well the stupidity and arrogance of our current elites are working toward the GD II.
The central banker of today claim that they've learned form history. This is a plain lie. It's very eay before GD I the manipulations started. Easier credit and establichment of the
FED (1913). And what happens? Well they were starting printing money. And so we seen a big bubble in the stock markets. It's as usual, if there's money it
looks for investement possibilitties. Every stock broker knows, easy and cheap money is the driving force behind raising stock prices.
Of course they will not argument with the "sheer" amount of "money". They will say something like: We expecte higher incomes (well yes you can inflate any income and it really seems to be that more was earned) but that's a plain stupid lie. Another plain stupid lie is that prices for land and stocks are not covered with the inflation rate. So there may be in some areas hardly any price movements, but it could be that the prices are exploding in the house markets. The US have seen it before, UK and Ireland have shown it. Currently the "most" problematic countries are Norway, Finland and Switzerland. The problem is that there are so many countries near a default. And still many do stop believing in the words of Deledefs, and they are trying to "save" their property.
You can see the action so socialist Hollande. It currently drives the more rich French into the UK: What do you think will happen in any country if just 5 % of the most rich will leave the county? Well at once there will be much less poor people (because this is calculated on the average of the income, a stupidity higher as Mt Everest) and surely much less demand of this people. They will live in London and find producers for their needs, you can bet on it.
Now another think you can see eurowide. Is more regulation, higher taxation and extending government activities. Governments activities always just consume resources. And because of the inflexibility of this demands the private consumption must be cut back. If something is consumed by the state, it can not be consumed by the Privates. Currently we have no free market any where. All the markets are regulated all this regulations cost money. A thing states simply can or are not able to understand. So a new regulation leads in the end to higher prices. This can just work for a time
Now the system needs fuel, a lot of fuel. And the fuel is "paper-money". As long as one can make the people believe the inflation of paper is sustainable, the longer the boom and the higher the mal-investements. As with every system on earth there are limits. E.g. any central bank could print or create a 1 000 000 000 000 000 note. This would be enough to pay all the debts world-wide and still have a lot of money left. But it's obviously that they can't do it "now". They can print another 1 000 000 000 000 (that was done e.g some three months ago) and this will have an effect. But you can not print every day another trillions. So there are "limits" this limits will of course be extended. E.g in 1945 it was unthinkable to have another 1 000 000 000 000 debts because the amount of debts was somewhere in the billion area. But you can see the US currently raised there debt with over a trillion !!! a year. So another trillions more or less does not count.
Anyway there will be a side-effect of money printing. People stop believing, if that happens hell breaks loose. This is what happened in the late 20ies of the 20iest century, and it was a catastrophe. We'll see something comparable within the next 2 decades. I guess we'll go on with printing for another 5 or so years. After that I guess the "believe" in paper will be diminished beyond a critical point.... So we'll end up in a Great Depression II, just say "thank-you" to paper money and brainless governments and way to many bureaucrats.
I have tried my best to warn about it since the start of any of my blogs (I started my first one around 2008 at http://fdominicus.blogspot.de/)) And here in 2010. I know this area here is the exception. Here people do read which at least understand the problematic of state inference with markets. So if I wrote about stupid Americans or Europeans it was clear that I do not count the readers in. We obviously see the problems of democracy. The majority is mostly stupid and disinterested. They simply love to see themselves as victims of the system and they are stupid enough to believe the big words of politicians. And so they vote always for "more justice" in form of an ever expanding government. They have to pay for it, but the elites are clever enough to not give them a choice (at least not here in Germany). If you get paid all the deductions are in effect you just get the net income (that means you've paid your taxes and social welfare programs) They see it's much and they then want that the "rich" get at least that robbed. That's their usual way of thinking. And so we have the deledefs we have.
The problem is that more and more is not decided any more by customers but bureaucrats. And so the prices are completely distorted, and investments are running wild. To keep that running is the "only" think the Deledefs want and they try it with more and more credit. As you can see the people still do not believe in that any more. And so Greek is down the drain, Spain will follow within the next three years. France will not take much more than 5 years and if the all fall Germany will surely fall also. I don't know who will be the "next" .
But in the end they all will fail and fall. I'm just hoping we get along without another big war. But this is against better knowledge, this is so big a thing that violence is inevitable. It seems the US- "authorities" at least go that, you can see they spend a lot of money on arming the security forces, they will act as the Syrian regime in the end.