by
Ramin Mazaheri
Part
6 - The first rule of Eurogroup is: ‘You don’t talk about
Eurogroup!’
Such facts
make it clear why the Eurogroup cannot be considered compatible with
democracy, and thus cannot be supported. Full stop.
You might
support creating a new Eurozone or changes to the Eurozone structure,
but supporting the current Eurozone is simply morally indefensible,
and you don’t have to be an open communist like me to see that.
What will
you get if you keep supporting it, like by voting for mainstream
politicians or fake “outsiders” like Macron? You will get exactly
what has occurred ever since the Eurozone project began in earnest
after the fall of the Bretton Woods monetary system/gold standard in
1971 – crisis and austerity across the Eurozone:
“Each
one of those heart-rending attempts at monetary union led to the same
pattern: a promising beginning that soon degenerated into tears and
recriminations as economic warfare erupted and recession impoverished
the weakest Europeans.”
Hmmm,
efforts at capitalism turned out typically-capitalist
results…shocking.
The secret
is out about the Eurozone’s false prosperity of the late 1990s and
2000s – it was all built on the ruses of high finance. But – and
this actually really important right now – nothing has been fixed
since the 2012 sovereign debt crisis:
“Since
then it has been in a deep crisis reinforced largely by the European
Union’s denial that there is anything the matter with its
currency’s rules, as opposed to their enforcement.”
Should we be
surprised that the banker cabal that is the Eurogroup has concocted a
“recovery” which has only targeted the needs of bankers?
The
Quantitative Easing that is the alleged “fix” has only gone to
the 1% and fueled property price bubbles and stock bubbles; the
Eurozone’s average growth rate – the “real economy” – since
2011 has been 0.8% – total stagnation.
What’s
amazing is the mass denial – the real propaganda effort – that
back in June a pathetic projected 1.7% growth rate for the Eurozone
qualified as a “surprise recovery”. Jobs don’t even begin to be
created until 1.5%…and unemployment is essentially stuck at record
highs in multiple countries. This makes the projected growth rates of
1.8% and 1.7% for the next two years just as pathetically inadequate.
I can best
describe the media hypnosis like this: If a bully punched you 10
times yesterday, but only 8 times today, I suppose you could say that
“things are getting better”…I would hope that no one paid you
for that analysis, however.
What’s
certain is that QE has to stop soon, simply because they are nearly
out of bonds to purchase.
There’s no
reason why they should even be buying bonds from economically
healthy, trade surplus Germany, LOL, but the ECB will reach their 33
percent limit of debt in Germany this spring, at the current rate.
Germany gets paid first, of course, not the countries which actually
need it – Greece is excluded from QE.
And what
happens when Germany’s 1% can’t get free money? Well, I can tell
you it’s not: they finally start playing nice.
I have
another theory: High finance/financial media around the world (and
not just Germany) has decided they are not reaping enough from the
years of no-questions-asked free money – years of gutting Greece
has them sharpening up their Troika tools for the tastier meals of
Spain and Italy. Therefore, they are trying to dupe/pressure everyone
into stopping QE – thus the crazy nonsense that 1.7% annual growth
is a “recovery”.
So, given
all these real facts and plausible theories I have listed, the
reality is that ECB chief Draghi is expected to announce in October
that “tapering” will begin.
I have
repeatedly written that when high finance is no longer being placated
by the free money of Quantitative Easing, they will go back to what
they were doing in 2012: squeezing the national bond markets in
Europe and provoking a crisis across the Eurozone.
Here is
another, different case of willful blindness: the Eurozone is the
same as the US. Many believe that just because the US had no major
bond problems after they started tapering their QE, then the Eurozone
won’t have any issues as well. One size fits all, right?
But they ARE
very, very different regions! Firstly, the US isn’t dumb enough to
be run by a Eurogroup.
Secondly,
the risks in the national bond markets for Eurozone nations are not
anywhere as secure in comparison with the United States. They weren’t
as secure in 2012, and the Eurogroup’s policies have not corrected
these differences in risk whatsoever in 2017. Nor has the Eurogroup
strengthened the resilience of the “real economies” in their
member nations – indeed, austerity policies and labor code
rollbacks have worsened the real engine of the “real economy”:
the People (everyday consumers, for our capitalist readers).
So even if
Draghi kicks the can down the road for a few months, a crisis is
inevitable. For the reasons I’ve listed and because: this is
capitalism.
And this is
where Varoufakis’ lack of leftism – his failure to see capitalism
as incorruptible pattern of guaranteed corruption – blinds him to
the reality that the Eurozone should not be saved with his right-wing
solutions, but scrapped completely in favor of central planning,
safety nets, regulations on cabals: modern socialism.
The Eurozone
is still as primed for collapse as ever, but that is the title of the
next article in this series.
And as
regards the Eurogroup…what else needs to be said?
These are
our masters, and it is the IMF, ECB, and banker-loving, ex-banker
finance ministers who pull the strings. All of us in the Eurozone
must dance, even if these mobsters have already broken so many legs
and backs.
***
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