Politicians have no idea what is going on

You think I’m kidding? Let me translate the article below for you:

” Finance chiefs from the biggest developed and emerging economies pledged a “sustained effort” to end the global recession and to cleanse banks of toxic assets.”

That means they have no idea what to do next.

“We were seized by the fact that there was a sense of urgency,” U.K. Chancellor of the Exchequer Alistair Darling told reporters

That means they really have no idea what to do next.

Timothy Geithner said there was a “clear commitment to do what’s necessary, to keep at it, to get the economy on track.”

That means they absolutely have no idea what to do next.

The whole article carries on like that. This G20 meeting, other than costing a few tens of millions of Dollars to set up, protect and provide lavish catering for the participants, has yielded precious little in the form of framing the problem and outlining the steps to tackle the fundamental issues. If politicians understand what is going on in the world economy they certainly aren’t showing it. On the other hand, they seem to be very clear on the fact that when bankers say jump, they should ask “how high” rather than “why”. To wit, here is the statement that gives them away:

“Our key priority now is to address the value of assets held on banks’ balance sheets, which are constraining banks’ lending” and damaging economies, the G-20 statement said.

Whether they are willing accomplices or whether they really are obtuse is difficult to say. Whatever the case, few have shown either the intellectual curiosity or the political balls to find out what is really going on and how to deal with it.



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