Thursday, September 22, 2011

Default Already, Dammit

This is fucking nuts.  The Eurozone is experiencing a self-inflicted disaster, but the perpetrators won't be made to pay.

Update 2011/09/23: Krugman lists some of the perpetrators, and then wonders about the social dynamics inside those organizations.  It's a good question.  It seems to me that in the West, the financial industry has triumphed in several countries, most notably the US and the UK.  And there have been conservative governments in many countries which have appointed conservative-leaning people to those institutions.  Those countries include the US (2001-2009), Canada (2006-present), Germany (2005-present), France (1995-present), Australia (1996-2007), and Italy (2001-2005 and 2008-present).  The UK also had a nominally left-wing but very finance-friendly government from 1997 to 2010, when the Conservatives took over.  Ditto for the US from 1993 to 2001.  The policies and opinions of the international financial institutions (BIS, IMF, ECB, and WB, plus the OECD which is a data and analysis operation) reflect those factors.  The low-inflation, low-regulation leanings of the leaders have filtered down from the top, as well as in from the side, though lower-level channels, from the finance industry, which those organizations deal with on a regular basis.

No comments: