Why the World’s political leaders will not be still peddling “Austerity” by Xmas 2012?

English: President Barack Obama talks with Chi...

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This is a bit of a Dumbo question but so many political leaders are out of touch with voters, and ordinary people at the sharp end, so here’s my two cents worth:

  1. President Obama will conduct a very powerful re-election campaign, strong on job and stimulating growth.
  2. The US economy will start to recover and other countries will be keen to jump on board.
  3. Voters in the US, France & Germany will vote for growth, not austerity.
  4. Every major financial institution and serious economist is already screaming against more short-term austerity.
  5. Politicians who stick to austerity will probably have riots and civil disorder because they are out of step with their voters.  

What do you think?