice Observatory in Publico, a few months back. It offers a very clear summary of the issues that now hamper Portugal's justice development. It is in Portuguese - but is a great and recommended reading.

http://www.publico.pt/Sociedade/a-nossa-cultura-juridica-serve-os-interesses-burocraticos-da-justica-nao-os-dos-cidadaos_1490492

Are rating agencies using the same criteria?

I think this is a very valid question when you look at US and European debt situations.

Actually, US situation is not that different from the EU, namely when one thinks:

- US Sovereign Debt vs GDP was 92% in 2010, actually the same as Portuguese one (91%) - source IMF;

- The situation is especially critic in some of the States - with parcial Governmental services closures in California and total closures in Minnesotta in July;

- Unemployment rates are climbing or at highest levels;

- Many US States actually have strong competitiveness issues, that are only masked away by the others strength (like what is happening in Europe, with Germany and Portugal, just as 2 examples);

- A single currency in both regions don't allow for Monetarian adjustments to boost competitiveness (oh, I am sure Louisiana would love to be able to depreciate its currency, aren't you?);

- Federal political inabilities are hampering the speedy resolution of the underlying issues jeopardizing the economy.

So, if actually the US are not that different from Portugal, Ireland and Spain, are rating agencies actually using the same criteria? I believe the reasons that hamper US Sovereign Debt rating degradation, but I am really feeling that though European economies have issues, they aren't as bad as justifying the current ratings given by Moody's, S&P and Fitch...

http://money.cnn.com/2011/07/26/news/economy/debt_ceiling_downgrade/index.htm?cnn=yes&hpt=hp_bn1

http://economia.publico.pt/noticia/congresso-dividido-prolonga-bracodeferro-sobre-aumento-da-divida-nos-eua_1504849

US Debt agreement failure - consequences in a nutshell

So, a default on the World's largest economy and debtor?

I think we would see a credit rating degradation of US bonds and therefore consequences on credit cost would that would rise in the US (and on other regions in the world that are exposed to US sovereign debt), making it more expensive to get credit. But this would also affect current credits, as most of their spreads are set vs floating indexes. This could then prompt a new wave of defaults by individuals as well as businesses, creating a possible recession.

This is the simple scenario - and we all hope not to understand if it would be like this.

http://economia.publico.pt/Noticia/obama-alerta-para-o-risco-de-uma-crise-economica-provocada-por-washington_1504715

On the importance of justice

A very good set of articles in "Portugal visto de fora", about the importance of Justice and why it is hampering Portugal's development. You will need to read Portuguese... I will just be highlighting two of these articles - but they are six of them, and all very good!

http://www.portugalvistodefora.com/2011/07/porque-democracia-e-menos-importante.html

http://www.portugalvistodefora.com/2011/07/democracia-e-menos-importante-que-o.html

The right answer

"You will not destroy us. You will not destroy our democracy and our ideals for a better world." - Jens Stoltenberg, Norway's Prime Minister, on the wake of yesterday's terror attack.

This is the best answer. And we must always walk the talk, especially on such a strong statement from whoever attacked Norway.

http://edition.cnn.com/2011/WORLD/europe/07/23/norway.explosion/index.html?hpt=T1

http://www.publico.pt/Mundo/atentados-na-noruega-causaram-91-mortos_1504397

Is this enough?

A number of measures were agreed yesterday at an European summit to put a halt to the continuous climbing of interest rates in Southern economies and thus protect the Euro. Those measures though important for the concerned States, are but baby steps. The only solution to the nowadays crisis comes in the form of an European-wide economy - including an European Finance minister and coordinated policies, namely taxes, incentives and so on. The root cause of nowadays crisis is that lack of unified economy - and we need it if we want to keep a single currency.

http://economia.publico.pt/Noticia/banca-empresta-37-mil-milhoes-para-nova-ajuda-a-grecia_1504156

Normal?

Should we, voters and taxpayers, consider it normal that elected politicians can earn not only their rightful salaries but also pensions proceedings? Just a question, as it comes out of our pockets...

http://www.publico.pt/Pol%C3%ADtica/anulado-pedido-para-politicos-madeirenses-devolverem-pensoes_1504135