Tuesday, July 19, 2011
Euro Zone in Crisis
The markets signal an 80% probability that Greece will default. But the contagion is progressing to Italy, and not far away, France and Germany. The only solution will be widespread expropiation of savings, of liquid assets, of higher taxes.
It is becoming obvious that the West's decline is serious: all over the West, standards of living are declining and people is in much worse situation than former generations. The predictions of 1950 of technological marvels, robots, etc. have become true but instead of more vacations, more happiness, etc. people is working more, paying debts and feeling insecure. Maybe half of the population subsists on government jobs and handouts. It is a very surprising development, no one could have preicted that material progress would lead to lower living standards.
I can think of no solutions, not even a solution to my own worries.