United States: The Unfolding Opioid Crisis

The annual number of deaths from opioid abuse is now on a par with total American casualties in the Vietnam War. The epicenter of the crisis is abuse of prescription drugs, but that has now led to a spike in heroin and fentanyl abuse. Drugs and drug-related crimes have expanded beyond the inner cities, hitting…

United States: The Anatomy of a Recovery

The US recovery since 2009 has underperformed previous recoveries with the decline in real public spending accounting for half of the underperformance. The other important factor is the deleveraging in household. For the corporate sector the recovery has been pretty average – on average. Inflated debt levels remain a headwind for the US economy.  …

German Jamaica collapse

After weeks of negotiations and missing several self-imposed deadlines, the liberal FDP last night walked out of the coalition negotiations with the CDU/CSU and Greens. Citing a lack of trust between the parties, FDP-leader Lindner saw no reason to continue, ”No government is better than bad government”. Not surprisingly, the blame game is well under…

United States: Another step forward

Congressional Republicans yesterday moved forward on tax reform. The House of Representatives passed the tax bill with 227 votes – all Democrats and 13 Republicans voted against. However, it was a much more comfortable margin than would have been expected a couple of weeks ago. The process is far from over, but House Republicans were…