My sympathies go to the hard-working citizens of Germany, Spain, Italy, Portugal, and Ireland for being led into this impasse by foolish elites.
A global system biased towards export dumping has had unhappy effects on the US, UK, and Club Med. These countries have faced a Morton’s Folk over recent years: an implicit choice between job losses at home, or accepting credit bubbles to mask the pain.
They chose bubbles. That was a mistake. This strategy of buying time cannot safely be repeated because fiscal woes are already near "boiling point", in the words of the BIS. “Drastic improvements will be necessary to prevent debt ratios from exploding," it said.He expects a lurch towards protectionism: sadly I think he's right.