May 09

Interesting how Germany deals with the Dutch given the shellacking the southern Europeans and Ireland got. Yes they’ve had cheap money and a housing bubble and now have debt!

The fact is, whatever Keynesian economists say, QE and or low interest rates = bubbles = zombie economies = gutless short term politicians who won’t take the hit.

I know people make the point that why do short term hari kari on your own economy to fix it. It’s better to just bolster the rich by QE and low rates and hope the other side win the next election. That it consigns most to a bleak stagnant Soviet style future is treated as moot. Indeed arch Nobel Laureates who are to Economics what war and torture fanatic Nobel winner Obama is to Peace like Stiglitz, Posen & Krugman tell us its OK.

Yes in the US GDP is up, inflation low, stock ,market high but if does anyone believe the continuing high levels of debt and the stimulation of more debt are heading anywhere? In the interests of more than a fraction of the populace? Economic indicators have become like all other measures  – measures purely of themselves

No easy solutions but the current accepted least worst, even with the moronic Austerity twist, ignores what is really happening to real people with real incomes and real debt. It relies on continuing stupidity and feckless Bankers.

The whole Moral Hazard of politicians supported by the corrupt academic non science of the economics industry is not going to change. The poor don’t count and they sure aren’t protesting yet. Any sops to the poor may improve things a touch but under the current hegemony of idiocy lead in the same direction merely pace changes.

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