Monday, November 7, 2011
After Greece, Silvio Berlusconi comes under threat as euro turmoil hits Italy, the national assets lined up to be sold off, sovereignty under threat
I am every much pro Europe, I have enjoyed the times I spent in Europe both in Germany and Belgium.
The European Union is a good idea, but there are problems, the single currency idea is good in principle but operates badly in practice.
All currency experiences highs and lows but the crisis facing Europe is severe that the whole eurozone is in danger of meltdown.
We are waiting for the Greek default in entirety, this is their only way forward, from the ashes they can rebuild, but they can’t do so until that happens.
The contagion will spread, by default it must, Spain, Portugal and Italy are others in trouble.
And the chaos could drag Britain back into recession, we aren’t moving forward but rather backwards, double dip recession draws closer despite the austerity we face now and it is going to get even worse.
Italy is the next domino to fall; Rome's borrowing costs have hit a 14-year high.
The euro wasn’t designed to cope with this, in monetary policy you have to look at worst case scenario, patently no one was.
Italy stands as the Europe’s third biggest economy, managed into the ground and teetering on the brink of financial collapse.
The political turmoil has seen bad tempers flare up among politicians, to the point of fights in parliament.
The focus must be shifted from bailing out bankers but unless there is a new political class, it won’t, the problem has no solution, under the current set up.
Prime Minister Silvio Berlusconi faces the fight of his political life as a fierce battle to keep his job in a series of crunch parliamentary votes this week takes place.
People are saying his departure could ease pressure on Italy from the financial markets.
It won’t, it doesn’t matter who drives Italy onto the rocks, but it does matter who will try and re-float the country afterwards.
No country in Europe has what could be described as a strong economy except Germany, who have done well out of the developed European nations in relative terms.
They have problems too in banking but they still have a powerful industrial base.
And that is what needs to happen in the Eurozone, every country needs to restructure to develop their industrial base, it can’t be done by relying on financial services built on ponzi schemes trading fraudulent in derivatives.
We are where we are because of fraudulent banking practice.
The markets are controlled so that bankers make money either way.
When Shares fall bankers can make money and when they rise they can make money as well.
Italy is ripe for asset stripping in the same way that Greece was set up to fall, then bailed with more debt to trap them, forcing them to sell off national assets at knock down prices.
Politicians in Athens were locked in talks over who would replace Prime Minister George Papandreou who has effectively let down the people. They are looking for someone who will lead the country in delivering a tough austerity package.
This is the EU-IMF bailout which will see more rioting in the streets as people say enough is enough.
There is a tsunami coming of political unrest coming across Europe as people turn on their governments.
The various occupy movements will be the tip of a volcano of public anger.
European Central Bank has stepped in to buy bonds in a bid to shore up confidence but it is a stop gap measure, the plaster on the leg that is hanging by a thread to the body.
Italy's finance minister Giulio Tremonti has already told colleagues how Rome plans to implement its own austerity package including selling off public assets and changing employment laws.
The same model used in Greece to asset strip the country.
Berlusconi is a problem for Italy but he is not ‘the’ problem facing Italy in its austerity reforms.
The sooner there is a euro wide default co-ordinated by all governments then control of countries can be wrestled back from the bankers and into the hands of the people.
It must be done at the exact same time in all members states.
Then the process of rebuilding a stronger Europe can begin, the political will required is massive in scope, things have to get worse before they can get better.
But at least there will be a future and democracy rising from the ashes.
The Campaign for Human Rights at Glasgow University