Panic all over the world. Markets fell across the world on fears of a double dip recession in the US and Europe sliding into a debt crisis. Yesterday the Nikkei was down 3.72%, Sensex 2.19%, FTSE 2.71% and the Dax 2.78%. The DOW was up 0.54% but was down 700 points for the week. Politicians are unable to fix the problems, not because they cannot but because they are motivated by self interest. Like company CEOs who concentrate on the next bonus politicians do not look beyond the next elections. With presidential elections next year Obama chose to give in to the Tea Party jihadis because he is confident of winning against the current lot of Republican pretenders. Berlusconi has to hang on as Prime Minister to protect himself against the many corruption charges that hang over him. He wanted to increase spending to stimulate growth. Someone must have beaten sense into him pointing to the rising spreads on the bond markets. For a few centuries western countries became fabulously rich with slave labor and looted commodities from colonies. The GATT trade talks conned developing countries into opening up their markets while rich countries kept theirs closed. Raw materials had little tax on them while manufactured products were taxed out of the market. Poor countries exported commodities cheap and imported finished goods at high prices. That is why the WTO talks are deadlocked because poor countries are refusing to be suckers once again. It is impossible to have infinite growth with infinitely growing populations. Perhaps a complete collapse of world trade will focus minds. Decrease consumption in rich countries and babies in poor.