Again this morning, I see Spain’s bond yields at levels which have sparked warnings, with Italy close behind. Did recent actions achieve anything but ladling more water into the boat? It seems not.
The idea that we can all borrow our way to prosperity has run its course. Banks’ excessive lending, driven by central banks’ policy to prop up an easy money economy, has severely disrupted the worldwide economic system. More borrowing, more bailouts and more socialisation of risk will worsen already dire social, economic and political problems.
Worse, this increasing interventionism leads only in one direction. If we keep meeting the consequences of failed state intervention with yet more state intervention, we can only spiral down into tyranny.
Europe’s politicians must wake up soon to the disastrous trajectory they have created over a generation. Reagan said of his own country,
We will preserve for our children this, the last best hope of man on earth, or we will sentence them to take the last step into a thousand years of darkness.
That wasn’t so long ago in mankind’s history. We face the same choices today in Europe, whether we deny it, despair or face the truth. But I am optimistic.
The British people are not cowards and neurotics, calling out for a master. This is a great nation of entrepreneurs, innovators, carers and heroes. By facing the world as it is and unleashing the forces of voluntary social cooperation, we can escape our present fate, but it will require a standard of political leadership unseen for too long.
Who will provide it? Would they get on with it please?