Now Europe has taken the limelight away from the US! The US & the dollar are safe for now! But it is more like people having limited options, better to become moving targets to evade hits! The contagion shows no sign of abatement. In fact, it is threatening to be all consuming, dragging many others into a bottomless pit – a price to be paid for global financial integration. The powers-be are kept busy putting out the fires with little time left for tackling issues like climate change, terrorism etc. We are already paying for our own sins of commission & omission – a comeuppance!
Euro crisis is like a rich man finally agreeing to rescue a profligate son from his debtors. It is a back-up rescue-package to assure the debtors. It is also a lesson that every country is better to be left alone to learn the lessons & reap the fruits of labor. The political systems, tolerance levels, work-ethics are different though they might share some characteristics. Already Germany has suffered the political fall-outs while Greece is under turmoil, not willing to swallow the bitter pill! The crisis seems to question the very basis behind the monetary union based on a centralized monetary policy but independent fiscal policy of the countries in the union.
No leader is able to take the lead and call a spade, a spade! They beat around the bush worried about political fall-outs, hoping that avoiding tough action might make the issues disappear from the radar, at least for the time being! They are sure to reappear with a vengeance sooner or later. Any successful business or a person would face the issues head-on, learn the lessons, ride out the crisis and emerge stronger. But that principle does not seem to hold good for nations. One of the banes of democratic system is that opposition will seize any opportunity to stoke the flames than doing what is right for their countries & help to fix the issues.
Fiscal discipline is necessary to avoid catastrophe. But most nations are afraid to reign in on profligacy including the US whose debt level is approaching 100% of GDP! Some big financial institutions were baled out on the premise that they were too big to fail. Does the mighty US fall into that category? Who will have the deep pockets & willingness to bail them out, a communist China maybe, but on their terms! What will happen to world trade & economic integration? The future will be quite different indeed. How will the world pick up the pieces again?
The present generation is avoiding the issues & the supposed leaders play along! All revel in a state of denial! They are hardly the examples to follow but are quick to blame the younger generation who grow up in a world that sweeps the debts & harsh realities under the carpet!
How the issues pan-out in the end, is anybody’s guess but somebody will have to foot the bill big-time! The final irony is, a communist China will have to bale out the capitalists! It is also in their interests to keep the latter on a roll for the party & music to go on till the very end for everybody’s survival!