The World Turned Upside Down

The world is now facing the first truly global economic crisis, which is continuing to develop at an unprecedented pace. The current situation is often compared to the Great Depression of the late 1920s and the early 1930s. True, there are some similarities.

Naturally, all national governments and business leaders must take resolute actions. Nevertheless, it is important to avoid making decisions, even in such force majeure circumstances, that we will regret in the future. We must not revert to isolationism and unrestrained economic egotism...Although additional protectionism will prove inevitable during the crisis; all of us must display a sense of proportion.

Excessive intervention in economic activity and blind faith in the state's omnipotence is another possible mistake. True, the state's increased role in times of crisis is a natural reaction to market setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent. The concentration of surplus assets in the hands of the state is a negative aspect of anti-crisis measures in virtually every nation...

Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of businesspeople, investors and shareholders for their decisions, is being eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the
state...

And one more point: anti-crisis measures should not escalate into financial populism and a refusal to implement responsible macroeconomic policies. The unjustified swelling of the budgetary deficit and the accumulation of public debts are just as destructive as adventurous stock-jobbing.

What makes this speech all the more amazing is that it comes from Vladimir Putin, Prime Minister of Russia, and former KGB officer. Being an old Reagan era cold-warrior, who manned this nations ballistic missile early warning system from the height of the cold war to the after the collapse of the Berlin wall and the Soviet Union... I never, in my wildest dreams, thought I would live to see the day that that an ex-KGB officer, President of Russia, and current Prime Minister would lecture, and rightly so, the United States on the dangers of Socialism and the Socialist state. I now know how General Cornwallis felt as he surrendered at Yorktown as the band played "The World Turned Upside Down". All I can say in absolute astonishment and amazement is:

LISTEN TO THE NICE RUSSIAN MAN, HE KNOWS WHAT HE'S TALKING ABOUT!

The serving men doe sit and whine, and thinke it long ere dinner time: The Butler's still out of the way, or else my Lady keeps the key, The poor old cook, in the larder doth look, Where is no goodnesse to be found, Yet let's be content, and the times lament, you see the world turn'd upside down.

Cheers!

~Finntann~

http://online.wsj.com/article/SB123317069332125243.html?mod=googlenews_wsj