The latest from Drudge on the gathering economic storm.

FEARS OVER NEW FINANCIAL CRISIS HAUNTS MARKETS…
Selloff in European banks ‘ominous’…
Russia shuts two more…
CREDIT FEARS GROW…

They do not have a clue what to do or why what they have done doesn’t work, but I can give them a hint: the problem is not a deficiency of demand. Just cut spending and ease up on regulation. It’s not easy, specially since large proportions of the population have come to believe that being subsidised by the state is a human right. And the reason an increase in GST won’t work is because you would then be making the recipients of welfare pay for the welfare they receive every time they go into a shop. There may be an economic logic to it, but the political logic is by now completely impossible.