At the very last moment! The nail biting thriller resolved. Obama did it! Danger of Fiscal Cliff resolved. Congress also agrees to plan to avoid the disaster. Stock Markets all over the world go up! Thank God! We have been saved!
Now just what is it that the whole world has been saved from? America falling over the Fiscal Cliff of course! And what does that mean? That if an agreement had not been reached at exactly the eleventh hour, then the US Economy would have been obliged to go into austerity automatically. It would have had to make slashing cuts and raise taxes all around.
And why would that have mattered? Because the US Economy would have been plunged, by that very policy, into recession and this recession would have been catastrophic for the global economy.
Oh, I see. In other words the US Economy would have gone the way of the Merkel variation of the infamous There Is No Alternative. The US would have been obliged to apply exactly the same policy that the Brussels – Berlin Axis is imposing all over Europe. Maintaining that this is the only way to put the economy back on track.
Hmmm. So what the hell is going on then? The Markets cheer and go up because the US avoided at the very last minute, a policy that would have been so destructive that the whole world trembled at the prospect. While in Europe countries are cajoled and threatened that if they do not follow that very same policy the US avoided then The Markets won’t like it.
Nevertheless, despite the schizophrenia of The Markets, it is an undeniable fact that the Merkel imposed policy of stringent and relentless austerity has produced a very dangerous result. Recession over the whole of the Eurozone and beyond in the whole of Europe, high and growing unemployment, misery, indifference to human well being and even life.
So if the whole world could see just what this Fiscal Cliff would have meant for the global Economy, why is Germany let off scot free for destroying the European Economy with the enormous repercussions this has had and is having on the global economy too?