In The Global Recovery, Someone Has To Be The Loser

Great one liners from this article:

Obama is no economic guru any more than his predecessor Bush was a foreign policy expert.

Obama has literally bet his Presidency on the counsel of Tim Geithner and Larry Summers much as George Bush bet his on Dick Cheney and Donald Rumsfeld.

Ireland is dreadful these days, Simon Johnson and Peter Boone think Ireland is essentially insolvent.

For the UK, double dip could be coming as austerity has not boosted business confidence and investment. 

For countries like Germany or even Sweden who are trying to export their way to prosperity, they will soon find their ship is tied to their European brethren and de-coupling will prove illusory.

As for trade, the U.S. is always looking to blame others for its own problems, pointing the finger at China when it should be concentrated on getting its own house in order instead of starting trade wars.

But, in the final analysis, it is beggar thy neighbour which is the logical strategy for all international players. Everybody wants a cheaper currency and an export machine to overcome the malaise and everyone is pointing the finger at everyone else for trying this. What’s the solution?

Read the whole story here. 

Is there a solution to all of this? I think the only solution will be to let the value of gold rise high enough to make the existing sovereign debts manageable because at the present none of these debts can be repaid.