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Archive for 3 enero 2012

It looks like we are in the dark ages of economics. A kind of tsunami has wiped  all economic thinking from the face of the earth, just as  the fall of the Roman Empire prompted the obliteration of Greek and Roman knowledge for centuries, sending Western thinking into the Dark Ages.

The  other day I was having my customary morning coffee in my usual place. As usual,  I was alone with the waiter. We started talking about everyday life and ended up conversing about financial facilities and the economy in general. His bank recently sent him a form that will allow him to acquire the  handsome sum of 4.000,00 € with just a simple signature and a not-so-simple annual interest rate of 15%! He was clever enough not to jump at the offer. But one thing led to another and we ended up wondering if anything would  prompt his employer to hire another waiter. He looked around and came to the conclusion that what his employer needed were more customers coming through the door, not more waiters attending one customer.

If the diagnosis is faulty, the cure will be useless in the best of cases and fatal in the worst case scenario. So, are we in a supply deficit scenario like most of our world leaders think? Or are we in a demand-deficit scenario as my waiter thinks? Sorry to say but I tend to think that what is lacking is demand and all and each of the measures that European Governments are taking are killing the little demand we have.

Let´s hope that sound economic thinking has not disappeared from the face of the earth and, just as in  the Dark Ages there  were niches of knowledge, today somewhere there are people with the knowledge to bring us back to economic health.

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