Tower of Economic Babble

An article with the post title appeared in the Wall Street Journal today.  What a ball of confusion!  The world certainly appears poised for some type of monstrous financial calamity....but meanwhile consumer confidence is at about a 4 year high!

Can anyone say the word, "disconnect"?

In case you lead a normal life and had better things to pay attention to, the world's economic leaders met in Tokyo this weekend. They didn't agree on much, but no doubt the Japanese cuisine was splendid.

This not to say that the grandees were mute. Federal Reserve Chairman Ben Bernanke lectured that the world should welcome his dollar devaluation policy, no matter the upward pressure it puts on many other currencies. Brazil's foreign minister lectured the Europeans about their "delayed reactions" to the financial crisis.

The Europeans lectured the Americans about the looming "fiscal cliff," and Treasury Secretary Tim Geithner returned the favor by lamenting the "headwinds from Europe" hurting U.S. growth. The Japanese and Chinese glared at each another over contested offshore islands, and the Chinese refused even to send their most senior officials.

Meanwhile, the poobahs at the International Monetary Fund lectured everyone about everything. In particular, the IMF wants Europe and the U.S. to pursue "fiscal consolidation," albeit not too quickly lest it hurt growth. In 2009, the IMF said spend more fast, then in 2010 it said spend less and raise taxes fast, and now it says raise taxes not so fast.

This babble is what a world without leadership looks like, specifically without American leadership. The world doesn't much want to listen to a U.S. that is growing at a mere 1.3%, is showering the world with excess dollars, and is increasingly picking trade fights for domestic political gain. The result is that every country goes its own way, global trade and capital flows ebb (see Messrs. Warsh and Davis nearby), and world growth suffers. Leading from behind doesn't work any better in economics than it does on security.

Here;  http://online.wsj.com/article/SB10000872396390443675404578056952578987258.html?mod=googlenews_wsj

Can you see how the global financial condition is being prepared for the day when a man filled with charisma and loaded with answers will be welcomed on stage?

Can you say, "anti-christ'?