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WILL GERMANY DESTROY THE EURO?

The eurozone debt crisis is deepening and threatens to re-erupt on a larger scale when the liquidity cycle turns, a leading panel of economists warned in a clash of views with German officials in Berlin. "Debts above 130% of GDP for Italy and 170% for Greece are a recipe for disaster once we go into the next downturn," said Professor Charles Wyplosz, from Geneva University. "Today's politicians believe the crisis is over and don't want to hear any more about it, but they have not tackled the core issues of fiscal union and public debt," he said, speaking at Euromoney's annual Germany conference. Ludger Schuknecht, director-general of the German finance ministry, insisted that the debt-stricken states of the eurozone are well on the way to recovery, ending their EU-IMF rescue programs successfully one by one. There is no need for any major shift in policy. "The strategy has been right. We need to bring down debt and this is now consensus," he said. This optimism is sharply at odds with the view of almost every foreign-based economist attending the event. Charles Dallara, former head of the International Institute for Finance and chief negotiator for global banks in Greece's debt-restructuring, said little has been done to put the eurozone on a viable footing, even if sovereign bond yields in southern Europe have fallen to record lows.

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NO MORE IMMUNITY FOR CRIMINALS IN GOVERNMENT

U.S. District Judge Ronald Guzman sentenced television pitchman Kevin Trudeau to 10 years in prison for making false claims in a weight loss book he wrote, and was hawking on tv. Mr. Trudeau has been involved in one scam after another for most of his life, Judge Guzman noted before imposing what the Chicago Tribune said was an unusually lengthy prison term for a contempt conviction. "He has treated federal court orders as if they were mere suggestions," Judge Guzman said. "That type of conduct simply cannot stand." Mr. Trudeau got what he deserved, said radio talk show host Rusty Humphries. But he said Mr. Trudeau's claims for his weight loss program were not as blatantly false as those made about Obamacare by the president and Health and Human Services Secretary Kathleen Sebelius.  Ms. Sebelius belongs in jail, yet she has a get-out-of-jail-free card.

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REPLACING FILTHY MONEY

Paper currency is dirty and is a major transmitter of disease as it goes from unwashed hand to unwashed hand. It is easily lost and stolen, and can be easily destroyed by getting wet or burned. It physically wears out in a short time and is costly and troublesome to replace. So why do we still use the filthy stuff in the electronic age? When given a choice, people find credit cards, debit cards and bank account electronic payments more convenient than cash. In many parts of the world, payments can be made from cellphone to cellphone, with the phone companies serving many of the functions of traditional banks. Money can be stored and transmitted from and to almost any form of computer. Some 15 years ago, I wrote a book forecasting the demise of paper currency. I expected paper currency to gradually disappear like paper checks have. However, I was wrong. Rather than disappearing, the demand for paper currency is rising faster than inflation or population, albeit not by much, but the total quantity of paper U.S. dollars in circulation is roughly double what it was a dozen years ago. The question is: Why?

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REPLACING ZEROCARE

Virtually all Americans applaud Obamacare's ostensible goals -- to cut the cost of health insurance, reduce the number of Americans who are uninsured. Thanks to Obamacare's flawed design and inept implementation, we know how not to achieve them. Obamacare imposes 2 1/2 times the costs as it provides in benefits, according to a study by the American Action Forum. More than twice as many Americans say they've been hurt by the law as have benefited from it. Obamacare has worsened the problems it was supposed to solve. Here's how to ameliorate them:

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SIBERIA AND THE SOUTH CHINA SEA

[Note:  I am off to Socotra and beyond.  Jack Kelly is also away on a well-deserved vacation.  In our absence, Joe Katzman will man the HFR ramparts.  He is asking TTPers to send him their suggestions for what recent events of note deserve inclusion in the HFR. "Send your suggestions etc. to our new [Half-Full Report email address ] at gmail dot com, the "person" is TTPHFR" - Thanks, and thanks, Joe!] Here's an interesting question:  Do Russians and Chinese exist?  Obviously yes in an ordinary sense.  But do they possess any individual identity beyond being simply members of their tribal collective? Human beings seem genetically hard-wired to be tribal.  Just about all of us derive at least part of our self-identity via membership in one or more tribes.  But most in the West do not submerge their identity into the tribe.  An exception might be a substantial fraction of American Blacks, for whom being "black" overrides everything else.  This, of course, is racism, but all forms of racism are merely a variety of tribalism. For most of us, however - and this includes a great many American Blacks - what we see in the mirror is an individual human being distinct and separate from others.  Our participation in the welter of groups and tribes to which we belong is something more of choice than necessity, something that we could withdraw from without feeling at a loss to know who we were. This is not the case with the great majority of Russians and Chinese.  Having little sense of individual empowerment, the average Russian gets a frisson whenever his government pushes other governments and countries around.  They want Russia to be a bully.  They want other people to be afraid of them because they are Russian.

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HOW TO MASTER YOUR EMOTIONS

This week I want to go into more depth about emotions. If you can master them, you will more fully own your own life. The quality of personality that this grows is conscientiousness, and it happens to be one of the most important qualities for your overall health and longevity. Sometimes our emotions make life worth living: love, joy, ecstasy, delight, curiosity... Our emotions bring us these experiences and fill us with the meaning and motivation of life. Sometimes our emotions can throw us into the worst that humanity can endure: pain, sadness, horror, grief, anger, fear, terror, depression... When this is what we feel, life can become overwhelming and, conversely, when life feels overwhelming, sometimes these are the feelings that come to dominate. There are tools that can help us master our emotions, even when times are very, very hard.  Here are some of those tools.

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GREECE PROVES HOW OVERSPENDING CAN RUIN AN ECONOMY

Athens, Greece.  How far can a modern economy sink? The Greek economy is entering its fifth year of decline. Nominal gross domestic product is about 28 percent lower than it was four years ago. The official unemployment rate is 27.5 percent (as though the decimal point matters, given the poor quality of the data). The unemployment rate for young people is about 60 percent. Nonperforming loans continue to rise. The privatization program continues to fail, in part because of an absence of bidders. In a paper posted earlier this month, leading Greek economist Yanis Varoufakis of the University of Athens and the University of Texas at Austin argues Greece is "a failed social economy." The following are several of his examples:

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WHY THE DEMS CAN’T TAKE KENNY ROGERS’ ADVICE

The secret to surviving, The Gambler told Kenny Rogers, is to "know when to hold ‘em, know when to fold ‘em, know when to walk away, know when to run." It's time for her fellow Democrats to fold their Obamacare cards, says pollster Celinda Lake. "In terms of Obamacare, don't defend it, say it was flawed from the beginning, and we're going to fix it," Ms. Lake said at a poll briefing hosted by the Christian Science Monitor March 25. This "mend it don't end it" strategy was followed by Alex Sink in the special election for a House seat in Florida March 11.  It failed, as will other Dem attempts.  Here's why.

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ARONOFSKY’S NOAH DESERVES AN OSCAR FOR BEST COMEDY OF THE YEAR

I just saw Noah. The film is a remarkable display of special effects. It is also one of the funniest comedies I have seen in a very long time. Aronofsky deserves a great deal of praise for turning a serious subject into a non-stop laugh fest of techno-electro music, orchestral scores, blasting special effects, and even rock monsters. The ad campaign tried to ease Christians' nerves that all would be well, artistic license was taken, but the movie would be faithful to the story. If they hadn't tried to con Christians into the movie, I wouldn't have a problem. It was a pretty awesome sci-fi spectacle complete with Ent-like rock monsters, a super-powered Methuselah, Adam and Eve as glow in the dark space aliens, and Hermione Granger. I am not kidding.

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HALF-FULL REPORT 03/28/14

Is this the most fabulous 30-second political ad you've ever seen in your life? {youtube}p9Y24MFOfFU{/youtube}  Joni Ernst is a 43 year-old state senator, a Lt. Colonel in the Iowa National Guard who served in Iraq, and a rock-solid conservative - see her issue positions - who is a Republican candidate for the US Senate. On Monday (3/24), she released the ad above that's been hailed by NRO as having "The Greatest Opening Line in the History of Campaign Commercials."  To wit: "I'm Joni Ernst... I grew up castrating hogs on an Iowa farm, so when I get to Washington, I'll know how to cut pork." On Wednesday (3/26), the front page headline in Iowa newspapers was "Sarah Palin Endorses Joni Ernst."  That evening, Jimmy Fallon on The Tonight Show showed the ad in his opening monologue, then commented:  "I don't know what she's running for but just give her the job."  On Comedy Central, Stephen Colbert endorsed her, explaining: "Joni, you had me at 'castration.' Folks, it does not matter what else she stands for. I'm pulling for her whole-hog, or whatever is left of the hog when she's done with it."

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