This German article outlines the path to debt sustainability that Greece is hoping for. Let’s remember Greece heads the EU as rotating head. Apparently the Greeks are hoping to get debt maturity extensions and interest rate reductions and use this (with their primary surplus) to go to the capital markets for funding and exit the Troika program. VERY ambitious.

Arbeitslosigkeit : Hartz IV wird für breite Schicht zum Dauerzustand – Nachrichten Wirtschaft – DIE WELT

According to the German article, the new Hartz IV reforms have meant that a whole group of people are becoming permanently dependent on assistance. Almost 50% of Hartz IV users had been on assistance for four years or longer.

Euro Zone’s Weak Recovery Poses Risks to Others – WSJ.com

North America

Poverty in Mexico: A few more pesos, a lot more stress | The Economist

“The introduction of new taxes will hit the poor hardest”

Manufacturing growth hits 11-month high: Markit | Reuters

Extra-flammable Bakken crude riskier to ship by rail than other oil, U.S. safety watchdog warns | Financial Post

North Dakota Train Fire Adds Fuel to Keystone XL Debate – Bloomberg

Canadian pension plans start 2014 at healthiest in 12 years: Mercer | Financial Post

Joseph Lieberman Joins Private Equity Firm – NYTimes.com

Lieberman’s leveraged finance deal experience wasn’t high on the list of why he’s gone into private equity I suspect

The Fed’s Lopsided Inflation Target – Real Time Economics – WSJ

Emerging Markets/Asia

EM bonds: a record 2013 | beyondbrics

“Despite the market turmoil caused this summer by concerns over the US Federal Reserve’s plans to scale back its monetary stimulus programme, EM bond issuance jumped to $506bn last year, surpassing the record $488bn in 2012, according to data from Dealogic.”

Hyundai-Kia Forecast Slowest Sales Growth in Eight Years – Bloomberg

Singapore Home Prices Post First Decline in Seven Quarters – Bloomberg

Turkish lira hits all-time low amid corruption probe | beyondbrics

African Nations Seek Sway Over Oil, Gas Development – WSJ.com

Economics

Sober Look: Why do we pay taxes?

“There are a number of reasons to pay taxes. One is to legitimate the currency, as your taxes can’t be paid in any other currency than the one legitimated by the government. This means that you have to use this currency and no other. Another function of taxes is to serve as an economic redistribution mechanism, which is a political function that sometimes works well and at other times not so well. At present, it isn’t working well in this sense at all. A third function of taxation is to control spending, sometimes as an aid to reduce inflationary pressures. Whether this is the best mechanism for doing this is a matter of some debate. “

Bodyguard of Zombies, Counterattack by Cockroaches – NYTimes.com

This one is on inequality and these arguments:” 1. Inequality isn’t increasing. 2. OK, inequality is increasing, but it’s not a problem. 3. OK, it would be nice to have lower inequality, but any proposed solutions would do more harm than good.”