Comments on: Mr. Fine Suit visits Europe Wed, 07 Oct 2015 17:23:32 +0000 hourly 1 By: Adriani Wed, 30 Nov 2011 19:17:15 +0000 What do you mean by “The bill, which will be in circulation from April 16″ ?
Is Belgium switching back to the franc ? Where is this information from ?

By: The1eyedman Wed, 30 Nov 2011 17:37:18 +0000 There is nothing new in winning friends and influence in spending other people’s money.
It is a standard political procedure
The catch is when someone has to pay the piper.
As other have pointed out members of the EU are the latest whipping boys about to be tard and feathered.
However, lest we forget the US in general and individual states and municipalities are in a considerable financial hole and the piper has yet to call?

By: matthewslyman Wed, 30 Nov 2011 11:28:06 +0000 Excellent observations.

I’ve been wondering why interest rates on Italian government bonds haven’t fallen since the departure of Berlusconi and the accession of Mario Monti (an ideal candidate from a fiscal perspective). The irrational fact that Italian interest rates have continued rising instead of falling sharply below 7% (where they were under that rogue Berlusconi), only underlines the arbitrary and opportunistic cruelty of the collective behaviour of the “free market”, if not also the predatory deliberations of individual speculators.

Investment is a necessary function of an efficient society. Let’s not pretend that borrowing is a universal evil: it’s a natural corollary of investment since where one person invests, another must borrow or there can be no investment, and no storage of value. Only, the repeated cycle of asset bubbles, and the destructively oversized cyclical waves we’re seeing, send a message that Western society is generally investment-heavy and work-shy, all too willing to get into debt for things we don’t need for the support of real growth…

On the other hand the traders, often too lazy to follow Buffett’s example of doing genuine research and starved of easier pickings, are becoming too willing to seek cleverer (barely legal) ways to “run ahead” of real investors and find portents of rapid failure or success by seeking ever smaller and less significant differences and trends in the raw numbers (hence the “flash crash”).

Human nature is taking its toll from all directions! As long as people are lazy and greedy, large cyclical economic waves are here to stay: the “merchants” will take easy credit and the “fine suits” will have their pound of flesh.

On your final point: the looming U.S. debt/deficit crisis. Americans are sleep-walking into this. They’ve bought a little time for America by pointing the finger at Europe with a partially self-fulfilling prophecy of economic failure (Timothy Geithner and American news media have done this, in the former case to make America look comparatively stable so as to attract capital inflows during the crisis, and in the latter case because of nationalistic pride); but instead of using this short space of time to set American finances in order, the party continues and all of its participants continue their urgent business of getting drunk…