Springtime in Europe

Mish nails it:

Other than four ousted governments, Troika imposed governments in Greece and Italy, huge budget misses in Spain, increased protectionist measures in France, border controls, bickering between the ECB and the German Central Bank, the Bundesbank proclamation “Not ECB’s Job to Tackle Spain’s Problems“, Europe is holding together quite nicely.

Oh boy. At least a few European politicians have sufficient insight to note that their great experiment in Social Democracy has failed. This toxic mix of lavish entitlements, paternalistic government, high taxes, and strong unions is a real devil’s brew. Of course, not everyone has recognized this. In our own country, we are approaching an election where the incumbent President seems to view the European path as the right direction. This is despite the fact that we have our own “failing states” (California, New York, Illinois) which should serve as a clarion warning of the perils of this model of government. Nevertheless, we will have a hard fought battle here between who those who see deeper into reality and those who want to dream the dream.

Event often take strange turns, and things could yet work out. I would be more confident if we had a wider understanding of economics. This is going to be an interesting spring, summer, and fall.

Europe

Europe (Photo credit: Wikipedia)

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