Concerning Soros: The collapse of the financial system as we know it is real and the crisis is far from over:
Soros ends his address stating that Germany is the “lead actor” in the European market and that he plans to discuss his theories and advice in Berlin on June 23rd. But if I read Paul Krugman in the NY Times today, Germany has already pledged major tax increases and spending cuts which according to both Soros’s theory and Krugman’s advise is the exact opposite of what is needed at this particular time.
The US is poised to follow the German “deficit hawk” trend as indicated in the “fiscal rectitude” position of denying extension of Unemployment insurance while long term unemployment remains high. Krugmans critique of this action as well as the fiscal actions currently underway in Germany see these moves as tragically misplaced.
Soros concurs, as he says in the above address, “Doubts about sovereign credit are forcing reductions in budget deficits at a time when the banks and the economy may not be strong enough to permit the pursuit of fiscal rectitude”.
Let’s pray that Germany will listen to him next week and that it is not too late. The US is in an even more very difficult position because of the coming Mid-Term elections in a bad economy. The “debt crisis” is the growing and angry mantra of Free Market fundamentalists who will try to crucify any incumbent who dares to keep the very modest recovery from collapsing completely. A cowardly congress has begun to take heed. God help us.
