Thursday, February 28, 2013

The Full Monty

On Tuesday, the Italian elections fired a missel directly into the heart of the of the Financial Mafia that is working so ardently to control the words economy. I saw the results immediately as I watch the dollar/Euro exchange rate with bated breath every day.Hey, the day after the elections, my dollars gained 3 centimes.  Italian politics are a mess, but the immediate results of this election was the rejection of the Berlusconi austerity economic reforms. The British screamed in panic because the Conservative Government is sticking to its do or die stiff upper lip austerity program come hell or high water, in spite of what ever evidence to the contrary we see in the countries that have rejected austerity and have begun the struggle to recover their economic independence and expand their economies...Who are the real winners from austerity? Not you or me. When banks are bailed out, who makes the real profits?Who walks away with the profits? In most cases, the investors who profit from your economic purgatory are anonymous. Here's a link to a great documentary on ARTE...When Europe Saves The Banks, Who Pays? sorry that it is only available in French and German, but I am trying to find an English version on YouTube... Your economic future is a commodity. Once the deal is made, it's a game that you will never be allowed to participate in. Britain has been playing this game for a few years now and treading water. They acted as if they were somehow immune to the disease. They rabidly went for class warfare and the full monty of austerity as if they invented it
Last week, the United Kingdom received its first ever credit downgrade, as continued austerity has dragged down the country’s economic growth. Britain’s conservative government, however, is forging ahead. Finance Minister George Osborne yesterday called for the UK to “stick to its course.”
The UK, though, is a prime example for why austerity should be avoided in a weak economy. As this chart from Reuters’ shows, the U.S., which embraced stimulus after the 2008 financial crisis, is in much better shape than the European countries that went for austerity:

As this chart shows, the UK has not at all lived up to the projections for economic growth that were made in 2010: France is doing feebly better than the UK, but it would be a lot worse if the full brunt of the acceptance of austerity that Nicolas Sarkozy was proposing had been implemented. To Hollande's credit, he is trying to undo the damage. He seems to be walking a straight line in dealing with Angela Merkle. He does speak fluent German and they actually seem to like each other...It's interesting to watch the relationship of Hollande and Merkle develop. She is a Conservative Centrist and Hollande is Progressive Socialist. Together they represent one of the biggest economies in the world. Sarkozy was a Conservative opportunist who Merkle grew to detest, though on the surface, they would seem to idealistically aligned. Achtung, ein komik interlude! You vill laff, schweinhund! 
Maybe Sarko didn't go the full back massage route that George Bush pissed her off with, but he was even more of a touchy feely syncophant and Angele don't play that!

Austerity has actually had the opposite of its intended effect in the UK, killing growth while not bringing down debt. And that’s held true across Europe, as this chart from economists Paul De Grauwe and Yuemei Ji shows:

Let's try to learn from the success of countries, like Iceland which rejected the attempts of the IMF to impose austerity and chose instead to prosecute the financial criminals and after a few months of economic hardship started to retake control of their destiny and economic future. When we learn that the systems we have imposed on ourselves are totally compromised, outdated and hacked, and do something completely different, we will begin to move into the future. Constitutions, economic systems are like computer operating systems. hey are hackable and become outdated as fast as they are enacted. Most of us in this modern world are living with operating systems that were written before the telephone was invented. How lame is that? Iceland just enacted the first open ended, crowd sourced constitution on the planet.

No comments: