Thursday, August 23, 2012

Dear Leader will increase Tractor Production in 5 Years!

The Triumph of Politics

On October 27, 2010, Chancellor Angela Merkel promised the German parliament that the bailout fund EFSF was a temporary thing. Of course, as more bailouts were needed, the EFSF grew bigger. It will now be replaced with the ESM. EVERY law, regulation and restriction that was part of the original set-up of EMU has now been broken. The limits on budget deficits and overall public debt limits (Maastricht Criteria)? –Ignored. The no-bail out provision? – Ignored. The ban on ECB buying sovereign bonds to support fiscal policy? – Circumvented with the flimsiest of excuses. Let’s face it. There is no master plan here. The political class is losing control. There is not even a conspiracy. One quick-fix after another, and every one brings us a step closer to a very nasty endgame.

Posted by general congreve @ 12:38 AM (1173 views)
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4 thoughts on “Dear Leader will increase Tractor Production in 5 Years!

  • I love this site for putting these sorts of articles up… 🙂

    “The biggest threat to your property and to your individual liberty does not come from markets and not even from the bankers. It comes from politics.”

    Indeed it does. That ultimately doesn’t make it wrong however. We *will* see the pendulum swing back, just as soon as the old fogies have died off, and the yoof have taken over the asylum, insisting on strong policies on rent controls, land availability for building, etc. Times change and politics (eventually) reflects that change.

    Let’s face it the 1971 Nixon decision ended Bretton Woods, but only because that was straining and would otherwise break. Then there were other ‘issues’ in the early part of that decade, and we are now where we are today. 1979 was supposed to solve all that. As someone who thinks Thatcher should be strung up on a pole I have a particular view on that ‘solution.’

    But you have to try to see the current crisis from the perspective of 30-40 years from now. While the way the EU is ‘solving’ the problem isn’t pretty, a solution is needed, otherwise we well all end up in absolute poverty, as the emerging block of powers in the East takes over. It will happen, and it will happen much more quickly than we all think. The next decade will be unlike any we have seen before, and something needs to be done to resolve it.

    The US may suffer because everyone uses their fiat money system. But their economy is big enough and their armed forces strong enough to withstand the world out to 2035 I would suggest. The EU *cannot* (just cannot) go back to 1999. It was clearly too optimistic, gained on the back of the success of the Single European Act of 1986. We are where we are and if holding the status quo buggers everybody else up while they wait for Europe to sort its own problems out then tough, coz Europe is going to do a US and stick two fingers up at the rest of the world and tell them to wait.

    Only when the ASEAN block get strong enough to trade with each other and ignore the US and Europe will things change. And I guess the 2030s is when that will occur. I may be dead by then, so I won’t be too concerned!

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  • Can’t see what the problem is……

    Mr Samaras said he would “guarantee personally” that the rescue funds given to Greece would be repaid.

    You believe that, don’t you? What’s not to like?


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  • general congreve says:

    @1 – I think the point of the article is that they are not solving the problem, for it is insoluble, they are just panicking. A bit like jumping off a building and then frantically flapping your arms to slow your descent, such a strategy is too little, too late. The only workable solution was not to jump in the first place! Poverty is coming now, like it or not.

    I think 2030/2035 until things go off the rails is massively optimistic. Many said the Soviet Union was going nowhere, then one day we woke up, the money had run out and the might of the Soviet Empire, and the Red Army, disintegrated over night.

    It is true that the US has got their weaponry once the money runs out, that is a big fear, after all, crushing debts have not stopped them resource grabbing this last decade. Who knows what they will be capable of when their backs are against the wall and it is all or nothing? Iran looks likely soon. But then hopefully the threat of nuclear Armageddon will be a sobering factor when push comes to shove.

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  • @3 “Many said the Soviet Union was going nowhere, then one day we woke up, the money had run out and the might of the Soviet Empire, and the Red Army, disintegrated over night.”

    You may be right, but I hope you are wrong. We’ve seen what happens when different parts of Europe dislike each other. And the trouble is it wasn’t a one-off. And the last two times have sucked everyone else into the party, too.

    “Poverty is coming now, like it or not.” Look what happened in the 30s — the US (and UK and France) wanted their money back, but didn’t want to buy any German products to help them pay. If things soon snap, the fact I’ve nearly paid off my mortgage may count for very little.

    But worrying times, nonetheless.

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