The end of the year is interesting in that it brings about various 20/20 views of the last 365 days and looks towards the next 365 (or 366 as 2012 will have). I’m just sitting here, reading up on it as it’s (thankfully) not often you have a front row seat to the collapse of world financial systems. Seeing where we went wrong is obvious. Fixing all of that less so and preventing it again in the future probably impossible.
Paul Krugman made some interesting points in regards to what the honorable John Maynard Keynes was saying some time ago:
…Unfortunately, in late 2010 and early 2011, politicians and policy makers in much of the Western world believed that they knew better, that we should focus on deficits, not jobs, even though our economies had barely begun to recover from the slump that followed the financial crisis. And by acting on that anti-Keynesian belief, they ended up proving Keynes right all over again…
Then, there’s Paul Mason (apparently only Pauls write well about economics these days) who wrote up a number of astute observations and choices for the Euro:
Starting from where we are now, there are three big questions:
- Is the ECB’s unofficial money printing operation – a massively expanded bond-buying venture combined with unlimited provision of cash by global central banks – going to be enough to prevent a second credit crunch, centred on Italy?
- Does Greece spiral finally into default, social crisis and chaos, raising the prospect of the near-dictatorial economic policies needed if you have to exit the Euro?
- Do the French banks take so many losses on the sovereign debt of southern Europe that they have to be part nationalised, thus removing the country’s AAA credit rating and the all-important financial parity between Germany and France that lies at the heart of the European system?
Right now my answers to these questions would be yes, yes and yes.
And, for now it seems that all the 99%/Occupy business has fizzled out, which is a shame as it was needed, but they really had no idea what the hell they were doing and are now pretty much just sporadic anarchist idiocy. And the reactionary 53% is little more than blather.
As a sidenote to the 53%, is it just me or does it look like most everyone on that 53% site is white? Guess it just echoes the Tea Party…
Oh yeah, don’t forget to keep an eye on Rick Santorum