Peter's Viewpoint

Living in the limbo of European decision makers gives one a wide perspective to the realities of world economics.

The current unpleasant financial environment that both the American and European people undergo everyday proves that the simplistic thoughts of our fore fathers are essentially similar to that of a classical Greek saying “Pan Metron Ariston” which basically translates to “everything in moderation”.

From the massive rush into globalization that opened the locks of the canal to the east without regulation, to the pedagogy of illiteracy, have provoked undesired social consequences of the loss of work to people world wide in the areas of services and manufacturing.  As a result, the instability of the western countries became the hornet’s nest of the financial players in the category of extremist capitalists to play the tables of fortunes with the livelihoods of millions at stake.

Even while Mr. Obama and Mr. Bernanke attempt to stabilize a destabilized market; their efforts are hindered by the multitude of ongoing parameters that have the effect of walking on a pane of glass that cracks with every step that they take.

The EU at the same time has failed because they did not take the steps necessary to build their internal market and structure the basic market functions in the same manner that exists in the United States.  The exportation of manufacturing and services to countries outside of Europe forces Europeans to increase their importation of products and services to disseminate money externally.

From a micro economic perspective to the whole of Europe, the events that led Greece to it’s dysfunctional state of affairs are now the basis for the creation of solutions that continue to fail in lieu of the high trends of importation combined with minimal exportation of goods and services, and should not be continued if the country wishes to reduce the need to borrow from foreign sources because it cannot offset monetary needs.

One possible solution in the past would have been to assess high import taxes on all goods and services that are produced outside the American and European continents, however as most manufacturing is now devoid due to outsourcing that would be undesirable to the general market.  The efforts to increase cash flow by the countries of Europe through increased direct taxation on the sale of goods and services may become directly responsible for the domino effect due to the lack of morals, geopolitics and political ideology as ingredients that were prerequisites to Keynesian theories of the previous century.

The foreboding and undesirable thoughts of bankruptcy in the near future will become reality show of punishment.

Failure of the market's self-healing power