Since the Fed/USG solution to the problem of too much debt is more debt, call me crazy, I’d have to say it will fail miserably. No matter what Paulson says he is not going to convince me that pigs can fly.
Call it the bail-out treadmill: we are borrowing faster and faster just to keep from falling down.
What makes the problem worse is the economy is shrinking and we are taking on more and more debt.
The G-20 is meeting over the weekend to discuss the mess the US has made of the world economy and currencies “roles” will be discussed.
Paradigm shift indeed…
Brown sees an opportunity to agree on far-reaching cooperation to combat the slowdown, and to reshape the world’s governing bodies to give greater say to Asia and emerging economies.
His ally, French President Nicolas Sarkozy, hopes for debate on the future of currency systems and a mandate to come up with concrete, sweeping reforms in only 100 days — but most other attendees predict more modest results.
