[aldente]

The answer right here:
http://financialsense.com/editorials/na ... /0330.html

not precisely, Engdahl wrote again, really good:

http://financialsense.com/editorials/en ... /0330.html

[Pretorian]

If UK&USA will find someone stupid enough to give them money, then they are correct. If not , then they aren't . Simple.

PS. Germany and France are planning on cutting spending? Aren't they are welfarer's Edem already?

[Gerben]

It depends. If the credit crisis is a temporary incident, it's better to spend your way out of it to normalise the situation asap. If you think this might not be over soon, it's better to be more prudent.
France and Germany use Euro's, which has rules on how large their budget deficits may be. The Euro countries might decide to rewrite the rules though.

[aldente]

The welfares "Eden" happend here in Europe in the 1970's and partially the 80's, nowadays the 'European Garden Eden' probably is headed into a re-run of Hieronymus Bosch's 15th century visual observations of a "Garden of something else".

[aldente]

it's better to spend your way out of it to normalise the situation asap

Yepp, it is better to break out of prison rather than to stay in it.

Unfortunenatly there is no specific way to "spend" your way out of the debt prison that the world is finding itself in right now. Maybe blowing up the metal (mental) doors or preparing for a "maniac anger fit", as so common in small households. Or political housholds, resulting in another Great War. (The most common measure historically).

[JPL]

The main point (IMHO) the French and Germans are making, is that the USA/UK are not in a position right now to lecture them on fiscal policy.

If you think about it, that is a valid point. I don't know if it the correct one, but it is their take on the thing. Quite reasonable, given the circumstances...

JP

[Mesuge]

This might be yet another sign, that world's economy will at least attempt to decouple from the U.S. & U.K. system. Apart from Germany and France who effectively rule the EU, don't forget that the new powers in South America (Brazil) and Asia (India, China) and countries in their sphere of influence will ultimately support it or at least not support actively the former rulers..

And you know what decoupling means for the U.S. in practice, picture UK after WWII or in the 1970s and its rapid fall from grace, former global super power VISIBLY going bust..

The problem is that, most of the remaining U.S. economy is just military hardware, so we might get Orlov's empire implosion scenario, but this time with more violant outbrake on the int. scene.