Skip to main content

View Diary: The Euro Crisis by the numbers (165 comments)

Comment Preferences

  •  Markets out of control and governments.... (2+ / 0-)
    Recommended by:
    gjohnsit, mrblifil

    supporting the policies that create out of control markets are a political problem. Although, this political problem is manifesting itself as an economic issue, it is still basically a political problem. Government is divorced from the people and multinational business/finance/ legal systems are in control of the governments.

    Derivatives are legal fictions, they are contracts and can be voided by legislative fiat. Currency has two functions, it acts as a store of value and a medium of exchange, if a currency fails in these two functions than it is useless. Banks are supposed to function as depositories, suppliers of credit/investment and a risk management mechanism, if they do not fulfill those roles then they too are useless/parasitic. Markets are legal constructs as well and without the force of law, markets cannot function in their roles of: (a) price discovery mechanism, (b) distributors of goods/services and (c) points in the economic system where transactions/settlement occur, they too become functionally useless.

    Political systems make and enforce laws, markets are foundationally systems that work within those frames, bad laws = bad sytems, bad systems collapse QED social unrest, poverty, economic instability and political chaos. We all live in a transnational political/legal/economic regime that is basically lawless and politically dysfunctional: therefore, its collapse is inevitable, the "Euro-crisis" is just a symptom of the political crisis. Pumping dollars into this system will not save it, only bold and original thinking and action will do so, but we don't seem to have any of that available, collapse will build political will, but I don't have any hope that the political direction of that will shall go in a progressive direction, this is going to be more than a bumpy ride....  

    "Intelligence is quickness in seeing things as they are..." George Santayana

    by KJG52 on Sun Nov 27, 2011 at 05:08:03 PM PST

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site