“Europe needs to understand that financial markets don’t work on political timelines, and they are already a long way behind the curve,” according to Australia Treasury Head Wayne Swan. It is a view that we shared almost since outset as professional politicians improvised as financial markets amateurs. It is a view we have also expressed since early this summer: “European leaders make the problem worse, or at least extend uncertainty for the entire Eurozone, perhaps all of EU thus costing each economy higher borrowing cost, lower investment inflows and a sluggish growth rate….Politicians become accustomed to a frame of reference that their bullshit has no cost, but only potential rewards in votes and/or campaign contributions. However, there is no free ride in financial travels – a taxi constantly running the meter. In the hierarchical pyramid of free market economies, financiers and bankers are above politicians in the food chain.” From: “Greek Default Sooner or Later” - June24, 2011 - diplomaticallyincorrect.org/films/blog_post/greek-default-sooner-or-later-by-ambassador-mo/30326). Mr Swan also adds: “The global economy has already paid a very high price for the failure of Europe to get its house in order.” A few hours after his rather undiplomatic statement, the OECD (Organization for Economic Development and Cooperation - bringing together globe's most developed states) also warned that the Eurozone may be on the edge of falling into recession. The prospects for the United Kingdom according to the OECD may be not much better if the crisis persists. Belgium has just had its credit rating cut from AA+ to AA by Standard & Poor’s. It follows Slovenia, Spain, Italy, Ireland, Portugal, Cyprus and Greece in having its credit rating cut just this year. Rating agency Moody's warned that all Eurozone may be facing downgrade - perhaps confirming our analysis that Germany may not have as much flexibility in shoveling money or offering "Eurobond" guarantees toward resolution, (Read - diplomaticallyincorrect.org/films/blog_post/ecb-germany-dragged-down-by-eurozone-crisis-by-ambassador-mo/42045). Australia has lowered its growth forecast from 4.3% to 3.7%. China has had its growth forecast also shaved by around ½% from high 8%s to low 8%s, which may not seem like much but considering the size and demands of China, is a sizeable reduction. – “European Crisis Beyond Eurozone” - diplomaticallyincorrect.org/films/blog_post/european-crisis-beyond-eurozone-by-ambassador-mo/42053 Also Read: -"Global Recession: Best of Times-Worst of Times" diplomaticcareer.com/films/blog_post/global-recession-best-of-times-worst-of-times-by-ambassador-mo/36338 By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect” Twitter – Follow us at DiplomaticallyX Related Reports at “International Financial Crisis Channel” - diplomaticallyincorrect.org/c/international-financial-crisis