Austerity, Economics, Politics, Riots and War

Subregions of Europe (UN geoscheme)

Subregions of Europe (UN geoscheme) (Photo credit: Wikipedia)

One of a number of posters created by the Econ...

One of a number of posters created by the Economic Cooperation Administration to promote the Marshall Plan in Europe (Photo credit: Wikipedia)

Paul Krugman, Laureate of the Sveriges Riksban...

Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Royal Swedish Academy of Sciences in Stockholm (Photo credit: Wikipedia)

English: The Fall of the Berlin Wall, 1989. Th...

English: The Fall of the Berlin Wall, 1989. The photo shows a part of a public photo documentation wall at Former Check Point Charlie, Berlin. The photo documentation is permanently placed in the public. Türkçe: Berlin Duvarı, 1989 sonbaharı (Photo credit: Wikipedia)

The outlook for the Summer is increasingly worrying ahead of the September election in Germany.

Nobel prize winning, liberal, economist, Paul Krugman, in his NYT blog, has graciously accepted that he has overwhelmingly won the academic economic case against austerity; worryingly, he seems to question whether it will make any difference (to politicians and their sponsors who are following their own agenda).

In Europe, we are seeing France flex her muscles looking for special treatment and less austerity. Meanwhile, as Germany stubbornly sticks to austerity for the rest of Europe and modest growth for Germany, there are increasing questions whether a crisis will erupt before the German election. The Financial Times speculates that German policy will be forced to bend rather than meet France head to head on the barricades. Sadly, it will be too late for the millions of economic casualties across Southern Europe in Greece, Italy, Spain, Portugal and most recently Cyprus.

Yesterday, I picked up on an important recent research research study in Europe, reported in the Guardian, highlighting that trust in Europe’s politicians has reached a record low. I questioned:

Traditionally, ordinary peoples’ views have not mattered much to the political classes that have formulated EU policy. Now there is such a backlash that perhaps the political classes themselves feel threatened? Perhaps, there will still be a place for democracy in formulating EU policy?

I received a thoughtful and worrying response from John Gelmini who argued:

The views of ordinary people will only count when the economic situation and lack of jobs for young people hits crisis point and people take to the streets.

The UK is building towards a damaging general strike probably for the summer and Southern Europe could go in the same direction.

As it is, a German view of Europe is prevailing because they are exporting sufficiently to be able to apply austerity elsewhere and be gentle to themselves.

The UK with its flat-lining economy, zero exports, moribund banking sector and constant austerity is a pressure cooker ready to explode, particularly when the estimated 350,000 Bulgarians and Romanians come looking for work.

Personally, I see Europe’s leaders failing to tackle the continent’s growing economic problems and sclerosis. What they are clearly looking for is a Vietnam style war to get their economies moving and to enable them to seize the mineral wealth of Africa.

Surely, political leaders will increasingly press for reflation, at risk of modest inflation, rather than risk riots or perhaps even war as an outcome?

Is it time for a second Marshall Plan in Europe?

What do you think are the likely scenarios for the Summer?

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21 responses

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  21. August 1914 Parallels for the Present Time

    The economic and political conditions today described in the Guardian and the award winning Paul Krugman are eerily reminiscent of those which prevailed in the summer of 1914.

    Then we had a series of powerful elites remote from the concerns of ordinary people and we had a British Empire in decline(it had reached its peak in 1885).

    Ordinary people in the UK and Europe were poor with a massive gap between their income and life chances and those at the top; slums were plentiful and people drowned their sorrows in a sea of cheap alcohol.
    The police in all these countries kept the poor in check and through poor education and limited opportunities for travel, it was easy for the authorities to keep ordinary people in the dark.
    We had a resurgent Germany being heavily financed by leading plutocratic families like Krupp and positioned to fill the vacuum and upset the balance of power which was supposed to be maintained by by the alliance between France and Russia.

    Britain, according to our leaders at the time, was going to have nothing to do with any of this and could remain on the sidelines, protected by what was then the most powerful navy in the world.

    Today we have the same series of powerful elites represented by 21 families and remote from the concerns of ordinary people.

    Totaling 6,600 people, this group since the banking crisis, have become $32 trillion USD richer whilst everyone else in the world earning less than £250,000 gbp has become poorer.

    The gap between rich and poor is now wider than ever and in the UK and Europe the Knights of Malta have accelerated their program of opening food banks; whilst in America there are 60 million food stamp recipients.

    The current world order is based on the idea of 2 reserve currencies of which Sterling is one and the Petrodollar created by Richard Nixon is the other.

    The Chinese, Russia and Brazil are now challenging that order, as is Iran, with a network and a Petroleum Exchange based on a basket of currencies. Also we have an economically resurgent Germany in Europe and China also resurgent, buying up and consuming most of the mineral resources on the planet.

    Just as in the run-up to World War 1, there was civil unrest, talk of revolution, bombs exploding and False Flag events, plus a general air of hopelessness; we have all those conditions today, plus the two new bogeymen (Merkiavelli and the sentiment expressed by Donald Trump “China is eating our lunch”, “They are building new cities with our money and if I were President I would put a stop to it”.

    Whilst people are better informed via the internet, there is a lot of bogus information in the form of PsyOps (psychological operations), designed to confuse people to the point where they switch off so the overall effect is to create what the late Sir John Rawlings Reese (Head of Psychological Warfare for the British Army and Tavistock devotee), called “Long range penetration strain”. He was the man who trained Dr Kissinger so he has form.

    People in that condition (brain-washed by PsyOps) are rendered powerless and will grudgingly accept austerity or practically anything which they see as inevitable, or beyond their power to stop.
    Europe needed to solve its problem with a $6 trillion USD bailout; or as David Cameron called it, a “Big Bazooka”.

    Germany and the rest of the European leaders refused to create one but they have been building up their armaments and selling arms in quantity overseas whilst America has a Black Budget equivalent to America’s entire GDP which it is putting into a military buildup bigger than anything the world has ever seen and far bigger than the 11.8% annual buildup by the Chinese military.

    China is now engaged in a massive global hunt for mineral wealth and is Africa’s biggest inward investor and if it continues at its present rate Europe and America see themselves as in trouble. For this reason, America and Europe (ourselves and France in particular) want to seize much of Africa’s mineral wealth and control through their elites what they call Eurasia. Eurasia is code for Russia and China but to achieve it they need to first expand NATO which has already happened and then through bases and missile shields (Brilliant Pebbles) encircle Eurasia.

    This process of encirclement has 7 stages:

    –Regime change in Syria,the Lebanon and Palestine plus the expansion of Israel (we are sending arms and “non lethal aid” to the Syrian rebels now and Turkey is being promised EU membership in exchange for invading Syria)

    –The invasion of Iran (the military buildup including German built mine hunting submarines,drones and battle carrier groups has been going on for 5 years)

    –The destabilization of the Caucasus states(ongoing)

    –Getting Tibet to break away from China (ongoing)

    –Stirring up the Uighurs to precipitate the breakup of China (ongoing)

    –Invading Africa and seizing mineral wealth (French and British troops and Africom are already there)

    –Strengthening the Indian military which now jointly patrols with the Vietnamese (happening now).

    In trying to solve their problems in this way the Europeans, the Americans and ourselves are playing a dangerous game just as the Great Powers did prior to World War 1. This is manifesting itself in strategic investments in Western companies, (Wessex Water etc), 4 million cyber warriors in China and 2 million in Russia’s GRU hacking into every Western database imaginable, including the power grid and those dealing with shipping movements of food, more nuclear submarines, space-based weapons, investment in Ekoskeleton armoured suits, fighting and storming robots, weather warfare and the creation of blue water naval capability.

    One hopes that wiser counsels will prevail but it looks like the run-up to August 1914 to me.


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