01 January 2013

How far can any can be kicked?

I'm not in full agreement with the Zerohedge financial blog about very much but I do agree with the pseudonymous "Tyler Durden" that the US, and the EU, reaction to the economic crisis which has enveloped most of the developed world since 2008 is quite simply to kick the can down the road by using QE to disguise the fundamental insolvency of the system. Where I differ from the Zerohedge guy(s) is that he (they?) are Austrian-school hard right wingers who think that a return to the gold standard and "sound money" would solve all our problems, whereas I think that would merely make the problem worse. What's needed instead is to curb the power of the bankers and of multinational corporate entities more widely.

Obviously that's the broadest brush-stroke of a statement imaginable but, given that I didn't limit myself to the regulation 3 units of alcohol (or whatever) at the New Year celebrations last night, if I'm to fulfil my ambition of doing a post a day on the blog all through 2013, some of them are going to have to be rather short. But anyway, the Fiscal Cliff "resolution" is certainly yet another can-kick, and one wonders if the "shit" can ever "hit the fan", or if the can can [sic] just be kicked indefinitely? A very good question is, just what will be the catalyst (if any) for the collapse of the whole system? And would someone mind giving me a ring at that point to remind me that it's time to get out on the streets?

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