Politics has trumped economics
Monday, September 12th, 2011I’m now sure that the wonderful gals n’ guys at the G7 will have no influence whatsoever on the nature of this recessive beast. I have watched with growing concern at the false dawn commentary of the first quarter of 2011 as pundits swore blind that the recession was over.
Now somehow the G7 was going to fix the world. Abracadabra. Nyet.
Were we all born yesterday?
Based on a massive bout of self-indulgence and introspective uselessness, share-trading putrid pundits of paucity somehow dreamed up a scenario that China, by taking over lower middle class jobs from the rest of the world, was somehow going to bail out the entire globe based on its supposed veracity as a commercial enterprise. And this belief has a confluence in emerging economies delusion led by BRICS which somehow was going to salvage world trade ?
Well well well. Talk about confusing economics with politics.

In Europe, the confusion is worse. Germany is going to boot Greece right out into the Aegean. The irony is next-door enemy, sorry, neighbour, Turkey, is actually far more valuable to the EU as a member than the Greeks. The folks from Athens are running a small store in comparison to the growing manufacturing giant that is Ankara. Another bout of politics trumping economics.
In the US the leadership is frozen, awaiting November 2012.
Bad news.
In SA, leadership is frozen. Awaiting nothing. Just frozen.
Its a time for guts and action, but world-wide, gutless inaction and self-deception and extreme short term trading methods based in algorithms and hedging is now the end game of a delapidated world that long ago shed any vestige of true value in exchange for a finance economy that based all its eggs in one speculative basket. China is part of the threat, not the opportunity. Along with their friends in every CDC-swapping entity and forex and equity trader who is desperate for a quick fix and unable to understand just what endurance is now required emotionally and intellectually to survive the next decade.
And some other folks are watching the blood on the street and licking their lips.


