“There is continuing debate as to whether the US bailouts and money creation of 2008-9 avoided the 2nd Great Depression or extended the Great Recession. Until now, the "experiment" could not be repeated; there was no second chance. However, it appears the EU lead by Germany will attempt to resolve its crisis with austerity instead of money "keystroking." It is a rare opportunity to repeat a financial experiment whose outcome we will learn in a year or two, and my whatever supernatural power that controls finance have mercy on us."

Eoin Treacy's view Thank you for these interesting observations. The USA implemented a massive bailout package first and is only beginning to think about tackling fiscal deficits through austerity. Pulling out of Iraq and downsizing Afghanistan are steps in the right direction. The EU on the other hand went for austerity, at least on the periphery, first and is now talking about broad based intervention to maintain the cohesion of the currency union and support the banking sector. This suggests that the USA and Eurozone are following similar policy paths but in reverse order.