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The initiative system, however, may have caused the most havoc in California. In 1978, Proposition 13 imposed strict limits on local property taxes, gutting the budgets of schools and local governments, which have been bailed out by Sacramento ever since. It also requires a two-thirds vote to raise taxes...

Author: /time Magazine | Title: How the Initiative Culture Broke California | 2/26/2010 | See Source »

Last month, Greek Prime Minister George Papandreou blamed his country's economic meltdown on "an attack on the euro zone by certain other interests, political or financial. We are being targeted, particularly with an ulterior motive or agenda." And according to Spain's El Pais newspaper, agents at the country...

Author: /time Magazine | Title: What Caused the Euro Crisis? | 2/26/2010 | See Source »

Gold theft aside, is there any truth to the other conspiracy theories being circulated? "This certainly has some entertainment value," says Johnny Munkhammar, a research director at the European Enterprise Institute, a Brussels-based think tank aimed at promoting entrepreneurship. "But the idea that any of these theories have anything...

Author: /time Magazine | Title: What Caused the Euro Crisis? | 2/26/2010 | See Source »

Nicolas Véron, a senior fellow at the Breugel economic think tank in Brussels, says the theories reflect a virulent public mistrust of the free market in euro-zone countries, particularly in southern Europe. "There is a very long and deep suspicion of markets in these places," he says...

Author: /time Magazine | Title: What Caused the Euro Crisis? | 2/26/2010 | See Source »

It's not quite World War III, but tension over Greece's debt crisis has ignited a battle of words between Athens and Berlin, reopening old wounds and raising the specter of Nazism. As Greece struggles to avoid default, and Germans debate whether to bail out their spendthrift neighbor, the...

Author: /time Magazine | Title: Greece's Debt Crisis: Blaming Nazi Germany | 2/26/2010 | See Source »

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