EUROPE’S BURNING!

Erle Frayne D. Argonza

Europe is on fire. Save for those who choose to be blind, the Union is going through an incendiary economic burn. How far will the economic burning go, whether it will spread to a larger continental inferno, no one can tell for now.

Before the EU’s creation, welfare policies were prevalent from east to west of the continent. Liberal reforms then arose, commencing with the Tory’s (Thatcher era) wholesale adoption and social marketing of the same, and copied by the conservatives and liberals of the continent alike.

By the turn of the century, upon the commencement of the Euro, liberal reforms already saw the uncontrollable ascent of predatory finance worldwide. Liberalized financial-capital markets paved the way for their immanence.

Among those instruments created by the predators was financial derivatives. To recall, a decade back the derivatives markets were already awash with exposures totaling over $150 Trillion, with 36% of these in the hands of British financiers while 15% were in Americans’ hands.

By 2001, the alarming projection was leaked out that derivatives will be inflated to exceed $350 Trillions within the new decade. At a time when the global economy was producing past the $40 Trillion in Gross World Product or GWP, it was sheer madness to consider debt papers of past $350 that could meltdown the globe in case of a gigantic bubble burst.

Europe was already flat on its back for a straight two (2) decades since after the collapse of the Soviet Union. Periodic stagflations and recessions have seen the rise of poverty incidence and, consequently, the re-emergence of neo-fascist movements.

Being strongly tied up to the U.S. economy, it was not surprising to realize that a contagion of the U.S. recession will surely hit Europe, which did happen. The ugly side of the formula was the aiding of ailing banks that were badly affected by the crisis, an intervention that was flawed and immoral as it entails using taxpayers’ money to aid criminal bank speculators.

Barely out of the U.S. contagion effect, Brussels was shocked to see that a new fire had started within the Eurozone— Greece to be exact. As this was happening, Spain also began to sneeze & cough, as some of its own banks (notably Santander) spiraled down bankruptcy scale. Other member-economies were also having their own financial crucifixions going by the early part of this current year.

If we diagnose what’s going on in the financial sectors of member states, we can easily pinpoint banks as hotspot fire sources. They were heavily into speculative pursuits, with enormous exposures to derivative operations.

Just exactly how that happened can be traceable to certain acts in the North by the mid-80s. Commodities markets have sprung up on that decade, even as a global recession took place then, threatening OECD economies. Liberal reforms were already permeating diverse sectors, and within the backdrop of liberalization, financial derivatives and equivalent portfolios were launched in mass scales.

Banks shed off their previous stance of inhibiting themselves from speculative pursuits. Soon they’d find themselves investing into every speculative games they could lay their hands into, inclusive of hedge funds operations.

Now, to fast track to the present, economists estimate that EU’s aggregate derivatives are within the range of $180-$200 Trillions, estimates that seem conservative. Measure this against the gross domestic product of EU at $13 Trillions, and you would be driven to ask: just exactly where will Europe get the funds to pay the hedged financials in case of bursts and massive bankruptcies?

If all of the hedge funds investors would ask for a forced payment of their total of, say, $200 Trillions more or less, who would pay for such debts? Where will the money come from? Is it morally right to extract taxes from European workers to pay up for the dirty debt papers in case? Is it likewise morally right to impose wage cuts on workers who were not the culprits in the virtual economy game in the first place?

Concerned Europeans should better rethink the Euro and ask whether the new currency really worked for their welfare. It is now clearer that the Euro was a sell-out idea and project, that it was launched to satiate the insatiable pockets of greedy financiers represented by the top financial houses there.

And Europeans better see how silly it is to allocate taxpayers’ money worth $1 Trillion to bail out ailing banks and industries hit by the rising meltdown. For measured against total debt papers of $180-200 Trillions, $1 Trillion would be ridiculously paltry.

Yet another ridiculous intervention is the austerity measure imposed by the IMF on Greece. We’ve had so many precedents of the deleterious effects of such measures on developing economies that aimed at eventually graduating from IMF programs as a salvation measure in the short run. While emerging markets are getting out of a burning house (IMF & austerity measures), Greece voluntarily entered this house. Unbelievable!

As per reports reaching my focals, Germany had the greatest exposures to Greece’s banking sector, with exposures running to hundreds of billions of euros. British financiers, on the other hand, have their hands full in Spain’s banks.

It isn’t difficult to forecast that the fire in Greece could spread to other eurozone economies. Not even the UK, which decided to stay out of the eurozone, will be spared from the bonfire. Spain is almost there now, and who knows what country will be next.

If banks and industrial conglomerates will simultaneously burn in all of the member-states of the eurozone, with total aid claims of past the GDP of $13 Trillions, then Europe will be on the brink of a continental inferno.

Concerned readers better think for yourself whether Brussels and the bureaucrats do have the right answers to the raging problems of Europe. Poverty incidences are now hitting past the 20% mark in member countries, while massive lootings of the financial and currency markets by predatory financiers take place every day in the continent.

Well, let’s all wait and see for what happens. Let us hope that a mad Nero bureaucrat wouldn’t appear to orchestrate the burning farther to infernal scale. That would bring a new nightmare to the whole planet if it happens.

[Philippines, 20 May 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,

UNLADTAU: https://unladtau.wordpress.com,

COSMICBUHAY: http://cosmicbuhay.blogspot.com,

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,

ARGONZAPOEM: http://argonzapoem.blogspot.com]

EUROPE’S TOTALITARIAN SLIDE CHECKED BY IRELAND’S VOTE ON LISBON TREATY

Erle Frayne Argonza y Delago

Good morning!

It is a stormy morning actually as I write this piece, and it seems to coincide with stormy events in the European continent at the moment. The continental storm has got to do with the finalization of the Lisbon treaty that could have effected complete political integration of Europe.

What makes the treaty questionable, in the opinion of many in Europe and across the globe, is that it didn’t pass through the public opinion mills and debates. Engaging Europeans themselves in voting for the measure could have been the most important method to ensure public consent about the unification treaty.

What is scary about the treaty, per analysis from many quarters including the Guardian and Executive Intelligence Review, is that it could pave the way for a central authority that is an undisguised totalitarian regime. A continental police state could have been the result of the full implementation, which is scheduled on January 2009, coinciding with the report to office of a new president in the United States.

Already, certain political personages are salivating for sitting in the throne of European president in case the treaty will be fully enforced. Tony Blair, former premier of the UK, is among those top candidates, and is noted to be very interested in becoming the first president of the political Union. In that case, he will be the first legitimate Emperor Palpatin, who will then sign marching orders for das boots mobilizations and conflagration of a total magnitude that will dwarf what the planet had ever experienced.

If the treaty will be fully implemented, the NATO will become the instant military wing, and the nuclear arsenal of the UK and France will be placed under the direction of Brussels. The NATO will become the command center for an EU-USA hegemonic partnership that will bring warfare to its next level across the planet.

The whole of Europe will suddenly become a police state of nightmarish proportions. The immigrants there today as well as the prison inmates will instantly turn into slave labor for global corporations. The scheme, as it was already tested in the USA, is for greater privatization of prison services. It is but another disguise for slave labor pure and plain.

You may have noticed the massive influx today of immigrants to Europe. This had already been pre-planned before to raise the level of future slave laborers in the new totalitarian continent. They will backstop the prisoners whose numbers will increase by many folds as brutal police forces will be rounding up every suspicious member of a neighborhood supposedly to check on guns, drugs, alcohol drinking binge, sex orgy parties, criminals,  and so on.

That totalitarian march of Europe had been checkmated for a while, as Ireland sought its citizens’ vote on the matter. Irish people rejected the treaty, and so this gives Europe some breathing space to re-think about the compass of political economic life. It could in fact be a chance to abolish the European Union altogether, which is really nothing but a central regulatory arm of the Anglo-Dutch-Teutonic oligarchy within its own backyard.

Let us all keep our eyes wide opened, vigilant to the max as events unfold in Europe. We can never again allow a totalitarian regime in that continent, whose spill-over effect would be a rapid resurgence of Japanese militarism in Asia. No, never again can we see a repeat of the fascistic days of the ‘30s & ‘40s.

[Writ 22 June 2008, Quezon City, MetroManila]