Now that those who really matter have been generously bailed out the apostles of austerity are upon us. This has already been reported in this blog but now no less authority than the Paper of Record has contributed its voice to the chorus.

In his Sunday musings Tom Friedman assures us that the Chinese government cannot possibly increase its demand for our goods - more on this later. Instead we must improve our efficiency, lower our costs and stop living beyond our means. Elsewhere today the Times provides us with an inspiring story of businesses that are reducing their costs by cutting wages and giving workers forced holidays. Thus giving us a new, sensitivity enhanced, form of belt tightening.

And watching all this Wonks Anonymous feels that the American worker has now assumed the position of a character in Terry Prachett's Hogfather. That would be the Oh God of Hangovers which unfortunate deity, while never drunk himself, was visited by all of the hangovers that the other gods never suffered.

So now that the financial sector has gotten its scrip for valium and is settling in for a soft landing we common folk can contemplate the coming course of bleeding paychecks and job purges until the economy recovers.

Except that our betters really need to get this straight. They currently make their profits selling mass produced manufactured goods, most of which they would not be caught dead buying. Demand for consumer goods depend largely on the income of workers and pay cuts, lay offs and short hours all lower worker's incomes.

So who will buy the output of our new, competitive industries?