Frankly Francophone has just translated one of my recent French posts into English. Thanks Franky! The original post is here.
They wanted to extend market logic to absolutely everything. In attempting to do so they disregarded the domain of ethics which had governed human affairs up to that point. The trader – the quintessential victim of gold fever according to Aristotle – has ceased to be considered to be a victim if he succumbs to the disease, having been elevated to the status of prototype of the rational human being! The employee in turn has ceased to be regarded as the victim who makes do with what is left after the investor and the board of directors have taken their share of the booty and is now defined as a ‘manager of human capital’, the ‘human capital’ being none other than his good self.
The state is henceforth viewed as a more or less thriving private enterprise, the performance of which is evaluated by other private entities known as rating agencies . . . which are legitimately concerned with market share, at whatever the cost may be. Take note, however! This is on condition that the sacred law of perfect competition is respected!
Meanwhile, gamblers are raising the stakes, betting on which state will go under first. “If it’s Spain, I’ve won; if it’s Italy, you’ve won!” says one. “But why stop there?” says another, raising the stakes: “If it’s Moody’s that sinks the Eurozone, I win; if it’s Standard & Poor’s, you win!”
Come on. Don’t just stand there watching from the sidelines. Why not join in? Don’t be shy! The stakes are HIGH!
The fall of the Roman Empire, live on the Internet. And you witnessed it at first hand!
6 responses to “The fall of the Roman Empire, live on the Internet!”
You’re more than welcome.
Actually, the name is Frankly, frankly, but not to worry.
Corrected! Thank you Franky! Oops! Sorry Frankly! I mean frankly sorry!
Thinking again about rating agencies and “Europe”, we ARE talking about an economical union so the rating agencies should consider that and not work on individual countries.
EU trade deficit 2010 total app. 96 billion Euros (=$ 69 billion) build up of large surpluses: Germany, Ireland (in trade, not in budget!) , the Netherlands and Belgium,…..biggest “Culprit” in this sense….the UK….., their trade deficit alone is 96 billion (Euro’s), which is the same as the total deficit, so all the other badly performing countries in a commercial sense are compensated by the well performing ones.
The US (trade) deficit over 2010 was about 500 billion dollars in total, about 7 times that of the EU, …….talking about healthy economies…..
So, in the REAL economy the EU is far better performing than the US, the chances of that remaining as it is are getting less and less, however, because of the infiltration of Anglo American laisser faire as opposed to the Rhineland model.
Then of course the budget deficits: EU (Euro zone) overall 6.4%, the most “American like” economy, Ireland…32.4 %…, second worst Greece 10.5%, then Spain and Portugal wit about 9% all the rest are far better performers then the USA’s…….. 1.5 trillion, about.7%
I am convinced that the rating agencies are playing a game After all they act for the financial movers and shakers…money lenders…who want to get as much out of any situation as possible…they do not hesitate to force crises… see Mr. George Soros acts in the nineties, he made quite a few billions in profit then at the cost of sterling.
Investors (The money mafia?) should not be allowed to interfere with the economy of countries…..they should only be allowed to have a say through the regular channels of the boardroom of companies if they have real (working) interests, so, in the real economy instead of in the gambling economy….
One can run a naked position, keep money tight because of your brothers (rating agency) warning, ruin an economy and make money on that…sad!!!!
We must stop that!!!!!!
So….the ECB should get more power and ….we must stop the schizophrenic attitude of Europe sceptics…they have …because of their creation of split minds… probably laid the psychological foundations of the problems we face now.
And…we have to take our own economy in our hands again, produce here what is needed here?
Devalue the Euro?
After all…food we can grow ourselves! The rest we can rebuild.
….One condition supply side economy must be put on the scrapheap of history, Smiths ideas are too old fashioned…..
Paul, I am curious to know if you still think that there will be a major turning point i the world economy in 2012. I read an interview you gave to the danish news website ‘Ugebrevet A4’ a year ago in which you made this prediction. The turning point was supposed to come as a result of American corporate loans up for renewal in 2012…(don’t remember the exact description of the problem)
Do you still think this? And can you elaborate?
Sincerely
-Lars
Yes indeed. I was referring to commercial real estate which will be in dire straits in the US in 2012. When I first mentioned the issue the likelihood that residential real estate would have improved by then was moderate. Improvement failed to materialize of course.