Parina

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Month: February 2014

Could Ukraine Be A New Sarajevo?

Could the Ukraine be a new Sarajevo one hundred years on? It is a conflict between two separate power blocs. It is of course much nastier than Sarajevo was, which consisted of a political assassination which lit the fuse. And such parallels should always be taken with a pinch of salt.

Nevertheless, Russian troops are arriving on the border, ostensibly for military exercises, but quite obviously in preparation for a very possible military intervention. The West appears all gung ho in favour of the revolutionaries who are in favour of “Europe” and against Russia.

They are also in favour of the suppression of all minority languages including Russian, of the out lawing of the Communist party and in short their underlying ideology is of the extreme right, some even describe it as Nazi. And that, for them, is Europe.

And what is Europe? A bastion of right wing neo liberal suppressive policies slashing welfare, healthcare, riding rough shod over populations. And what is European foreign policy well… does even Katherine Ashton know? Or is she even responsible? Well no. Europe is what Henry Kissinger disparagingly described it. Who the hell do I call to speak with Europe?

This of course is changing and it is now much more obvious who to call. Frau Merkel. However, ever since the wars of Yugoslav succession this has been quite obvious, long before Frau Merkel arrived on the scene.

Nevertheless Frau Merkal is emblematic. She is as East German going to the other extreme. Ban the Communist party! Impose the harshest capitalism! And that is what Europe now represents. And whereas it might be to a degree understandable to find this attitude in the ex Communist states, the core of what used to be western Europe can hardly sympathise with this. Yet the peoples of Europe under this new post cold war regime have no rights left as shown by the whole troika travesty.

But beyond these, very serious matters, there is another matter that bears scrutiny, in light of the Sarajevo parallel. Europe has incited this Unkrainian “revolution” to a great extent, yet what is Europe? Russian troops are gathering on the border. Europe has no such equivalent. There is of course NATO, but this is under US hegemony. What about diplomacy? Katherine Ashton? She has no such mandate. The Foreign Minister of the presiding European state? No way. No mandate either. Besides the gentleman in question is a joke.

The German foreign minister? Well, he does appear to be taking a more active part, yet he is limited too. For all this tragic re branding of the EU as German Europe and don’t you forget it!  But the way Germany has miss handled all these crises it is most unlikely that the rest of Europe at least what used to be the West will line up behind her.

Europe blundered into the first world war incurring the worse carnage in history. Let us hope that 100 years on the Ukraine will not be the mighty blunder to trigger off something just as bad and destructive.

New Quisling Prime Minister For Italy?

Quisling may be a bit too harsh a description. But Matteo Renzi is Italy’s new appointed Prime Minister, appointed by President Napolitano who has taken it upon himself to be the sole arbiter of who governs Italy without reference to the popular vote. He engineered the appointment of Mario Monti, consequently roundly rejected by the people and he has now engineered the appointment of Matteo Renzi.

Of course we shall have to wait and see before we judge him on results. However there is already something we can judge him from and negatively. His promises that he would not take on the Premiership without an election, his promise that he would not undermine Letta for instance. And then jumps at the chance to be cynically appointed by sticking the knife into Lett’as back. No qualms, no regrets. Sheer unadulterated opportunism.

Very reminiscent of the Greek PM’s shameless volte face when asked in Germany about what he ha to say over reneging on all his pre election promises in order to do exactly what the electorate voted against. His answer? Mea culpa, or, to quote the famous Jack Lemon phrase in Some Like it Hot, Nobody’s perfect. More sheer unadulterated opportunism.

In short European politicians have shown and are showing that they do  not believe in democracy, they do not believe in the will of the people, they have no shame and the last thing they care about is how to benefit and protect the people they are purportedly serving.

In short, we have sunk to the lowest level of amoralism all around.

Greece Is On Track For Growth… (?)

Thus spake Chrisine Lagarde (aka Marie Antoinette). Reportedly the lady admitted to “some mistakes” by the troika but assured that Greece is back on track for growth. Oh really?

This is a criminally self serving statement. Obviously the lady does not want to admit that the IMF has been instrumental in completely ruining an economy and sending a whole population into destitution, depriving them of all and any hope of a real recovery. Now where exactly she sees this growth is another question. Probably in the same place Samaras sees it. In their dreams.

The economic facts of the matter are not the so called primary surplus (which is a bit of sham anyway) but an exorbitant level of unemployment (in the 30% area!!!), a completely unsustainable level of debt, even higher both numerically and as a percentage of GDP than when the crisis exploded and the troika stepped in to fix things, no foreign investment to speak of and domestically one company is closing down after another or relocating to Bulgaria. Not to mention a total shambles in the taxation and bureaucracy systems that strangle all and any private initiatives.

Despite the Middle Ages labour market imposed. But as we have repeated ad nauseam, what is the good of cutting down salaries and wages drastically when you hike all other costs from energy, transport, taxation? Madame? Have you failed to notice this?

So far those responsible for the mess are jubilating that in this seventh year of continual recession, the figure for 2013 will not be 3.7% recession as forecast but only 3%!!! And when it flattens out as it inevitably will for all the concerted efforts of the troika and the Greek government to make sure it does not, then, they expect, there will be dancing in the street!!!! The state of denial and arrant refusal to admit to the truth is that bad.

Nevertheless there may well be dancing in the streets of Greece. But of a Dionysian, Bacchanal nature, such as that described in Euripides’ Bacchai where in the frenzied dance Penthaeus’ own mother dances about with the severed head of her son who has been punished for  his sins as a ruler.

The Dark Ages

Many many years ago, way back in the dark ages, Democracy used to be defined as government by the people, of the people for the people. A very quaint idea indeed and something totally unrelated to today’s European Union which consists of: government by unelected unaccountable Eurocrats, for the bankers and the very few, of the most servile, insignificant unimaginative nonentities that money can buy.

The funny bit here is that this is not some cynical witticism but an accurate description of how Europe is being run.

For many years now it has been an established fact that within Europe referenda will not count unless and until the electorate vote for the results the Bungling Bureaucrats want. However, this axiom has been refined. Now elections have been scrapped altogether and reduced to a rule not unlike Henry Ford’s dictum referring to his cars: “You can have any colour you want as long as it’s black.” The Euro dictum is not quite: you can have whatever government you want as long as they do as we say, but even worse: you will vote in the government that will do as we say or be driven to more elections till you do or, now, even better, a series of Palace Coups till we get the right fawning subservient Prime Minister we want.

The perfect example for how this latter works is Italy. President Napolitano has grossly overstepped his mandate fist with the coup that put Mario Monti in power and now with the Renzi farce. After assuring and promising he would not take power without an election Renzi does just that through not least Napolitano’s machinations. And lest something go awry, it has been stated that there will be no new elections because…. well, ah, you know, we have to change our electoral laws first.

And to add insult to injury, the very idea of National Self Determination has also been scrapped. National self determination? What utter nonsense! That won’t do! That won’t do at all. It will make our grip on power through unelected idiots so much more difficult to maintain!

So out comes Baroso of all nonentities and threatens the upstart Scots that should they dare vote for independence they will be kicked out of the European Union and not allowed back in! This is based on nothing in law or even logic. It is the usual terror campaign. YOU WILL BE OSTTRACISED!!! Like Greece being threatened with Grexit when no such thing was even being contemplated as a possibility. Unfortunately for Greece. The same again with Ireland. Threats and terrorisation from outside foreign agents to manipulate the popular vote, against the interest of the electorate and in favour of this cruel, inefficient and catastrophic totalitarian regime.

Need we remind ourselves that the first maniac to propose a vision of a United Europe was Adolf Hitler? History has had fun with Europe, hasn’t it?

When Spin Spins Off Its Axis

Greek unemployment rate hits record high

Bad economic news out of Greece, which should dampen the claims that the country has put the worst of its financial crisis behind it.

Now this is from the Guardian. The outrageous spin of the Greek Samaras – Stournaras regime that insisted (and insists?) that the worst of the crisis is behind us! was never believed within Greece of course and has now become painfully obvious as arrant nonsense for everyone else too.

Of course it is very hard to believe that anyone else did believe it either. The likes of Olli Rehn, Wolfgang Schauble and all the rest of the merry band pretend to believe some of this out of expediency and nothing else. Euro elections looming, banking union idea being neutralised, uncertainty over Greek debt which is quite obviously not sustainable…. but go tell that to your electors…

Now the Samaras – Stournaras regime, in fear of being routed at the Euro elections has come up with the following outrageous spin. The primary surplus!!!! It keeps going up from 500 million Euro to 800 mil up to the billions now from 1.5 to 3 something. In the end the primary surplus will be so high we will pay off all debt in a couple of years. If they are to be believed.

The other piece of spin is that Oh! What memorandum? We are exiting it this year! Oh yes? And just what does that mean? Nothing. Austerity will remain and we are being threatened by Herr Schauble with ANOTHER loan with even worse strings attached which will in his warped logic reduce Greek indebtedness?

So what will we be “out of”? Nothing. Just pushed further and further in.

Of course since all this spin is based on the outrageous to criminal taxation, it is doomed to explode in their faces. There are serious indications that revenue from taxation, the budgeted amount, will collapse his year. It is after all, nothing more than a figment of Stournaras’ rather limited imagination.

Deflation And Draghi

For better or for worse, Mario Draghi is probably the only one of the EZ circus of clowns to actually know what is happening. He may well be the only one not in denial. And for all the preening and pontificating, were it not for Draghi in the summer of 2012 with his “whatever it takes” commitment  the Euro would probably be history by now.

Of course the German nomenclatura in its infinite wisdom challenges the only thing that saved the Euro. That is the bond buying plan to keep interest down. Nevertheless, fortunately for the Euro if for nothing else, the commitment was enough to stave off the speculation that was allowed to destroy the Greek, Portuguese and other economies.

Whether the Euro is worth saving is another matter entirely and it appears from recent remarks leading up to the European elections that more and more voices are beginning to doubt this.

But back to Mario Draghi and his sense. The German led austerity imposed by authoritarian rule programme has, as it inevitably would, led to recession and deflation. None of the politicos ordaining overall economic policy lifts a finger to amend this disaster in the making. Instead, they expect Draghi to lower the interest rate to stave off inflation.

This is not just denial, it is criminal idiocy. Okay. So, what if Draghi had today or does next time around, cut the interest rate from 0.25% to 0.10% say. What difference will this make? How can playing around with interest rates achieve anything much at all when they have been consigned to hover around zero for years in response to the exigences of the neo liberal deregulators?

In other words the weapon of setting interest rates to guide the economy in and out of slumps, has been completely blunted. But the Circus of Euroclowns still expects Draghi to solve all the problems they have created and persist in creating through the dunce caps in economics they are still firmly wearing.

But Draghi has said quite clearly. All I can do is gain time. Time which the clowns should use to take appropriate measures to set the economy on a path for growth instead of decline. Draghi has been very successful in gaining time for them. However, instead of using it, they have taken it as proof that “their” policies are “working”!

So instead of acting they just let the can roll down to the cliff while clutching at straws that everything is going to plan!

And perhaps it is if the plan is to destroy Europe and The EU.

Desperately Clinging To Straws

Look! the Eurozone is onto recovery. PMI up! Even the Greek PMI has gone up over 50 for the very first time since the crisis set in! Germany is posting strong growth, and Italy, Spain and Portugal are doing well too. Only… well, France isn’t doing too well. But no matter. As soon as they realise they must also slash all welfare, abolish the 8 hour day and all labour rights, they’ll be on the mend too. Why look at Greece!

As well you might. It’s great! Factory output is up! Hmmm, yes well, but workers are still being laid off and unemployment is growing. Oh that doesn’t matter, they have achieved, it is pretended by all, a primary surplus! Ah, but the debt burden is GROWING and little Wolfie wants to add to that burden by offering a further loan with more impossible strings attached so that… Greece can pay them back. But not grow or recover.

Every tiny piece of positive information is instantly pounced upon to show that YES! This nonsense economics is working! Look, even Greece is showing slight signs of recovery. Ok the rising unemployment has not yet stablised but it is not growing at the same pace. As for the totally unsustainable debt. Oh just ignore it to keep little Wolfie and his Mutti happy.

We don’t bother with deflation and dangerously low inflation, we don’t bother with unemployment, we don’t bother with low consumption. No we don’t bother with anything that matters because we are in a state of complete and utter denial.

Professor Yannis Varoufakis has an interesting analysis on why the Eurozone and perhaps even the EU altogether will just disintegrate if Germany does not decide to be serious about all this and to stop being the Authoritarian saying No to everything that would help the Eurozone recover because: “It’s against ze rules!!!!”

Unfortunately it is a matter of vision, of being able to see clearly and, perhaps above all, beyond one’s immediate narrow, short term interests as perceived and onto the big picture. But that takes much bigger politicians than we have today anywhere in Europe. In other words a statesman or stateswoman or two would go a long way to resolving the crisis. Should they not appear then we are on the way to catastrophe.

The Germans and French have already had their elections.

Why Are We In Such A Mess?

A good question and there are many answer depending on your creed. The neo liberal mantra: We are not competitive! As if that could apply for everyone simultaneously. But for them it does. Probably because the concept of cooperation is alien to them. Compete, fight, kick the other guys ribs out. Don’t help him cross the road whatever you do! Run him over so you can get across first.

Not believing in this creed personally, I would go for blaming the irresponsible self serving scrapping of regulations and the only economic system that was not only more equitable than any other (though not perfect of course), but also worked incredibly well considering.

Now, through all we have learnt of how economics actually works and not how the fiendish neo liberal crazies would like us to believe it does, the world economic order could be fixed relatively easily and relatively quickly. This however would be unwelcome to those benefiting from the mess and benefiting horrendously. While hunger, unemployment destitution have returned to many places in the European Union and very low wages for those in work all over the European Union, the infamous 1% are benefiting delightfully.

But if it is not so difficult to start putting things right why is it not happening? Why is nobody even trying? Why has no one shouted that the King has no clothes? Why has the so called Euro crisis been obfuscated and its true cause never discussed? Why has vile propaganda of a quasi racist nature taken the place of sober analysis and any attempt to see the real picture?

Here, I think the answer is very simple. Those who hold the reins of power and whose job it is to fix the mess, are the very ones who not only caused the mess (which is one of the reasons why no sober analysis is ever allowed) but also the very ones benefiting from the mess as we speak (which is another reason why sober analysis remains anathema).

Nevertheless, in a rather Marxian way, their very grand success in sucking up wealth into their own hands and away from the rest of humanity is at the root of the abject failure of their project. The world economy has stalled and will not recover unless these policies change. Consumption has been devastated. Without consumption there is no growth, in other words business fails, profits fall… aha! You will say, not for banks and the financial wizards! Not for the crazy casino world we are now living in!

Sure enough, but is this casino sustainable? Isn’t it all fundamentally parasitical on the real economy. Which is failing. When the elephant dies the parasites cannot continue to live off him. They have to find another one. But what if the whole herd dies off owing to a plague? The plague created by these banksters in the first place?

All the same I would like to end up on a more optimistic note, rather than that we all have to die first, and that is the following: History, human life, the flow of events is not linear. It never was and it never will be. As the sun rises and falls as spring follows winter, as joy succeeds sorrow and vice versa, the rhythm is cyclical. Always.

And when at Davos they even start muttering a few platitudes about the rise in inequality, even if they have no intention of doing anything about that, you know the first rays of dawn are beginning to crack the darkness of the night.

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