Word buzzed around that there had been a disagreeable confrontation between that Guru of Nonsense Economics aka Wofgang Schauble and the new US Secretary of the Treasury, Joseph Lew over the effectiveness of austerity and the need to ease up and concentrate on growth. That was, of course, the US Secretary’s position.
Herr Schauble was reported, not to have expressed a different opinion, but to have arrogantly stated that Mr Lew was wrong and that instead of making stupid suggestions he should follow the shining, successful example of what Europe, that means Wolfgang Schauble single handedly, has achieved.
But the head of the IMF Mme Christine Lagarde apparently denied that anything of the kind had happened. Well… so what do we make of it? Believe Mme Lagarde? Or the ring of truth in the story?
Basically this is a case of what the Italians refer to as “Se non e vero e ben trovato”*.
We all know firstly, that Schauble is extremely arrogant and far too big for his boots; secondly, that he hasn’t a clue how real economics really work; thirdly that he considers having thrown the whole of the EU into a deepening recession and an alarming rate of unemployment which is growing, a great economic success.
We also know that he responded in such a way to the former secretary’s, Tim Geithner’s exhortation that he stop his nonsense and try some real economics instead, well over a year ago. Furthermore, it is also said that Schauble and Lagarde are great friends. Which would account for why she would try to cover for him if it were true.
Nevertheless, things have reached a sorry state of affairs when we do not believe what any official has to say any more. When Prime Ministers such as that pitiful example Samaras say that “these are the last measures. there will be no more.” we groan collectively because we know what’s coming. When EU officials like Barroso, Rompuy say things like “the worse of the Eurocrisis is over”, we know that it has hardly yet started and so much worse is to come.
We also know that if there is not a sea change in policy and an equal sea change in the self important nonentities running the show, the EU is probably set to collapse under the weight of all these collected light weights.
There are so many of them! Throughout the EU.
*If it isn’t true it is well founded.