“It is true that the European financial fiasco is a story of such fantastic mystifying complexity that the public can’t possibly be expected to follow each twist of the plotline. But the fact is that nothing was fixed for Greece or after Greece and the hazard of evermore profound wreckage is assured.
The plan for stabilizing Spain’s hemorrhaging insolvency position works as follows: Spain’s big banks borrow billions from the European Central Bank (ECB); the Spanish banks then turn around and lend the Spanish government the money to fund a bailout operation for the Spanish banks; the Spanish banks then use the bailout money to buy Spanish sovereign bonds, that is, lend money to the government.
The world received news of this dangerous idiocy with a yawn.
No one in the American media is paying attention to the unfolding tragedy of Japan – and by this I refer not only to the unfinished Fukushima saga, but the parallel story of Japan closing down virtually its entire nuclear power industry necessitating gigantic additional imports of oil and gas to generate electric power – all of which points to the likelihood that Japan will become the first advanced industrial nation to bid sayonara to modernity and return to a neo-medieval socio-economic model of daily life.
What I wonder is how long the American public will remain in its Kardashian trance. I think this grim interval of crisis consolidation is drawing to a close and, like the buds swelling on every tree in New England, events will soon burst into astounding efflorescence.”
Been a while since I linked to Jim. He’s still writing magnificently.