Comments on: Double standards – Of banks and Nations

By: frog2

frog2 — Mon, 03 May 2010 10:18:05 +0000

Interesting multimedia interview in this mornings FT with Carmen Reinhart — book — This Time its Different — only a few minutes ! —-

http://video.ft.com/v/82349517001/May-3-800-years-of-financial-crises

Gdn editorial on greek default is worth a look too .

As the video demonstrates, the 1997 Asian Crisis started off in one smallish economy — and then …

Keep writing Golem, and don't be reticent about putting your site on posts ! So many good posts from many others also go down the CiF memory hole which is a shame.

What measures would you introduce if Chancellor on friday ?

I'm off to my veg garden, and maybe the ATM later …

By: IanG

IanG — Sun, 02 May 2010 19:53:27 +0000

A good point Golem. The FT site has an interesting calculator that allows an individual to select the areas for cuts. I only managed about 18 Billion. Far short of the 38 Billion needed. It is amazing just where the money goes and surprising just where you can make big savings.

But on to your point: I think there will be a ground-swell of unrest if some of these proposed cuts (such as means testing some benefits, stopping school building, cutting public sector jobs etc).

By: Golem XIV - Thoughts

Golem XIV - Thoughts — Sun, 02 May 2010 13:57:08 +0000

Hello Mr. Eirik,

Thank you for your comment. Your questions are, of course, the critical ones. I shall offer you what thoughts I have. Perhaps they will provide grist for you own mill and those of others who read here.

I have written about China but you're right I have written little on nations with trade surpluses specifically. I will do so.

oldgustaf,

It is scary. A new political order is congealing around us and we are, so far, unprepared. I believe the banks, the financial class is calling the shots. Our politicians have been co-opted and intellectually captured.

There are good reasons to be scared. We need to call ourselves to "mental fight" and be prepared to defend ourselves and our children. The first line of that defence is, I believe, not being afraid to disbelieve those who tell us they know better.

Second, we must not be allow ourselves to be set against each other. If we do then those who are really to blame will laugh at how easily we can be set to fight for their profit and amusement,like cocks in a pit.

By: oldgustaf

oldgustaf — Sun, 02 May 2010 12:16:31 +0000

This is getting quite scarey. I'm coming round to the idea that banks are becoming so immensely powerful that it is they who are calling the shots and can more or less decide the fate of entire nations. Quite what their purpose in this is I do not understand. Once they have crippled all targeted nations what is their satisfaction?

By: Lars Eirik

Lars Eirik — Sun, 02 May 2010 11:52:02 +0000

Yes, Mr. Golem, but how do we transform this insight into political action? What content the new social contract, and how do we bring it about?
Do you think you will have the opportunity to comment also on the situation of nations with big trade surpluses, creditor nations like China (or like my country, Norway). The riches wiped out by defaults?