It was not Germany that pushed austerity on to eurozone states. Criticism of austerity has reached ferocious levels in Europe. Increasingly, it carries a moral tone, portraying the stronger north, especially Germany, as forcing harsh policies on to weaker nations. Opponents of austerity argue that the north is demanding fiscal tightening and labor market reforms from these stricken states in exchange for vital lending from entities such as the European Central Bank. They see it as kicking economies when they're down. more >

California relies on its richest residents to support the state's budget. Even before the passage of Proposition 30 on November 5, 2012, 15% of the population was accountable for 80% of the state's taxes. Now, with the passage of Proposition 30, Californians are subject to the highest state income taxes in the country. But for high net worth investors, an improved bond outlook may be something of a silver lining. more >

Barack Obama might prefer to focus his energies on immigration, gun control and education. But it is the tax and spending wars that still paralyse Washington, and the US is on the verge of a dismal solution – the sequestration. Unless a new budget deal can be agreed within the next few days, almost all forms of so-called "discretionary" spending, departmental budgets that the US Congress sets each year, will be cut equally and indiscriminately – beginning next week.. more >