It’s clear that the torrents of money poured in the banking systems since Lehman went bust last September haven’t halted the recession, but have so far prevented the worst, namely a generalized depression. Unlike in the early 30s, the Fed’s stance has been countercyclical  (the ECB, much less so). This is enough to mitigate nosediving, but not enough to rescue the economy from the doldrums of recession. Only Obama’s fiscal stimulus has a chance in that respect. Merkel’s (and also Sarkozy’s) stubborn insistence on not expanding deficits amid a world recession, could make the situation worse for the international economy and much worse for the eurozone.

We on the radical and reformist left must stop thinking that since neoliberalism has been proved wrong by history, this automatically translates into a revival of progressive policies of wealth redistribution and welfare expansion. It won’t happen until we have shaken off the bankrupted elites of europe. They are still dictating the terms of the game, making employees and households pay for the gargantuan errors of managers, bankers, and the politicians bribed to sing their song.

Let’s shred the Maastricht Treaty! Let’s overthrow Europe’s failed élites!