I've written about this issue several times before, and my perspective about it comes from a cursory observation of the current state of affairs as it relates to the international financial markets.
I've stated several times that I'm convinced that there will be a catastrophic financial collapse, which will precipitate a Great Depression. And I'm just a regular "joe-six-pack" type of guy--a lay person without any advanced studies in economics (other than a few econ classes in college). And yet, to me, it's so painfully obvious what's coming.
Perhaps, the same prediction coming from George Soros will be taken more seriously by readers: How to stop a second Great Depression
Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation. They need to regain control and they need to do so now.
George Soros prescribes three major steps: The creation of a common treasury for the eurozone; putting major banks under European Central Bank direction; and "allowing countries such as Italy and Spain to temporarily refinance their debt at very low cost."
My take on this is that it is obvious that Soros has a major (personal) stake in the stability of the financial markets, and in helping to maintain a some type of status quo that would ensure his fortune. Having stated that, I think he is putting these suggestions forward in good faith.
But I think an unbiased party may come to a different conclusion. The core of the problem (in my opinion) is that the entire financial system has been looted. All major multinational financial conglomerates and mega-banks are lying about the actual state of their books.
Through what is basically computerized gambling relying on very complicated and sophisticated algorithms, the bowel of the system has been completely destabilized as the result of liabilities resulting from financial instruments like credit default swaps, and derivatives, among others.
Those liabilities could be $30, $20, $80 trillion. Who knows? And that's the thing. In the final analysis, the people who put together the scam and looted the system don't even have a handled on the situation.
And here's the problem with this situation. A condition created by unimaginable greed and corruption at the highest level of the financial system (a collusion between bankers and sycophantic politicians) has put the entire world economy in danger of a total financial collapse, and the likelihood of a Great Depression.
Basically, Soros, and others, are trying to save a system that can't be saved. It is corrupted to the core, and it has been completely looted.
What does that mean? Not content with an ever increasing push-down against the middle class in order to squeeze more and more profit from them, and transferred to the ruling class, the criminal cabal that was somehow able to take over the entire financial system actually ravaged it with their greed.
And now they are coming for more. They will never be satiated. They will come back for you (the taxpayer) and suck on the bone until they are able to extract the last nutrient from your weary body. Evil incarnate.
What needs to happen? There has to be a come-to-Jesus moment by the few ethical leaders remaining in the corrupt system (the U.S. and European political establishment), and admit that the system as it is, is not salvageable. It is corrupted to the core. It needs to be discarded.
The entire financial system needs to be nationalized, and recapitalized. But the recapitalization should only focus on savings accounts of the general public, and on maintaining the social safety net, and on maintaining the value of every single pension fund for workers.
The value of the wealth of the billionaires should be allowed to disappear, so the credit default swaps, and derivatives, etc., shall all be cancelled and voided.
Labor leaders, unions, and social activists should send a clear message to all the governments involved that no austerity measures will be accepted by the populace. The austerity measures, and the breadlines, and the fantastical level of poverty, and hunger that would ensue if the current economic framework is not challenged would be unimaginable--and it would be by choice.
The system would be inflicting this pain on the populace by choice. Remember econ 101; government can't go bankrupt (in theory).
There has to be a complete realignment of the entire financial system. It has been looted. It's corrupted to the core. The citizens of the countries involved should not accept the current paradigm.
If the governments do not bend to these demands, then when the markets collapse, people should revolt, big time. Don't take this bullshit laying down.