As an economist I am as confused as every other economist. Something isn't quite right:
In the early 1980's UB40 sang a song called 1 in 10 about 10% unemployment (youtube). It was bad news then. Such news today in Spain, where over 50% of young people are idle, would be rejoiced as would the 11% unemployed collectively in Europe.
Iceland has near full employment. How did that happen? (rtt)
The USA and Europe are ageing very nicely. Whereas fags and booze were the instruments of old people culling, Lycra and organic food are helping us live much too long. Governments want us to live to 100 and yet they cannot support people who are 100.
The last 50 years we have benefited from the Chinese slave labour keeping costs down. Once we darned our socks and now we buy and throw away. Luxury is available for all. But it is artificial. Prices are too low and when China starts putting its wages up, the West will suffer and we will be darning our socks again.
The UK has a chronic shortage of houses and spain has a chronic glut. Most UK banks are abandoning interest only mortages (cooperative) and most are putting up rates despite a QE blitz to flatten the yield curve (yahoo). Nobody can afford housing and yet rents are going up and up (money) and students are living 4 to a room (nice).
The USA is booming and yet has Japan like debt.
Japan's tax take doesn't even cover its debt payments and the Yen is booming.
Europe's ECB is keeping dead banks alive and is strangling the proper banks.
Basel 3 is creating another credit squeeze.
Spain and Italy are dead in the water and yet the Euro holds up.
France will soon be closing its borders and joining America in its quest to keep out undesirables.
6 million Brits live in Spain.
Apple which sells things that make you blind (the iPad 3 should have a health warning) and yet could repay the debt of the UK.
Is this the new normal or is the world twittering itself to death?
Economics to be banned as subject by the EU.