I have been reading Yanis Varoufakis seriously lately and have all but finished his ‘Global Minotaur’. It is an excellent political economy explanation of the trajectory of the US economy and the rising importance of Finance (aka Wall Street) in the last three + decades. However, he fails to persuade me when he trumpets the same prescription for Europe. My disagreement with or, rather my scepticism of his prescription for Europe formed the nucleus of my column in MINT on Tuesday. The two-year respite for the Eurozone appears to be over. Check out this link from Bloomberg about the election outcome in Sweden:
The outcome is the latest in Europe to see voters flocking to parties that channel angst about greater immigration, Islam and creeping globalization. In France, Marine Le Pen earlier this year won 26 percent in European parliament elections. In the U.K., David Cameron is facing an insurgency from the U.K. Independence Party. And in Germany yesterday, an anti-euro party swept into two eastern state parliaments. [Link]
Check out this development in Germany too:
Alternative for Germany swept into two eastern state parliaments yesterday, championing positions from breaking up the euro area to promoting three-child families and fighting crime on Germany’s eastern border. The party, known by the initials AfD in German, took 12.2 percent in Brandenburg and 10.6 percent in Thuringia after winning its first state seats in Saxony last month. [Link]
Professor Robert Shiller, in his latest article, draws a parallel with 1937. Well, more people are beginning to realise that a re-run of the events that led to the First World War and/or Second World War is beginning to take shape. We should remember that history does not exactly repeat itself but rhymes. This one appears to rhyme rather too well, for our comfort. It might be an exceptionally difficult 2015 for the world. I had alluded to this in two of my MINT pieces. You can read them here and here.