We had a server outage, and we're rebuilding the site. Most of the site features won't work. Thank you for your patience.
imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

EU Austerity Madness

by Stephen Lendman Thursday, Mar. 08, 2012 at 12:48 AM
lendmanstephen@sbcglobal.net

class war

EU Austerity Madness

by Stephen Lendman

European/American austerity assures a 1% wealth grab at the expense of all others.

Prioritizing banker payments causes debt bondage, human misery, economic wreckage, and eventual collapse. What can't go on forever, won't. It's not rocket science. It's fact.

Economies thrive on productive economic growth. It includes public sector infrastructure investment in transportation, research and development, roads and bridges, education, healthcare, and other vital areas. Sacrificing it for bankers and other vulture investors causes Greek-type crises.

Financialization highlights "the great problem of our time," says Michael Hudson. He defines is as "capitalizing every form of surplus income and pledging it for bank loans at the going interest rate, personal income over and above basic expenditures, corporate income over and above cash flow....and whatever government can collect in taxes over and above its outlay."

Banker nirvana depends on securing all economic surplus as interest, says Hudson, or in hard times as bailouts. However, doing it "leaves nothing over for living standards and what (18th and 19th century) economists (called) human capital formation (training and education) required for labor productivity to rise."  Economies need it to thrive.

There's also "no cash left over for corporations to invest in new tangible capital formation, and no government spending for infrastructure or other social and economic needs."

Hudson talks about a financialization-caused economic/political "Dark Age," "a form of neo-feudalism." Industrial capitalism and people suffer to enrich financial oligarchs. Austerity becomes policy. Debt peonage and hard times follow. Jobs are cut, wages slashed, and living standards shrink. Prioritized banker demands sacrifice fundamental human needs.

EU Fiscal Pact Insanity

The EU's latest Fiscal Pact demands more. Terms call for constitutional debt limits. Exceeding 3% of GDP brings European Court suits. Doing so triggers automatic penalties, at least according to pact mandates.

Eurozone monetary union failed. Europe's Exchange Rate Mechanism (ERM) was introduced as part of the European Monetary System (EMS) to propel the continent to one European currency unit (ECU).

ERM never worked. ECU's failing. At issue is duplicity, conflicts of interest, and uniting 17 dissimilar countries under rigid euro straightjacket rules. Doing so usurps their monetary and fiscal autonomy disastrously.

Bernard Connolly got it right. His 1995 book titled, "The Rotten Heart of Europe: The Dirty War for Europe's Money" called it a harebrained idea doomed to fail. Saying it cost him his job as EU monetary affairs department head. He's regarded as the foremost expert on European economic, monetary, and political integration.

Months before the euro's 1998 introduction, he predicted that one or more of Europe's weakest countries would face rising budget deficits, troubled economies, and a "downward spiral from which there is no escape unaided. When that happens, the country concerned will be faced with a risk of sovereign default."

In late 2007, the great unraveling began. Massive liquidity infusions delay eventual day of reckoning inevitability. The longer it's extended, the worse the fall. It's just a matter of time.

New Fiscal Pact provisions mandate austerity. EU nations have no say. Ordinary people have none whatever. Britain and Czechoslovakia opted out, not for populist reasons. Under the Bank of England, the UK retains monetary sovereignty. Both countries retain fiscal policy control.

They'll enforce austerity their own way. Mandating more across Europe assures harder than ever hard times. Ordinary people suffer most. Recession's already biting. Europe's healthiest economy feels it. Germany's 2011 Q IV GDP contracted 0.25%. In January, its retail sales slumped 1.6%. Consensus expected +0.5%. Eurozone industrial activity contracted for the seventh consecutive month.

China's Purchasing Managers Index (PMI) showed weakness. Its growth target was cut to 7.5% from 8%. High oil prices are taking a toll. US gasoline consumption slumped 7% year-over-year. Imagine the effect of expected $5 dollar gas by summer or late spring. Real, not manipulated, joblessness keeps growing.

What affects Germany impacts the continent. Look for Europe's recession to deepen and spread. Unemployment's rising. In January, it reached double digits, its highest level since the euro was introduced.

Youth joblessness is especially affected. In Greece and Spain it's 50% or higher. Fiscal Fact austerity assures greater hardship, including higher unemployment, lower wages, eroded benefits, and less ability to survive. Mandating it's cruel and insane.

Decades of social progress is lost. Ordinary people more than ever are on their own sink or swim. In hardest hit countries, people are voting with their feet and leaving. Capital flight's joining them. Fiscal Pact madness assures economic decline, widespread deprivation, and social unrest.

At the same time, ECB Long Term Refinancing Operation policy (LTRO) gives banks free money, but not without unintended consequences. Expect eventual disruptive public anger. Deprived people take only so much. Tolerance thresholds eventually breach. The fullness of time will tell when.

For years, Progressive Radio New Hours hour regular Bob Chapman explained Eurozone madness and eventual Greek default. He calls the last four years "a warm up" for greater future trouble.

Greece, other troubled economies, and those heading there can't keep borrowing more than their revenue stream. Doing so increases indebtedness. Extraordinary levels can't be repaid. Entrapped Greece has no choice but to default and exit euro straightjacket rules.

S & P cut Greece's credit rating to selective default, its lowest level because repaying it's impossible. Moreover, European banks won't lend to each other. Speculation's safer. Unless business lending increases, economic growth won't happen.

So far, not a glimmer's in sight. Free ECB money achieves Pyrrhic victories at the expense of ultimate unwinnable ones. Follow bond, not equity, buyers. Their world view sees dark storm clouds coming. Bet on it.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

http://www.progressiveradionetwork.com/the-progressive-news-hour/.
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments


Local News

Woolsey Fire: Worst News of 2018? J01 12:18AM

Oppose Environmentally-Harmful Development D10 4:03AM

Oppose Environmentally-Harmful Development D10 3:58AM

OUR HOUSE Grief Support Center Presents Night for Hope O30 5:38PM

Marshall Tuck’s racist dog whistle O27 5:01AM

Marshall Tuck’s ethnocentrism contradicts Californian values O27 4:32AM

Contra Costa-Hawkins O25 3:48AM

Debunking Some Anti-Prop 10 Propaganda O12 6:56AM

Why Should California Choose De Leon Over Feinstein? O10 9:55PM

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

More Local News...

Other/Breaking News

bataclone J21 8:08PM

VAN ATTACK HOAX J21 7:35PM

Mobile Royale Hack Online Generator - Get Unlimited Crystals J21 3:03PM

Unification, séparation et fragmentation J21 2:48PM

Testing Upload J21 7:10AM

FARCELONA.2 J20 7:18PM

FAKE NEWS POR SOROS J20 6:11PM

Chemtrails and Prince J20 2:43PM

Wages For Housework J20 2:41PM

Tutelle comportementaliste J20 9:18AM

A Mistake: Jesse Jackson-Toyota deal-in Lexington -Ky is .8 billion over 10 years 2018 J20 1:17AM

If Trump Declares a AantionalEmergency, He'll Be Breaking the Law J20 12:47AM

Jesse Jackson's Sneak Attck on Toyota Lexington Ky and it's workers 2018 J19 9:12PM

Video: Chris Herdges in Eugene, 1 hr 24 min J19 5:37PM

FAKE NEWS J19 2:31PM

MACROTHSCHILD.2 J19 11:03AM

Judge Delays Ruling on Puerto Rico Debt Deal White House Opposes Island's Food Assistance J18 6:04PM

BATACLOWNS J18 9:28AM

FALSAS VICTIMAS J18 9:22AM

Paraphysique de proxémie guerrière J18 7:59AM

MACROTHSCHILD J17 9:38PM

FARCELONA 8.17.2017 J17 3:23PM

DEAD MAN LIVING J17 10:46AM

DIARY OF A CON MAN J16 10:40PM

PR Debt Cancel, Judge Reviews Cofina Debt J16 9:04PM

Réseautage, fragmentation du capital J16 4:20PM

Paraphysique de manipulation mentale et sociale J15 9:51AM

The Global Justice Project and Human Survival: We're Badly Off Track J15 5:08AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy