Wednesday, January 30, 2008


Do you remember the good old days when the rotten Soviet Union was crumbling from within? There used to be regular Pravda communication hailing the latest record-breaking run of factor production! Wheat production regularly exceeded all known targets. Nobody believed it, of course, but the Soviets felt obliged to pretend all was well, even as their people starved and their factories melted down.

Now comes the announcement from EU leaders that their
economies are strong and that the fundamentals are secure. Does ANYONE believe this drivel? The EU economies are a mess, and the underlying problem is that none of them can afford to run the welfare statism that characterises their economic infrastructure. Check out the unemployment rates in France or Germany if you want to assess just how solid those fundamentals really are. Britain is as bad, though, and government manipulation of statistics, just like Soviet manipulation of the statistics, does not alter this reality.
Cross posted on A Tangled Web

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