Friday, 26 September 2008

Ah, someone has painted me a picture....

Paul Mason used this graph on Newsnight last night: it shows the ratio of debt to GDP in the US economy. The spike on the left is the Great Depression - the spike on the right is just before the current collapse. The economically literate can find a convincing (well, convincing to me, which might not be quite the same thing) technical analysis of its meaning over at the Naked Capitalism blog. The rest of us might be best employed digging out those old Dad's Army videos and practising our Private Frazer imitations: "Doomed, we're Doomed I tell you..."

Now the increasingly indispensable Mr.Mason is telling us that the banks themselves are saying America has a choice between nationalising them and letting them be acquired by the state funded corporations of other nations...

How can they possibly fight two wars and fund all this? The unipolar world with the States as global titan would seem to now rest, mainly, on some element of bluff, in much the same way the British Empire did for 25 years after the First World War.

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