15 May 2013

Paul N Goldschmidt: The crisis deepens, stock markets fly - Paradox?

As unemployment explodes and the economic outlook remains bleak, particularly within the EU, the strength of the stock exchanges should be a signal of better times ahead. Goldschmidt looks for a rational explanation to this paradox.

If democracy, which must guarantee both economic prosperity and social justice, is to survive in Europe, it is necessary to reinforce the regulatory framework in which markets operate by ensuring that the Public Authorities are fully independent from interference by economic operators. In order to protect the EU citizen efficiently, this strengthening of public power must have at a minimum a European dimension with the necessary corresponding transfers of sovereignty. It is only at this level that it will be possible, to ensure that the general interest prevails internally over particular demands of private groups (national, sectorial, class, corporatist, etc.) and also provides the Union with the necessary tools to play a leading role in world governance (G8, G20, UN, IMF, IBRD, NATO, OMV, etc.)

If one wishes that “this time around things will turn out differently” and that the crisis will find a different outcome to that of the 1930s, it is urgent – without putting into question the merits of an open market economy – to ensure a rebalancing between “private” and “public” powers so that the legitimate authorities can exercise efficiently their rightful prerogatives.

Please click on the link below to for full article and contact details.

© Paul Goldschmidt