Or this is why the Euro is doomed. And after that EU – Yes we have NO Money.
On Saturday November 17, police officers from all over Spain marched through Madrid, protesting austerity measures and cuts. They even apologized to the public for arresting the wrong people. One of the slogans was:
”Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians.”
The whole economic and political crisis in EU and USA summarized in one simple sentence.
It complements what I wrote in my post EU a stupid empire on purpose:
“This is one of the best and succinct descriptions of EU I have seen:
“The European Union is like a hospital where all the doctors are mad. It doesn’t matter what is wrong, the treatment is always the same – more integration – and it is always wrong. The best thing to do is never to enter it.
Once you are in, the best thing to do is to leave. If you can’t get out, you will probably die.”
I disagree with one thing this author says: “EU is the Stupid Empire”. EU is a POLITICAL project. The Euro is part of that political project.
A lot of EU’s decisions make no economic sense whatsoever. In that regard, Peter Hitchens observation that “EU is the Stupid Empire” is completely right. Not to mention the enormous cost to the common people of all these political motivated but economically disastrous decisions.
The economic side was always a way to “sell it to the people”. Step by step. So that the political agenda could be slowly, but steadily implemented. Until it was too late. The political elites new ALL along that had the EU project been presented to the people for what it really is, people in ALL countries would have rejected it.
BUT EU was on purpose designed this way. So that the people could not stop this political project.
Never forget that ALL the political elites, irrespective of party or ideology, in the EU countries were behind this. With very few exceptions.”
The EU bureaucrats and the political elites always fall back, when they have nothing else to say in defence of the EU, that this is a “peace project”. Well this “peace project” has now created social havoc, riots, and put country against country, and groups of countries against group of countries.
Tearing apart the EU at it’s seems. And ALL of this because they, the political elites, literally AT ALL COST want to preserve the POLITICAL project euro. Which is the cornerstone of the federal super state of Europe.
As I have said before, this has nothing to do with economics; it’s ALL about politics,
And that is why so many people still don’t understand what is going on. Because from an economical point these policies are total madness. Ruining and lowering the living standard of most people. And the political elites know this. But the political project is MORE important.
Then there is Ireland, Italy, Portugal, Cyprus, France….
Just start adding up the GIGANTIC NUMBERS and be utterly horrified!
This is the situation that politicians and the banks have put the common people of Europe in.
They are literally ruining us all. And WE have to pay the price of their folly and speculations.
One more slogan from the protests – They are the same
Depicting Spanish Prime Minister Mariano Rajoy (L) and the leader of the opposition Socialist Party (PSOE) Alfredo Perez Rubalcaba
The Big picture
This is from the IMF’s World Economic Outlook (WEO) Notice the rising trend of the 27 Developing Asian economies as a share of World GDP. Bloomberg’s Chart of the Day notes that by the end of 2012, Developing Asia will account for 17.9% of World GDP, surpassing for the first time Europe’s 17-nation 16.9% share. The euro-area crisis has merely accelerated a trend that has been ongoing for several years – as former IMF board member Domenico Lombardi notes, makes it clear that euro-area economies need to address their structural reforms rapidly.
America is on the same path, as while China will top Europe by 2017 as a share of global GDP, USA will be passed in five years when Developing Asia will have topped the USA for the first time ever.
All graphs gets bigger if you click on it
Just one small example of all these stupid US policies, on Januari 1, 2013, dividend tax rates are set to rise from 15% to as high as 43.4%. This affects not only US taxpayers, but everyone on the planet who invests in the US stock market.
As a result of this tax policy, many investors who own shares in US companies will now see their after-tax dividends slashed by 33%.
This is putting a lot of downward pressure on stock prices, affecting almost everyone who currently owns US shares– pension funds and retirement accounts, rich and middle class, US and non-US citizens alike. It’s as if the US government is hanging a sign over the country saying ”PLEASE DO NOT INVEST HERE.”
It’s pure genius wouldn’t you say?
(See some of my previous posts on the economic situation in USA:
One more small example, in this case the UK, national government borrowing is already 22% higher than at this same point last year, a record year for borrowing. Meanwhile, the UK‘s budget deficit for August hit a record high.
I hope you get the picture- it isn’t pretty!
And the unemployment picture
And let’s continue with Spain:
Spanish bad loans
The figures are just out for the total Spanish bad loans during September: the loans that fell into arrears, (the part of a debt that is overdue after missing one or more required payments), increased by €3.5 billion from August, reaching €182.2 billion in September. This is 10.71% of the total Spanish bank loans of €1.7 trillion, and an increase from the previous month.
Putting the bad loan number in perspective, it is nearly double the €100 billion that the Spanish banks will receive as part of the bank bailout plan disclosed in July, and well above the ”only” €40 billion that Spain promises it will need to actually fund bank capital shortfalls.
If you compared as a percentage of GDP, it would be the equivalent of $2.8 trillion in US loans going bad.
(See also my post This is why the Euro is doomed.)
Spain’s Regional Debt
The Greece budget
The Athens Finance Ministry just released 2013-2016 its latest re-re-revised budget.
Let’s look merely on one data series: the brand new Debt/GDP, (ignoring the -4.5% 2013 GDP forecast, already – 0.5% worse than the just released IMF forecast for Greece for the same period, remember also that the May forecast of 2013 predicted ”growth”), and compared it to the Debt/GDP ”forecast” from May 2010, when the first Greek bailout was announced.
It ain’t pretty
The Greece Finance Ministry
This is the same Finance Ministry where the EU inspectors found this in their taxation archive section (see the video 5:20-5-48):
Watch this documentary from ZDF (in german). It shows where 2 ½ years of bailout funds went, or rather didn’t go. And why 2 ½ years to the day after the first bailout, not only is Greece not fixed, but is getting worse at a cost to taxpayers of nearly half a trillion Euro.
The Troika and their “predictions”
The troika (the European Commission, the International Monetary Fund, and the European Central Bank), which are supposed to get Greece’s financial future in order cannot make even the most basic forecasting. And the Troika have made these “forecasts” repeatedly, which are a complete and utter joke. But there is NO surprise here, this is ALL about politics. The same way that EU allowed Greece into the Euro knowing that every figure was false. But for political reasons they were allowed to enter.
And these “guys” are supposed to save Europe? Where all the important decisions are being taken on the ground of these “forecasts”?
The Greece unemployment
Again, It ain’t pretty.
I could go on, but I think I stop here.
You get the picture.
And of course, none of this is covered in the mainstream media or by our “dear” politicians.
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