'PAWN SHOP'

[Globe & Mail, Canada]

[Click Here for Jumbo Version]

 

 

Les Echos, France

After 300 Hundred Years, Representative Democracy is Imperiled

 

"The representative democracy under which we live was born three centuries ago around a simple idea: to avoid a debt spiral and bankruptcy, public finances must be controlled by representatives of the people and not left to the discretion of the king. Today this founding mission is no longer being successfully carried out in the U.S. - long considered the model representative democracy."

 

By Jean-marc Vittori

††††††††††††††††††††††††††† †††††††††

 

Translated by Carolyn Yohn

 

August 8, 2011

 

France - Les Echos - Original Article (French)

A Clockwork Orange: Is rioting in London a sign of things to come for the world's 'advanced' democracies?

 

BBC NEWS VIDEO: Why did so many youths riot in London?, August 9, 00:02:16RealVideo

In downgrading U.S. public debt for the first time in 70 years, Standard & Poorís has upset global finance. And beyond that, it has disrupted the economy and even politics. Global finance is built on a simple idea: the debt of the United States is 100 percent secure. All financial products are defined by differences in interest rates - and therefore risk - in relation to U.S. federal debt obligations. Of course, the rating isn't gospel. Itís just one piece of advice among others. But it proclaims one truth: America cannot continue to forge ahead with a gargantuan public deficit (more than 10 percent of U.S. GDP) and minimal growth (less than 1 percent in the first half of 2011). For the first time in over two centuries, it may not be able to repay its debt. With S&P's announcement, bankers, insurers and investors the world over can no longer close their eyes to this disturbing reality. They will have to review all policies of capital allocation, a movement that will make trillions of dollars dance over the weeks and months to come - the Chinese already expressed their fury. Regulators too, will have to go over their calculations. Money will inevitably become more expensive - even if, initially, many investors have the paradoxical reflex to buy U.S. public debt to protect themselves from market turbulence, which at first may contain American interest rates and thus reassure the short-sighted. ††††

Posted by WORLDMEETS.US

 

But finance is not the only entity that was shaken. Since public debt is the cause, so are the politics behind it. The representative democracy under which we live was born three centuries ago around a simple idea: to avoid a debt spiral and bankruptcy, public finances must be controlled by representatives of the people and not left to the discretion of the king. Today this founding mission is no longer being successfully carried out in the United States - long considered the model representative democracy. And, in our Old Europe, doubt is growing about the capacity of States to bear their financial commitments, as we saw on the markets last week. Political leaders repetitively dole out reassurances, but are losing their credibility bit by bit as public debts grow. To win back confidence, deeds and not words are needed. At stake is not just the health of financial markets, but the future of democracy.

 

SEE ALSO ON THIS:
La Repubblica, Italy: The Disfunction Follies: Rome vs. Washington
Huanqiu, China: Before Preaching to Others, U.S. Must Reform Itself
Asahi Shimbun, Japan: Washington Must Act to Strengthen Dollar
Magyar Nemzet Konyvek, Hungary: 'No Faith Left in America'
Publico, Spain: Petrodollars to Petro-What?
People's Daily, China: China Still Has No Choice But to Hold Dollar Assets
Guardian, U.K.: S&P Strips U.S. of its AAA Credit Rating
Die Zeit, Germany: Wealthy Americans Get Off 'Scot-Free'
Die Welt, Germany: The Diminishing Power of Money
O Globo, Brazil: Deal on U.S. Debt Ceiling Shows American 'Strength'
Yomiuri Shimbun: For World's Sake, Obama Must 'Provide Leadership'
CRI, China: U.S. Must Consider 'Defects' in its Democratic System
UNT, Sweden: U.S. Must Choose Practical Patriotism Over Party Tactics
FTD, Germany: Take Decisive Action on Debt Ceiling! Do it, Barack!
La Jornada, Mexico: The 'Grand Debt' of U.S. Families
Jornal Do Brasil, Brazil: American Default and the End of 'Zero Risk'
The Telegraph, U.K.: World Needs America to Come to its Senses
El Pais, Spain: Playing Chicken is the World's Newest Sport
Mainichi Shimbun, Japan: U.S. Must Prevent Another 'Made in U.S.' Disaster
Yomiori Shimbun, Japan: U.S. Lawmakers Should 'Stop Playing Political Games'
Yezhednevniy Zhurnal, Russia: The U.S. and Soviets: Pyramid Builders to Raiders
Frankfurter Rundschau, Germany: 'Radical' Republicans Threaten U.S. with Ruin
Tiscali Notizie, Italy: The Fiscal Decline of the 'Apocalypse'
News, Switzerland: Notion: 'Pay Politicians Based on Performance'
Salzburger Nachrichten, Austria: Debt Ceiling Attack By Republicans 'Backfires'
Gazeta, Russia: America's Astonishing 'Battle for the Ceiling'
People's Daily, China: U.S. Game of Chicken Threatens Creditors and Economy
Die Zeit, Germany: U.S. Risks 'Plunging World' Into New Financial Crisis
O Globo, Brazil: Global Economy Hangs on 'Mood' of U.S. Voters
The Telegraph, U.K.: Down on the Fourth of July: The United States of Gloom
Financial Times Deutschland, Germany: For Americans, a Dour Independence Day
Financial Times Deutschland, Germany: Who Cares about the U.S. Economy?
Folha, Brazil: U.S. Conservatives Threaten to Plunge U.S. into 'Lost Decade'


Bookmark and Share

 

CLICK HERE FOR FRENCH VERSION

blog comments powered by Disqus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Posted by WORLDMEETS.US Aug. 10, 2:13pm]

 

 







Bookmark and Share