Watching the global economy right now is a bit like watching the lead-up to the Iraq war.
Fearing that weapons of mass financial destruction lie hidden inside Wall Street palaces, the United States is mobilizing the big guns: a fiscal stimulus, sharp interest rate cuts, the FED's promise Friday to pump money into the markets. Meanwhile, Old Europe sits on its hands: The European Central Bank has left interest rates unchanged since June and has lectured governments about budget deficits. Whether American activism or European stoicism is vindicated in the end, one thing is sure: The transatlantic rift looks certain to grow.
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HT Sebastian Mallaby
