- From inception, the euro system was doomed to fail. In
the 1990s, Progressive Radio News Hour regular Bob Chapman predicted it.
- So didn't British economist/euro expert Bernard Connolly
before its January 1999 introduction. His 1995 book titled, "The Rotten
Heart of Europe: The Dirty War for Europe's Money" explained the risks
in detail enough to understand.
- More recently, he said troubled Eurozone countries can't
cut their way to recovery. Austerity is a hairbrained disastrous policy.
So is the "malignant lunacy of monetary union," combining 17
dissimilar countries under one monetary/fiscal system.
- It's as nonsensical as mixing fire and ice or believing
more debt reduces out-of-control levels.
- In 1998, Connolly predicted that one or more weak European
countries would face rising budget deficits, economic trouble, 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."
- It's now perilously close to happening. Greece already
is bankrupt. Only its obituary hasn't been written. Its moment of truth
heads closer, and with it a bang spread round the world.
- Euro straightjacket rules destroyed it. Other troubled
Eurozone countries face similar problems made worse by austerity and more
debt. The system doomed to fail is cratering. From inception it was sure
to happen, but fraudulent reengineering made it look workable.
- In contrast, mainstream economists are paid to see blue
skies and say so even when so often they're wrong. In addition, they consistently
miss key turning points. Their Eurozone analysis is wrongheaded, and so
aren't major media opinions. At least so far.
- On December 9, a New York Times editorial headlined,
"Europe's Latest Try," saying:
- How many times have "historic" agreements "fall(en)
apart as markets judged they were inadequate or irrelevant to the problem
of making good on old debts and generating enough growth to pay off future
- "We are not optimistic that" the latest one
"will now break that cycle." Europe prefers learning the hard
way. Winston Churchill explained US problem solving that way, saying, "The
Americans will always do the right thing after exhausting all other options."
In other words, when there's nothing left to try.
- On January 1, New York Times writer Nelson Schwartz headlined,
"Austerity Reigns Over Euro Zone as Crisis Deepens," saying:
- "Europe's leaders braced their nations for a turbulent
year, with their beleaguered economies facing a threat on two fronts: widening
deficits that force more borrowing but increasing austerity measures that
put growth further out of reach."
- In fact, cut and borrow assures greater crisis conditions
ahead than now. According to Graduate Institute of Geneva Professor Charles
Wyplosz, "We're going straight into a wall with this kind of policy.
It's sheer madness," but Eurozone leaders are pursuing it like lemmings
blindly near the abyss.
- On January 1, London Guardian writer Heather Stewart
headlined, "Economics in 2012: no gain, just pain as austerity brings
misery to all," saying:
- Last year's problems will pale compared to "when
2012 shockwaves are felt by millions of people in Europe and beyond."
- "The policy of collective austerity imposed at the
behest of the money men (bankers) has driven the eurozone to the brink
of a new recession. In 2012, it will be swept over the edge, carrying with
it the jobs of millions."
- As a result, public anger will grow. The International
Labor Organization warned that people believe "the burden of the crisis
is not being shared fairly," especially among young people.
- Nearly half of Spain's youths are unemployed and over
40% of young people in Greece. Ireland's little better off at 30%, and
things ahead look worse. UN Conference on Trade and Development's Heiner
Flassbeck said, "Those (who) were not part of the party are having
hangovers. That's the problem."
- A lost decade lies ahead. So does greater pain and suffering
to assure bankers are paid. As a result, "2012 looks like....a very
unhappy new year." According to one observer, similar politics and
economics across Europe are broken, and nothing ahead looks promising.
- New Year Predictions
- Consumer attorney Max Gardner offered "Extreme Predictions
- (1) Continued home price declines until Q III 2014.
- (2) With housing starts at 1959 levels, America's now
a nation of renters because few have the funds to buy.
- (3) In 2012, one of America's major banks will fail.
Bank of America is most likely. Perhaps others will follow.
- (4) Unemployment will stay high and good jobs relocated
to China and developing economies.
- (5) The Dow will drop below 8,000 after two or more major
Eurozone banks fail, the euro's devalued, and three Eurozone countries
- (6) "FHFA will implement NACBA Chapter 13 mortgage
principal reduction program for all Fannie and Freddie owned residential
mortgage loans by June, and the number of new Chapter 13 cases filed in"
2012 Q III and IV "will reach historic levels."
- (7) The Fed will keep throwing good money after bad at
Fannie and Freddie. After November's elections, they'll enter final liquidation
proceedings. QE III will provide more money for Wall Street.
- (8) Obama will pursue permanent war. He'll risk destroying
the world to save it for the monied interests that own him.
- (9) Iran will be attacked. A "nuclear nightmare"
- (10) Attorneys general will reach meaningless settlements
with banker and mortgage servicer crooks. They'll do nothing to resolve
America's housing crisis or those affected by it.
- (11) Obama will win in November. Expect worse economic
conditions, permanent war, and crackdowns targeting dissenters.
- (12) Gasoline will cost $5 a gallon by 2012 Q II.
- Bob Chapman's view is more dire. Failed policy measures
only buy time. Millions across Europe are fed up with corrupt politicians,
banking crooks, and bureaucrats wanting world government while the euro
system teeters on collapse.
- Its debt bomb crushes member countries. One Ponzi scheme
follows another. Nothing's done to stimulate growth. Only paying bankers
matters. The policy's doomed to fail. Short-term relief only is possible.
Europe's experiment is "an abject failure."
- Upheavel's on the way. Europe and America are affected.
So are other regions. A second Obama term or Republican one "could
spell violent revolution in the US." Falling economies will define
2012. Europe, America, China and Japan will be affected. Britain's "in
a death spiral."
- Europe's next, and America, China and Japan aren't far
behind. "We are about to witness the end of the period that developed"
post-WW II. Chaos defines the future. On December 31, tyranny arrived in
America after Obama signed legislation to arrest and indefinitely detain
anyone, including US citizens based on spurious terrorist charges.
- Bankers are running economies into the ground. Millions
are suffering hugely. In America, "insolvency will touch every family."
An unprecedented "aggressiveness and warrior mentality" will
drive them. If elitists think they'll get away with more hammering, "they
are very sadly mistaken."
- America's run by corporate and government criminals.
Rebellion's coming. At issue is whether military forces will "kill
its own citizens. We hope not, because it's a battle they can't win."
- Massive social disruptions are deepening. Social safety
net protections are fading. Nations are running out of money. People are
running out of patience. History's no longer made in decades or years.
It's made in months, weeks, days and minutes.
- Looking ahead, expect grim conditions to worsen and people
unwilling to stay silent. They already rage on streets. Many more will
join them for what only their struggles may achieve.
- Anger and and sustained turmoil defines what's coming.
Don't expect it to be pretty.
- Stephen Lendman lives in Chicago and can be reached at
- Also visit his blog site at sjlendman.blogspot.com and
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