So, it’s official. Yesterday, Thursday, the world’s banking elite queued up in front of the media to announce that policies  of “muddling through” are passe. Stocks and shares duly plunged, with London’s market estimated to have lost a mere 64 billion dollars…..or was that pounds.

Everybody knows that it is all about handling debt. To be more precise, it is about grown up politicians around the world not having the sense and courage to take the responsibility to manage their own debt.

For example, in America, Democrats and Republicans fiddled around before they just about squeezed out an agreement to ensure that Washington did not default. In Italy, the Prime Minister has been too busy fiddling around per se in order to handle has country’ financial black hole. Madam Merkel in Germany is preoccupied with pending political defeat, and that conundrum is hindering her from bailing out the Euro.

Debt, debt , debt and nobody knows how to make it go away. So here are my two suggestions. They will require some bold moves from decision-makers, who are often intent on just being politically correct. Let’s venture off to the Middle East.

First, I wish to turn your attentions to the oil producers. Much of the debt of Western consumers ends up in the pockets of petroleum’s big guys, who are not often the best proponents of democracy. So, by chance, let me pick on the world’s sixth largest manufacturer of oil, whose leader is rumoured to have laundered a fortune in bank accounts around the globe.

The problem is that I am talking about Colonel M Gaddafi. And nobody seems prepared to empty his treasure trove worth…well probably well over what the London stock market leaked 24 hours ago.

Contrast that thought with the fact that the rich G8 countries – including the faltering economies of America, Italy and Britain – have pledged US$80 billion – I repeat EIGHTY BILLION DOLLARS – to support Libya and others. And now it emerges, that the Libyan rebels have discovered a  US$23 billion “bonus” in tha vaults of the central bank.

If I can spot these misfits, why can’t the politicians?

Item number two is Israel, currently taking its annual whipping at the UN. Understandably, the Palestinians are demanding recognition from the Assembly, while doing a good job refusing to acknowledge the needs of  Israel’s security.

But just step back for a moment and look at Israel’s economy. Despite being surrounded by enemies and seeing European export markets dry up, the IMF is still expecting Israel’s growth for 2011 to climb to 4.8%. Yes, this is revised downwards from previous assumptions, and yes, 2012 will be lower. How much so?

3.2%, with inflation down and unemployment expected to hold steady. America et al don’t come anywhere are not predicted to come anywhere near this achievement. (And the numbers are supported by the Bank of Israel forecasts.)   

So, if world decision-makers stopped criticising Israel and started analysing its strengths, would stock markets be where they are today?