This is not now a financial crisis. This is global power shifting and what happens during this crisis will shape the global economy forever. We do not have it in our hands as nation to decide our global future, but we do have the power to address the clearly identified problems domestically, politically, and to plant seeds of growth which will withstand the crisis and change our future. The things preventing us doing this are now all pretty much broken.
But if we choose to use this part of the crisis to buy a few more weeks or months until the inevitable we will pay a heavy price. Really. The interviews Micheal Gorbechev gave last Summer, were really interesting and worth a read at a time like this.
If China can or will,bail out Europe…if some combination of international assistance is conjured up..if some financial delay to this arrives we cannot use that time or money to make this crisis bigger or delay it, we will be buying weeks or months and making ourselves vulnerable to creditors we cannot challenge. This is how we have behaved to countries we have indebted.
Underneath this shifting power dynamic, almost every elite involved faces the same crisis of legitimacy and the same disconnection from those they govern, and the tools they used are revealed as ineffective, localised, expensive, amplification, which don’t work in a globally connected world.