Tuesday 22 November 2011
A dangerous fallacy
The European policy attempt to delete fire with gasoline. That means to defuse the extremely precarious and dangerous situation, the state indebtedness by more debt and strict austerity programs.
A dangerous development, because the cause is not resolved, but one of the triggers of the current crisis is amplified in its effect.
As long as our economic, currency and monetary system is not fundamentally changed, there can be no relaxation or solution! That should be clear to all economists and politicians ...
If, on the basis of the indebtedness of a country to lower the rating by the rating agencies, interest rates rise on government bonds. The state, which should now actually spend less money, but suddenly raise interest rates due to the increase and much more for slides by even deeper into debt ...
To the unfortunate patient (PIGS) countries, as well as France and Austria, we can see that this development will not happen overnight took place, but was apparently not recognized by the policy or do not want to be recognized. They lied and cheated by a most fraudulent and criminal nature, obviously hoping that it will not get their own state. Likewise, the extreme hubris of politicians and Inkompentenz is an important reason why the situation is defused jeopardizes more than.
To get higher interest rates but money (debt), drastic austerity measures be adopted, but these are really hard to implement, and deprive the people there money where it matters most - in those who are not wealthy or not.
In times of economic boom and social programs were developed in election campaigns promised were hardly affordable. Now take the lower social strata they gone again. What remains is a collapsing economy, because of the important consumer fails these layers.
Those attributable to the fault, however, is a big mistake. For many years we have in Europe from a production to develop a service economy. Produced consumer goods are those no longer with us in the country, but somewhere at the other end of the world, because the cheaper labor and environmental laws are lax. What remained was a rapidly growing army of unemployed who were dependent on welfare payments. The army grew very fast and focused in recent years, especially the young. It is wrong to say they no longer want to work - there is simply no longer work for them! In regions of the southern states, where unemployment is well over 15, and 20%, the proportion of youth unemployment is particularly high - up to 60%!
These unemployed must be supplied! You need to get food and drink, a roof over their heads, medical care, clothing and related entertainment (distraction) as a recreational activity (otherwise it could cause a riot!) - But also pensions. This costs through the years, a lot of money ... but the majority is not present and was applied only by debt.
This layer, however, is an important component of our economy. Deprives you of the economic part of this layer, just by cutting programs, so this lack of money economy and tax revenue declines. So the state takes a less money.
This can be compensated in the short term by implementing various measures, but the medium is slipping into a depression - slow economic growth is, there is a "negative growth" (Who ever created this word should be placed on the public pillory!). .. So a decline in the economy.
Are also the demands that are vulnerable but work and maintain themselves, are not sustainable, simply because there is almost no work. They can, however, not simply left to itself, and virtually "starve" leave, they would go on the road and endanger the public order - as one example, in Greece. can see ...
The European states have adopted since the Second World War with the advent of social policy and supply a protective function for the citizens. In other words, it has taken the responsibility to the citizens. That was very convenient for many and was also utilized accordingly. It is still in the minds of the necessary ownership is not pronounced - where they should also come on suddenly? Therefore, the State will be responsible for everything and it calls for its protection and care needs!
No matter how much the state must save it or would have the lowest social class can not and must not be forgotten or uncared stay! Otherwise the streets bloody battle fields!
Where should the state can save or efficiently? Probably it is only the proverbial peanuts, if different, is not viable and important economic subsidies and grants, for example. in the field of culture will save temporarily. The budget would thereby be relieved really hard.
Also on the large army of officials can not simply just give me you reduce anything, because it in turn caused the unemployed and pensioners (early retirees who are still more expensive in the long term ...).
The partially incomprehensible tax increases, we already enjoy very much of our income to the state, also reduce the economy, because the real income despite annual wage increases (which are usually lower than inflation) decreases. There is less and less value for money in circulation ... this will, even if it increases in taxes or new taxes, the payments to the Treasury saw less absolute. An example, if the finance minister in two or three percent einhebt more in taxes, this is less in real terms because of the monetary value is less by a possible higher inflation! Currently we have a real inflation of around 10%, but will increase enormously in the next six years, what predicted by the announced price and tax increases will!
At the same time, the state must somehow maintain our banking system. Especially in Austria, seems to be a huge disaster, to pave the especially through the involvement of Eastern European banks. Billions in aid will be needed even if the money does not exist! This is our top rating (AAA) in danger!
The policy has in the past three years, since 2008, the problems of sovereign debt and banking through the media completely ignored and lied like a mantra, it was all right anyway, and we get through the crisis without problems anyway ... Now the problems are piling up on enormous and can not be solved within the existing system. Especially because you can no longer act as a sovereign, independent state, but the dictatorial leadership of the EU and the euro area (ECB) must add! It alone is no longer possible and everything is aimed at the EU after the weakest links (PIGS countries)!
Various meetings and Wunderfutzis leaders, whether G8, G20 or EU Finance Ministers, there is absolutely no acceptable result ... at last hardly longer any declarations of intent. Time to finally admit the failure!
The euro and the dollar will collapse - it will be no way pass by. Because there would be a solution, this would have been used already! To solve debt with more debt is simply absurd!
The only solution which can give now is the complete restructuring of our entire economic, financial and monetary system. People need more work in their own country, the system of interest must be eliminated, breaking the power monopoly-like Konzernmoloche and dependence on commodity and food prices by unscrupulous financial sharks, hedge funds and investors must be stopped. Only then can we begin to clear away the accumulated debris and rebuild. These are the minimum requirements for a halfway decent future (apart from new technologies, free energy resources, rigorous environmental protection and healthy nutrition!).
A dangerous fallacy
The European policy attempt to delete fire with gasoline. That means to defuse the extremely precarious and dangerous situation, the state indebtedness by more debt and strict austerity programs.
A dangerous development, because the cause is not resolved, but one of the triggers of the current crisis is amplified in its effect.
As long as our economic, currency and monetary system is not fundamentally changed, there can be no relaxation or solution! That should be clear to all economists and politicians ...
If, on the basis of the indebtedness of a country to lower the rating by the rating agencies, interest rates rise on government bonds. The state, which should now actually spend less money, but suddenly raise interest rates due to the increase and much more for slides by even deeper into debt ...
To the unfortunate patient (PIGS) countries, as well as France and Austria, we can see that this development will not happen overnight took place, but was apparently not recognized by the policy or do not want to be recognized. They lied and cheated by a most fraudulent and criminal nature, obviously hoping that it will not get their own state. Likewise, the extreme hubris of politicians and Inkompentenz is an important reason why the situation is defused jeopardizes more than.
To get higher interest rates but money (debt), drastic austerity measures be adopted, but these are really hard to implement, and deprive the people there money where it matters most - in those who are not wealthy or not.
In times of economic boom and social programs were developed in election campaigns promised were hardly affordable. Now take the lower social strata they gone again. What remains is a collapsing economy, because of the important consumer fails these layers.
Those attributable to the fault, however, is a big mistake. For many years we have in Europe from a production to develop a service economy. Produced consumer goods are those no longer with us in the country, but somewhere at the other end of the world, because the cheaper labor and environmental laws are lax. What remained was a rapidly growing army of unemployed who were dependent on welfare payments. The army grew very fast and focused in recent years, especially the young. It is wrong to say they no longer want to work - there is simply no longer work for them! In regions of the southern states, where unemployment is well over 15, and 20%, the proportion of youth unemployment is particularly high - up to 60%!
These unemployed must be supplied! You need to get food and drink, a roof over their heads, medical care, clothing and related entertainment (distraction) as a recreational activity (otherwise it could cause a riot!) - But also pensions. This costs through the years, a lot of money ... but the majority is not present and was applied only by debt.
This layer, however, is an important component of our economy. Deprives you of the economic part of this layer, just by cutting programs, so this lack of money economy and tax revenue declines. So the state takes a less money.
This can be compensated in the short term by implementing various measures, but the medium is slipping into a depression - slow economic growth is, there is a "negative growth" (Who ever created this word should be placed on the public pillory!). .. So a decline in the economy.
Are also the demands that are vulnerable but work and maintain themselves, are not sustainable, simply because there is almost no work. They can, however, not simply left to itself, and virtually "starve" leave, they would go on the road and endanger the public order - as one example, in Greece. can see ...
The European states have adopted since the Second World War with the advent of social policy and supply a protective function for the citizens. In other words, it has taken the responsibility to the citizens. That was very convenient for many and was also utilized accordingly. It is still in the minds of the necessary ownership is not pronounced - where they should also come on suddenly? Therefore, the State will be responsible for everything and it calls for its protection and care needs!
No matter how much the state must save it or would have the lowest social class can not and must not be forgotten or uncared stay! Otherwise the streets bloody battle fields!
Where should the state can save or efficiently? Probably it is only the proverbial peanuts, if different, is not viable and important economic subsidies and grants, for example. in the field of culture will save temporarily. The budget would thereby be relieved really hard.
Also on the large army of officials can not simply just give me you reduce anything, because it in turn caused the unemployed and pensioners (early retirees who are still more expensive in the long term ...).
The partially incomprehensible tax increases, we already enjoy very much of our income to the state, also reduce the economy, because the real income despite annual wage increases (which are usually lower than inflation) decreases. There is less and less value for money in circulation ... this will, even if it increases in taxes or new taxes, the payments to the Treasury saw less absolute. An example, if the finance minister in two or three percent einhebt more in taxes, this is less in real terms because of the monetary value is less by a possible higher inflation! Currently we have a real inflation of around 10%, but will increase enormously in the next six years, what predicted by the announced price and tax increases will!
At the same time, the state must somehow maintain our banking system. Especially in Austria, seems to be a huge disaster, to pave the especially through the involvement of Eastern European banks. Billions in aid will be needed even if the money does not exist! This is our top rating (AAA) in danger!
The policy has in the past three years, since 2008, the problems of sovereign debt and banking through the media completely ignored and lied like a mantra, it was all right anyway, and we get through the crisis without problems anyway ... Now the problems are piling up on enormous and can not be solved within the existing system. Especially because you can no longer act as a sovereign, independent state, but the dictatorial leadership of the EU and the euro area (ECB) must add! It alone is no longer possible and everything is aimed at the EU after the weakest links (PIGS countries)!
Various meetings and Wunderfutzis leaders, whether G8, G20 or EU Finance Ministers, there is absolutely no acceptable result ... at last hardly longer any declarations of intent. Time to finally admit the failure!
The euro and the dollar will collapse - it will be no way pass by. Because there would be a solution, this would have been used already! To solve debt with more debt is simply absurd!
The only solution which can give now is the complete restructuring of our entire economic, financial and monetary system. People need more work in their own country, the system of interest must be eliminated, breaking the power monopoly-like Konzernmoloche and dependence on commodity and food prices by unscrupulous financial sharks, hedge funds and investors must be stopped. Only then can we begin to clear away the accumulated debris and rebuild. These are the minimum requirements for a halfway decent future (apart from new technologies, free energy resources, rigorous environmental protection and healthy nutrition!).
