My economic qualifications are confined to a DNS in year 12 which puts me way ahead of most US congressmen. Anyway, my view (FWIW) is that the US financial crisis will resolve itself satisfactorily, probably in the short term.
The Left are correct in describing this as a crisis of capitalism – but the truth is that capitalism will survive. This is not 1929 and nothing like it. I expect a variant of the bailout legislation will be passed by Congress shortly.
In the same way that Republican representatives voted against it because of the perceived opposition in their electorates, the impact of the failure of the bailout legislation is plain for all to see. That will change their minds provided the new bailout can save their face.
This is not so much a problem inherent in capitalism but one in the structure of US government. This type of crisis needs prompt and decisive action which the US political structure prevents. Despite the fact that Paulson, Bush, McCain and Hussein Obama all support bailout, the issue has been left for decisions by elected US politicians. I support democracy but this demonstrates its limits.
Other countries have a more unified leadership system, especially ones that adopt the British system. In Australia, it would be a bipartisan decision with effective power in the executive, not the ranks. The test for these propositions is to imagine that Australia had the US presidential system. In that event, the question of a bailout would be decided in the Senate by Senator Fielding — a frightening thought for all.
So the Left should not open the champagne just yet. It should get back to more serious issues like global warming, which apparently Rudd and Garnaut are going to fix by the public ceasing to eat f-rting animals like cattle and sheep in favour of eating nonf-rters like kangaroo. The whole world is crazy.
In his general misunderstanding of the effects agriculture has on global warming, Peter Farris repeats the common error that methane is excreted in farts. Methane is an odourless gas excreted out the other end in burps by sheep and cattle. Methane is a most potent greenhouse gas. Kangaroos do not produce methane. Neither do chickens.
Peter
Two statements in your article – ‘this is not 1929’ and ‘I support democracy but it has its limits’ are marvellous, simply marvellous. Why? Because the second comment is word for word what people – Churchill, HG Wells, countless others – said about the government of signor Mussolni, as the great depression took hold. You may not like him, but old Musso makes the trains run on time etc etc. Mussolini was loved by the right because his politics of brutality and force were sufficient to distract from economic woes by an impressive show of will.
You are not incorrect to say that the problem is one of amrican governance, but if you think this is a mere surface disturbance, then you’re barracking. In one way it’s less than 1929, in another more, because the gears are totally ground up, there ain’t nothing left to throw into the mix.
Meanwhile we all remember your idea that Australians should have their religion stamped into their passport ‘ ‘Jew’ etc – and we eagerly await your solution for something beyond the ‘limits’ of democracy.
For Gawd sake you commenters. Lighten up! Everyone knows Faris would prefer an argument over a hot dinner. Dr Stanton should know this more than most, nutritionist and all.
For mine, what I enjoyed was the exasperated last bit about the world ‘is crazy’. No Pete, it’s much more scary for you than that … its changing.
Gee folks, hard stuff dished out here. Peter is entitled to his learned opinions and for want of SOME BALANCE in this email rag I totally enjoy his contributions whether I agree with them or not. Without Christian Kerr’s input to spice things up, Crikey has looked in danger of appearrinmg more like an enviromentalist lefty political hack rag, you know, like New Matilda.
Actually, Peter, it isn’t at all like 1929. In 1929 the USA was a net creditor nation. Now it is the leading net debtor nation and has been since around 1988. In 1929 the small part of the market that is the stockmarket recovered to reasonable levels fairly quickly within less than a year after a longish disruption. The unemployment rate (the people that pay taxes and consume goods made by real capitalists) took over 10 years and needed a world arms race and war before full recovery. Perhaps you should go back to school and read harder. Real capitalists own the means of production, they don’t move other peoples’ funds around as though it was a useful contribution. The USA hasn’t produced much for years. They have exported, outsourced and sold off most major manufacturing. You could start here for helpful definitions of the harder concepts. http://www.investopedia.com/terms/c/creditor_nation.asp
Responsible governments do not leave foxes (or blithering idiots) in charge of the chicken houses.
This is the result of years of corporate incompetence, corruption and greed. Incompetence, corruption and greed don’t have borders of political, religious or ethnic origin. Sadly they affect everyone that is not wealthy with unbiased largesse so you can leave spiteful racist comments somewhere else thanks.