The Eurozone Embraces
Suicidal Brüning Policy
May 5, 2010 (EIRNS)On May 2, the Greek government surrendered to the conditions imposed by the EU-IMF-ECB "junta": a further 15% cut in wages for public employees; an increase of the VAT tax to 23%; a reduction in pensions by raising the retirement age. In return, Athens' creditors will receive a three-year bailout package of about €110 billion, for which Athens will pay 5% interest. However, both figures might increase, as lender countries will face a worsening of their own borrowing conditions. What is certain is that, this year, holders of Greek debt will receive €45 billion (€30 billion from the EU, €15 billion from the IMF). It is noteworthy that Germany's Chancellor Angela Merkel also bowed to the "junta," and accepted to formalize the loan before the vote in North Rhine-Westphalia, on May 9.
As soon as the German government votes up the bail-out bill, which is scheduled for May 7, the "Four Professors" of anti-Euro renown in Germany will challenge it before the German Constitutional Court.
The only words to adequately characterize what EU governments are doing are "giant stupidity." The euro is the cancer which is killing the patient. But instead of eliminating the cancer, they are saving it and killing the patient. The therapy applied to Greece is an exact copy of the one implemented by Chancellor Heinrich Brüning with his infamous Notverordnungen (emergency decrees) of 1930-32, which paved the way for Nazism. Greece is but the first victim, Portugal, Spain, and Italy come next.
In fact, the bailout of the Eurozone is an unpayable figure: bank exposure to indebted countries of the Eurozone is over a trillion euros, and the derivatives pyramid on top of that is estimated at a quarter quadrillion. Just as with Brüning, the effort to pay that debt will only lead to dictatorship. The only sane approach to the problem, is to separate the real, tangible assets from the toxic waste (Glass-Steagall reorganization), and dump the rest. The EU is doing the opposite.
On April 28, Lyndon LaRouche had the following evaluation:
What has happened in Greece is now going to hit all of Western Europe. Exactly what the effect will be in detail is not known, but we are in the process of a global general breakdown crisis of the world economy, a process of breakdown which is centered in the Transatlantic region, in Europe and in the Americas. So, at this point, if we continue with the present system, the world will go into a deep dark age, worse than that which Europe experienced during the course of the 14th Century.
In other words, we're on the verge of a collapse of the world economy, in a manner which would mean reducing the present world population from 6.8 billion people to less than 2which is, of course, the British-advertised and -stated intention for the world, a world population maintained at less than 2 billion people, and most of them pretty miserable people.
The whole British Empire system is coming down, with the Eurozone being just a part of it. LaRouche asserted:
You can not bail this thing out. You have to get the passengers off the boat, not try to bail out the Titanicand hopefully there will be enough boats to do that.