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Indian superstar economists, Egyptian (not so liberal!) dictators, the Great Deceleration and Taliban banking regulation – Some more unfocused musings

While the vacation is over for the Christensen family I have decided to continue with my unfocused musings. I am not sure how much I will do of this kind of thing in the future, but it means that I will write a bit more about other things than just monetary issues. My blog will still primarily be about money, but my readers seem to be happy that I venture into other areas as well from time to time. So that is what I will do.

Two elderly Indian economists and the most interesting debate in economics today

In recent weeks an very interesting war of words has been playing out between the two giants of Indian economic thinking – Jagdish Bhagwati and Amartya Sen. While I don’t really think that they two giants have been behaving themselves in a gentlemanly fashion the debate it is nonetheless an extremely interesting and the topic the are debate – how to increase the growth potential of the Indian economy – is highly relevant not only for India but also for other Emerging Markets that seem to have entered a “Great Deceleration” (see below).

While Bhagwati has been arguing in favour of a free market model Sen seems to want a more “Scandinavian” development model for India with bigger government involvement in the economy. I think my readers know that I tend to agree with Bhagwati here and in that regard I will also remind the readers that the high level of income AND the high level of equality in Scandinavia were created during a period where all of the Scandinavian countries had rather small public sectors. In fact until the mid-1960s the role of government in Scandinavia was more limited than even in the US at the same time.

Anyway, I would recommend to anybody interested in economic development to follow the Bhagwati-Sen debate.
Nupur Acharya has a good summery of the debate so and provides some useful links. See here.

By the way this is Bhagwati’s new book – co-authored with Arvind Panagariya.

Bhagwati

The Economics of Superstar Economists

Both Bhagwati and Sen are what we call Superstar economists. Other superstar economists are people like Tyler Cowen and Paul Krugman. Often these economists are also bloggers. I could also mention Nouriel Roubini as a superstar economist.

I have been thinking about this concept for a while  and have come to the conclusion that superstar economists is the real deal and are extremely important in today’s public debate about economics. They may or may not be academics, but the important feature is that they have an extremely high public profile and are very well-paid for sharing their views on everything – even on topics they do not necessarily have much real professional insight about (yes, Krugman comes to mind).

In 1981 Sherwin Rosen wrote an extremely interesting article on the topic of The Economic of Superstars. Rosen’s thesis is that superstars – whether in sports, cultural, media or the economics profession for that matter earn a disproportional high income relative to their skills. While, economists or actors with skills just moderately below the superstar level earn significantly less than the superstars.

I think this phenomenon is increasingly important in the economics profession. That is not to say that there has not been economic superstars before – Cassel and Keynes surely were superstars of their time and so was Milton Friedman, but I doubt that they were able to make the same kind of money that Paul Krugman is today.  What do you think?

The Great Deceleration – 50% structural, 50% monetary

The front page of The Economist rarely disappoints. This week is no exception. The front page headline (on the European edition) is “The Great Deceleration” and it is about the slowdown in the BRIC economies.

I think the headline is very suiting for a trend playing out in the global economy today – the fact that many or actually most Emerging Markets economies are loosing speed – decelerating. While the signs of continued recovery in the developed economies particularly the US and Japan are clear.

The Economist rightly asks the question whether the slowdown is temporary or more permanent. The answer from The Economist is that it is a bit of both. And I agree.

There is no doubt that particularly monetary tightening in China is an extremely important factor in the continued slowdown in Emerging Markets growth – and as I have argued before China’s role as monetary superpower is rather important.

However, it is also clear that many Emerging Markets are facing structural headwinds – such as negative demographics (China, Russia and most of the rest of Central and Eastern Europe), renewed “Regime Uncertainty” (Egypt, Turkey and partly South Africa) and old well-known structural problems (for example the protectionism of India and Brazil).  Maybe it would be an idea for policy makers in Emerging Markets to read Bhagwati and Panagariya’s new book or even better Hernando de Soto’s “The Mystery of Capital – Why Capitalism Triumphs in the West and Fails Everywhere Else”

Egypt – so much for “liberal dictators”

While vacationing I wrote a bit Hayek’s concept of the “liberal dictator” and how that relates to events in Egypt (see here and here). While I certainly think that the concept a liberal dictatorship is oxymoronic to say the least I do acknowledge that there are examples in history of dictators pursuing classical liberal economic reforms – Pinochet in Chile is probably the best known example – but in general I think the idea that a man in uniform ever are going to push through liberal reforms is pretty far-fetched. That is certainly also the impression one gets by following events in Egypt. Just see this from AFP:

With tensions already running high three weeks after the military ousted president Mohamed Morsi, General Abdel Fattah al-Sisi’s call for demonstrations raises the prospect of further deadly violence.

…Sisi made his unprecedented move in a speech broadcast live on state television.

“Next Friday, all honourable Egyptians must take to the street to give me a mandate and command to end terrorism and violence,” said the general, wearing dark sunglasses as he addressed a military graduation ceremony near Alexandria.

You can judge for yourself, but I am pretty skeptical that this is going to lead to anything good – and certainly not to (classical) liberal reforms.

Just take a look at this guy – is that the picture of a reformer? I think not.

Dictator

Banking regulation and the Taliban

Vince Cable undoubtedly is one of the most outspoken and colourful ministers in the UK government. This is what he earlier this week had to say in an interview with Finance Times about Bank of England and banking regulation:

“One of the anxieties in the business community is that the so called ‘capital Taliban’ in the Bank of England are imposing restrictions which at this delicate stage of recovery actually make it more difficult for companies to operate and expand.”

While one can certainly question Mr. Cable’s wording it is hard to disagree that the aggressive tightening of capital requirements by the Bank of England is hampering UK growth. Or rather if one looks at tighter capital requirements on banks then it is effectively an tax on production of “private” money. In that sense tighter capital requirements are counteracting the effects of the quantitative easing undertaken by the BoE. Said in another way – the tight capital requirements the more quantitative easing is needed to hit the BoE’s nominal targets.

That is not to say that there are not arguments for tighter capital requirements particularly if one fears that banks that get into trouble in the future “automatically” will be bailed out by the taxpayers and the system so to speak is prone to moral hazard. Hence, higher capital requirements in that since is a “second best” to a strict no-bailout regime.

However, the tightening of capital requirements clearly is badly timed given the stile very fragile recovery in the UK economy. Therefore, I think that the Bank of England – if it wants to go ahead with tightening capital requirements – should link this the performance of the UK economy. Hence, the BoE should pre-annonce that mandatory capital and liquidity ratios for UK banks and financial institutions in general will dependent on the level of nominal GDP. So as the economy recovers capital and liquidity ratios are gradually increased and if there is a new setback in economy capital and liquidity ratios will automatically be reduced. This would put banking regulation in sync with the broader monetary policy objectives in the UK.

 

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The Sudanese Pound – another Troubled Currency

A couple of days ago I wrote about Steve Hanke’s new Troubled Currencies project. The project presently covers Argentina, Iran, North Korea, Syria andVenezuela. However, I think Steve now has to expand the list with the Sudanese pound.

This is from Reuters yesterday:

Sudan’s currency has fallen to a record low against the dollar on the black market since South Sudan started reducing cross-border oil flows in a row over alleged support for rebels, dealers said.

There is little foreign trading in the Sudanese pound but the black market rate is an important indicator of the mood of the business elite and of ordinary people left weary by years of economic crises, ethnic conflicts and wars.

The rate is also watched by foreign firms such as cellphone operators Zain and MTN and by Gulf banks who sell products in pounds and then struggle to convert profits into dollars. Gulf investors also hold pound-denominated Islamic bonds sold by the central bank.

On Wednesday, one dollar bought 7.35 pounds on the black market – which has become the business benchmark – compared to 7 last week, black market dealers said. The central bank rate is around 4.4.

The pound has more than halved in value since South Sudan became independent in July 2011, taking with it three-quarters of the united country’s oil output. Oil was the driver of the economy and source for dollars needed for imports.

Last week, South Sudan said it would close all oil wells by the end of July after Sudan notified it a month ago it would halt cross-border oil flows unless Juba gave up support for rebels. South Sudan denies the claims.

Flows had only resumed in April after an earlier 16-month oil shutdown following South Sudan’s secession.

Interesting it is not only Sudan that has a currency/inflation problem. The same has indeed been the case for South Sudan, which initially after it became independent in 2011 saw a sharp spike in inflation.

Paradoxically enough the cause of the spike in inflation in South Sudan was the same as in Sudan – an South Sudanese oil boycott of Sudan. Hence,  the cut in oil sales from South Sudan to Sudan caused a sharp drop in the South Sudanese government’s oil revenue. That led the government to effectively force the new South Sudan central bank to fund the revenue shortfall by letting the money printing press work overtime.

As far as I know it was initially considered that South Sudan should implement Steve’s favourite monetary solution for countries like Sudan and South Sudan – a currency board.

Even though I am no big fan of currency boards I would agree with Steve that it could be the right solution for countries with extremely weak institutions such as Sudan and South Sudan. Another possibility could simply be to just dollarize and completely give up having their own currencies. My favourite solution for South Sudan would be a currency board, but with a twist – the Sudan Sudanese pound should be pegged to the price of oil rather than to another currency. This of course would be a strict form of the Export Price Norm (EPN), while I think complete dollarization would be the best solution for Sudan. Needless to say both Sudan and South Sudan should get rid of all capital and currency controls.

Finally it should be noted that while inflation seems to be getting out of control in Sudan inflation in South Sudan has been coming down significantly over the past year.

PS While the monetary situation is getting worse in Sudan the situation in Egypt apparently is improving and the black market for the Egyptian pounds seem to be “vanishing” according to a blog post from Steve today.

“We refuse to let Detroit (and Egypt) go bankrupt”

The big story of the week in the US has undoubtedly been the bankruptcy of the city of Detroit. I should stress that I have next to no insight into Detroit’s fiscal situation. However, the bankruptcy is nonetheless a reminder of the risks moral hazard.

Conservative commentators has been fast to pick up on a comment from President Obama who back in October last year made the following statement:

“We refused to throw in the towel and do nothing. We refused to let Detroit go bankrupt. We bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way”

This quote is of course taken completely out of context. Obama was not talking about the municipality of Detroit, but about the Detroit auto industry. So claiming that Obama in some way had promised to save Detroit from bankruptcy is not really fair. However, the quote nonetheless raises a highly relevant question of local public finances and moral hazard, which is highly relevant for not only US municipalities, but also have wider global implications as I will argue below.

The moral hazard of local government

While Obama’s comments regarding Detroit was not explicitly about the municipality they nonetheless are a pretty good illustration of the general perception about the US federal government’s willingness to bailout major US cities and US states for that matter.

By saying that he was happy to have bailed out the auto industry Obama most likely also signaled that he would be equally happy bailing out the city of Detroit. Furthermore, the fact that Detroit has been run by Democrats for decades probably also adds to investors’ expectations for some kind of Federal bailout of Detroit.

However, as I said I don’t have a lot of insight to the finances of Detroit and what I really want to discuss is the general problem of moral hazard in local government.

The key problem is that central government – in the case of the US state and federal government – will be tempted to bailout major municipalities that gets into financial distress. In US history this of course has happened numerous times. Just imagine what would happen if the mayor of a major city comes out and says “We are bankrupt so from now on there will be no public services. The police force has been sent home”. If that happened it would put tremendous political pressure on state and federal government to “solve” the problem.

And this is really the problem in terms of local government funding. Investors know that they to some extent can rely on state and federal government to step-in and save the municipality even if it has been grossly financially irresponsible. As a consequence the financial markets will tend to significantly mis-price the risk of a default. This is, however, not market failure, but rather government failure. At the core of the problem is that investors rationally expect local government to be bailed out by either state or federal government. It might or might not happen, but just the fact that there is a certain probability that this will happen will lead to a mis-pricing of the default risk.

This means that the funding costs of local government will be lower than it should be to reflect the true default risk. It is not very hard to see that that will at least indirectly reward irresponsible policies. The local government will likely be politically rewarded for building a new mega stadium (a well-known local finance problem in the US) or increasing teachers salaries etc. However, the cost of bankruptcy will at least party be transferred to states and federal government. This obviously encourage irresponsible policies locally.

Did moral hazard play a role in Detroit’s economic troubles? I am not sure, but I am very sure that moral hazard has had a major negative impact on the state of the US auto industry for decades and that at least indirectly have had a serious impact on the state of city of Detroit’s finances. Anyway I am sure that the bankruptcy of Detroit will inspire aspiring young public choice economists to study the impact of moral hazard of Detroit’s bankruptcy – at least I hope so.

Since it is very hard to avoid the temptation of bailing out failed municipalities it is not surprising that in most developed countries in the world the fiscal independence of local government is restricted by more or less strict rule imposed by central government (for example balance budget rules or rules limiting the ability to raise funds through lending in the financial markets). That is also to some extent the case in the US. These “constitutional” restrictions apparently has not be effective enough to avoid the Detroit’s bankruptcy and if Detroit’s troubles should lead to any policy debate in the US – then it should be how to change the constitutional/institutional set-up for major US cities to provide lawmakers with the right incentives to ensure prudent financial manage of municipal finances. And yes, this is of course is a completely parallel discussion to the discussion of moral hazard in the banking sector.

From Detroit to Egypt

The bankruptcy of Detroit should actually also lead to a debate about US foreign aid. Yes, believe it or not there a strong parallels between the moral hazard problems in US local government finances and US foreign aid.

The recent political unrest and the military coup in Egypt has made me to think about moral hazard problems of particularly US foreign aid.

There is no doubt that US foreign aid to a large extent is driven by what the US government perceives to be US foreign policy interests – particularly security interests and this has been a key motivating factor for US aid to Egypt for decades and no one would deny that the changing Egyptian governments over the years has been reward for keeping peace with Israel – a close ally of the US.

A list of the top-five recipients of US aid clearly reveals to what extent US foreign aid is driven by geo-political concerns rather than anything else: Afghanistan, Israel, Iraq, Pakistan and Egypt. Particularly the fact that Israel – not exactly a developing country and a country  – is notable.

To argue that the key concern of US foreign aid is economic and social development is pretty in fact pretty hard. Rather it is US foreign policy interests that determines what countries, which will receive foreign. And investors of course know this. Hence, who would seriously imagine that the US government would let Israel or Egypt go bankrupt (as long as these countries act accordingly with US foreign policy interests)? And this of course is reflected in market pricing of the default risk of Israel and Egypt.

So in the same way as investors would investors could be betting on the US federal government (or state governments) to bailout major US cities then in the same way investors would rationally bet on countries like Israel or Egypt being bailout if they were to get into financial troubles. As a result we should expect financial markets to under-price the risk of a government default in for example Egypt and similarly is this is likely to make the Egyptian government less fiscally responsible. Whether or not moral hazard has been the main driver of Egyptian fiscal decisions or not is hard to say, but it remains a fact that Egyptian public finances been a mess for decades.

IMF lending and moral hazard

Does all this sound far-fetched? Not at all if you look at numerous studies of what determines for example IMF lending. The US of course is the large contributor to the IMF and the US has a major say in how IMF funds are used.

Hence, for example a very interesting paper by Axel Dreher, Jan-Egbert Sturm and James Raymond Vreeland published earlier this year shows that “political important” countries face “softer conditions” for IMF loans than politically non-important countries.

I believe that it is very likely that US foreign aid motives distort the market pricing of default risk in certain particularly Emerging Markets and as a consequence increases global moral hazard problems.

So if you think moral hazard played a role in Detroit’s bankruptcy you should also consider what role moral hazard has played in recent events in Egyptian financial markets and it is hardly a coincident that the Egyptian financial markets rallied when the anti-US Muslim Brotherhood was ousted – effectively making a new IMF loan for Egypt more likely.

PS If you want to understand what is the problem with the ECB’s OMT program then you should just think about moral hazard. And while I certainly do not think that monetary easing is not moral hazard, “credit easing” done in the way the ECB is doing it certainly is. Also see my earlier post on why monetary easing is not a bailout, but ECB style credit polices are.

Update: Jim Pethokoukis has a very good piece on National Review Online on how to revive Detroit.

A Hayekian coup in Egypt?

(Warning: This has nothing to do with monetary policy issues)

For some time there has raged a very interesting – but for Hayek fans an unpleasant  – debate in the blogosphere about Hayek’s views of Chilean dictator Augosto Pinicohet. It all started with a blog post around a year ago by Corey Robin – a left-leaning long-time critique of conservative and libertarian thinkers – in which he claimed that “Friedrich von Hayek was a warm supporter of Augusto Pinochet’s bloody regime.” 

I must say that when I first read Corey’s post I thought he made a strong case. For a long time admirer of Hayek as myself that was not nice. Since then I have followed the debate about Corey’s claims on and off over the past year without having followed it very closely and without having made up my mind on all the issues involved in this debate.

Corey has been attacked by a number of libertarian scholars among them Kevin Vallier. Kevin’s latest post – Hayek and Pinochet, A Discussion Deferred For Now – on the issue was recently posted on the excellent Bleeding Heart Libertarians blog. Pete Boettke also has a very good discussion of related issues here.

Numerous scholars have been involved in this debate, but unfortunately I don’t think that anybody have written anything to sum up the debate – and I am certainly not going to do that. In fact I don’t really has a view on who is right and who is wrong on this topic. However, the debate is highly relevant for recent developments in Egypt and that is what is want I really want to touch on in this post.

Did general al-Sisi read Hayek’s “Law, Legislation and Liberty”‘?

I had just read another blog post by Corey Robin on the Hayek-Pinochet connection when the military coup in Egypt happened. That made me think what Hayek would have thought of that coup.

In his post Corey quotes Hayek:

As long-term institutions, I am totally against dictatorships. But a dictatorship may be a necessary system for a transitional period. At times it is necessary for a country to have, for a time, some form or other of dictatorial power. As you will understand, it is possible for a dictator to govern in a liberal way. And it is also possible for a democracy to govern with a total lack of liberalism. Personally, I prefer a liberal dictator to democratic government lacking in liberalism. My personal impression…is that in Chile…we will witness a transition from a dictatorial government to a liberal government….during this transition it may be necessary to maintain certain dictatorial powers.

Corey further claims the following about Hayek’s views:

He had his secretary send a draft of what eventually became chapter 17—“A Model Constitution”—of the third volume of Law, Legislation and Liberty. That chapter includes a section on “Emergency Powers,” which defends temporary dictatorships when “the long-run preservation” of a free society is threatened. “Long run” is an elastic phrase, and by free society Hayek doesn’t mean liberal democracy. He has something more particular and peculiar in mind: “that the coercive powers of government are restricted to the enforcement of universal rules of just conduct, and cannot be used for the achievement of particular purposes.” That last phrase is doing a lot of the work here: Hayek believed, for example, that the effort to secure a specific distribution of wealth constituted the pursuit of a particular purpose. So the threats to a free society might not simply come from international or civil war.

This discussion to me smells of the same kind of argument, which is being made in Egypt these days by anti-Muslim Brotherhood forces – among them some liberals (in the broadest possible sense). They have been arguing that while Morsi was democratically elected his regime turned anti-democratic and therefore it was in the interest of the people and freedom that the military deposed of him and the Muslim Brotherhood. Some would probably argue that the coup was necessary to save democracy in Egypt.

I don’t have a view on this, but tell me what to think please!

I should stress that I don’t have any particular view – at least not a qualified view – on what Hayek’s views on Pinochet was and I certainly do not have any idea about what he would have thought of the coup in Egypt. However, I do think that the fundamental philosophical discussion about the “rights” of the military to depose a democratically elected government is highly important particularly for what is going on in Egypt these days.

And yes, 90% of what I write on this blog is about monetary issues, but I am still on vacation so I am a bit philosophical here so I would hope that somebody will pick up the challenge and tell me what Hayek would have thought of the coup in Egypt. That is really what I want to know. And again I am not making any judgement on either the Hayek-Pinochet connection debate or the present situation in Egypt.

I am just asking questions. Maybe somebody much better schooled in Hayek’s philosophical work will help me.

PS let me know if you think it is interesting that I from time to time move into other areas of economics and politics than monetary matters. I promise I will not do it a lot, but on the other hand I might start doing it a little more frequent if my readers like it.

PPS In terms of political philosophy I do not and have never considered myself a Hayekian. In fact if any Austrian economist has influenced me on these issues it is – believe it or not – Murray Rothbard. Rothbard’s The Ethics of Liberty made a lot bigger impression on me than Hayek’s Law, Legislation and Liberty ever did, but I am certainly not a Rothbardian either.

PPPS Farant, McPhail and Berger’s 2011 paper on “Preventing the “Abuses” of Democracy: Hayek, the Military “Usurper” and Transitional Dictatorship in Chile”? is a must-read paper.

Update: Somebody sent me this quote from the Wall Street Journal:

“Egyptians would be lucky if their new ruling generals turn out to be in the mold of Chile’s Augusto Pinochet, who took power amid chaos but hired free-market reformers and midwifed a transition to democracy. If General Sisi merely tries to restore the old Mubarak order, he will eventually suffer Mr. Morsi’s fate.”

Unfocused vacation musings on money – part 1

It is vacation time for the Christensen family. We are in the Christensen vacation home in Skåne (Southern Sweden) and my blogging might reflect that.

There are really a lot of things going on the in world and I would love to write a lot about it all, but there is not enough time. But here are a few observations about recent global events from a monetary perspective.

Egyptian Regime Uncertainty

I am not getting myself into commenting too much on what is going on in Egypt other than I fundamentally is quite upbeat on the Egyptian economy, which I easily could see growth 7-8% y/y in real terms in the next 1-2 decade (with the right reforms!)

Remember the Egyptian population is going from 80 to 90 million within the next decade and the labour will be growing by more than 1% a year in the same period (as far as I remember). With the right reforms that is a major growth boost. So Egypt is a major positive long-term supply side story – short-term it is a major negative supply side story.

What we have in Egypt is of course a spike in what Robert Higgs calls Regime Uncertainty. That is a negative supply shock. The Egyptian central bank should of course allow that to feed through to higher prices – don’t fight a supply shock with monetary policy. There is a lot to say about how Egyptian monetary policy should be different, but monetary policy surely is not Egypt’s biggest problem. If you want to understand Egypt’s problem I think you should read “Why Nations Fail”.

I earlier wrote a post on the implications of recent Turkish political unrest from an AD/AS perspective. I think that post easily could be copy-pasted to understand the economics of the Egyptian crisis.

A Polish deflationary monetary policy blunder

I have followed the Polish economy closely for well over a decade and I love the country. However, recently I have got quite frustrated with particularly the Polish central bank. Yesterday the Polish central bank (NBP) cut its key policy rate by 25bp. No surprise there, but the NBP also (wrongly) said it was the last rate cut in the rate cutting cycle.

Say what? Poland is likely to have deflation before then end of the year and real GDP growth is well-below trend-growth. Not to talk about NGDP growth, which has been slowing significantly. I am not sure the NBP chief Marek Belka realises, but it did not ease money policy yesterday. It tightened monetary policy.

When a central bank tells the markets it will cut interest rates (or expand the money base) less than the markets have been expecting then it is effectively monetary tightening. That was what the NBP did yesterday – pure and simply. Now ask yourself whether that is the right medicine for an economy heading for deflation soon. To me it is a deflationary monetary policy blunder. (I will not even say what I think of the recent FX intervention to prop up the Polish zloty).

A confident Kuroda should not be complacent

This morning Bank of Japan governor Kuroda had press conference on monetary and economic developments in Japan. I didn’t read up on the details – I am on vacation after all – but it seems like Mr. Kuroda was quite confident that what he is doing is working. I agree, but I would also tell Mr. Kuroda that he at best is only half way there. Inflation expectations are still way below his 2% inflation target so his policies are not yet credible enough to declare victory yet. So let me say it again – more work on communication is needed.

Carney’s long and variable leads (I would have hoped)

Mark Carney has only been Bank of England governor since Monday, but it is tempting to say that he is already delivering results. The macroeconomic data released this week for the UK economy have all been positive surprises and it looks like a recovery is underway in the British economy. So why am I saying that Carney is already delivering results? Well because monetary policy is working with long and variable leads as Scott Sumner likes to tell us. There is a wide expectation in the markets that Carney will “try to do something” to ease UK monetary policy and that in itself is monetary easing (this is the reverse of the Polish story above).

However, my story is unfortunately a lot less rosy. The fact is that the market is not totally sure that Carney will be able to convince his colleagues on the Monetary Policy Committee to do the right thing (NGDP targeting) and judging from the markets a major change in policy is not priced in. So Carney shouldn’t really take credit for the better than expected UK numbers – at least not a lot of credit. So there is still no excuse for not doing the right thing. Get to work on an NGDP level target right now.

Summertime reading…

I hope to be able to do some reading while on vacation – at least I brought a lot of books (yes, one of them is about Karl Marx). Take a look…

Vacation books

PS It is 4th of July today. The US declaration of independence is surely something to celebrate and here in the small city of Skyrup in Skåne our neighbour always fly the Stars and Stripes on July 4th so we won’t forget. I like that.

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