All through the 1930s, the European elites continued to blame the Great Depression on Wall Street excess and the crash of 1929 (a minor, if colourful, event).
They continued to do so long after Roosevelt had broken free of fixed-exchange ruin and launched a blistering recovery with monetary stimulus a l’outrance (perhaps helped slightly by the New Deal).
They clung to this belief into the final years of the cataclysm, resolutely grinding their democracies into the dust by enforcing debt-deflation and contraction.
Blaming somebody else induced policy paralysis because it subtly diverted intellectual energy away from the root problem – then the Gold Standard, just as it is the D-mark Standard (euro) today.
So we have José Manuel Barroso, the ex-Maoist chief of the European Commission, telling the G20 global powers and assorted Anglo-Saxons that he is sick and tired of back-seat advice.
Read More at the Telegraph. By Ambrose Evans-Pritchard, The Telegraph.