The thing that is utterly depressing is that there literally is no alternative right now. TINA has won. When we had fascism we also had socialism, and social democracy and other movements. Now there is only neo-liberalism – every where you look. I can't see how this is going to play out. Collapse is the only end game I can envisage really, because there is no other economic paradigm out there to stop the lunacy.

All sorts of scary rumours abounding tonight about Italy and UniCredit. I hope they aren't true, just because it could be such a s*** storm but after reading this blog enough, I know they most likely are!

"I wonder how all the hyperventilating deficit worriers reconcile all the contradictory information?

On one hand the USA with debt at 100% of GDP has run out of money and is bankrupt, unable to borrow a cent more and financially incapacitated. But…how can it be….shock, horror, surprise……Bond yields going down.

Then Japan with debt at 200% of GDP can find any ammount of money at will to sell Yen, bail out their banks, rebuild after the tsunami etc….. Bond yields close to zero, moderate inflation.

At what point do the dim wits realize a sovereign issuer of currency can always meet its obligations, set its own interest rates and tell the bond markets to sit down and behave.

Oh deary me… How the facts contradict the lies we are told to reduce the deficit or the big bad markets will hold us to ransom and hyperinflation will sink the country…. bah hum bug!" (http://www.guardian.co.uk/business/2011/aug/04/japan-yen-crisis-financial )

Comments?

there is no haven here. But neither is there in the US. It's a matter of who you wnat to be with when things get nasty.

I'd be glad to have you with us.

"21.00 So, on Barack Obama's 50th birthday, the Dow Jones Industrial Average has closed down 512.76 points – 4.31pc – at 11383.68.

20.57 The Dow is suffering its biggest one-day fall since September 1, 2008 – the financial crisis."

And all this while millions in the Horn of Africa face death through lack of food and water.

I don't think it's a lack of leadership. It's more that they have gradually, through a series of stupid, short-sighted and cowardly decsions, put themnselves in a position where there is no exit.

They cannot withdraw 'support' or 'extraordinary' policies, but at teh same time they cannot extend them either. There are calls for the EFSF to be made much bigger. But how? Will they borrow they money? Who from? WIll they demand teh German's pay? Merkel does not have the power. Will they print? Most likely panic solution. But will the markets slaughter the euro?

What's wrong with the Euro sliding some might say. Answer – as the Euro slides the Swiss franc rises. As it does it kills the whole Eastern and Balkn end of Europe. I do not think Hungary will last the year (perhaps much less) unless the Swiss franc come down considerably.

They have painted themselves into a room that has no exit.

worse.

The Chinese professionals in this restaurant are bemused and cannot understand the lack of leadership in the US and EU. The opinion here is that this is a plan to usurp China.

Given the shitstorm that is happening I am suprised. I can't believe what I'm seeing.Is it really that bad?