The European Unions march of the folly

The Greek bailout measure finally implode (suppressed until the after the US election) and the EU slips in a recession.  In “The march of Folly: From Troy to Vietnam”  a view for  understanding of Western world governments is given. It employs the legend of the wooden horse as a paradigm to interpret three points in history when political leaders were duped into blundering badly at the expense of their citizens.The political system of the Europe and its future is on the brink of disaster. Like in the East before 1989, planned economy and human stupidity of the European nation and national governments leads  assuming that the economy can be planned. Hundreds of “Professors” have tried it. The West looses its future by complete over-indebtedness of  states and municipalities. The whole games to “Rescue”, every day more or less openly in the newspapers reported, are  figment of sick brains with the EU commissioners and finance ministers in the first row, who have only one goal, to conceal the truth and the consequences as they did in the East, and as long it is possible keep the people calm.

In the private sector it is called what they do, undue delay of bankruptcy and pursued by the Prosecutor’s Office. The modern governments do no need wars anymore to leave  desolation and scorched earth anywhere. That is especially true for the brilliant German politicians. The German politicians mentally stuck with the idea of the Euro anda combination of superinflated Ego and not having any economic knowledge  makes it impossible correct course. They shout down or outmaneuver any experts and the Deutsche Bundesbank.

The  integration project Euro has failed. In the Euro zone, the contours of what has been predicted in blogs the last three to five years years can be already identified on gloomy short term forecasts,  The longer the euro lives, the  higher will be the funeral costs. The mad experiment, wishing to keep the euro at any price, sends the periphery on a direct route to the third world. Attempting to consolidate public finances through welfare cuts, tax hikes and wage cuts, leads to an even more shrinking economic output and a dramatic increase in labour and lack of prospects in the population due to the massively collapsing demand. Because the valve of devaluation of the crisis countries, the pressure of the road due to the economic depression continues to grow. The mass protests in Portugal, Spain, Italy and Greece escalated in the past week. The European single currency is on its way to ruin the peace in Europe and to divide the continent and drag down Germany in this abyss. Spaniards, Greeks, Italians and Portuguese are coming to the conclusion that it was better than the exchange rates still varied, and turn away from the Euro, when the German learn that they paid two Trillion Euro for nothing (or the Banks) they will too . Not austerity not transfer union is sustainable.

A booming Germany creates despite record tax revenues and low-interest rates cannot balance her budget. On top of this,  all risks Germany have been taken to bail out Europe on behalf of G&S are not even incorporated into the  ‘structured budget”:

• pension provisions
• ESM payments, guarantees, and liabilities not included
• ignored  risks

On top of that, everybody blames Germany adding insult to injury. There was Euro-sceptics, who have said that a single currency for different  core economies was not a good idea, but the intensity and quality of the crisis exceeds the fantasies of even the biggest pessimists. The only solution is that either economically failed States, Greece, Portugal, Spain, Italy and France, or of the economically successful countries, Germany, Austria, Finland Luxembourg, Netherlands will leave the EU. Anything else will result inevitably in a unordered processing of the Euro and to the civil war in Europe.

We are doomed. Given their record to date, is there any reason for faith that Europe’s leaders will succeed in 2012 in doing what they signally failed to do in 2010, 2011 and 2012 to stem the crisis that now not only  threatens the existence of the euro zone but of Europe? Many of those failed key players  have already left the political stage: Brian Cowen, José Sócrates, George Papandreou, José Luis Rodríguez Zapatero, Silvio Berlusconi. But the worst are still there. Additionally Technocrats ruled  Greece and Italy in a depression, and governments with new mandates failed in Spain and Portugal. The leaders are powerless to save a currency doomed from the beginning by its faulty construct. But, surely, a debt crisis that started in one small country didn’t have to bring it down. If the euro does fail, Europe’s current crop of leaders will have to share the responsibility.  If they reflect, they will see errors of commission and of omission. One senior European figure deeply involved in the discussions says the gravest fault was committed not in 2011 but in 2010: taking in private sector involvement—the euphemism for imposing losses on government bondholders. One hears less today in Brussels of the conviction that, because so much hangs on the politicians getting this right, that they will therefore get it right.  The book March of the folly made clear, the cause of failure is rejection of reason, the lust for power, mental stagnation, idleness and failure to admit error. “The March of Folly” conjured repeated reminders of the Europe of today. And are there parallels in the fixed ideas that some influential figures hold about how to resolve the crisis, which, to the extent they have driven German policy, have done nothing to vision bold solutions  of splitting up the Euro zone  but in the eyes of quite a few analysts, have worsened it?  Wooden-headedness, the source of self-deception, is a factor that plays a remarkably large role with the current politicians. We need a complete change of our politicians  and new parties.  There were so far no currency unions which did no break in history. You can also read the accompanying riots, revolutions and wars. What is happening today has been predictably and surprises only ignorant people, who think they understand though but don’t know anything. We can just hope that there be  only revolutions but no wars. Then, the citizens of Europe would again agree and they have truly earned the Nobel Peace Prize.