Europe’s Day of Reckoning

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Ezra Klein recommends this LRB piece about the current phase of our economic crisis by popularizer John Lanchester. And why not? It’s pretty good.1 European banks, he says, are in way worse shape than they’ve ever been willing to admit. This is true — and it’s something that a lot of us have been puzzling over for a good many years. Our puzzlement was related to the fact that although European banks really did appear to be in bad shape, they mostly managed to sail along seemingly unscathed regardless. But Lanchester thinks the era of the brave facade is finally over, and a day of reckoning is near. Unfortunately, as always, Europe is still unwilling to fully recognize reality and do what it must to fix things properly. The best-case scenario is already out of reach:

The next scenario — the one we are on course for at the moment — is not so much the next-best as the next-least-worst. It is modelled on what happened to other parts of the world over recent decades, from Latin America to Russia to South-East Asia, as they underwent debt crises and consequent economic collapse. In all cases, the relevant economies recovered, after about a decade of hard times and widely shared economic pain. In this model, the debts are gradually paid down, the economy is slowly and miserably rebalanced, and eventually things grow back to where they were when the bubble burst. There is a general sense of baffled incomprehension in the West at the idea that this should be happening to Us, instead of to Them; it turns out that this trajectory of crisis and slow recovery is a lot more bearable when it happens to other people, ideally in far-away countries of which we know little. But that is what we look to be on course for at the moment.

Unfortunately, I think I agree with Lanchester. I’d prefer to think that we’ll all come to our senses soon and do what needs to be done, but as he says, “I fear that the grip of anti-spending ideology is so strong throughout the West, and the politicians’ fear of the banks is so entrenched, that the ten-year slog looks more likely.” Urk.

1And be sure to read the footnote!

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Truth #1: The chaos is the point.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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