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Ce n'est pas mon habitude de repiquer le travail des autres blogueurs, mais ce billet de Johan Norberg est trop génial pour que je passe à côté…

TOO BIG NOT TO FAIL?

Here is the trillion dollar question:

Governments have decided to save every bank, every industry and every consumer. But who will save the governments?

The Financial Times reports that it's already getting more difficult for governments to fund their spending sprees. Britain and Italy have been forced to pay higher yields to sell shorter-dated bonds to investors, and one bond auction in Germany has failed. But it's just the beginning since governments have promised much more deficit spending, and on top of this come pension and health care systems that will do a lot of damage to the budgets in the years to come.

If politicians continue to insist that deficits don't matter, their borrowing will force interest rates to rise, and their attempt to stimulate the economy with print and spend-policies will lead to rapid inflation. All of this in addition to massive unemployment and negative growth. Perhaps this is the story of how governments saved the house from termites by burning it down.

David Walker, former head of the US Government Accountability Office, tells Los Angeles Times (via Hit  & Run):

"We could have a super sub-prime crisis associated with the meltdown of the federal government"

Le keynésianisme: un crime contre l'humanité !