TCC Senior Fellow Detlev Schlichter appeared on The World at One to highlight the folly of reckless spending and ever-increasing debt that is now coming to a head in Europe. Anticipating dramatic belt-tightening and default for several European economies, Detlev warns against leaving the Euro for the purpose of debasing a new currency to fund government spending (as some mainstream economists propose), asking:
“Who wants to hold a currency that is specifically issued for the purpose of devaluation?”
You can listen to his contribution to the debate here.
In addition, TCC Board Member Steve Baker MP took to the airwaves to warn against adopting the government’s new emergency lending scheme. Steve describes the new stimulus as being potentially harmful at worst, and at best unlikely to work, given that banks are trying to reduce their balance sheets and are likely to simply sit on the cash. Highlighting the fact that the scheme originates from the same set of economists who keep failing to perceive even the general pattern of events, Steve goes on to point out the painful truth that few seem to want to face up to:
“There is no painless way out now. We have got to have a correction.”
You can listen to Steve on The World at One here.
Both good.
And a sign that even the “mainstream” are starting to have doubts (otherwise neither man would be allowed on air).
My judgement is that it is too late for reform (too late for a successful change of course)- but that does not mean that such warnings are useless. On the contrary the public must be told WHY things are going to fall apart.
Paul,
I would go further. Never mind reform being too late, reform is simply not possible as the political will just does not and indeed, will never, exist.
As to the ‘WHY’, I fear you are overly optimistic. When the whole edfice does finally give up – which, for what it is worth, I actually think may yet be some considerable time away – voices such as those of Detlev or Steve will be few and very difficult to hear against the cacophony blaming
‘capitalists’, ‘robbers’, ‘black marketeers’,’freemarketeers’
‘profiteers’, Jimmy Carr, etc, etc, etc, for the trouble.
You may be right on the second point Peter – although I hope you are mistaken.
However, you are mistaken on the first point – economic collapse will become rather obvious in 2013.
What to do then?
Well Glenn Beck (not to be mocked – which of us can gather hundreds of thousands to hear him?) has aleady headed off to Texas.
Many friends – including powerful ones. That is where he will make his stand.
Each of us will make our own stand as best we can – in such places as we can.
To either win or (if you are correct about how public opinion will be manipulated) to die.
I suspect that I will be among those who will die.
Most likely in shame and fear – and in the gutter.
But I will do what I can.
And I strongly believe that private property based civil society as an idea (as an ideal) will NOT die.
And if I have done what I can to make the survival of that ideal a reality….
Then I will be content.