Sunday, January 04, 2009

Another look at denial

As regular readers know, I've often asked questions concerning the legitimacy, or even the legal status, of a government that loses control of its economy. Today, with small but rich Belgium out for the count, I can't help wondering what it would take to bring down the governments in countries like China, Japan, Britain, Germany, Canada or the US.
See how they dominoes.
In the same vein, Stoneleigh looks ahead at the equally inevitable upcoming wars in the labour markets. Millions upon millions of people around the globe will lose their jobs in the next year, and many if not most of the lucky ones who will still be employed can expect drastic cuts to their benefits and salaries. Since governments at all levels, if only to prevent having to fire employees, will try to raise taxes at the same time that people get poorer, widespread mayhem is guaranteed. And that's before people start figuring out what happened to their savings and pensions.