The First Rule of Holes.
When you find yourself in a hole--Stop Digging!
The EuroCrisis has lasted too long.
The EuroCrisis has lasted long enough. And, given the path of the trajectory, will continue.
The EuroCrisis began with a small problem. Too much spending and too little revenue combined with a the slowing of the global economy.
The proposed solution: institute a policy of austerity.
The actual solution: Too much austerity.
The result: The European Economic Crisis.
How did this happen?
This happened as the result of a trap carefully laid. A strategy implemented and in progress.
- You have debt
- We lend you money
- You cut spending
How did Europe arrive at its current state of Economic Crisis?
Merkel's 10 Big Lies
Big Lie # 1: Blame Greece
I wrote an article about the following. The "Commission" recommended lending Greece €110 Billion. This loan was made on the basis of a false statement: The forecast that the Greek economy would grow by 2% and Greece could repay the loan.
When the Greek economy did not grow by 2% because there was no basis for growth, the Commission recommended sanctions to punish Greece. Why? to conceal the fact that the loan was made on the basis of a baseless forecast in order to impose more severe austerity on the Greek people. Economic conditions declined. Merkel's Trojan Plan--Destroy Greece.
Big Lie # 2: The Firewall
In my article, Firewall or Farce, I stated that the Firewall will not protect Spain. The Firewall did not protect Spain.
You cannot cut wages, fire people, raise property taxes and call it a solution. The intractable and extremest adherence to the one-pronged (and one-pronged only) position of Austerity has driven he European Economy down and the Europeans into penury.
Big Lie # 3: The Ponzi Scheme
With the European Economy declining, Merkel sent Madame Lagarde "begging for coppers". The plan was to seek contributions from The Middle East, China, Brazil, The BRIC nations as a whole, in an attempt to induce the next group of contributors to help to pay the debt owed to the previous group of contributors.
Big Lie # 4: Deceptive Denials
Merkel's position (and properly so) was that Europe should not expect German taxpayers to bail out poor nations indefinitely. The deception? No one expected Germany taxpayers to bail out poor nations indefinitely. No one wanted German taxpayers to bail out poor nations indefinitely. Merkel's claim made it appear to be true.
Big Lie # 5: Bailout: Carrots and Sticks
- You cannot pay your bills
- The Chancellor lends you money
- You have responsibilities
- You must cut spending
- You cut spending
- Your economy declines
- You can't repay the loan
- The Chancellor makes another loan
- The Chancellor imposes harsher cuts
- The Economy declines
This leads to Big Lies 6 and 7
Big Lie # 6: Incite Then Blame the People
Big Lie Number 5 creates large numbers of unemployed enduring increasingly harsh conditions. The people have no jobs, no money, no food. They take to the streets to protest. The protests lead to unrest. The protests must be quelled by Government use of force: The Police. The use of force leads to riots. The riots must be quelled by Troops.
Big Lie # 7. Blame Other People
The rise of the poor and hungry leads to the rise of the opposition--The Extreme Right. The Right cannot blame their fellow countrymen, so they blame immigrants and begin fomenting xenophobia. This creates more hostilities, more police, more riots, more troops.
Big Lie # 8: Claim Compassion and Nobility
Merkel claims that Austerity only makes it sound Evil. That her intentions were merely to balance the budgets. Merkel claims to have been misunderstood in her motives. Merkel claims to have only the most noble of intentions. Remember, "Let them eat cake"? Remember what happened next?
Big Lie # 9: Claim to be a Victim
Merkel whines: "I've seen the posters of me dressed as a NAZI. Poor me. I am a victim. Try hard to understand my position."
To: The the Leaders of Europe.
As European leaders, you are presumed to be literate and well read. Not doubt you have read Jonathan Swift and his essay, A Modest Proposal. Swift wrote satire. If Europe had a Food Crisis and not an Economic Crisis, Merkel's Austerity Plan would be, "Let the children starve and you will have plenty of food." If you doubt me, look at the 50% youth unemployment. This destruction is not limited to the economy. This destruction is not limited to your children. It will extend to your grandchildren.
European Leaders who follow Merkel are not leaders, they are followers.
How can you, in good conscience, destroy the lives of your children and grandchildren?
- Have you followed Merkel's Lead?
- Have conditions improved?
- Have conditions become much worse?
- Do not follow Merkel's Lead!
Big Lie # 10 Austerity is Austerity
A Bailout, a loan, is spending with borrowed money. A bond is a loan. A bailout is a loan, a bailout is borrowed money. Paying bills with borrowed money is increased spending. Stop selling bonds, start selling stocks.
I have long since projected that China will spearhead a group of "Pledge Nations" that will create a Global Sovereign Investment Fund that will infuse money into the Economy of Europe, into the hands of People, not into the hands of bankers to improve the financial position of big lenders and their big investors.
This is not about politics. This is not about economics. This is about process management. That and the 10 Big Lies that have perpetuated the destruction of lives through the destruction of the European Economy.
Now, now, is the time to Stop Digging! With each passing day, European Leaders are digging a deeper and deeper hole.
Copyright © 2013 Slim Fairview
All Rights Reserved
The Side Street Journal is an unfunded, unsupported, non-profit web log owned and written by Slim Fairview. I am solely responsible for the conclusions drawn from my analysis of the global economy as reported.