Increases in government expenditures around the world – ostensibly instituted as a bulwark against further economic weakness – are raising fiscal deficits significantly. Unsustainable, projected fiscal debt loads – including large and growing implicit guarantees bestowed upon large financial firms by governments – are raising concerns in sovereign debt markets.
Taking account of the broad range of economic and financial conditions, there is no wonder that the electorate – in the United States and abroad – is unnerved. The uncomfortable juxtaposition of financial and economic realities has caused some fundamental precepts of the so-called Anglo-American economic model to be attacked.