It is absolutely fascinating reading the economic analysis by prominent economists and comprehend the extent of their blindness. We are in unfamiliar circumstances, but they insist to interpret events from the familiar position. The new paradigm is shaping, and they cannot see a thing. In their world, financial system is the only actor on the economic scene, and hence, the only solution to problems is to cut pensions, cut employment, cut anything that would result in savings to feed the financial monster that cannot be satiated any more. Forgotten is the fact that the economy depends on people, natural resources, energy, technology. You can cut all the pensions, and cut all the salaries, you can ask people to work for free, to forfeit their (actually bank's) homes, abandon their children and parents --- and still the financial baloon will not be reflated. It is leeking air all over the place, and the contraction is coming. The restructuring, REAL reforms and convulsions are on the way, and the more denial, the worse it will be. The markets will eventually be UNABLE to control the cost of energy and keep it ARTIFICIALLY LOW. Once the energy breaks free from the controls, the global paradigm of production sites being removed thousands of miles from the consumers, will loose its meaning. Production will move closer to the consumer in a range of industries, particularly food. We will be back to the COMPARATIVE advantage in trade, not ABSOLUTE advantage that consuming nations have over producers. With upheavals that are coming, the little old folk pensions will be a drop in the ocean.