If you’re still reading, we’ll keep writing.  If you’re not, well, what do we have to lose?  This paper will survive!

 (At least until we get bored or distra…oh, look, a butterfly!)

Thomas Rawski, Professor of Economics at the University of Pittsburgh, weighs in on the Loudenian Euro Conversion Bill with testimony that comes after the bill’s passage, yet is sure to deepen understanding of this important issue for all Loudenians who are making the transition from the Louda to the Euro:

1. Currency is now fixed at L$1 = US$1. If the proposal is approved, the L$ will be pegged to the Euro, which now trades around E1 = US$1.56.

2. The initial shift may have little effect on the L economy. However
if the Euro continues to appreciate vs. the US$, exports to USA could
suffer (or benefit, if the E depreciates).

3. Tying national currency to an external standard has both benefits and
costs. The benefit, as mentioned in the proposal, arises from the
stable relation to a major currency bloc. This comes with a sacrifice -
of independent monetary policy. If the European authorities decree
tight money when L faces recession (analogous to the current situation
confronting Spain, for example), L may come to regret its lack of
monetary independence. If L government lacks economic discipline,
strong links to the Euro may benefit the L economy over the medium-long
term. If Euro managers lack economic discipline (note massive recent
increases in Euro money stock), the links could have unfortunate
consequences.

1) Work Permits are given to either highly-qualified refugees or to those who live below the poverty line in their home countries. The work permission lasts for 2 years and has to be renewed.

As has been shown around the world, temporary worker programs create an oppressed class of workers who cannot organize because they can easily be fired, they are generally tied to one employer who has immense amounts of control over them, and they are not citizens and generally have no chance at attaining citizenship, so they are completely disenfranchised from democratic processes outside of work. Temporary work programs reduce immigrants to economic units and do not provide them with opportunities to flourish culturally or personally, nor do they provide immigrants with an opportunity to contribute to society outside of their economic worth. Providing more legal pathways for unskilled workers to become permanent residents and eventually citizens is a more humane and ethical approach. This resolution is especially troubling as it completely ignores unskilled workers, instead focusing only on “highly qualified” and those “below the poverty line.” (more…)

Unlike the Bill of Trade Relationships with Russian Federation which was accepted yesterday, the Clean Air and Energy Sustainability entered parliament with only small “cosmetic” amendments.

The most important difference made by this discussion was that the period of establishing office of renewable energy was shortened from ten to five years, funds starting from 2009.

After a long debate about the “Euro Adoption Bill” the committee decided that the bill must be presented in front of the parliament the result being an open debate on this topic at this moment. The bill passed for the parliament discussion by suffering a change which consists in the following statement: “During the 3 years while you can exchange Loudenian dollar to euro there is a constant exchange rate.” Some of the committee members consider that they need to keep the prices at the same level in order to avoid an economic lack of balance.

For further information related to the discussion of the bill in the parliament prior to its pass please check our Live Blog Coverage!

-Kenneth Sydhagen