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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Sunday, October 30, 2011

Why the latest eurozone bail-out is destined to fail within weeks - Telegraph

As the opiate of another government intervention creates short-term euphoria in the financial markets, sensible people must keep repeating quietly to themselves that there will be no improvements till consequential actions are taken. All that has happened by the recent multitudes of workouts of Greece debts is that promises were made that it will be worked out. It won't be solved. But additionally, the message to the rest of Europe is that it will not be that painful so you all can keep borrowing and spending and promising things to people that you will never be able to deliver.....
So, yes, I want such turbulence, which will never be fully-eradicated, nor should it be in a free-market system, to now lessen to more manageable levels. Yet the responses of our politicians to recent financial troubles – hiding behind complexity and kicking the can down the road – have not only failed to temper the volatility, but have actually made it much worse.
Typical socialism, like that practiced in Europe and Washington relies upon the belief that government is actually capable of knowing what can be done but also how to execute it. The idea that Europe can extricate itself from the mess that the governments there created is silliness. They are not dealing with the fundamental problem and that is that centrally planned socialist economies go moribund and unproductive over time. The current mess with Greece, just the tip of the iceberg, is not the problem. Its the whole idea that governments can be everything to everybody. With Greece, they will not only not be able to successfully work this problem out but the message to the other troubled economies there is 'don't worry' you do not have to work that hard on getting things straightened out.

Europe should allow Greece to default. And let the markets work out the costs and consequences to this event. Then there will be precedent to work through the other inevitable problems that loom on the horizon.

Why the latest eurozone bail-out is destined to fail within weeks - Telegraph


At 10:27 AM, Anonymous Anonymous said...

It's so bad even China back out of contributing.

At 12:26 PM, Blogger glenzo said...

Yes, as I read in some other blog, even the stupid money won't participate.


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