Saturday, December 10, 2011


So Britain is out in the cold as it stands aside from a deal to impose a permanent winter of austerity on a Europe that craves summer. Cameron has upset everybody by vetoing a treaty imposing the wrong remedy on the basis of a wrong diagnosis even though he agrees with the diagnosis and is busy applying the same wrong remedy to the British economy.

Here is Paul Krugman:
Maybe it was always thus, but the relentless wrong-headedness of the Europeans, their insistence on seeing their crisis as something it isn’t, and responding with actions that deepen the real crisis, has been a wonder to behold.


Dipper said...


We have not reached the end game yet. The Euro is tottering. Funding is being withdrawn, credit downgrades are on the way, European banks such as Commerz are likely to be nationalised. Some of those shaking their heads at Cameron now may be changing their minds shortly when the full horror of the German terms for avoidance of bankruptcy become clear.

Keith said...

American monetary and fiscal policy is not out standing either despite all of Prof. Krugmans efforts.