Comments on: 2010: Another year, another crisis Wed, 16 Nov 2016 01:37:11 +0000 hourly 1 By: Fazsha Thu, 24 Dec 2009 16:03:24 +0000 The story has only one ending.

Read Andrew Dickson White’s 1979 article in Harper’s Magazine, “The Debtor Class”, on France’s experiment with paper money 1792-1796.

By: Eden and Apple Wed, 23 Dec 2009 14:15:54 +0000 If the flood of newly-printed money is not absorbed by higher goods prices, there is only one alternative. himmm Chuckle conceptional choice of one. In case you overlook it I wish to draw your attention to a fact that Governments LOVE money. AND are well practiced at Getting hold of it and Forcible prising it off us underemployed peasants and miserable sinners. To suggest that the problem is the lack of ability and will of any Government to take it back is Laughable and Nonsense in the face of the History of money slavery systems and fractional banking. The sheer pleasure of the Fox and his misery Lafter index for the cooped up chickens is finger licking tasty and never far from lip service of the rapacious authorised entities. No effort is spared in dreaming up legal fictions and new laws to part us with our store of wealth. Obviously a Poll tax or permission to breath carbon dioxide Tax ( for our own good and that of the Planet ) of coarse is the Nirvana dream of all Governments.

By: steve b Wed, 23 Dec 2009 09:48:06 +0000 Dear Laurence: Incredibly good article with predictions that will most likely become prescient. U.S. and U.K. along with many other countries led by Keynesian over-spenders are seriously headed for another iceberg. There is now an enormous national debt which we’re increasing too quickly. And job-growth by producing GOODS, not services, is out of the question, for so many reasons, not the least of which is crushing taxation and health-care mandates to hire new employees and ‘in-source’ production. Obama’s health-care monster will be one more nail in the coffin for job-creation. We need to reduce the pay of all govt employees, reduce their benefits and reduce taxation and over-spending by all levels of govt. But it won’t happen with the current legislators, unfortunately, and too many voters are clueless.

By: Ron Wed, 23 Dec 2009 08:00:31 +0000 Capitalism needs bubbles to survive, doesn’t it?

By: AL Wed, 23 Dec 2009 07:25:48 +0000 the article is well thought of;moreover,the whole problem relies on the concept of the current “modern” capitilasm, where it emphisis on predictions/gamble and ignores fundemantils and real output.
futhermore, i agree with jeannick’s particular point where he states the “The Atlantic west has de-industrialized itself and has now no motor for creating real value growth” and that basicaly proves my point that the recovery if accurruing would be fragile and would take a long time because of the “NO REAL Economy state”.

in summary, i think 2010 will witness the blast of the chiness bubble(because of the mismatch of low demand from the west to the high expectation of china for high demand) and it would be signifcant but less sever for the west.
all in all, we need to revive real diversified ethical econonmies and not just betting on capital markets.

By: don Wed, 23 Dec 2009 05:23:51 +0000 The world will end with a wimper, not a bang. Expect a slow burn as without any bubbles right now, there can be no big drop. Just everyone getting a little bit poorer year after year with the fed keeping industries from totally going bust.

By: Houghtie Tue, 22 Dec 2009 22:24:35 +0000 Although I agree with your most of your points, a few seem wayward:
1) Emerging (Asian) shares in fact precipitated the western financial crisis and for a time China look set to be in dire straits (they carp about US monetary policy, but they would have a lot more to carp about now if the policy hadn’t taken place). Commodotties also plunged, including gold.
2) You missed the UK off your list of countries on the periphery of EU. Admittedly we are not in the Euro and have a larger critical mass than the likes of Greece, but we do seem to be in dither mode in terms of fiscal realities and I daren’t imagine what would happen to the pound and gilts if there is a hung parialment.
3) I agree, the chinese are merely adding to an over capacity problem with their current policies. This is as much a part of the problems we have seen over the last 2 years, coupled to their dollar peg (previously the cheap credit they assisted in the US and elsewhere). There is probably over investment in some of teh areas you mentioned (but not in social areas such as health care and proper social security nets, our convoluted support system has up to 1000 questions to define what you may be “entitled to”, 5 years ago and probably still theirs only had one).

By: jeannick Tue, 22 Dec 2009 19:22:19 +0000 .

A pretty good summing up ,
one could add that that the world is awash in digital money looking for assets to call home , a zero return now is god enough if the money is safe ,
The Atlantic west has de-industrialized itself and has now no motor for creating real value growth

There is a massive overhang of municipal , state and sovereign debt out there , what we are witnessing now is the people on board the social-democrat ship Titanic being told this financial Iceberg was only a glancing blow and the dancing could resume .


By: James Capstick Tue, 22 Dec 2009 10:16:07 +0000 Laurence,

Your argurment has a sound basis, but frightens me. Firsty, what about the emergence of the “wealthy nations” and clear shift in paradigm, or the concensus of east versus western deocracies.

I think this might be slightly embellished given the Keynesian ethos rests on sound pincipals of emphatic judgement beyond economic instabilities.

Pray, do retort..