It has been my
argument thus far that the illusion of continued global growth is primarily a product of the numerous speculative bubbles that were inflated as a result of the the main response to the crash of 2008, namely a massive injection of liquidity into the global economy. In the US and Europe this primarily took the form of no-strings bank bailouts. The US emerged from the bailouts seemingly unscathed economically (tho not politically) as the banks, having inflated new bubbles, were able to pay back the government; European countries like
Iceland and
Ireland, having shifted the crushing liabilities of the banks onto the much smaller base of their taxpayers, were economically devastated.
At the time there was an outburst of popular anger against the banks as the collapse of enormous real estate bubbles in the US, UK, Ireland, Spain, and elsewhere crushed millions of lenders while the bankers who had profited so ostentatiously by inflating the bubble were
rescued without consequences. Some attempts were made to organize this discontent,
one of which I was involved with, but these were notable principally for their failure to galvanize discontent. If any further evidence were needed, this showed conclusively that existing techniques of mobilizing a progressive constituency are hopelessly out of step with the times (discussion
here and
here).