FIFA World Cup 2010: results and economic lesson

Defaults in the euro area and the FIFA World Cup 2010

In brief: FIFA World Cup 2010 taught European officials and economists from the main lesson of life.

FIFA World Cup 2010 showed Europe how to live. To live in a big way, western countries only need to sell their precious assets neighbors full purse. I was recently asked about how Spain should respond to the crisis. “Do not bother,” – I replied. “While they were still ahead of Honduras and Chile, we can assume that all is well.” World Cup – an old trick. Only a few countries manage to win. Some may win only when playing on their field (England in 1966, Goad and France in 1998). But someone still play where they won on every (Germany, Argentina and, if we turn to the pre-war history, Italy, Uruguay and). And only one team can not win at home, but it always wins in a foreign field. This done, the Brazilian team.

Over the years, to win the World Cup is getting harder and harder. In 1982, the number of teams competing for victory, has grown from sixteen to twenty-four. In 1998 there were already thirty-two. Not surprising. The second half of the twentieth century was marked by the fall Imeri and formation of separate states, and football, in truth, the best way of self-promotion for the country. In the beginning, in the World Cup involved only Europe and Latin America. However, sometimes falling back and uninvited guests. For example, in 1950, India was going to take part in competitions, but at the last moment changed her mind, supposedly because of the high cost of air travel in Brazil, where he then passed the game. South Korea, was licking its wounds after the Korean War, took part in the competition in 1954. In 1970 Morocco became the first North African countries participating in the Championship, Equatorial Guinea joined in 1974. But the team veterans have felt serious competition from countries such as Algeria and Slovenia only recently. It is good that so many countries play soccer, participate in the World Cup. Of course, if you’re not a fan of watching to see how 22 adults man chased across the field, a single ball, this event may seem a bit tedious. (For example, I do not eager to spend Saturday night watching the game against Cameroon, Denmark, although I do not have absolutely nothing against these countries). And yet, this event – great fun, with, sometimes quite unexpected. So, I was able to learn from competent sources, (i) that England will win easily in inexperienced Algerians who had come from a country where a lot of sand, but there was no grass; (ii) Fabio Capello, who previously was considered a genius coach, now just a goofy Italian, who linger too long with the announcement of the players; (iii) no foreign goalkeeper does not know what to do with the upriver balls – a tactic that the British used a reliable in every game for decades; (iv) after the victory in the match with Australia Germans clearly could be considered a football genius (at least until such time as they are not blown Serbs).

In other words, the FIFA World Cup – is a great opportunity to join one of stereotypical nonsense that prevents us from understanding the real situation. If England can not win in Algeria, it means English players either where no good. It seems that more and obviously the alternative suggestion to anyone and never occurs: maybe just the Algerian team is strong enough to make the British compete. In fact, the finale of the Championship – is striking proof that the gap between the teams, veterans and the rest of the world is rapidly shrinking: competition intensifies. And how else can you explain the defeat of Spain, France and Germany in recent days? A similar tendency toward stereotypes and patterns of thought are suffering not only fans of football. In the financial world all the same. You can forever blame those lazy Greeks and Spaniards that they consume ouzo and sangria beyond measure, in flagrant violation of all principles of asceticism and Europe have led to a financial crisis. And you can blame the Germans, whose commitment to fiscal discipline is so great that borders on mania. Or, perhaps, the crisis itself to blame the euro, monetary union, which has always been devoid of meaning and was created for the sole purpose – to save the French franc against the humiliating devaluation against the German mark. Yes, it is such nonsense talk every day on BBC and ITV. In short all these theories are reduced to the idea of the superiority of the Anglo-Saxon world, to learn the secret of eternal prosperity, while all others are doomed to struggle for survival to the end of days. Of course, a tempting tale for the West but she, like the fabled European team at the World Cup, can not be tested for viability.

But if the World Championship main surprises still to come, the economic world has been turned upside down. Western countries are clutching at his head from problems with debt, which had been associated exclusively with the developing world. But developing countries have been taught life. They’ve learned the hard lessons. Gasping for grief with debts in the 1980′s and 1990′s, they became more cautious, preferring, if possible, to maintain budget surpluses and the balance of payments. Meanwhile, Western countries, confident in their superiority, not just those killed himself head, thinking that the market forces fix everything. However, the financial crisis unexpectedly changed the rules of the game. Markets collapsed, and governments are not left only to collect debris. Now, huge budget deficits create an atmosphere of anxiety and nervousness. Who will save the government? Perhaps the taxpayers and public sector workers, who will no doubt defend their innocence? Or creditors of the Government, which could be fooled by inflation, devaluation or outright default? Convinced Keynesians prefer to think that the government in general will not have to save. If the economy has reached equilibrium with high unemployment, in order to revive the activity, return it to higher levels corresponding to full employment (and, eventually, higher tax revenues and, consequently, reduce government borrowing), it is sufficient financial jolt. It’s just that the claim that England will win in Slovenia, because the British on account of more goals: it is true, but an argument devoid of logic. (Note Slovenia lost to England on Wednesday with the score 0:1). The argument in favor of “financial shock” is based on the fact that Western countries have the right to life to move along the path of infinite economic welfare and prosperity. However, if the country for many years lived beyond their means, the Keynesian policy per se will not be able to return it to the “promised land”. It seems that the Chancellor of the Exchequer George Osborne is aware of this, and others – no. In Western countries there is another way out, except austerity and default. To continue and continue to live in a big way, they can sell their assets to countries with thick wallets. Sooner or later the time when investors are worried about not only the reliability of the Greek bonds, Treasury securities and U.S.. In the end, the American public finance of the order also is not observed. West could not always exist on the IOU. But what else could they sell? It’s funny, but the process is already underway: football clubs are increasingly leaving the hands of buyers from the developing world. Perhaps a sign?

Ukrainian Globalist
2010-06-27 12:01, Economics.

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