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Eyeless in Gaza, clueless in Brussels, synchronized drowning
“Austerity simply cannot work for collapsing economies, no matter how much political capital is spent. This has been the sorry tale of this whole crisis.”
We have refrained from comment for a couple of months in the vain hope that politicians, economists, central bankers, or business leaders might actually DO something, or indeed anything, intelligent to address the dire state of developed Western economies and, in particular, the benighted citizens of the eurozone periphery, whose plight just grows worse daily.
Thus far, all that they have done is to transfer the private debt (of Banks) to Sovereign debt (the taxpayers) and then wonder why the public are asking “why do we have to pay for their mistakes whilst they are bailed out time and time again?” This is what civil unrest is all about and will get worse.
As the rain pelts down in the UK for the third month since the onset of “drought”, it has driven one back to Keynes’ famous essay on The Economic Consequences of Mr. Churchill, written just after the UK’s return to the gold standard, for which read today, euro standard.
The effect, Keynes noted, of pegging the pound to gold at the wrong rate was to:
1) Drive up the cost of exports (the lack of competitiveness issue)
2) Force a fall in wages as export industries try to adapt.
3) Restrict credit, and
4) Create a rise in unemployment….
Read more at Ye Olde False Flag
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