I beg to be forgiven for blowing my own horn, but I am hardly the only one to keep shouting that this whole harsh austerity so brutally imposed by the likes of Olli Rehn and Wolfgang Schauble from the comfort and great distance of their cushy offices, is nothing at all to do with economics but everything to do with ideology.

However, blind, dogmatic ideology never leads to any good. And if it is one thing these gentlemen and ladies so doggedly pursuing this catastrophic agenda have achieved, it is bringing the European Union to the brink of disintegration, and certainly exacerbating the old hatreds of the continent which it had been thought had died.

In an article in today’s Guardian, describing how the Obama administration has achieved far better results through a Keynesian approach in reducing the deficit as well as the impressive initial results of Abenomics in Japan and how the Austerians have a lot to learn from this, ends with the following quote:

“Yet many will argue the Obama administration has done enough to show that Keynesianism works and it is only ideology that has hindered growth in the UK and Europe, not the availability of an oven-ready solution.”*

*My bold print.

All of a sudden Greece is being told it is, if not doing well, that it is at least “on track”. Everybody is very happy with the results of this toxic troika imposed programme. They are very happy because the deficits have indeed shrunk. Well, yes but…

The current account deficit has shrunk not because of a powerful export drive at all. In fact nothing at all has been done to help the economy get back on its feet and start producing and exporting. No. None of that. The Germans wont have it. The only reason the current account has shrunk is because domestic demand had collapsed. Through the horrific taxation and continual brutal cuts, there is hardly any disposable income left.

So the “success” is not due to increased exports at all and therefore not a sign of the economy getting back on track at all. As to the budget deficits, this is no success either.

The decrease in the deficit is due to the horrendous, unsustainable taxation, to the savage cuts in everything from healthcare, to education , to defence… The only thing that has not been savaged is the expenses of political personnel. Not to mention that the state owes some 8 billion to the private sector which it simply does not pay. So not much success in that either.

Yet here we are, words of praise, delight that Greece’s new government has assumed full “ownership” of the programme… and what the hell does that mean? Never mind. It sounds good to them. So not only words of praise from the troika, a release of two instalments… which will only put us further into debt, but will at least pay back the ECB. Who lends us to do this… hmmmm.

And as if that were not enough, to make our heads go really dizzy, the Fitch ratings agency upgraded Greece from CCC to B-! Success! What wonderful success! And the spread on our borrowing costs has actually gone down to 7.5 – 8% levels!

Now, if you actually read the report on why this magnificent upgrade was effected you begin to wonder. Well, the risk of Greece leaving the Euro has been greatly reduced. Perhaps. Perhaps it never was as close as all that, judging from Schauble’s admission AFTER the Greek elections that it would cost far too much. But in any case, the risk of Grexit, though diminished, is still there. However, apart from all this nonsense about assuming ownership and stuff, the main reason is that through reforms of the labour market Greece has regained her competitiveness!

Which makes you wonder at their sanity. If Greece has in fact regained competitiveness, why is unemployment 27% and growing? Why is Greece in the sixth year of recession with forecasts that recession will continue way into 2014 and beyond? Where’s the catch?

Well, the catch is that all this is not based on sound economics but simply on ideology. All they really wanted was to destroy the labour market by abolishing all and any rights and slashing wages, which in a climate of 27% unemployment you didn’t really need to legislate to achieve this. But no. Yet what kind of capitalism is this when the Minister of Labour sets minimum wages with a remit to keep lowering them? Sounds more like a Soviet Union that a European Union.

Furthermore, when they say Greece has regained her competitiveness it is utter nonsense and based only on the ideological obsession with “flexible labour markets”. Otherwise, costs have gone up steeply. Firstly, the cost of financing your business (if you do even find financing) has shot up and is grossly over priced compared to say, German costs of financing. But that does not matter, now does it? It’s just the workforce we have to stick it to.

Secondly, through all the extra taxation on fuel, the rise in highway tolls, have made transport costs shoot up as well. Not to mention the exorbitant extra taxation on everyone and everything that lives and breathes in Greece, grossly encumbering every business trying to remain afloat. But that doesn’t matter either. Labour costs have been slashed. Welfare and healthcare have just about been destroyed. So we are just dandy and can give you an upgrade on the strength of that alone.

Mind you, those compiling the Fitch upgrade report are not completely daft. They have a lot of caveats. They do not rule out the possibility of a Grexit. They do see that this business of having regained “competitiveness” is nonsense, since although they say that internal devaluation has finally kicked in and greatly diminished the cost of labour, they don’t say that it has produced results but that it is “expected” to. By whom? Them? When? Aha! That is all left very vague.

In fact since this is dogmatic ideology and not economics at all, it remains in the realm of belief. Since wages have been slashed, they “believe” this will show positive results, totally regardless of all the other parameters. They also make no mention of how prices have shot up, not least through the exorbitant indirect taxation imposed on everything. Since they were so pleased that internal devaluation had succeeded, they could hardly mention that little detail, now could they? It would mean they would have to admit that internal devaluation had not worked.

Now, why this rush to buy Greek bonds, the fall in spreads and so on? So the Fitch rating made a difference? Maybe. Or maybe all those hedge funds who can smell a rat a mile off thought it was wizard to buy up these bonds at rock bottom prices, engineer a rise and make another killing? Just a thought. After all, there are no solid economic fundamentals behind it.

Anyway, though Olli Rehn and all that troika rat pack may be delighted at their great success with Greece (a failed state with a collapsed economy and even greater debt/GDP ratios… but never mind all that) Stephen Lewis, chief economist at Monument Securities, had the following to say:

“What seems incontrovertible, on this evidence, is that the member-states of the euro zone are on the wrong track.

The costs of the zone?s one-size-fits-all strategy are becoming brutally apparent.”

And I really don’t think he’s wrong. Next time you hear ecstatic noises of Greece being “on track”, remember that.

In his psychedelic up beat mood the Prime Minister of Greece, Antonis Samaras, announced in triumph:

“Grexit is a relic from a miserable past”!

In Greece there is growing doubt over whether Antonis Samaras actually lives in the same country as we do.

It was always about politics and how to impose the worse possible excesses of hard neo liberal nonsense economics BUT with added tax burdens to destroy the middle classes and reduce everyone to  pulp. So full fontal attack on everything to do with social security , welfare and healthcare. Slashing wages, abolishing pensions and so on. Ok. That was the plan and they have done very well in achieving their aims.

So just what sneaky underhand politics are going on right now? Firstly, Greece whose economy has been destroyed, who is projected to remain in recession for several years, though to a diminishing extent (hah!) is now being praised! Yes, they have done what was demanded. Yes, signs of success are showing. Like little green shoots in spring. Unemployment? Oh that’s all right! It is still rising but at a lower rate.

And other such complete humbug when all they have managed to do (in addition to achieving a total collapse) is increase debt, increase recession and increase unemployment. So you wonder, could it be they have taken pity on us? But no. It’s not that. After all, taxes are to be hiked even further up, next winter no one will be able to keep warm again, oh! and pensions must also be slashed further.

So what’s the devious, dirty, sneaky, cynical underhand political maneuvering going on here? Especially when you contrast what they have to say about Ireland! Ireland the poster boy! Ireland who always did everything right! Ireland who was teacher’s pet, as opposed to Greece the unruly dunce of the class.

“Ireland’s international lenders have warned that the country needs to do more to stimulate employment.” “the labour market still has significant structural problems,” and “While a pick-up in growth is needed to meaningfully reduce high unemployment, further policy efforts are important to address its increasingly structural nature.”

So what does that mean? Quite simply, that although Ireland’ unemployment is not nearly as bad as Greece’s…. they must do more to reach Greek and Spanish standards! They must slash wages to below subsistence levels, they must abolish all and every law, decree, regulation that might protect workers in any way. Just like Greece.

Of course Greece’s unemployment is continuing to rise, despite some mendacious declarations to the contrary yesterday by the pathetic so called Minister of Labour. Today Elstat corrected his erroneous statements of yesterday. Completely/

But that’s just it. Unemployment must be high, very high, to make damn sure no one gets paid any more.

Ireland has a long way to go before she reaches Greece! So she better be snappy about it before we cut off their oxygen pipes!

Simon Jenkins in the Guardian has described Nigel Farage as “froth:. And he may will be right. Should some sense and courage return to our assorted politicians throughout Europe.

But then what is it that has caused the froth? Disenchantment with the fallacious austerity panacea recipe? Yes, to a great extent. And we are seeing similar reactions throughout Europe from Beppe Grillo in Italy to that far more sinister and potentially dangerous rise of Golden Dawn nazism in Greece.

But I would say that Nigel Farage has something more. He is charismatic, full of passion, makes fiery speeches in the European Parliament that pull down those obnoxious, unaccountable, appointed, irresponsible Eurocrats more than a peg or two.

Now is there more substance? Well, this should be a wake up call. If the politicians do not want the European Union to ossify into an undemocratic, command economy, governed through social engineering (that inevitably goes wrong, such as internal deflation) they should take heed.

Not only is the EU no longer not inspiring any more, it has become positively repellant. It feels like a rigid dictatorship which has abolished “local” (that is national) governments altogether. Instead of leaders we now have second rate administrators of central policy. A fully fledged command economy where the voice of the people counts for nothing.

Where human rights and human values have been abolished in favour of good book keeping. But not even that, because if these years of European crisis management have proved anything, it is that none of the plans imposed by the so called troika have worked at all.

So in comes Nigel Farage, perhaps a relic from the past, but a relic we are all hankering for. National dignity, a politician who is not terrified of calling a spade a spade, who does not cringe and kow tow to whatever nonsense economics the German Chancellor and Olli Rehn declare is the ONLY way to go. And which we all know is the only way to go straight to hell.

Having said that, I would probably not vote for Nigel Farage myself (unless it was to send him to the European Parliament again), because he is too “right wing”. On the other hand the European Commission and the German directorate have made “right wingers” look positively benign!

“The FTSE 100 has reached its highest level since December 2007, the early days of the financial crisis.”

“German factory orders in March have smashed forecasts , jumping by 2.2% last month compared with February.”

“Moscovici said Europe was now moving towards a ‘doctrine of positive deficit reduction,’ where economic recovery was the main priority. “

“The German stock market just hit a record high in morning trading, as the DAX gained 47 points to 8160. Other European markets are higher again too.”

There! See? What was all the fuss about? Everything is working out just fine. And for all of those dumb critics of the Merkel/Schauble domination, prepare to cringe. You got it all wrong. They knew what they were doing all along.

Europe is about to soar!

Exactly as the Greek Prime Minster has said about the Greek economy. That in the autumn it would soar! They know what they are doing this bunch.

So stop whining and complaining and muttering about soaring (whoops) unemployment and destitution and the utter annihilation of social security and legislation protecting workers rights and so on. All that was far too quaint and counter productive to keep going, for heaven’s sake!

At long last the European economy is soaring out of the mire! All we need do now is slash wages even more or even abolish them completely! Start up euthanasia centres for those over 65. Restrict access to any healthcare by this age group and the sickly in general, and there you are! Success!

We are about to enter a new age for Europe. An age of production and profits. A new dawn for the continent. What in Greece we could call a Golden Dawn of achievement!

And as the predecessors of the Golden Dawn would have said, leave the elderly and the sickly and the disabled behind. Let them die quietly, while the robust get on with producing a competitive economy where profits will roll into the pockets of the1%, which, however we shall change.

It will no longer be the 1% enjoying everything. No. that is too wide a group (even after we have reduced populations adequately). No! Now it will be the 0.1%!

How better can you get than that?

The ruling elites of Europe (and beyond perhaps too) have become totally distanced from the peoples whose interests they are supposed to serve. They have become aligned with finance capitalism to the extent that they now serve that master rather than their people.

I was going to add, rather than their people who pay them through their taxes. But they are serving those who pay them. The various banksters who fund their parties. And only indirectly by their taxpayers who have now been made to pay the banksters rather than their own social services. Greece is an excellent case in point where the governments have signed up to paying off all debt first, before the needs of the people such as health and education.

Citizen’s needs not only take second place, but citizens must be squeezed dry, driven to penury and suicide in order to satisfy the banksters.

Something of the same is happening all over Europe where the dogma of austerity is being used not to put the economy right; because they way it is being imposed there is no way it could do that, but to destroy the very foundations of European civilization.

This is not happening by chance, but by design. The so called economic policy being imposed is dud. An excuse. And they know it. And now we know it too. After all, there can be no excuse for any of them for believing this policy will achieve anything other than what it has. Growing unemployment and depression, and the undermining of what Europe used to stand for.

So what has happened? Well, look at election results: Beppe Grillo’s party in Italy, now the Ukip surge in the United Kingdom. Marine Le Penn has been enhanced in France. And worse of all in Greece it is the nazi Golden Dawn Party that has shot up and not only entered Parliament but is set to become the third largest party.

This in a country that never had mass fascist feelings before, only imposed dictatorships which were universally opposed.

So rather than ringing hands over the rise of Nigel Farage or Beppe Grillo or talking about how to outlaw Golden Dawn, the ruling elites of Europe should address their own priorities. Soon. Unless they want a new manifestation of an old reaction. Rebellion and Revolution. Perhaps even with scaffolds and guillotines.

They still have ample time to address this. Provided they open their eyes to what is happening. And get rid of the pernicious, unelected, unaccountable Olli Rehns destroying our civilization.

P.S. Apart form being ignorant of economics Olli Rehn is also ignorant of diplomacy and politics. On the eve of the Ukip surge he wags his finger an the United Kingdom ordering Cameron to keep inflicting the useless austerity pain on his people. Bravo Olli! However did you get to such a position? How? Well we all know the answer to that one. He is just what the banksters ordered!

Enrico Letta may turn out to be The Frau’s Nemesis. He will probably be unable to pull a Mario Monti on Italian policy even if he may want to, because that would cost him the political support he needs to remain in office. That is perhaps a negative reason for placing some hope on this new PM. But there are some signs of positive reasons for hoping that the tide may start turning against the catastrophic Austerity and nothing else German imposed policy.

In his visit to Van Rompuy, Enrico Letta said:

“We would ask above all that the fight against youth unemployment should be the most important, most concrete message to come out of the June European Council.”

That, of course, should go without saying, but since the German stranglehold over Europe has forbidden statements of the obvious, it is indeed cheering to hear it from someone actually in a position to make a difference.

Another encouraging sign also comes from the new Pope Francis, beginning to live up to the expectations his choice of name has aroused. He has tweeted:

“My thoughts turn to all who are unemployed, often as a result of a self-centred mindset bent on profit at any cost.”

Which makes a very welcome change from Pope Vojtilla who truned against the humanitarian, indeed Franciscan (with regard to approach) movement of Catholic priests in South America so many years ago. Vojtilla often sounded more like a supporter of the Pinochet pro dogmatic free market economics than a prelate.

Can we see any of this as a sign that spring could be on its way? We can only hope so.

But the tide has to turn. Otherwise we shall all be inundated and drown.

This is a somewhat free translation of an ancient Greek saying, apparently deriving from Euripides.  Rather apt for today’s “leaders” of the EU, from Olli Rehn to Wolfgang Schauble, Angela Merkel and the new comer with the unpronounceable name who is apparently a pig farmer, and showed the magic of his own catastrophic mismanagement in the notorious case of Cyprus.

Which brings us to a tweet by Sony Kapoor:

Dear #EU leaders, honest mistakes are one thing, ideological blindness is still sometimes forgivable but wilful madness? #Austerity

? Sony Kapoor (@SonyKapoor) April 30, 2013

And still they refuse to see the obvious. Is it just madness or vicious sadism?

Still they are lucky, these disastrous men and women, since instead of the scaffold or being torn apart by an angry mob, they will probably be rewarded with lectureships at American Universities.

“In a draft paper on party policy on Europe ahead of a conference in June, the [French] socialists contend that Europe is being run by a rightwing Anglo-German cabal dominated by liberal free trade interests with the rest of the world and austerity within the EU. ….

….the selfish intransigence of Chancellor Merkel who thinks of nothing else but the savings of depositors in Germany, the trade balance recorded in Berlin and her electoral future,?

At last! At long last! Someone has actually said it. Before all the cringing and kow towing before the Grand Mistress and the fear of daring to suggest that perhaps she and her side kick may not have got it quite right, the little boy in the crowd has finally cried out that, hey, look! The Queen has no clothes!

Now, it remains to be seen of course, whether this draft paper of the Socialist Party of France will be acted upon.

Will Hollande dare to blast Merkel and her utterly self serving policies and impositions destroying Europe in the next Summit Conference, or not?