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" "Everyone's talked about Bank of America and Citigroup and the rest being too big to fail, but no, no, no. The most important point...is that the US must be perceived to be too big to fail.
Ian Arthur Bremmer (born November 12, 1969) is an American political scientist and author with a focus on global political risk. He is the president and founder of Eurasia Group, a political risk research and consulting firm.
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Political scientists don't work at banks—which is a problem. As political issues become more important for the markets, analysts at banks are asked all sorts of questions they don't have the ability to answer. And if you're getting paid to answer questions—as analysts at banks are—you never want to be in the position of saying you don't know.
The developed world should neither shelter nor militarily destabilize authoritarian regimes—unless those regimes represent an imminent threat to the national security of other states. Developed states should instead work to create the conditions most favorable for a closed regime’s safe passage through the least stable segment of the J curve—however and whenever the slide toward instability comes. And developed states should minimize the risk these states pose the rest of the world as their transition toward modernity begins.
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Money talks: financing the periphery buys Berlin a leading role recasting the eurozone governance framework. The recent ‘six pack’ of legislative reforms hints at what’s to come: institutionalized fiscal discipline and an excessive imbalances procedure that protects against future moral hazard. The whole eurozone will tilt toward the German surplus model as we get more fiscal integration and more German leverage.