Surplus countries of the Euro-zone do not seem willing to either limit their excessive surpluses (by increasing the wages of their employees, so that domestic demand will increase), or to transfer «resources» to the members running a deficit, nor are they willing to «mutualize» public debt, or allow the transformation of the ECB into an actual central bank of the Euro-zone (Euro-bonds, direct purchasing of bonds from member states etc.).
As a result, the vicious cycle of banks «rescuing» states and, later on, states rescuing banks will perpetuate – thereby....
ultimately increasing the debts of both. It is therefore reasonable to assume, that the particular «un-natural» process has an expiration date.
Both R. Reagan and M. Thatcher based their policies on these theories, in an effort to «reduce the state» and to neutralize the unions. When they finally succeeded, privatizing enterprises and selling public property (British public property nowadays consists only of a bridge on the Thames, since governments have sold everything, but even so the country’s total debt exceeds 500% of its GDP), inequality soared – because the market never seeks for equality on its own.
The global economy, despite the «treatment» it was put through by Reagan-Thatcher, did not grow faster compared with the previous period – meaning, it has not benefited from the privatizations, the liberalization of markets and the «opening» of closed professions.
The only solution to the systemic crisis we are experiencing today, as far as the «markets» are concerned, is the regulation and limiting of the financial sector – in order to drive back the healthy tendency towards profit generation in the real economy and businesses, that produce real products, vital for both our survival and the betterment of our quality of life.