http://www.economist.com/node/21525900
Real remedy never comes from politicians.
Politicians can change course, politicians can stop holes, but to ask politicians to remedy what the market and the academics cant find solutions to, is to admit that there are no real remedy available.
At present there are two options, the politicians can continue making stop-gap solutions as they have done ever since the crisis started in 2008.
The second option is to stop repeating the mantra about a temporary crisis which will pass. (The crisis is now called a new crisis, a “double dip” which implies that “we know what this is all about!)
When it has dawned to even the feeble minded that this is not a monetary crisis but basically a production crisis, it will be time to reconstruct the legislation
so that the western societies again can become competitive.
In the meantime the biggest challenge will be to keep society in balance and that is not done by bailing out financial firms but by balancing all of society.
What are looming heavily in the horizon are political upheavals when the middleclass is squeezed enough!
The only way of keeping the societal balance will be by letting inflation run until the western countries are in balance with the international community.
Hopefully the new legislation stipulated in
will start to generate the jobs and the competitiveness needed if we are to avoid a 3 world war between the old industrialized countries and the new industrialized countries.
Remember that in democracies it is the (angry) majority that rules. Of course a war will not solve anything, only postpone the inevitable decline (as did the 2nd World War to the British Impire), but tell that to a dissatisfied, angry and agitated electorate!
