One can only agree with Bloomberg's debt forecast. The trend in global government debt is clearly upwards. But the fact that, when it comes to Germany, they adopt the German approach of completely ignoring the reality of demographics, over-regulation, recession, de-industrialization and the exploding welfare state is incredibly grotesque.

And it is the European Union that is currently setting the direction in which politicians will react to the debt crisis that they themselves have caused: higher taxation, as Germany has raised five tax rates this year, capital controls and of course, you guessed it, even higher government spending, to confirm my suspicion that the current political caste is no longer capable of any learning process or intellectual evolution.