Indeed. Europe is pretty much in depression. So is Japan. (But so what’s new?) And by the way deflation is not necessarily a bad thing. We had mild price deflation through the most prosperous part of American history between the Civil War and the Fist World War. Things should naturally trend toward being less expensive as innovation increases, delivery streamlined, and competition increases.- Just had to get that in.
By Rick Ackerman
Europe’s all-too-predictable relapse into recession is gathering force, threatening not only the pipe dream of economic and political unity, but eroding grandiose illusions that have helped prop up the world’s financial house of cards. The unwillingness of France in particular to play by the EU’s — i.e., Germany’s — rules appears to have doomed the EU dream. The idea of a borderless Europe bound by a common currency and a shared desire to forever banish war from the Continent was a lofty one, but it was mired from the start in deeply rooted political animosities, grass-roots skepticism and bureaucratic overreach. Now these problems, along with a great many others, have turned the EU project into a Tower of Babel. A million pages of meticulously codified EU rules might as well have been written in cuneiform, so inscrutable and arcane have they become.
The times they are a changin’ and they are a changin’ in jolly old England.
Japan had “a lost decade.” Then it had another. We are past the halfway mark of the American “lost decade.”
Keynesianism has failed utterly and completely. It’s not that there wasn’t enough stimulus. It’s that the concept of “stimulus” is bunk. It’s real “voodoo economics.” It is a cult. A dream. And as is increasingly obvious even to the Keynesians, a nightmare.
Venice did its own thing for a long time before Italy came around, and it would likely do just fine without the dysfunctional lands to the city’s south.
Economic reporter Max Keiser (who I often disagree with, but often like also) is fond of saying that for many politicians their elected office is just kind of an interview for the lobbying business where the REAL money is to be made. Max always points out that Tony Blair left 10 Downing Street and quickly went to work for JPMorgan.
Better to spend the money on Mylar jumpsuits and diamond encrusted go go boots than give it to the government I guess.
The EU is trying to scare money into risk assets. It may just take the money. I guess folks should have listened to Nigel Farage last year.
European elections are coming.
Of course it’s a matter of supply and demand. The cost of an ambassadorship in a nice peaceful European country where there are lots of cocktail parties and relatively few civil insurrections garners top dollar. The ambassadorships in places like Burkina Faso and Paupa New Guinea tend to go for a song. In fact the State Department often has to pay people to be ambassadors in those countries.