Mario Draghi, head of the European Central Bank, announced last week that the ECB would do ‘whatever it takes‘ to save the Euro ‘…and believe me it will be enough.’ European markets surged up in response. Why? Don’t ask me–it was my impression that Draghi hasn’t two nickels of his own to rub together. But, hey, I’m not so good at math. It seemed to convince some people though. Now an hour ago he tells us that he will come up with more measures to support the Euro ‘over the coming weeks‘ adding non-parenthetically ‘the euro is irreversible’. Obligatory Princess Bride reference:
What do the markets say? Minutes ago Spanish 10 year bonds just went back over the ‘unsustainable’ 7 per cent. Goddamn you reality! Do you like charts? I love a good chart. Here’s a nice one.
On a roller coaster that point there at about 1435 that’s the point where you start involuntarily screaming. Me, I like pictures. I feel that this shot from the press conference really illustrates our situation well.
No doubt some of you’ve thought already about the sorts of things which happen when massive gaps open up between the people’s expectations and the reality of their situation. You guys probably have already stocked up on tinned food. Maybe invested in a generator because your next newsflash may well be ‘Blackouts: Not Just for Brown People Far Away Anymore‘. For those of you who have not, the basic message looks kinda like this:
That’s from James C. Davies, ‘Toward a Theory of Revolution’, American Sociological Review, Vol. 27, No. 1 (February 1962). It’s a pretty old idea but a good one. Samuel Huntington had some related thoughts, still worthwhile in Political Order in Changing Societies. The concept of ‘political decay’ seems quite germane. Interesting times.