Wednesday, 20 July 2011

The REAL crisis resurfaces

Greeks are starving. All 400 of the Orthodox Church's districts have now set up soup kitchens as many unemployed Greeks have exhausted their £100 a week unemployment benefit and now have no income at all. The number living on the street has soared; perhaps bearable in the Summer, but Autumn is coming fast upon us. All the nation's Sovereign wealth has gone to bailing out the banks. Meanwhile figures just released show the bankers themselves in the UK have enjoyed a bumper year, with £14 billion in bonuses paid out to staff. That's about £1,300 each for every single Greek citizen. Enjoy your champagne and coke, boys.

The truth is obvious for all to see; the degree of austerity that has been imposed in not only Greece but Ireland  to save the banks is not sustainable. Greece must default; we've all known it. We knew it before the last bail-out.  The choices open to Europe's politicians over the next few weeks boil down to

1. Another round of bail-outs to buy more time; this will postpone the crisis to Christmas. Hugely unpopular with the Germans who face debt growing to 110% of GDP

2. Fiscal and political Union in the Eurozone; but as the Telegraph reports today "The chances are that the EU will only take the step of fiscal union or common bond issuance at one minute to midnight on a weekend when it is clear that the system is close to collapse."

3. Do an Iceland and let the banks fail. The result would be a global financial storm; a strategy of great risk, but one that may just pay off. Their collapse would take all of that poisonous $500 trillion of derivatives with it and allow a fresh start.

Whilst mentally-ill individuals masquerading as left-wing comedians dominate the domestic headlines the real tragedy is playing out in Europe. 


Sean said...

Seems to me fiscal union is against german basic law and its constitution, i cannot see any mechanism that would be reversed or thwarted.

James Higham said...

have exhausted their £100 a week unemployment benefit

Bstds - we only get £65.

Anonymous said...

@ Sean.

Doesn't matter if fiscal union is against the German law. Did you know bail-outs are illegal under the Lisbon treaty.. but did that stop the eu?? I think they have a clear agenda and will sweat (other people's) blood to achieve it!

Greg Tingey said...

Two errors here. One by Raedwald, one by A-nonny-mouse.

It isn't or isn't necessarily a ""left-wing" idea - never heard of State Corporatism - which the Nazis and Italian Fascists used (among other more unpleasant things) and also currently used by the Rethuglicans in the USA to disguise the fact that it is guvmint spending - just for their corporate friends, not for the general populace.....

Greman law is a lot stronger than EU law.
The EU law can and will be broken by guvminst (suprise!) but a ruling by the Constitutional Court that further bailouts are against the Basic Law will stop the whole thing.

I get the impression that Merkel is hedging, and waiting for Greece to crash completely, whilst deliberately keeping "hands off".

Sean said...
This comment has been removed by the author.
Sean said...


One is the mumbling's of the euro elite, the other is the law and product of German people and its history.

Sept. is when the German court rules and sets its view down,

Weekend Yachtsman said...

My opinion is that the German constitutional court will have its arm twisted and will come up with some fudge that allows the creation of the EU common financial area, or whatever it's to be called.

This is what the colleagues have been aiming towards for decades, they now have their beneficial crisis, and they are not going to stumble at the last fence.

The only remaining hope for freedom in our lifetime is that the PIIGS blow up before the court gives its ruling, and the storm then follows.

It is a high-risk strategy, but it's the only chance we have. Otherwise, Euroland here we come - with the enthusiastic support of our domestic Quislings, of course.

Mr Ecks said...

Fiscal union solves nothing.

The only reason they want one giant financial psuedo-country is so the germans can have large amounts of their cash steered south in the same way that the SE of England supports the rest of the UK.

That circumstance in this country grew up largely unnoticed over time. The hermans aren't stupid--they know they will be back overnight to bailing out 5 or 6 east-germanys full of people to whom they have no moral obligation.

Fabian The Fabulous said...

Euro in crisis? Not this week - Hackgate is the only show in town...
Just read the papers, or see the news!

Anonymous said...

@ Greg Tingey

You seem to have missed the fact that the Nazis were the National Socialist German Workers Party (NSDAP). While they went to war with the International Socialists (USSR Communists) for a while, that can easily be put down to the ever present schisms of the Left. The Nazis were/are Hard Left all the way through!

Ed P said...

Option 4: debt forgiveness (idea shamelessly lifted from The Slog).

Greg Tingey said...


Bloody grow up!

The label "socialist" as applied to the Nazis was a sham.
Stop deluding yourself.
They were very strongly "corporatist" (Think IG Farben/Krupp/KDF-Wagen/BASF etc ad nauseam)
Their crushing and "camping" of traditional Trades-Union leadership was a bit of a giveaway as well.
They were also well into the even more unpleasant parts of christianity as well ... see THESE PHOTOGRAPHS and the texts as well. The catholic bishops giving the "Hitler-Schuss" is particularly vile.

Communism, being a competeing religion, persecuted christianity, as christianity persecuted other competing religions, when it was in charge.