Monday, December 17, 2012

The Crisis in World Democracy


Essential reading to understand our current and future fiscal crisises, and those plaguing Europe, is Michael Lewis’s Boomerang. The underlying crisis of democracy in the current time is well documented if one takes that wider view of the various crisis elements and the inability of numerous countries to deal with them

Lewis visits Iceland, Greece, Ireland, and Germany looking to explain the current fiscal woes of all. While the details are best pursued in the book, the gist of the reading is that so many fail to see that current financial arrangements pushed to crisis by their democratic support, are understood by ffew and created by the many. Each crisis has its groups exploiting the democratic system to benefit themselves, fantastic and unsupportable claims by the many to wealth without work, and oddly, a walrus (aka the Beatles I am the Walrus, who see the crises looming and is totally ignored as a rogue of the crazy variety: until things collapse.

He lays a solid basis for the woes of each country, yet through it all he is really looking at the inability of democratic systems to face up to their costs. His goal is easily to compare these places to the United States. The United States is usually pointed out as being different from these Europeans, but the problem is that the United States is not a model of any particular trouble set, it is a model of a combination of them all.

While the fiscal crisis of 2012 has the focus, the long term solutions are all politicall unacceptable to the sides. SO the nation plunges forward over the big class ahead in the future. A nation unable to set priorities achieves none of them. It fails.

Thursday, December 06, 2012

GOP Strategy Brilliant on Cliff


What brilliant strategy. If the “fiscal cliff” is to be played by the standard rules of late, a solution will come at the last minute. What is happening is that Obama is standing fast on those rate increases and appearing very uncompromising even in the mainstream leftist media. If the Republicans give on rates and then do not follow up on deductions and “loopholes”, they have won. But since they gave on rates the deductions and “loopholes” are off the table. The wealthy save by deductions and loopholes, not rates.

Obama appears uncompromising and the loser in the eyes of the many asking for compromise. The Republicans get a short term loss, but are the compromisers and statesmen. They saved the nation from the cliff, not Obama. In the end the upper crust is left in the same place.