Sooner or later, all politicians rediscover the beauty of socialism. If socialism was not a beautiful paradigm it would not be so attractive for both masses and politicians. The fact that the socialism is a 90% lie does not matter. It is simply attractive. So this week it was time for one of the fulcrums of right thinking and financial discipline - Angela Merkel, to enter into socialist speaking. As the elections are closing, leftish ideology is to grow impressively. And this way and Merkel too.

Today the German Chancellor fiercely attacked on markets for their role in stoking Europe’s financial crisis. In a anti-capitalist style typical for Hugo Chavez, she said that in the last five years, markets “haven’t served the people,” allowing a few to get rich at the expense of the many. Mrs. Merkel after that added that "markets can’t be allowed to destroy the fruits of people’s labor and governments can’t be put at their mercy through excess debt". In political area she said the challenge for policy makers is to woo voters to support cutting debt levels to escape the sights of investors.

Merkel made her comments at an event in the Bavarian town of Abensberg, organized by the Bavarian Christian Social Union .“The real question about our democracy is: Can we in Germany and in Europe win elections when we jointly stand up for solid finances, when we don’t always spend more than we take in?” Merkel said in a beer tent packed with local party.

So again markets and de facto non existing capitalism are guilty for the debt crisis. And markets must resolve the crisis.

But what are the markets? What are these bad evil monsters that break the happiness of European citizens?

The markets are these same citizens. It is they who don't want to buy suspicious government bonds. And it is they that do not want a money print and inflation to "eat" their savings. These citizens can very easy solve the crisis by starting to buy government bonds. The interests will fall and the "angry from markets' greed" governments will have more money to spend.

But are the citizens crazy? Is there among them mad men that want to buy Greek or Spanish bonds? No. In fact exactly the opposite happens. Greeks are withdrawing their money from banks and sending it abroad. The same are doing Spaniards. Banks are going worse and worse, and the crisis is going deeper.

So when speaking abstractly about "bad markets" it is good to be more concrete and honest and say people it is their guilt the governments are going bankrupt.

But it is always easier to blame anonymous and mystic forces that no one knows but that look suasive. As voters expect this and accept it, and like being only victims of "bad markets", but not the "bad markets" itself, so it is an ideal political populist schema.

But there is something more. Markets are dangerous only for whom relies on them. If governments stop borrowing and start spending only as much as they have as tax-income, then the markets will not be able to hurt them... There are such countries and they are not angry with the "markets"...

Dobri
September 3rd 2012