March 6, 2014

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

over and out
2:39 p.m. ET
John Moore/Getty Images

With prisons overcrowded and drug offenders facing long sentences, the Justice Department is now set to release 6,000 inmates early from prison, The Washington Post reports. The move, which marks the largest ever one-time release of federal prisoners, follows a decision by the U.S. Sentencing Commission last year that reduced the punishment for drug offenders both in the future and retroactively. While President Obama has made headlines for granting clemency to large numbers of nonviolent drug offenders, the Justice Department's mass release is a separate initiative.

Approximately 100,000 drug offenders are serving time in prisons across the United States; sentencing guidelines could result in the early release of 46,000 of that number. While the first wave of 6,000 will be released between Oct. 30 and Nov. 2 — primarily into halfway houses or home confinement — another 8,550 will be eligible between November 2015 and 2016, The Washington Post reports. The program eases sentences by an average of two years; the average sentence is 10.5 years. Jeva Lange

the saga continues
2:09 p.m. ET

Rihanna doesn't think that Rachel Dolezal, the white N.A.A.C.P. chapter president who identifies as black, is as bad as everyone is making her out to be. While Dolezal was largely scorned after her estranged parents revealed this summer that their daughter was actually white, Rihanna seems to be taking Dolezal's side.

"I think she was a bit of a hero, because she kind of flipped on society a little bit," Rihanna told Vanity Fair in an interview for the magazine's November cover story. "Is it such a horrible thing that she pretended to be black? Black is a great thing, and I think she legit changed people's perspective a bit and woke people up."

While some criticized Dolezal for appropriating black culture, Dolezal maintains that she is "transracial" and that, for her, being black is "not a costume." Read Rihanna's full interview at Vanity Fair. Becca Stanek

play nice
1:31 p.m. ET
Patrick Smith/Getty Images

In a week, Hillary Clinton will take the stage alongside Bernie Sanders, Martin O'Malley, Jim Webb, and Lincoln Chafee to duke it out in the first Democratic debate, hosted by CNN in Las Vegas. While the Republicans have had their share of verbal elbowing and name-calling on live TV, Clinton, the Democratic frontrunner, has much more to lose if her takedowns backfire — especially if her criticism is leveled at her primary competition in the field, Sen. Bernie Sanders (I-Vt.).

"I've seen every attack people have thrown at him, and none of them have worked," former Vermont governor and Clinton supporter Howard Dean told The New York Times, adding that condescending to Sanders' character or political alignments will "only make him stronger, especially with his base — and we need his base." Clinton herself has said that she "knows Bernie" and respects his "enthusiastic and intense advocacy of his ideas." What's left, then, is for Clinton to prove her worth against Sanders using his wobbly record with gun control against him — as well as the flaws in his proposals:

Mrs. Clinton is unlikely to belittle Mr. Sanders. But her debate preparations have touched on, among other things, how Mr. Sanders would accomplish some of his ambitious proposals if he were elected president, according to three people briefed on the private discussions. (Mr. Sanders's spending plans — free public college tuition, a $1 trillion infrastructure program and a single-payer health care system — would be financed with a variety of tax increases; both would be nonstarters under a Republican-controlled Congress.) [The New York Times]

Sanders, however, will likely share none of the same reservations about taking swings at Clinton. "If you think establishment politics and establishment economics is the answer to our problems, fine," he told David Axelrod in a podcast. "There are good candidates out there." Jeva Lange

The tables have turned
1:06 p.m. ET

House Majority Leader Kevin McCarthy (R-Calif.) set himself up and Hillary Clinton just couldn't resist. McCarthy's now-infamous Benghazi gaffe in a Fox News interview last week — in which he implied that the House's special Benghazi committee was created to sabotage Clinton — now appears in a Hillary Clinton campaign ad.

In what marks Clinton's first national ad of the cycle, she posits that Republicans "finally admit it." The 30-second spot opens with McCarthy's remark: "Everybody thought Hillary Clinton was unbeatable, right? But we put together a Benghazi special committee. What are her numbers today?"

Clinton then turns the tables. "The Republicans have spent millions attacking Hillary because she's fighting for everything they oppose," the ad's narrator says. "From affordable health care to equal pay, she'll never stop fighting for you, and Republicans know it."

Watch the ad, which will begin airing Tuesday, below. Becca Stanek

This just in
12:17 p.m. ET

American commander in Afghanistan Gen. John F. Campbell admitted to the Senate Armed Services Committee Tuesday that the airstrike targeting a Doctors Without Borders hospital in Afghanistan was the result of "a U.S. decision made within the U.S. chain of command."

"A hospital was mistakenly struck," Campbell said. "We would never intentionally target a protected medical facility." The attack came as Afghan forces were attempting to retake the northern city of Kunduz from the Taliban.

Doctors Without Borders has said the strike, which killed 19 people, "may amount to a war crime," The New York Times reports. Becca Stanek

write good
10:45 a.m. ET
SAUL LOEB/AFP/Getty Images

Presidential elections become more digitally oriented every year, with debates and conversations about the 2016 campaign occurring on almost every social media platform. As such, it's inevitable that some supporters will happen to be better spoken than others. To find out which candidate has the most grammatically correct supporters, the app Grammarly conducted a study on Democratic and Republican candidates' Facebook pages — and it turns out that Republican commenters get the red squiggly underline more than twice as often as Democrats do.

Grammarly sampled comments of 15 or more words on candidates' official Facebook pages between April and August 2015. The team then looked specifically at positive or neutral comments and ran grammar tests using both Grammarly and live proofreaders. For the purpose of the study, Grammarly only counted misspellings, wrong or missing punctuation, misused or missing words, and subject-verb disagreement, letting slang words, serial commas, and miswritten numerals slide.

With that, the results were in: Democrats made 4.2 mistakes per 100 words, while Republicans, at 8.7, made over double that. What's more, Lincoln Chafee, an underdog in the Democratic primary, had the most grammatically knowledgeable fans — they only made 3.1 mistakes for every 100 words. Hillary Clinton had the least grammatically correct supporters of all of the Democratic candidates, with commenters clocking 6.3 mistakes per 100 words — the same number as the best-spoken Republican supporters, who rallied in a grammatically correct fashion behind Carly Fiorina.

But not everyone can be winners: Way down at the bottom of the list was Donald Trump, whose supporters made a whopping 12.6 errors for every 100 words they wrote. Jeva Lange

10:19 a.m. ET
Scott Olson/Getty Images

In 2013, presidential candidate and Sen. Lindsey Graham (R-S.C.) voted against federal aid to New Jersey in the aftermath of Hurricane Sandy. But now that similarly devastating flooding has hit South Carolina, Graham is leading the call for federal help in his home state.

Pressed on the apparent contradiction during a CNN interview on Monday, Graham said that he does not recall opposing the Sandy aid, a position many Republicans took because the package also funded projects superfluous to helping Sandy victims.

"I'm all for helping the people in New Jersey. I don't really remember me voting that way," Graham said. "I don't really recall that, but I'd be glad to look and tell you why I did vote no, if I did." Bonnie Kristian

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