Sunday, January 25, 2009

Another week, and still no clues

It's plain the UK government (like most governments) still has no real clue, and is reacting out of sheer confusion and a visibly growing panic. Until such time as the precise size and scope of the "toxic" assets can be agreed, what's the point? It seems the whole western economy is in danger of collapse unless there is VAST concerted and synchronised international action.

Yet what has actually changed since that time when there was to be "no more boom and bust" ..? the Martians haven't landed (have they?); there were no unpredictable movements in world commodity prices? Perhaps the Eastern economies were emerging and accelerating rather faster than was comfortable for the resource constrained and carbon-obsessed West - so was "pulling the plug" on the global financial system conceived as a way to cool this unnerving process down?

Maybe Obama should say "Here's the deal: forget the past 24 months, they never happened. I have just printed $25 trillion to fund a Mars landing project and massive programme of eco energy research and development - so now Billy-Bob can pay off his mortgage after all, and we can get back to the good times. And by the way, Guantanamo is now filled up with Wall Street CEOs and bankers, and we're building more capacity."

Would the Chinese care if their factories starting working flat out again? Would India be bothered if there people were going to benefit from the energy project research and development?

Has anyone got any better ideas? Apart from

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