The economic collapse that is coming will be global. What we’re seeing in Europe is just the beginning.
The economic collapse that is coming will be global. What we’re seeing in Europe is just the beginning.
Spain’s economy is under such duress that the country is prepared to request a 40 billion Euro cash injection from the Euro zone this weekend. The request comes after Fitch Ratings reduced Spain’s credit by three notches on Thursday. This move will make Spain the fourth country to need a bailout since the European debt crisis began. The Spanish banking sector’s weakness and contagion from Greece’s debt crisis have put Spain’s economy in such a precarious position that the International Monetary Fund reported a need for 90 billion Euros to entirely cleanse Spain’s banking sector.
Much has been said about the problems of Greece and how those problems will impact the Eurozone. However, the size of Spain’s economy is over four times that of Greece’s. Spain’s 11.5% share of the Euro zone’s GDP has a far greater impact on European finances than does Greece’s 2.5%.
What the world is witnessing is the collapse of the European socialist economic model; the failure of government dependency. As more people become dependent on government, fewer people are left to pay the cost.
But it goes beyond simply spending other people’s money. The socialist entitlement mentality makes people less productive. As more and more people become less and less productive, an ever-smaller minority of productive people become responsible for shouldering the burdens of a completely lopsided, unfair system. When a tiny number of productive people are required to deprive themselves of the fruits of their own labor in order to finance the lives of the remaining population, where is the incentive for them to produce?
If that is not enough, reliance on a big government nanny state makes people less responsible for themselves, less self-reliant. That is the antithesis of the American way of life.
When European settlers colonized the New World, they left the security of Europe behind in favor of North America’s unknown wilderness. They left homes, family, friends and country behind in exchange for an opportunity to build better lives for themselves. They were freed from the constraints of Europe’s restrictive class system. They openly rejected the European way by leaving.
When the British Monarchy deemed to re-impose that system on Britain’s thirteen North American Colonies, that attempt was adamantly and thoroughly rejected. Hence the Declaration of Independence, the American Revolution and the founding of the United States of America.
When America’s pioneers ventured west to traverse the Great Plains and cross the Rocky Mountains they were completely self reliant. They took care of themselves. They didn’t have, want, or need a big nanny state government to take care of them from cradle to grave.
This is the stuff of which America is made.
Because it gives them control over “the masses”, “progressives” have long sought to fashion America after the European socialist model, to make Americans more government dependent. There was FDR with the New Deal and Social Security. LBJ gave America the Great Society, Welfare Programs and Medicare. Now obama forces upon an unwilling America the crown jewel of European style socialism; government controlled medicine.
Every time obama holds a press conference he sounds exactly the way he has always sounded: he inherited the worst economic crisis since the Great Depression. his policies are working, but need more time. Congress needs to quit stalling and enact more of his policies. The private sector is doing fine but to grow the economy government needs to spend more money to create more government jobs at the state and local level.
Coming as it does on the heels of the Wisconsin recall election, where such policies were rejected, this shows precisely how out of touch obama is with the private sector, how the economy works, American history and the nature of America’s people…and with reality.
Europe won’t work in America. Neither will an out of touch narcissist who insists on imposing a long rejected European system upon America.
obama, you are fired.
European business activity fell in May, nearing a 35-month low, according to a survey by Markit. Its survey, based on European manufacturing and service sectors, fell to 45.9. The euro fell to a 22-month low against the dollar in response. Disagreement at Wednesday’s summit between European leaders about how to solve the dilemma did nothing to boost confidence.
Chris Williamson, chief economist for Markit, said research indicated the downturn had “gathered further momentum in May. The survey is broadly consistent with gross domestic product falling by at least 0.5% across the region in the second quarter, as an increasingly steep downturn in the periphery infects both France and Germany,”
Economic reports show that concerns over Greece are having a broader economic impact than originally expected. “It clearly indicates that the evaporating sentiment that we have seen in recent weeks, as the Greece crisis has intensified, is having a big impact on the economy” said Peter Dixon from Commerzbank.
Socialist President Hollande wants France to increase spending; a plan Chancellor Angela Merkel says Germany will oppose until there is more budget discipline across Europe.
Facing the reality that sovereign nations will retain and defend their own national views, interests and sovereignty is bad news for Globalists. New World Order proponents saw Establishment of the European Union and eurozone as an important step in the march towards their grand vision of One World Government.
Theorists within the “progressive” movement have envisioned such an eventuality since the early Twentieth Century. Woodrow Wilson, after winning re-election in 1916 on the campaign slogan: “He Kept Us Out Of War”, entered WWI in order to involve the United States in world affairs, thereby creating justification for his desire to establish the League of Nations.
While in Paris after the war, Wilson engaged in creation of the League of Nations while also helping shape the Treaty of Versailles. The Versailles Treaty resulted in economic devastation within Germany, leading to the rise of Adolph Hitler’s Nazi Germany. In 1919, Wilson and a Republican controlled Senate fought over giving the League of Nations power to force the U.S. into a war, a clear violation of Article One, Section Eight, Clause Ten of the United States Constitution, which assigns Power to declare War to the U.S. Congress. To the credit of Republicans in the Senate, they stood for U.S. sovereignty, rejecting the Treaty of Versailles, and voting against U.S. entry into the League of Nations.
Although the League of Nations proved completely impotent in the prevention of WWII, that didn’t deter “progressive” Globalists from forming the United Nations. The original aim of the UN was to keep peace throughout the world, develop friendly relations between nations, to help eliminate poverty, disease and illiteracy, stop environmental destruction and encourage respect for rights and freedoms. These aims were based on, among other principles, that all member states would have sovereign equality and that the UN was not to interfere in the domestic affairs of any country.
Pending before the United States Senate today are threats to U.S. national sovereignty:
The Convention on Biological Diversity, the Law of the Sea treaty, the International Labor Organization Convention No. 111, the Inter-American Convention against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives, and other Related Materials, the Stockholm Convention on Persistent Organic Pollutants.
Additionally, there’s Agenda 21, which dictates action to be taken globally, nationally, and locally in every area where humans directly affect the environment. If the Agenda 21 agenda doesn’t clearly describe the UN interfering in America’s domestic affairs, what would? The Law of the Sea treaty, if ratified, would grant the UN mineral rights within U.S. territorial waters. If that’s not a violation of national sovereignty, what is? Were the firearms treaty to be ratified, the UN would then have control over arms within the United States, an open violation of the Second Amendment to the U.S. Constitution.
It’s time for Americans to stand up for national sovereignty and kiss the UN, Globalists and One World Government “progressives” goodbye. The best way to accomplish this is to do what Americans did in 1920 after Woodrow Wilson’s early attempt to violation American sovereignty. Elect Republicans in a landslide.
With the Euro-zone embattled in a financial crisis that has seen the heads of the governments of Greece and Italy ousted, it certainly appears that there will be more leaders of financially insolvent countries to also be ousted from office in the very near future. One of the most recognizable signs of an economy in trouble is generally considered to be found in the host country’s unemployment numbers. With the creation of the Euro-zone and the one-region monetary currency of the Euro, the huge disparities between Euro-zone economies was supposed to be equalized, to hear the globalists that forced the Euro onto the countries of Europe tell it. Once again, it appears that the creation of the euro-zone has resulted in more of what it was promised to prevent: Countries such as Greece, Spain, Italy and Portugal have now suffered immensley, compared to the economies of, say Germany. The following chart showing Unemployment numbers across the Euro-Zone, with U.S. and Japan included as a reference) compiled from Eurostat, shows just how Germany has thrived while other countries are suffering today. Germany has seen it’s unemployment remain stable around 5% right through the major EU financial crisis, while Spain’s has shot up to over 23% today.
In an article from Reuters and posted on MSNBC.com we see that Germany’s Angela Merkel and France’s Nicholas Sarkozy are calling for a new European treaty that would mean “stricter controls on each nation’s budget.. and harsh punishments for those who don’t stick to them.”
President Nicolas Sarkozy and Chancellor Angela Merkel said their proposal included automatic penalties for governments that fail to keep their deficits under control, and an early launch of a permanent bailout fund for euro states in distress.
They said they wanted treaty change to be agreed in March and ratified after France wraps up presidential and legislative elections in June. “We need to go fast,” Sarkozy said. (emphasis mine)
The question still remains unanswered as to just where the funding for this “permanent bailout fund” will come from. In looking at the unemployment numbers above, and the Merkel/Sarkozy refusal to the issuing of bonds in theory guaranteed jointly by all euro zone countries, but in practice by the bloc’s strongest member, Germany. “We reject the idea of euro bonds,” she said.
Sarkozy rallied behind her, saying it would be absurd for France and Germany to cover the debts of countries on whose debt issuance they-Zonehad no control. The two biggest economies that have inserted themselves as power-brokers over all of the Euro-zone now refuse to put up any of their funds to bail out the smaller countries. Again from the above-linked MSNBC article, we see the following tidbit from the UK government:
Several governments, notably Britain, Ireland and the Netherlands, oppose treaty change because it might not win public backing in a referendum.
The British government said the changes proposed by Sarkozy and Merkel did not mean a significant transfer of power to Brussels and would therefore not require a referendum in Britain, which does not use the single currency.
Merkel and Sarkozy’s “treaty change” will not require a referendum in Britain, who was smart enough to see this train-wreck of a powerplay for the disaster it was a long time ago. Meanwhile Germany and France enrich themselves while demanding stiff penalties for the smaller countries that have suffered directly from the EU Globalists massive power-grab. This situation is far from over, regardless of what Merkel and Sarkozy tell the world.
European Union and the Euro (€)
Just in case you don’t know, the European Union (EU) uses, predominately, the Euro (€). Some countries, such as Great Britain, chose to not use the Euro. And some European countries, such as Switzerland, didn’t even join the EU. Now we see that Greece, a member of the Eurozone (countries in the EU that use the €), is just about bankrupt and continues to look to the International Monetary Fund (IMF) for a €8 billion loan in November, 2011, and says it will run out of money in mid-December if it does not get the loan.
Greek Referendum or Not?
Greek Prime Minister George Papandreou expressed optimism Wednesday, November 2, 2012, that the Greek people will support his plan to remain in the Eurozone despite having to endure austerity measures. Now we learn that a national Greek referendum on the latest European bailout for the debt-riddled country may never happen. Papandreou said that he would never place membership in the common currency up for referendum. The EU bailout would give the heavily indebted Greek government €130 billion while it imposes a 50% write-off on private holders of Greek debts, in return for deeply unpopular austerity measures. Papandreou said the referendum on the deal was never an end in itself, and there were two other choices – an election, which he said would bankrupt the country, or a consensus in parliament. “If we had a consensus we wouldn’t have to go to a referendum,” Papandreou said.
The G20 Summit
The G20 Summit is being held this week in Cannes, France. The leaders of the 19 largest economies in the world are here (the 20th permanent member of the G20 is the EU). Europe’s leaders said they had reached the end of their patience with Greece, demanding that the beleaguered nation declare whether it wants to stay in the Euro currency union — or risk going it alone.
Here is a very brief summary of decisions by G20 countries:
Germany is by far the most stable economy in the EU. So what do the German people think about once again bailing out Greece? Germany’s best-selling daily newspaper, Bild, summarized the view in Germany that Greece had pushed things too far by calling for a referendum on its bailout deal. “Take the Euro away from the Greeks!” read Bild’s front-page banner headline. “That’s it,” Bild wrote. “We put up hundreds of billions of Euros to save the bankrupt Greeks and now they’re going to have a referendum to decide if they’re going to agree to austerity measures.”
Hermann-Otto Solms, a financial policy leader in German Chancellor Angela Merkel’s center-right coalition, said Greece should start thinking about leaving the eurozone. The worsening Euro crisis has hurt Merkel’s standing in Germany, with 50 percent now saying they do not want to see her win a third term in the next election due in 2013.