.David Roche, the President of Independent Strategy Limited (London), says that the economic recovery is "engineered wrongly" and will result in a much bigger worldwide economic problem later on. This new problem will be caused by sovereign debt defaults, and when it happens there will be no more tools left in the box to fight it.
What Mr. Roche doesn't seem to realize is that this is a purposeful strategy.
By overloading the system, the capitalist rule book can be made to fail, and then be replaced with the socialist rulebook.
But you can't overload it in one obvious move. You overload it gradually with entitlements, regulation, taxes, and governmental expansions into previously private institutions -- all the while raising public expectations that the government will provide for them. Then, as failures occur, you "solve" each crisis in ways that increase governmental power and sow the seeds of larger crises later on. The people, clamoring for what they have been promised, beg the government to take over and save them.
This is the basic Cloward-Piven strategy of orchestrated crises, and it has been going on in fits and starts since the late 1960's. Since Obama came to power, it has become the basic purpose of government in the United States.
For example, if you want a governmental takeover of the nation's entire healthcare system. you first need to destroy the existing system. So you load it down with impossible demands to force the insurance companies to fail, and doctors to leave. As the system gets worse and worse, the people become more and more dissatisfied, and are then ready to accept a completely government-run system.
In the mean time, you can execute the same strategy with banks, investment houses, car companies, and major industries of every sort.
The idea is to bring the entire capitalist system to its knees, and make the people completely dependent on government. Then the government will have the power to run the country "correctly", with "true economic justice" and with "everyone's basic needs satisfied."
As Obama's Chief of Staff Rahm Emanuel said, "You never want a serious crisis to go to waste."