Though unwitting, this is the clearest elucidation as to why our political system loosely defined as “democratic” is bound to spend itself into oblivion.
“[the ruling party] PASOK made wildly unrealistic pledges to secure election last autumn and is now in the uncomfortable position of having to tear up its manifesto. This is potentially dangerous in a Left-leaning political culture where people have yet to accept the need for harsh medicine. Mere hints of austerity over the past two years have been enough to set off street riots, while Communist trade unions are already threatening to strike.”
Essentially, on one hand our governments have failed in their fiduciary duty to provide society with proper education. On the other hand, due in large part to this fundamental shortcoming, we have allowed our “leaders” to build a political and economic systems that can only exist provided inflation can be constantly expanded. Thus, politicians will always make outrageous promises in an attempt to garner votes because offering restraint and a reduction in expenditure is guaranteed never to be seen as a viable option.
So, the point at which inflation can no longer be expanded or, more correctly, the point at which forced inflation loses its traditional multiplier effect on nominal values, our political process prevents us from offering the only solution that would help us come out of this jam; that is, a reduction in expenditure thus a reduction in debt.
And so it is that as inflation loses its perceived effect on the expansion of wealth (which is only nominal rather than intrinsic) then governments become bankrupt. To be clear. Western governments have been fundamentally bankrupt for decades. The difference between then and today is that till very recently government could progressively borrow more thus giving the impression of being able to service its financial obligations and its social and military goals.
Today, the debt dynamic is broken. Government is bankrupt. Social expenditure must be and will be curtailed.
Before large numbers of the great unwashed start roaming the streets looking for some politician or banker to lynch, we’ll have us a world war.
I say 2013/2015 latest