Oligarchy? Or Kleptocracy? You decide! (2)
Go read Glenn immediately, who argues that we're not going down the path of Japan, but Russia and Argentina; classic Shock Doctrine analysis (which Japan, I now see, did not employ. Maybe that's why our famously free press holds them up as the example not to follow.*) He concludes:
So our political class cheers on treasury-draining wars, allows financial elites to rob and pillage, witnesses huge transfers of wealth to the richest, and then when the whole thing explodes, the "real fiscal answer" is for ordinary Americans to have their Medicare benefits "slashed" and Social Security benefits reduced.
Again, read the whole thing. A lot of dots connected.
Now, I, for one, regard ending up as Argentina as a positive, compared to either going the way of Russia (shudder) or returning the, say, 2006. Argentina did, after all, ultimately resist Shock Doctrine tactics, and succcessfully. See Davidson, and Geneo's cautionary comment. I'd like to see more posting from Davidson on Argentina. Stories, concrete detail.
NOTE * Therefore, Krugman's "Geithner-san" riff is wrong. It's not the Japan that's the worst case scenario, it's Russia (horrible Shock Doctrine outcome) or Argentina (Shock Doctrine resistance). Much as I respect Krugman, I think he's got the political economy wrong on the role of the elites, here.)
NOTE Via Yves.