A world in economic crisis

Good grief no wonder Spain started to become a basket case!!!

Posted in Spain, stagflation by Aussie on May 24, 2011

As some of my readers had pointed out, the Spanish people are not lazy like the Greeks and they do work hard. To date Spain has not gone the same way as Greece, Ireland and Portugal, but it is on the precipice. Spain has gone from a booming economy to one that has been a bit of a disaster in the time span that Zapatero has been Prime Minister. At the weekend Zapatero’s Party was given a good kick where it hurts the most at the polls. They did not fare very well in the regional elections.

In taking up the story about Spain, the UK Guardian has up an article on what their writer thinks went wrong. The writer seems to have the delusional idea that Keynesians are always correct in their analysis and policy prescriptions. Obviously the writer knows nothing about the causes of the stagflation in the 1970s, because the failure of the Keynsian type policies are directly linked to that stagflation.

What really struck me about this article is that it seems that Zapatero took advice from the failed and ultra left-wing Marxist economist Paul Krugman. Good grief, no wonder the Spanish economy has been doomed. The Krugman prescriptions are an absolute disaster.

 

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  1. business said, on May 29, 2011 at 9:13 pm

    Funcionaba como un grito de guerra y despues de la guerra significaba nada mas que et recuerdo de y la expectativa de gratitud por la liberacion. O sea la victoria sobre los espanoles. No era un concepto que pudiera servir como premisa de un moderno estado democratico. Este tendria que fundarse sobre un concepto muy distinto de una libertad que permitiese su continua redefinicion por el pueblo… 1 Geoffrey Fox Liberty and People..LIBERTY AND PEOPLE In the Political Writings of Simon Bolivar..Introduction.Foreigners have always viewed with irony Simon Bolivar s appellation Liberator. What at the end of his career had he liberated? The vast territory that was his theater of action lay smoldering from the flames of ravaging armies tens of thousands of its most heroic and its not so heroic sons and daughters were slaughtered or had died of want agriculture and industry were disorganized and destroyed to below the subsistence level for the former population the produce of generations to come had been mortgaged to the British and other great foreign lenders and bitterest of all to the Liberator himself his cherished union of the former Spanish colonies was rent into five tumultuous pieces this was his immediate legacy at his death in 1830. How was it possible that such a titanic struggle in which ordinary men and women had drawn on every inner resource until they seemed to act like giants against the Spaniards the mountains the climate and the wretchedness of their own condition how was it that such collective heroism sustained over fourteen years of war with Spain and six more of civil strife could fail to bring great rewards to the ultimate victors? Posed in this way the largest part of the question answers itself. There were no great material rewards because most of what would have been the spoils of victory had been destroyed in the conflict itself. But there is another part of the answer that is not so obvious. That is that although the Spaniards had been defeated the Americans had not won or rather their larger deeper conflict had not been and still has not been decided. This could not have been understood by many at the time. In fact no one then could have understood it in our sense because our ways of knowing the world have changed vastly since 1830 and especially since 1810 when the Juntas of Caracas Buenos Aires Mexico and Chile laid the groundwork for an independence struggle. Still there must have been those not celebrated in the official histories who had inklings of a better path not taken and there were anguished inarticulate men who knew no other way to make their claims to dignity than with sword or lance soldiers turned brigands. It seemed at the end as though what Simon Bolivar had liberated and he himself came close to saying this in his last days were the savage passions of the unbridled multitude that would turn three hundred years of brutal but effective colonial domination into primitive chaos. 1.1 Letter to General Juan Jose Flores 9 November 1830 in Simon Bolivar Escritos politicos Seleccion e introduccion de Graciela Soriano. Madrid Alianza Editorial 1971 p. 169… 3 Geoffrey Fox Liberty and People But Simon Bolivar was not the best judge of his own legacy. The world he understood he had done more than any other man to destroy and by 1830 his terms of reference no longer made sense in America or anywhere. For this same reason it is not easy for us to understand him or what he meant when he called on men to die for liberty equality democracy or glory. Did Bolivar fail? To answer this we have to step inside Bolivar to know what he was trying to do his project.


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