It’s Not New Capitalism, It’s Old Socialism: Klaus

Czech President Václav Klaus (picture above) says that the global financial crisis did not result from insufficient market regulation, but, on the contrary, from excessive government interventions and increasing public spending.

“What is now happening in the financial markets after long years of exceptionally solid economic growth around the world is nothing unusual. After years of growth there must necessarily be a decrease at some point,” the president wrote.

He rejected that the pending recession can be “prevented by some sort of a global economy management,” likening such ideas to the communist-era central planning.

Klaus concludes that the EU plans to better regulate the financial markets and reform the International Monetary Fund will not lead to a “new capitalism”, as termed by French President Nicolas Sarkozy, but will represent a return to an “old socialism.”

(Thanks to Jack Helmuth.)

Posted in Categories: Contributor, Economy, Eurozone, External Research.

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