Speedy response by G7 – They’re joking!

Finance ministers from the G7 countries promised to respond ‘speedily’ to the financial crisis in Europe according to the Japanese finance minister after having had a conference call with them this afternoon.

Has he not realised this crisis has been going on for years now? So, what is the meaning of ‘speedily’? Does he mean more spin and statements about what they might do in case of unexpected events? It’ll all be words, words, and more words. Apologies if I sound cynical! Politicians never act ‘speedily’ when it comes to big issues. Only when they want to increase their own pay packet they act speedily!

They are talking a lot of touchy, feely stuff at the moment. “We were able to share our recognition on the European issue,” Jun Azumi (Japanese FM) was quoted by Jiji Press as saying after a conference call with his G7 counterparts. “The European side stated that they will respond to it speedily.” I guess that means in doublespeak that in 6 months time they might be forced into acting.

Azumi also said that he asked other leaders to reaffirm previous policy calls to decry excess volatility and speculative movements in foreign-exchanges rates. “I have told them frankly that the current foreign-exchange conditions are very severe for the Japanese economy in that they are having a very bad impact on Japan’s economy.”

The pressure must be rising for a politician to use ‘frank’ statements like that. Japan might be suffering from currency volatility as investors see Japan as a safer haven than Europe at the moment, but does he really think European politicos would give a monkeys? Even if they would, they wouldn’t have the cash or the necessary will to address currency speculation. Remember when Britain was forced out of the European Monetary Union by George Soros? There are many more speculators now with infinitely bigger funds.

As has been the case in all this turmoil so far, politicians don’t understand the economic issues and therefore are acting like bunnies caught in headlights. Don’t expect any solutions from them!

The world economy is rebalancing itself and needs to deflate the overpriced, over valued western economies in order to balance out the inequalities caused by China’s rapid ascend and piling up of monies earned. Historical data indicates that we can expect another two years of doom and gloom before things really start picking up again.

It’s not all that bad though. There are still plenty of jobs, but mainly in high tech sectors or in sectors where you need a good education in order to be able to do the job. The west is slowly refocussing on other types of jobs. Gone are the typical industrial jobs that were required in the industrial revolution and in are the jobs that require computer skills, an understanding of new technologies and own initiative. The old style factory jobs have mostly gone to China, but are now also moving on to even lower cost countries.

If you want to compete, educate yourself. What you have learnt in the past is no longer enough to get you through your working life. You need to keep on re-educating yourself!


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