Only a madman would invent the econo-fiscal system we have.
Or a neocon.
Or a neocon.
‘Any thoughts on how we get out of this mess?’ wrote Ambrose Evans-Pritchard, as he rounded off his piece yesterday about the Swiss buying all the Sterling they could lay hands on in a swapathon for the Swiss franc. It is something of a pointer (towards how dysfunctional the global economic system is) that one of the richest nations in the world is buying the currency of a tiny bankrupt country in order to avoid going bankrupt itself. But I’m sure Milt Friedman would’ve had the answer to that peevish criticism. We just need to wait patiently while Dan Hannan finds the mots justes among his collection.
Currency wars – despite Jim O’Neill’s denialism – have been with us for some time now, and things will get worse as the world lurches from wild Wealth of Nations bollocks to protectionism….hopefully along the road to self-sufficiency. Almost exactly two years ago, I posted a sketch about how Britain could wind up winning the currency wars. Every year, it seems, truth gets odder than satire.
Anyway, AEP asked the question, and so I feel duty-bound to reply. The required action is actually ludicrously easy to define, but impossible to get anyone in the self-appointed élite to act on it. This is because they all have something to lose, and they all want to come out as a winner. That is the rice-paper-made flaw upon which the concrete juggernaut of global mercantilism rests uneasily: it assumes everyone can win all at the same time. Anyway, what we need starting some time before May 2013 is:
1. A global summit to crunch debt forgiveness and sign a deal under which a debt-jubilee is declared.