The Swedish government is facing a bigger deficit than those that cannot count had expected. The deficit is showing SEK 102,7 billion in apposed to the earlier “calculated” SEK 89,3 billion. The worst thing about this is not cornflake economist without a calculator, no; the worst thing is that the Swedish government will never do the right thing in this situation. What they ought to be doing, of course, is to cut the deficit, create a plus and then lower taxes. Instead I expect louder voices for further stimulus packages and it is not inconceivable that the central bank will resort to further Quantitative Easing (QE) hence continue on the road towards more bubbles in the economy. But don't worry, that deficit will continue to grow, soon they will hand out new numbers showing they were wrong again...
In the meanwhile bankruptcies continue to increase in Sweden creating higher unemployment and adding to the deficit. “Strangely” it is the IT and communication businesses that is faulting the most at the moment. Maybe what Sweden needs is more internet restrictions and more laws prohibiting technology growth? And who was it that said the crisis is easing off?
The American government is already planning to expand their mad scheme of creating a new Zimbabwe and there are indications that other countries wants to do the same. IMF is spreading the inflation money around and the big economies of Asia are contemplating to abandon US dollar. Trade keeps going down and protectionism is growing despite supposedly “Green Shoots” that some spokespersons of the enemy class argues exist.
This is going to be fun on an apocalyptical level. Time to buy more popcorn again…
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