Have a Good NEWS

Now governments must find the confidence to avoid a collapse of the global economy

financial operators to assume that these are the plants of the volatility. After all, there is money to be made a smooth transition when prices and moderately on a daily basis. It's violent swings in prices that give the opportunity to make millions agile. Certain financial transactions will depend on its profitability in fractions of a second faster than the last nano. It's crazy, far from the real world of jobs, businesses, loans, pensions and mortgages to the financial system is supposed to serve.

the most violent fluctuations in prices on a wide range of categories of financial assets that have ever witnessed. However, Swiss Francs, Italian and Spanish bonds, shares of Bank of the United Kingdom, U. S. Treasury bills, the Japanese yen, and the actions of leadership in all the world the stock moved by an extraordinary degree. Fortunes were made and lost in a zero-sum game between the houses of World Investment and hedge funds frantically trying to exploit the manic rush of cash and the theft of any assets that indicates the risk . But the loser in the long run, the World

true

economy.

governments should have imposed some type of adult supervision in what many financial players is nothing more than a sophisticated game of poker. But governments have lost faith in the public and its ability to act. They have no compass on what to do. Instead, genuflect to the supposed superior wisdom of the markets, and to leave the comfort zone to say that the best and only thing they can do is to balance their books - and not only what to do after a financial crisis. An amazing aspect of last week was the inability of governments to stabilize the defeat, and made statements clumsy German government and the European Central Bank - Germany, saying that nothing else is there to address the overwhelming evidence that this position is boneheadedly stupid - has worsened

Even the mighty U.S. government Friday suffered the humiliation of being stripped of its AAA credit rating by Standard & Poor's - rating agency so warmly approved of many values ??that are at the root of the current crisis. Today is the bond market, rating agencies and short-term speculators that lead to large changes in asset prices and the absence of government action to determine the economic policies of major nations.

overwhelming threat is low and declining economic growth. The combination with a vast heritage of private debt means that if the financial markets and governments to veto inexperienced increased government spending and lower taxes, because they may increase the public debt, then the world is facing a dead end - and $ 150tn of debt service. The only alternative to these values ??is inflation - the government money printing the corner, which they, their banks and their citizens are in. The question facing policy makers in the coming years will be that one of the unpleasant face - economic stagnation, inflation, public and private by default with the weakness endemic to the bank, or runaway or run - they will choose
Of course, nobody wants the world economy in this way. The principles on which it has been for decades have proved inadequate. The G7 finance ministers meeting this weekend conclave should find a new direction: they simply and firmly that they will do the right thing in terms of foreign exchange intervention to calm markets. U.S. dollars are limitless, the yen and Swiss franc, which can invade the markets to get the results they want. It is necessary to conform to the principles of good administration.