In 2011 and 2012, many thought the Euro might break up due to the sovereign debt crisis. Unlike countries that have their own currency, countries in the Eurozone are dependent on the monetary policy of the European Central Bank (ECB). This disconnect makes Euro countries much more vulnerable than other countries to solvency crises. Since, then, however the new chief of the ECB, Mario Draghi, has engaged in a bond-buying program of Outright Monetary Transactions (OMTs) which has helped struggling periphery countries (Spain, Greece, Portugal, Italy, etc) stay solvent.
But while this has lowered interest rates in the struggling countries — and done enough to keep the Euro together — it has not been enough to get Europe out of the woods. Unemployment still remains cataclysmically high in Greece, Spain, Portugal, Italy, and high throughout the Eurozone. And now with inflation rapidly falling, many are worried that Europe is falling into debt deflation. Of course, Europe as a whole is not in deflation yet.
But as Paul Krugman argues, the process is already under way:
I'd say that to have debt deflation — in which falling prices due to a weak economy increase the real burden of debt, which depresses the economy further, and so on — you don't need to have literal deflation. The process begins as soon as you have lower inflation than expected when interest rates were set. It's also noteworthy that inflation rates in the highly indebted countries are all well below the eurozone average, with actual deflation in Greece and near-deflation in the rest. So the debt deflation spiral is in fact well underway. [The New York Times]
Europe's approach throughout the crisis has been to do the very minimum necessary to keep the Euro system afloat. It remains to be seen if that is an approach compatible with an economic recovery anytime soon. John Aziz
Former New Mexico Gov. Gary Johnson won the Libertarian Party's presidential nomination Sunday. He secured the win on the second ballot of the Orlando, Florida, convention with 55.8 percent of the vote.
Johnson, also the Libertarian Party's pick in 2012, has been polling in the double digits against both Hillary Clinton and Donald Trump. To qualify for televised debates, he'll need to hit 15 percent. Julie Kliegman
The family of a Pakistani taxi driver, Mohammad Azam, who was killed in May by an American drone strike has demanded a criminal inquiry into the U.S. government. Following an investigative report filed by Azam's brother, Mohammad Qasim, local police are obliged to investigate the death.
Azam "was the sole breadwinner of our large joint family, [so] this was an attack on our family that hardly earns enough for two meals a day," Qasim said, noting that before he was killed Azam supported six family members, including a disabled brother. "Who will feed them now?" he asked, demanding compensation to maintain his relatives' livelihood.
There is some precedent for his effort: The families of some past drone strike victims who have been deemed innocent after the fact have received secret condolence payments from Washington.
The drone strike's target, the leader of the Afghan Taliban, happened to be Azam's taxi fare when the bombs hit. Bonnie Kristian
Bo and Sunny Obama are apparently just as busy as the rest of the first family. First Lady Michelle Obama told The Associated Press on Sunday that she's in charge of managing their schedule of appearances each month.
But don't worry, when the Portuguese water dogs, ages 7 and 3, aren't greeting tourists, they have some time to unwind.
"They can sit on my lap, they sit on my chair, they cuddle with me," Obama said. "I like to lay on the floor with them and blow in their face. I like to make them run and chase each other. But they're so cute, I just love to just cuddle them and massage them."
The dogs also get up to their share of mischief around the house.
“You know what [Sunny] does sometimes?" Obama said. "She leaves the kitchen and she'll sneak and she'll go poop on the other end of the White House." Julie Kliegman
The Amish are a unique Christian community known for their radical forgiveness, pacifism, and eschewal of worldly goods. Donald Trump believes he needs no forgiveness from God, advocates bombing women and children, and lives in a penthouse that is entirely covered in gold.
But Trump allies with ties to Ben Carson and Newt Gingrich think it's a political match made in heaven. In fact, they've formed an Amish PAC in an attempt to persuade the 70,000 Amish people in Pennsylvania and Ohio, both swing states, to turn out for Trump this November.
The project faces an uphill battle. Though a few Amish voters do show up at the polls each election, most do not vote for theological reasons. Of course, the Amish have been spared Trump's Twitter feed thanks to their rejection of computer technology — but it is difficult to fathom that a religious group that considers buttons too ostentatious will be persuaded to back the king of ostentation. Bonnie Kristian
A 4-year-old boy sustained serious injuries after crawling into a gorilla enclosure at the Cincinnati Zoo on Saturday, ABC News reports. A 17-year-old, 400-pound male gorilla named Harambe picked up the boy and dragged him around after he fell at least 10 feet into a moat.
A zoo employee fatally shot the gorilla so firefighters could enter the enclosure and rescue the child, whose name has not been released. The boy was hospitalized with injuries that are reportedly not life-threatening.
— Cincinnati Zoo (@CincinnatiZoo) May 28, 2016
"The zoo security team's quick response saved the child's life. We are all devastated that this tragic accident resulted in the death of a critically endangered gorilla," the zoo director said in a statement. "This is a huge loss for the zoo family and the gorilla population worldwide. Julie Kliegman
Marco Rubio apologized to Donald Trump for making fun of his hand size, the former Republican candidate said in an interview with CNN's Jake Tapper that aired Sunday.
"I actually told Donald — one of the debates, I forget which one — I apologized to him for that," Rubio explained on State of the Union. "I said, 'You know, I'm sorry that I said that. It's not who I am and I shouldn't have done it.' I didn't say it in front of the cameras. I didn't want any political benefit." Rubio recently indirectly indicated he will support Trump this November.
The Trump-Rubio tiff dates to February, when the Florida senator hit back at Trump after the presumed GOP nominee began calling him "Little Rubio." "You know what they say about guys with small hands," he quipped, adding after a pause, "You can't trust 'em!" Trump has been sensitive to suggestions that his hands are small since a 1988 magazine article called him a "short-fingered vulgarian." Bonnie Kristian
Top Donald Trump adviser Paul Manafort is gently walking back his Wednesday assertion that the presumptive Republican nominee wouldn't choose a male person of color or a woman as a running mate because that would be "pandering."
In an interview with ABC's This Week on Sunday, Manafort clarified that candidates from those groups wouldn't be omitted from Trump's list of potential running mates; rather, they just won't earn spots on the list solely because of their race or gender.
"If a female is qualified, that's a totally different story," he said. "And there are many Republican women who are qualified, and several who might be on the list."
Manafort also confirmed that Trump is seeking a vice president with Washington, D.C., experience. Julie Kliegman