Posted on 06/04/2010 6:39:00 AM PDT by Oldeconomybuyer
With economic and political tensions rising in Europe, the Middle East and the Korean peninsula, fear has returned to the global markets.
A key point of The Economist's recent cover story on the subject: It was assumed the return of big government would herald solutions to the economic crisis. The tables quickly have turned and today government is perceived as the problem.
"Now people are saying, 'well actually, has government got the ability to solve some of these big problems that we face?'," says our guest Matthew Bishop, U.S. business editor for The Economist. "The markets, I think, what we've seen the last few weeks, the nervousness about sovereign debt is only going to get worse as the year goes on."
While the U.S. dollar and Treasuries are benefiting near-term from Europe's fiscal problems, Bishop anticipates tough times ahead for both America and Europe. "It's going to be a horrible roller coaster in Europe. There's going to be a lot of political stresses and strains," he says.
Meanwhile, Bishop remains skeptical a new Congress after the November mid-term elections will yield a return to fiscal discipline in the U.S. "The longer-term issues for America are really, really serious," adds Bishop.
(Excerpt) Read more at finance.yahoo.com ...
Gee, Mr. Bishop doesn’t miss much, does he?
-—when a nation has already committed cultural, political and economic suicide, there is not much hope for the future-—
Finally a US Bishop that has a grasp of economics.
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