denials from those 5 countries, and from the @EU_Commission that it's working on #Coronabonds
But with political momentum - and it may still come - Commission already has in its drawers a prototype of how to do it
those of us who followed the very niche, until #coronavirus, question of single safe asset remember @EU_Commission Commission plans for securitising sovereign bonds, approved by the @Europarl_EN.
SBBSies are technocratic solution to political problem of Euroarea macrofinancial architecture: Germany has exorbitant privilege from issuing Euroarea safe asset , deriving benefits (flight to safety) without responsbilities (Bund shortage)
SBBSies are a technocratic solution hated by: 1. Private finance: risk/return numbers dont add up 2. Sovereign debt managers (DMOs) all over Euroarea: what about our liquidity? 3. Some in the ECB: seriously, securitisation?
Commission Impact Assessment dismissed liquidity concerns: SBBSies = QE
but packaging Euro sovereigns in a special purpose vehicle to issue 3 tranches of SBBSies is not the same as QE.
ECB designed QE purchases of sovereign bonds (PEPP) to minimise negative liquidity effects - as I argued in hearing at @Europarl_EN.
SBBSies are not designed to do that.
but good news is that @EU_Commission has thought about these issues, and can reorient SBBSies plans to public Coronabonds.
Like Dyson making ventilators, Commission can give us Coronabonds, especially w ECB on board.
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the Clean Energy Finance Authority would subsidize foreign demand for US cleantech - or derisk BlackRock renewable assets in say, Kenya with subsidies/guarantees.
nothing in this proposal from a top Kamala Harris advisor suggests US should enable technology transfers to countries wishing to pursue their own domestic cleantech capabilities.
in #WallStreetConsensus, Global South are consumers of American cleantech, with American dollars.
Two amazing Global South progressives and a Nobel prize winner walk into an Oxfam panel on post-neoliberalism
Stiglitz: w neoliberalism, the growth of financial markets changed the political game tremendously
Lula 's special advisor @AAbdenur - clear mismatch - Global North openly exposing industrial policy but pushing IMF/World Bank to continue with austerity and partnerships for hyper-financialisation
missing from this @FT account of the rapid rise of infrastructure as an asset class is the sustained effort that G20 governments have put into derisking infrastructure assets for institutional capital - this is the derisking state in action #WallStreetConsensus
@FT with @BJMbraun we've termed this a weak derisking macrofinancial regime - a set of policies (as in the G20 Infrastructure as an Asset Class agenda, or World Bank Maximising Finance for Development) that seeks to mobilise private capital into infrastructure osf.io/preprints/soca…
BlackRock 's recent acquisition of GIP is a bet that governments - under ideological or real constraints on fiscal space - will not pursue public infrastrucuture projects but instead continue to derisk private capital
I did not expect this, but Rachel Reeves' Mais lecture is a lot more interesting - and dare I say, promising - than either the commentariat focused on fiscal rules or the past weeks of 'maxxed credit cards' would have us believe
some parts are taking a direct swipe at us advocates of Big (Green) State, but it's a careful articulation of the alternative rather than the empty austerity ideology of 'maxxed out credit cards'
1. We're getting climate politics back at the Bank of England.
Remember, under Carney, it became a world leader in climate policy making, not the greenwashed US Fed version of 'disclosure'/single materiality that Bailey prefers.
it is a strategic and tactical mistake for progressives to centre the superrich in climate politics.
Tactics - global tax system is organised to enable rampant tax avoidance + evasion for both high net worth individuals & corporations.
Recent efforts to reform have been far less successful than we'd have expected a decade after Piketty made inequality politically salient at global level. Fighting for global solutions around taxes is important, but shouldnt be the key front.
Global South voices - here the President of Colombia - read in the European/US support of the genocide in Gaza a blueprint, an experiment for ecofascism that 'treats us as disposable lives'.
'we are heading to barbary. Humanity, especially in the South, depends on the road we choose to address the climate crisis produced by the Global North. Gaza is the first experiment to treat us as disposable lives.'
Clearer European minds anticipated this response to von der Leyen - but the damage is done