Britannia Radio

Hello Harold

Will go to press conference this morning. The most important trend to note
is that the Europeans are reluctant to follow the US lead of printing more
paper money and dropping it through the banking system "from helicopters".
These attitudes relate to US historic concepts of expansion (to West and to
World) and the past habit of passing on its debts to the rest of the world.
They hope the countries like China and Japan will pick up the tab or that
if all blow hot air and do the same thing at the same time the balloon
which has no got several holes will keep its shape and not collapse.  

The Europeans have had to learn live together (after killing each other and
finding it not really a good solution) and therefore most  have learned
that 'Beggar my neighbour' economic solutions will in the end come back and
hit you in the face. (Minorities Greeks, some French and British etc). The
Euro Stability pact tries to stop this abuse and exploitation of
financially more sound but small neighbours by the politically stronger
when they are financially weak. Germany who used to be the champion of
money is now in an exposed position. It is considered the motor of the
economy. So serious problems ahead.

The present crisis period has two major parts: how to stop the economy from
collapsing like a multi-storey building going down. Debt/leverage is built
on flimsy foundation of a real economy. Secondly how to create a solid
currency and solid economy for the future built on solid MORAL principles
and not what the world has been doing for the last few decades. 

The present debate is about the multi-storey debt model of the modern
economy. I do not see many people discussing about a real solid, morally
based economy. Most economists assume that monetary economics has no moral
aspect.

Shabbat shalom
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