More Europhobic Madness.

Krugman talking in “Rationality and the Euro: Gordon Brown… concluded that the case for euro membership was not good. And boy, was that a good call…there’s no comparison between British woes and those of other European nations that had large capital inflows and housing booms… it’s also largely because of a point that was perfectly well understood in 2003 and has been confirmed by experience: “internal devaluation”, reducing relative prices with a fixed exchange rate, is really hard compared with just devaluing your currency. Here are BIS estimates of the Spanish and UK real exchange rates, 1999-01 = 100:

British Worth Collapsing, Krugman Happy

British Worth Collapsing, Krugman Happy

Krugman: “Notice how Britain effortlessly achieved a real depreciation that, if it’s possible at all, will take years and years of mass unemployment in Spain.”

So let’s repeat slowly to expose the prestigious professor’s reasoning. Suppose a Spaniard and a Brit started in January 1999 with a total worth of 300,000 Euros. Now the Brit is worth 225,000 Euros, and the Spaniard 330,000 Euros (I adjusted to the latest value Euro/Pound). How did they get there? The Brit worked very hard, and the Spaniard, less.

So Krugman’s logic is this: work hard, and get poor effortlessly: good. Work less, and, however your efforts, get richer: bad.

Europhobes insist that getting poorer, from currency devaluation is good. We just saw it’s not good for one’s wealth. Is it good for GDP? Can one devaluate oneself to prosperity? Krugman loves to claim that this is relatively easy. So how come the British GDP is doing so badly?

UK GDP Doing Worse Than In 1930s, So What Is Krugman Talking About?

UK GDP Doing Worse Than In 1930s, So What Is Krugman Talking About?

Krugman: “an actual rational decision process is all too rare — perhaps especially when it comes to the euro. Talk to euro advocates and they cannot entertain, even as a hypothetical proposition, the notion that the single currency was a bad idea; I came away from one talk with the clear message that the euro cannot fail, it can only be failed, that any problems simply show that countries and leaders lack sufficient nobility of purpose.

And despite the overwhelming evidence that the euro was an even worse idea than it appeared 10 years ago, countries — notably Poland — are still considering joining. I understand that leaving the euro is a very difficult thing to contemplate; but getting in now, when you had the great good luck to avoid this mess? Awesome.”

Krugman knows not enough: countries are supposed, by treaty, to join the Euro. Also, although he and fellow Europhobes present the process of the UK not being in the Euro as a rational process, it was anything but. It was a plutocratic process. So what Krugman is saying is that plutocratic behavior is rational. Just as the croc devouring the child, I guess.

Indeed a plutocrat, Soros, made a billion dollars by forcing Britain out of the European Monetary Union. Soros did so, thanks to his corrupt accomplices in the British government. 

So, what Krugman is saying is that gangsters conspiring to steal We The People is rational, “awesome“.

What’s even more awesome is that Krugman keeps on missing the purpose of the Euro, loud and clear. Economics ought to be slave to politics. And, not vice versa, as is the case in the USA. Vice versa, like in “vice”: in the USA nobody object to seeing the so called “president” spend much of his time begging for money from his rich “friends”. (Sponsors, or “friends”?)

Europhobes keep telling Europeans that they should not have a country, but dozens, with dozens of currencies. Try moving around New England, while using several local currencies. That would have a very heavy economic cost. Maybe europhobes want Europeans to be enslaved to what president Roosevelt called, with contempt, the “money changers“?

Krugman’s entire case against the Euro, officially speaking, is that, the poorer the People is, the better it is for the People. Is it not the truth that plutocrats hold as self evident? So europhobes see the worth of the British collapsing with their British Pound, and they say that British devaluation is very good.

Europhobes see Britain doing worse than in the 1930s, and tell us that the Euro is very bad, because PM Brown was so good? 

What about logic 101? Is that bad too? Is dereason rational, and rationality illogical? 

The anti-Euro obsession allows to focus on what is not the real crisis. Spain, for example had a mis-investment crisis, that led to all sorts of imbalances. In any case, the fundamental reason for the present crisis was a political-banking corruption mix… That has nothing to do with the Euro. For example politicos from around Valencia are in jail, just for that reason.

But the banksters have not been prosecuted enough. And why so? Because, in part, all too many pundits make a profession from barking at the foot of the wrong trees. Corruption starts with greed, it ends up with rotten minds who cannot tell reason from hatred, or madness.

It could get worse; plutocrats and plutophiles could, like the Muslim Brotherhood, make madness and hatred into a religion… They have, many times before, in all lands. Then they, and their ilk, could hold power for 13 centuries, as the superstition called “Submission” did in Egypt. Way out? In Egypt, as in Europe? Force. Mental force, and, if that’s not enough, physical force. So the Euro is force, just as the Egyptian army is force.

Sometimes nothing short of force will get things to move, in the right direction! The whole idea of the Euro was to FORCE European Unification further. And this is exactly what is happening, in combination with solving the banking crisis.

***

Patrice Ayme

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44 Responses to “More Europhobic Madness.”

  1. pshakkottai Says:

    Hi Patrice:
    The economies of states and the federal govt that creates money are totally different.
    There are two kinds of economies. Monetary sovereign (USA) and non-sovereign (Greece, Spain, Germany,California, Chicago).

    For states and euro nations and USA before 1971:
    A. tax +net export = spending + govt_savings = spending – govt_debt.
    If there are two nations we have two equations A1 and A2
    A1. Tax1 +net export1= spending1 + govt_savings1 = spending1 – govt_debt1
    A2. Tax2+net export2= spending2 + govt_savings2 = spending2 – govt_debt2
    If we add the two we have
    Tax1 + tax2 + (net export1 + net export2) = spending1 +spending2 – (debt1 +debt2)
    If it is strictly internal trade, (net export1 + net export2) = 0 and (debt1 +debt2) =0. For example, for Germany and Greece, Germany will accumulate euros and Greece will have deficits. Greece will have to borrow money from somewhere and pay interest. Sooner or later it will go broke.

    If not strictly internal, but trade outside Europe, both can survive. The balance is delicate. Tax must be equal to spending.

    For USA and other sovereign currency issuers after 1971:
    B. Govt_spending – tax = Deficit = private savings + net imports. Equation B is the MMT equation which has been verified by me in
    http://pshakkottai.wordpress.com/2012/03/30/another-proof-of-mmt-4/

    Taxes are not required for Type B. Only deficits greater than net imports. Deficit is always required for growth. No special status is required for type B. By special status I mean a reserve currency. All monetary sovereigns are equally strong.

    In this case two states within USA can survive by federal money and internal and external trade with no need for strict equality of
    state income =state expense.
    The weaker states can get more federal money.

    As long as the nation has resources and labor available, the federal spending can be quite generous. Only when there is labor shortage does a need arise to cut back.

    I believe that Europe would be better off as a sovereign money creator ( a real United Nations of Europe) and give money to Greece rather than try to finance Greece with unrepayable debt and forced austerity.

    Partha

    • Patrice Ayme Says:

      Dear Partha: First of all, California has a weaker status than Germany. Euro members keep their central banks.
      Second, Greece does not have to run a deficit relative to Germany. Greeks could earn as much from German tourism as Bavarians from BMW sold in Greece. Greece has a problem of deficit that has a lot to do with the richest paying no taxes.

      The whole idea of the Euro was to FORCE European Unification further. Maybe I should add that at the end of the essay. At this point France & Germany have decided a sort of time-out about banking unification, while the German elections and the present partial banking unification proceeds.

      (The Germans and French are afraid that medium and small size banks in other countries will take risks if they know they are insured globally, before a tough and tried inspection system can be set-up!)
      PA

  2. Lovell Says:

    Hi Patrice,

    From my own reading of Paul Krugman’s columns and blog posts, he does not seem averse at all to the idea of a pan-European union. He, in fact, recognized its importance as a way to avoid repeating the trauma of two major and brutish wars.

    Because he is an economist, what he is criticizing is the ongoing failed experiment of having a monetary union without full political confederacy and a central government because, as is currently evident, it strips the individual euro states of its flexibility to deal with its problems concerning fiscal and monetary policies.

    Greece, for example, need not have to fear the danger of default if there’s a central government willing to give aid and rescue. While it maybe true that individual nations still have their own central banks, it does not have the power anymore to issue its own currency.

    What Krugman is suggesting is Europe should either go into full frontal unity or never mind. For him, half-baked unity is impotent in addressing the problems of member states. It should be full marriage, not a live-in arrangement.

    • Patrice Ayme Says:

      Dear Lovell: Krugman, whether he knows it or not has europhobia. I know he says he does not. That puts him in the same category as those Nazis who said they truly, deep down, loved the Jews. Sure, millions got killed, thereafter, but Krugman also wants war to be brought to Europe. Again. That’s de facto what he says. The latest graph, where he says Britain is getting way ahead by crashing are a case in point.

      I am not amused anymore by that sort of creepiness, and insults against reason. As I showed in:
      https://patriceayme.wordpress.com/2013/03/29/euro-derangement-syndrome/
      Krugman said then that, if only Greece had evolved like Argentina, it would have been much better. That’s sinister to the power cube. Argebtina got dictatorship and the bankers in NYC Krugman depends upon made a fortune, from Argentina.

      Enemies are bad, false friends who want to kill you, worse.

      A very high French official just said France was not going to go to war against the USA because of spying. OK. That’s politics. The French gov has to worry about real things. However people such as Krugman are actually part of the philosophical steering. Krugman was employed by Reagan. Still is. Philosophically speaking.

      Europe needs to be united as one country. Krugman and his ilk says only the USA ought to rule. They need to be fought. And fought to death, if need be. What will rule?

      The tradition of massacring of Indians, enslaving “blacks”, violating of the fundaments of Western Civilization, while dissembling throughout, Obama style, about what one is truly doing? Or the triumph of the enlightened side of civilization? My next essay will consider the roots of that dichotomy.
      PA

    • Patrice Ayme Says:

      Krugman explicitly suggested (see https://patriceayme.wordpress.com/2013/03/29/euro-derangement-syndrome/) that Greece better become a resentful tortured American empoverished, exploited satellite as Argentina became. Of course, that would be best for Wall Street leeches, mightily sucking from Harvard, MIT, Princeton.

      Left alone, Greek wealth would start to be divided by two overnight. The Greek central bank can issue Euros, BTW. And also could do like California did before cutting schools by one year, an introducing giant tuitions in public universities. California issued IOUs.

      Krugman always say the Euro is a failure. And leaves it at that. He speaks as an idiot, a deliberate one. There is a banking crisis (in USA too). He does not want to talk about that, and knows little about it. The European Banking Union project is on, and running, although it’s subject to a deliberate delay at this point.

      Personally, I had enough of this sort of USA imperialism. Not out of anti-American sentiment, quite the opposite. This is nuts, and it helps no one.
      PA

  3. Amna Shiekh Says:

    “Enemies are bad, false friends who want to kill you, worse”??

    Patrice? Enemies? No….. 😉

    • Patrice Ayme Says:

      Dear Amna: Ah, not so easy to make good enemies. Like publishers on the Internet who censor my comments. How can we become enemies? They know this, and they abuse it. Just yesterday the NYT and some economics prof at Oxford censored me. My comments were very, excruciatingly polite. So now I feel less polite. I am a bit riled up, actually.
      The advantage is that I do not have to waste any time on false friends, when I don’t waste any energy on the seduction dance…
      PA

  4. Lovell Says:

    Okay, help me out here Patrice because I am obviously missing something. Why would the US be afraid of a unified Europe? It shares history, democratic traditions, and all that rigmarole of western cultural values.

    I’m quite certain that if Europe should announce that it’s forming full political union effective immediately, the US government would welcome and endorse it.

    But Krugman et.al., conspiring with the Wall Street mafia to prevent such a union forming? I don’t think so. US think tanks are more concerned about the emerging alliance between Russia and China.

    What am I missing?

    • Patrice Ayme Says:

      Dear Lovell: I sent a comment to Krugman’s editorial today, that, once again, calls onto the plutocratic phenomenon. Please read it below. The USA is no monolith.

      The USA is (greatly) part plutocracy. Plutocracy has permeated the USA with a mood compatible with itself. I often talk with upper class Americans, and they are in a state of barely controlled, barely disguised panic. I have the impression they view me as a hyper brainy cobra, obviously a worrying situation when one is just a brainless pigeon.

      The USA is, fundamentally, a European colony, one of many. It’s one of the purest, and the most successful.

      However, what one talks about here is the new governmental paradigm in Europe, a new form of power that is taking the lead. It’s even possible, entirely, that the transnational currency, the Euro, will become the world’s currency. Precisely because of what irritates kruggie boy so much.

      And one is talking about throwing out plutocracy. The USA is to plutocracy what Corsica used to be to corsairs, also known as pirates…
      PA

    • Patrice Ayme Says:

      The USA plus the European Union have 55% of world GDP. Add other satellites (Canada, Australasia, etc.) and one gets more than two-third of world GDP.

      The question is to know if it’s the anti-plutocratic mood of Europe, led by anti-plutocratic French intellectuals, which is going to instill its values, or the mood of the brainless, but very hungry Wall Street sharks.

      That’s why the hatred against France is so red hot on Wall Street.

      China and Russia can ally all they want. When Russia was at war with Georgia, it’s the French intervention that stopped the war, not China, not the USA. The fact is, Western Europe has enormous clout and know-how (Russia likes to sell its gas, somewhere, and acquire EU tech, from trains to aircraft carriers, for example).

      Only the USA makes a show of being unimpressed by Europe.

      Krugman does conspire with Wall Street, he literally breathe with them (con-spire). And he shares their mood. For years he has talked about Europe, with extreme hostility, knowing strictly nothing about it (he admitted so later).

      Europe is a construction site. What is being tried there was never tried before: transcending nationalism by humanism. As struts are going up, Krugman intrudes and barks, because his powerful masters have expressed their irritation.

      Krugman has a great life, a beautiful house. It would be even greater if it would please real plutos much more. You know the types I have come across.
      PA

    • Patrice Ayme Says:

      “Why would the US be afraid of a unified Europe? It shares history, democratic traditions, and all that rigmarole of western cultural values.”

      Yes, but it’s more superficial than real. The USA is completely different in other ways. My European appreciations get me into continual conflicts in the USA, for example. I will show in an essay coming soon, July 4-14 how that happened, or, more exactly, how that was boosted.
      PA

    • Lovell Says:

      Thank you for sharing that perspective Patrice. Now I might need to make some major re-think.

      Are you referring to the New Philosophers (BHL et.al) as the visible leaders of the trans humanist anti-plutocratic movement?

      • Patrice Ayme Says:

        Thanks for making me the gift of trying a re-think, Lovell! even me, I practice re-think, sometimes quite painful! Minor or major, I make several re-thinkings a week…

        I often criticize lots of people of being corrupt in various ways, such as many demoncrats.
        Now BHL is in a league of his own. I admire his guts very much, both his physical guts, and his mental guts. I agree with lots of his philosophy. In other words he is probably the plutocrat I agree the most with.

        Indeed BHL is immensely rich, and he got there, from his father’s fortune, leveraging his political and intellectual influence on the likes of Mitterand. While ravaging (Black) Africa. I never said plutocrats could not play a very positve role. BHL does, taking ENORMOUS personal risks.

        BHL definitively smells of sulfur. It’s not just me who knows this among serious philosophers, so he is highly controversial, he and another group of flambloyant media philosophers in France (Luc Ferry, and the babble box in Caen being other examples). The anti-plutocratic philosophers are people such as Badiou (academic, ferocious, hard to figure out).

        There are few public intellectuals in the USA (Krugman being one of them! Chomski another, the alibi of MIT). There are many in France (even if they have a healthy disrespect for each other, quite frequently!)

        The intellectuals and intellectually inspired politicos that pushed for the European construction, are, in turn, influenced by the intellectual celebrities above them. There is an immense hierarchy, a vast world out there.

        When Krugman barges in this complexity, like a bull in a neurosurgical room, he is out of place. All he achieves is to make people such as me more strident, and call attention to what exactly happened in the past. I observe that many of my main axes of attacks are progressing satisfactorily in the collective unconscious. Few people nowadays ask me what a “plutocrat” is (although it happened yesterday in Palo Alto!)
        PA

    • Lovell Says:

      Dear Patrice,

      I’m not sure how mainstream or just peripheral is it but there are adherents of an idea called British Israelism – the belief that Anglo Saxons and, by extension, those original American settlers who are mostly British, are descendants of the Ten Lost Tribes of Juda or Israel.

      http://en.wikipedia.org/wiki/British_Israelism

      They are fiercely opposed to a unified Europe (the beast of Revelation) and considers modern day Germans as descendants of the Assyrians.

      I don’t know how this plays out in the dynamics of current Euro debate (especially in light of the fact that Krugman is a Jewish American?).

      • Patrice Ayme Says:

        Dear Lovell: Answer in a separate comment flow. It’s true many folks are mythology crazy out there… And how much crude men self contradict has to be somehow explained…
        PA

  5. old geezer pilot Says:

    Call me a conspiracy nut, but Wall $treet makes a lot of money on a DIS-united Europe. The Euro was just made for currency speculators. If Europe ever got central taxation powers (and could make them stick like the USA), then the Euro could survive all the attacks of the so-called “market.” It is no market – it is a lot of greedy speculators, like George Soros, who (before he became a champion of progressive causes) BROKE THE BANK OF ENGLAND.

    And he made a ton of money.

    • Patrice Ayme Says:

      Dear OGP: I could not agree more.

      More generally, put bluntly, it’s because USA plutocrats had armed Hitler to the hilt, that Hilt-Hitler was able to defeat the Republic in May-June 1940. Hitler had run out of lead tetra-ethyl in September fighting to death Poland and the Republic. He could not fly much longer.

      American plutocrats dispatched to him 500 tons of the additive. Without it, Hilt-Hitler would have been unable to defend his Reich of Horror against the Republic.
      (even then the Republic conducted the first air raids on Berlin!)

      So yes, American plutocracy conspired in the death of the 70 millions….

      Clearly, if European related fiscal havens are brought to heel (they are all on their way, by 2015, they whine), the next stop is DELAWARE. Even Cameron (the shrimp?) is collaborating… Certainly Switzerland is being brought to (Franco-German) order…
      PA

    • EugenR Says:

      Dear Old Geezer, what you write is not about a “conspiracy nut” but a pure ignorance. So please let me;

      You say ….The Euro was just made for currency speculators…… This is an annoying accusation of those who created and try to defend the Euro against all its opponents whom i would call the worst kind of financial speculators and political opportunists.

      Then you write; ….the Euro could survive all the attacks of the so-called “market.” It is no market – it is a lot of greedy speculators, like George Soros,….
      1. Euro survived and was never threatened in reality. It is a great success with some health problems of a new born. As to me i am much more worried about the position of the US Dollar with the continuous huge trade deficit, than the position of the Euro.
      2. Soros had nothing to do with the Euro crisis. He caused at 1992 devaluation of English pound, Swedish crown and some other currencies, after he realized that the artificially high exchange rates of these currencies, caused by mismanagement of their governments can’t go forever, and the time came to bring these governments to senses before the economic dis-balance will be even larger. By the way, he tried unsuccessfully the same on the US dollar, but it was to big bite even for him and lost a billion US Dollar on it. If he would be successful, probably US would be with smaller debt and higher employment and the world economy would be more balanced. Most probably the 2008 sub-prime mortgage crisis would not happen, since the Chinese and the Japanese would not have enough dollar reserves to purchase all these mortgage products wrapped in nice CDSs and US government securities.

      To make it short the main problem is not Soros and others like him, but the Governments, who are mismanaging the economies and then blaming some scapegoat, as it seems quite successfully.

  6. Patrice Ayme Says:

    I sent the following in comment to Krugman’s editorial today (they published it within ten seconds, I guess we are friends again! ;-)!)

    A “Great Recession” one never recovers from, that’s what I call a Greater Depression. (Because the Great Depression of the 1930s, one recovered from.)
    https://patriceayme.wordpress.com/2011/07/23/greater-depression/

    There are many reasons why this Depression will deepen considerably. Two are the entangled ecological and energy crises. A third is globalization of plutocracy, allowing the latter to escape local law, in the absence of global law for the richest owners of capital.

    This all happened before, as the Roman Republic went down. First the middle class got empoverished and unemployed. Why? Because the anti-wealth law of the Republic was circumvented through globalization of the .1%. Then the rising plutocracy made sure to get ever richer, and the People ever poorer and unemployed.

    The process was made just so that People would not get indignant enough to start a revolution. So here we are.

  7. Amna Sheikh Says:

    Being censored is a compliment. It means somebody thinks your words are powerful. You should be flattered 😉

  8. Patrice Ayme Says:

    dear Lovell: It’s indeed curious how rabidly pathological Prof. Krugman is about screaming that Europe is a bad idea (while, of course, claiming he is its best friend).
    Recently he was observing that he had been cut off his Yiddish roots…

    What’s even more curious is that the Franks, who did not just fabricate Europe, but also invented the term “Europe” to qualify what they had conquered, considered the Jews as full citizens, completely equal to Christians, Pagans, etc.

    It is also certain that the Pilgrims were Bible fanatics, and adopted many of the themes therein, and felt they were living them.
    many of they ideas are still all around, corrupting the mood…

    I think Krugman is, overall a very good guy, but his thoughts and mood processes have been deeply corrupted in some respects by the individuals he breathe with… Same, to some extent with Obama, who he only now discovering that, yes, he can’t in Afghanistan.
    https://patriceayme.wordpress.com/2009/01/06/afghanistan-no-you-cant/
    PA

  9. Alexi Helligar Says:

    You say:”American plutocrats dispatched to Hitler 500 tons of crucial lead tetraethyl as he fought France (Sep 1939). Thus enabled killing 70 million.”

    How did you calculate the 70 million?

    • Patrice Ayme Says:

      Alexi: So called World War Two killed more than 70 millions. If Hitler had been dispatched in fall 1939, most of these 70 millions would have survived.
      PA

  10. Patrice Ayme Says:

    Iwo Freshtag: ‘Europe is a construction site. What is being tried there was never tried before: transcending nationalism by peacefully engineered humanism.’

    It’s complete opposition: they try to make communism and socialism from humanism. It won’t happen. People have enough.

    • Patrice Ayme Says:

      Iwo: Humanism is (partly, but strongly), intrinsically communist and socialist. Anyway, Socialism, Communism? How? By firing civil servants and reducing all social programs? And who is “they”? Those great communists? Barroso? Merkel?
      PA

  11. EugenR Says:

    Dear Patrice, you wrote……countries and leaders lack sufficient nobility of purpose.
    And this is the key. Sufficient nobility of purpose if to put it in economic terms is strategic long term planning. People like David Cameron have no interest whatsoever in the long run problems.

    As to Krugman the essence of his professional belief is that all the long run problems are solved on the short run and with short run tools. He claims that even when the the long run problems overwhelm the system, the short term tools will still be effective. This is why when the financial barons brought the world economy to the brink of collapse, all the tools were legitimate to prevent the free fall of the system, including leaving the criminals unpunished and even worse, let them continue their criminal activities.

    As to the European Unification process, luckily it advances in the right direction, even more since 2008. Who remembers that the Irish voters opposed the Lisbon treaty at 2007 to approve a much more radical treaty after their casino economy collapsed with the collapse of the “sub-primes”.
    http://rodeneugen.wordpress.com/2013/06/16/european-unification/

    • Patrice Ayme Says:

      dear Eugen: I approve all you said… Even though it’s a gentler angle than the ones I generally focus on. You basically say, in practice, that they are idiots living off expedients. I add that they are also viciously living off garbage they encouraged, and thus have a stake in furthering said garbage.
      That’s why Krugman concentrates on excoriating a currency, while all what one can see is a banking crisis. When did Krugman last whine about banks? never. Probably too busy swallowing, literally smothered by, caviar toasts served by friendly banksters!
      PA

  12. Lovell Says:

    Common currency compromised in Cyprus?

    http://www.nytimes.com/2013/07/10/world/europe/currency-controls-in-cyprus-increase-worry-about-euro-system.html?hp

    • Patrice Ayme Says:

      Dear Lovell: I saw, and actually read that one. Silly. The message is completely disconnected with reality. For the average Cypriot, his/her currency, instead of collapsing by 80% is still the same as ever was. They can stuff 10,000 euros in their hand luggage and fly to Paris. (One cannot stuff $13,000 and fly in/out of the USA, BTW, without declaring it, and it can be disallowed; there are existing cap controls all over, actually…)

      Capital control at 500,000 euros (like $800K!) is not much. They were put to prevent capital flight from organized crime.
      As I said the structure of the Euro is complex. central banks still exist below the BCE. Nothing prevents the Greek central bank to flood the market with its own Euros (except common sense). actually someone in one of the fringe parties in Greece threatened at some point to do just that. the real problem in greece is plutocrats. Capital controls in Cyprus is obviously a trial run to impose them somewhere, say in various tax havens…
      PA

    • Lovell Says:

      Dear Patrice,

      The 3% cap on deficits and 60% cap on debt set by Stability and Growth Pact (SGP) is unwarranted in light of current depression and widespread unemployment.

      Austerity formula such as that is the last thing individual states and, for that matter, the whole European Union need in order to get out of the slump.

      It is an anomaly that Europe, the birthplace of western Enlightenment, should continue to suffer so needlessly when it is rich in both geological resource, human capital, and scientific/technological knowledge.

      Technocrats from Brussels and Luxembourg should be taken to task for their mismanagement. Nobody benefits austerity except the plutocratic leeches. And even they will run out of blood to suck if the hemorrhage continues.

      • Patrice Ayme Says:

        Dear Lovell; many countries are exempted from the 3% rule at this point, for example France. Others are deliberately violating it, not bothering for authorization (Netherlands). So it’s not really a problem.

        “Rich in geological resources”? well the Swiss tried the geothermal thing (used massively not so far in France in a particular city). There were serious, ominous quakes, the thing was stopped. Now the Swiss are thinking about fracking. No doubt the French will be happy to see them go first.

        Fracking is a huge question in Europe. One cannot go out and destroy the continent as if it were North Dakota, wyoming, or West Texas. That’s iIdian land, Indians are gone, the land can be next. I have personally flown above fracked landscape in Texas. It looked like IO. Horizon to horizon.

        Some say France would have a century of fracked gas. It’s unlikely the French would extract it before more advanced tech is at the ready. Meanwhile it’s more crafty to sell carriers to Russia and get gas in exchange.

        Overall, whatever many say, life is clearly nicer in France, with free quality health care, free quality education, good food. Some say ain’t so, but they have a plutocratic agenda. The French also say ain’t so, but complaining there is the attitude one can’t do without. Plus, of course, significant reforms are on the way. And Switzerland next door, in many ways a kind of France, minus making war to Hitler, is doing great.
        PA

      • Lovell Says:

        Could Switzerland’s doing great be attributed to the fact that it hasn’t joined both the EU and the EMU?

        • Patrice Ayme Says:

          Answer in separate comment. Switzerland’s superiority is actually due to immense fright. Having evacuated various liquids and undesirable, heavy substances therein, renounced food, drinks and vacations, it’s running as fast as it can to escape its otherwise ominous fate…
          PA

  13. Patrice Ayme Says:

    Dear Lovell: “Could Switzerland’s doing great be attributed to the fact that it hasn’t joined both the EU and the EMU?”

    Good question.
    And the answer is… Very surprising!
    listening to some Swiss, one hears that Swirtzerland is NOT in Europe. That’s even more idiotic than saying Britain is not in Europe. Both are actually rogue fragments of the Roman, Frankish, and “Renovated Roman” empire.

    The Helvetiae were one of the most major Gallic tribes. They gave Caesar the pretext to start his Bellum Gallicum.

    Present day Switzerland is, in practice in the EU. It’s condemned, for its insolence, to sign every single European treaty. But, as a dog, it can just stay off the table. It has learned to obey respecfully, without barking.

    The Franc is also pegged to the Euro. So, it’s, de facto, part of the EMU.
    PA

    • Lovell Says:

      Dear Patrice,

      I know there’s that doctrine of neutrality that the Swiss had adapted but then it’s a revelation that they are actually doing great in the midst of all that bust.

      And so too, I hear, are Iceland and Norway. Could there be some clue in there somewhere?

      • Patrice Ayme Says:

        Completely different cases. Iceland is not doing that great, to say the least. It’s barely a country.
        Norway IS doing great. Thanks to oil and gas. But the heavy immigration has got obviously a bit too heavy. Same problem in Sweden. Sweden is comparable to Switzerland: a lot of brains is put in making things better, and high tech is present (although probably not as much as Suisse).
        Those two have been trying some sort of implicit alliance.

        The bottom line is that Swiss direct democracy is roaring on all cylinders, and so is Swiss education, and high tech. High tech in the heart of Europe is how the Franks, the self declared Europeans, got ahead.
        PA

      • Patrice Ayme Says:

        The neutrality doctrine of the Swiss was a sham. They collaborated deliberately, and very profitably, with the Nazis in WWII. Until the US Air Force bombed them “accidentally”, “sorry”.

        Recently, Switzerland has tried to get to the right side of the French superpower next door, and actually opened meekly her airspace to the air armadas striking heathens in Africa. High time.
        PA

      • Lovell Says:

        Dear Patrice,
        If the core countries are doing relatively well, while the peripheral GIPSI nations are struggling (not very different from the pluto corrupted USA, I must admit), what’s the game plan from Brussels?

        I certainly hope it’s not more devastating dose of fiscal consolidations and austerity measures like what the Republican muttonheads (with a little assist from Dems) are prescribing here from across the pond.

        • Patrice Ayme Says:

          Dear Lovell: The situation is very complex. The periphery is doing way better than it looks from just unemployment. See, it’s MUCH richer. Yep, Spaniards, Italians, are richer than Germans, on an individual basis!
          Average Belgians are three or four times richer than average Germans… Lot to do with housing. In France, people really OWN their homes. They don’t call renting to a bank, “owning”. Standard upper French middle class 100% own TWO homes.

          The sudden mass awareness of this, thanks in part to Der Spiegel, has changed the game. So the banking union of the top 200 banks is deliberately slowed by Franco-Germania as it eyes supiciously the southerners. They know they cannot sell that to the German electorate in 3 months… Or to the French streets, either…

          Greece is getting another ten billion dollars (to scale that would mean 200 billions for the USA!) but under severe conditions (firing of 4,000 civil servants, re-education of 25,000, and obligation to tax the wealthy much more).

          None of this Krugman knows. All he knows is what his masters want to hear him say, using his prestige, to try to discocumbulate the Europeans…
          PA

        • Lovell Says:

          Well, I think I must ask you to forgive me Patrice because I happen to think that those abnormally high unemployment numbers are not something to be shoulder-shrugged. Those are real people suffering. Institutional facade seems rather oppressive when viewed against that backdrop.

          This is the perfect time to put into action the French consensus that we talked about in another thread.

          If the Republic is a benign entity, a force for good, there is no better time to demonstrate that than now when people are praying for economic relief and redemption.

          The EU has both the tools and the means to do just that. The European Commission and the ECB could work in tandem to implement both fiscal and monetary expansion across the continent and this crisis need not have to drag for years. Bring the unemployment numbers down to tolerable levels and Europe will be on its happy way to demonstrate the possibility of convergence. United in diversity…

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