It’s the D-word that’s much in vogue in Europe these days, with debt on the tongues of all the right eurocrats and banksters. Harnessing the debt monster is the play, rather than the simple and rational expedient of a jubilee. We’ve got pronouncements from the German and Dutch finance ministers, a harsh word from the man who broke the Bank of England, and a call for a financial autocrat.
Meanwhile, the Swiss military is training for a European collapse.
Major tax hikes and other austerian measures are about to inflict more misery on Portugal, prompting the inevitable protests and a regional election loss for the ruling party. The Spailout’s drawing nearer as austerity bites deeper, Spanish banks get another downgrade, the mass exodus continues, the secession struggle is heating up, and the national dropout rate is soaring — wwhile demand for welfare is rising as funding for programs is cut. And the Italians are saying the cost of a Spailout will drive them deeper into recession.
The British health service faces a corporate takeover, the country gets an IMF rebuke and an auditor’s seal of approval. Iirish unemployed face new bureaucratic obstacles, Cypriots vow an austerity fight, French corporateers declare war on the government, and European car sales continue to fall.
The Iron Chancellor’s kinder, gentler approach
Yep, Angela Merkel’s got a soft heart. [Either that or the threat of common currency exports is causing her some discomfort, given the potential impacts on German industry.]
The “new Merkel,” via euronews:
Schäuble again invokes the D-word
German money minister Wolfgang Schäuble has been resolutely flogging the debt issue, declaring that the only solution to the eurocrisis is the relentless sacrifice of lives and livelihoods to the debt beast.
Only through ruthless, remorseless payments to the private investment sector, he says, will ensure the S word, sustainable development, the perpetuation of an economic system in which finance and consumerism are exalted.
From Agence France-Presse:
Slashing government debt is the only way to put Europe back on a path of sustainable economic growth, German Finance Minister Wolfgang Schaeuble said on Monday.
“If we want to achieve sustainable growth, we have to reduce the sovereign debt in nearly all advanced economies,” Schaeuble said in a speech at the Thai central bank.
“There is no choice (but) to reduce in the medium term the over-indebtedness,” he added.
“The most important thing for growth is confidence — confidence by investors and confidence by consumers… Long term stability is the most efficient precondition for regaining confidence,” Schaeuble said.
Read the rest.
Decades to debt cuts says Dutch central bankster
Here’s another of those “duh” stories.
From Reuters:
It may be decades before debt levels in the euro zone drop below the EU limit of 60 percent of economic output, but states should still aim to beat that target, European Central Bank policymaker Klaas Knot said on Monday.
The currency bloc needed a strong authority to enforce a reduction of debt levels, Knot, who also heads the Dutch central bank, said.
His downbeat assessment of how long it might be before states again met the standards on debt they had to adhere to when they joined the single currency added to a growing debate about whether those at the sharp end of the debt crisis should be allowed to scale back their austerity programmes.
Read the rest.
For the umpteenth time, it’s not debt that’s the problem, it’s a slavish devotion to its service that’s the real killer.
The transformation of citizens from autonomous political actors into passive servants of private finance is lethal, both to the democratic impulse and to the lives of every living thing on earth.
It’s corporate greed that spends billions to manipulate our minds, and not just on election days. It’s no coincidence that the same minds that shaped government propaganda efforts during World War I became pivotal players in advertising [Edward Bernays] and in molding public opinion [Walter Lippmann].
Some Teutonic Soros Tsuris
Yep, the billionaire who broke the Bank of England is coming down hard on Germany’s reluctance to cough up cash and take on it’s new role as “benevolent hegemon.”
Yes, he really said that.
From Capital.gr:
The European Union could be destroyed by the “nightmare” euro crisis, and Germany needs to take the responsibility to save the common currency, billionaire fund manager George Soros said on Monday Soros, who made his mark as an investor on a big bet against the British pound in 1992, said the other alternative is for Germany — the euro zone’s biggest economy — to simply leave the 17-member currency bloc.
The crisis “is pushing the EU into a lasting depression, and it is entirely self-created,” said Soros, chairman of Soros Fund Management. “There is a real danger of the euro destroying the European Union,” he said, according to Reuters.
“The way to escape it is for Germany to accept … greater commitment to helping not only its interests but the interests of the debtor countries, and playing the role of the benevolent hegemon.”
Read the rest.
Nowhere, of course, does he suggest a debt jubilee or even a default, general or selective.
No, he wants his own class ensured of future profits.
And Germany’s money minister calls for a financial Führer
Schäuble wants a single official empowered as the Lord High Chancellor of Money, with sweeping powers over the budgets of not-so-sovereign states.
From Capital.gr:
Germany’s finance minister called on Tuesday for the creation of a ‘currency commissioner’ for the euro zone with wide-ranging powers over national budgets as part of an overhaul of the EU treaty to deepen integration and end the bloc’s debt crisis.
Wolfgang Schaeuble also backed reform of the European Parliament to ensure that only lawmakers from countries affected by a particular issue could vote on it, CNBC reported.
He said he had spoken with Chancellor Angela Merkel about the proposals, adding that she was “somewhat more cautious” about them.
Speaking to reporters on his way back from an Asian tour, Schaeuble said the European Union should start to discuss his proposals for treaty change at a summit in Brussels this week.
Read the rest.
Swiss army trains for European collapse
While popular myth paints Switzerland as a pacifist country, it’s anything but.
In fact, until recently Switzerland may have been the most heavily armed nation in Europe, if you counted in the reserves.
The country is also ready for war, with fallout and blast shelters in place ready to house the entire population, though while all roads, bridges, and tunnels leading into the country were mined and fortified until late in the last century, those defenses have been downsized in recent years.
And now, with the continent in chaos, the Swiss military is preparing for the worst.
From Valentina Pop of EUobserver:
The Swiss army is preparing for possible internal civil unrest as well as waves of refugees from euro-countries as the economic crisis drags on.
Switzerland, a non-EU, non-euro country landlocked between eurozone states, last month launched a military exercise to test its preparedness to deal with refugees and civil unrest.
“It’s not excluded that the consequences of the financial crisis in Switzerland can lead to protests and violence,” a spokesperson of the Swiss defence ministry told CNBC on Monday. “The army must be ready when the police in such cases requests for subsidiary help.”
Some 2,000 officers took part in the “Stabilo Due” military exercise in eight towns around the country, based on a risk map detailing the threat of internal unrest between warring factions and the possibility Continue reading →
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