The French and Greek publics have used their voting power to indicate very modest, entirely symbolic, breaks from the status quo. As a result the euro currency is down. Yields on Greek bonds and other securities from financially challenged European states are up, indicating uncertainty in the global market’s faith in these troubled actors’ future abilities to repay their debts, should they reneg on the promise to implement austerity measures imposed on them by their global financiers.
Increased bond yields and a reduced currency trading position mean an increased cost of raising capital for the large-scale investments necessary to boost productivity, reduce unemployment, and solve for long-term growth. Increased costs of raising capital lead to larger outstanding debt, inevitably higher tax rates, and further atrophy in employment, eroding further still the global public’s loss of faith in the long-term prospects of these bonds and the sovereign debt, meaning higher yields and more debt.
genetic evolution is based upon mutation amos. the same applies here. mutation understood as a leap outside of bell curve statistical analysis which otherwise drives prediction. get it?
That’s what my post is about!
Yes, capitalism, when left to it’s own devices is full of self-perpetuating trends. This is exactly what leads to boom and bust cycles. Everyone is afraid that Greece will go “Pop!”.
What that means is anyone’s guess. It’s outside the Keynesian model!