Cucumber Crisis - A Setback for the European Integration Project

Spain and Germany, already at loggerheads with each other over the Euro-zone debt crisis, are facing a new challenge to bilateral relations - the Cucumber Crisis.
http://www.bbc.co.uk/news/world-europe-13605910

Update: German beansprouts may actually be the culprits
http://www.guardian.co.uk/world/2011/jun/05/ecoli-beansprouts-identified-likely-source

Global Economic Developments

Australia – The Long Economic Boom Continues

http://www.economist.com/node/18719530

India in Africa – Chasing China

http://www.economist.com/node/18745335

Euro-zone Crisis Updates

At some point in time, there has to be a restructuring of Greek (and possibly Irish) debt. Are the consequences of a haircut to creditors likely to be catastrophic?

Probably not; in fact, a debt restructuring may be the least-worst option to resolving the crisis.

Here are a few interesting articles related to the Sovereign Debt Crisis:

Impact on Germany if Greek debt is restructured:

http://www.spiegel.de/international/europe/0,1518,druck-765318,00.html

Options available to Greece

http://www.economist.com/node/18744305

Profile of Economist Tyler Cowen

http://www.businessweek.com/print/magazine/content/11_23/b4231066695798.htm

The Truth About the Strong Dollar Policy

Christina Romer notes the obvious – strong dollar policy is just empty rhetoric.

http://www.nytimes.com/2011/05/22/business/economy/22view.html

South Asia - Interesting Links

http://www.economist.com/node/18712274

http://yaleglobal.yale.edu/content/post-bin-laden-pakistans-hour-choice

http://yaleglobal.yale.edu/content/pakistans-not-so-sleight-hand

China – A Major Destabilizing Force in South Asia

http://www.nytimes.com/2011/05/20/world/asia/20pakistan.html

IMF Chief Post - More of the Same?

The bizzare logic behind Europe’s push to continue the antiquated practice of always choosing a European to head the IMF:

Some European leaders have said in recent days that the next leader should be from Europe because they best understand the euro-zone debt crisis.

"That's interesting logic," said Arvind Virmani, an IMF board member from India. "That means whenever there's an Asian crisis, there should be an Asian managing director? Whenever there's an African crisis, there should be an African managing director?"

                                                                          - From the WSJ

Simon Johnson, the former IMF Chief Economist, has an interesting piece on possible successors:

http://www.bloomberg.com/news/2011-05-17/emerging-markets-might-name-strauss-kahn-heir-simon-johnson.html

Comment:

If the US wants the world to see that its rhetoric regarding democracy and openness is not just empty talk, then it should not cut a deal with the Europeans.