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Europe's economy slides towards disaster

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posted on Aug, 17 2011 @ 09:02 PM
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Even as Angela Merkel and Nicolas Sarkozy talk, Europe's economy slides towards disaster


Beneath the grandiose rhetoric of this week’s mini-summit in Paris between Angela Merkel and Nicolas Sarkozy, a rather more important story was breaking. This was the news that the German economic recovery has comprehensively stalled, causing growth across Europe as a whole to come to a virtual standstill. Amid the storm clouds of the single currency crisis, the apparent buoyancy of the German economy had been one of the few remaining rays of sunshine. Now that, too, has flickered out.

All the warning signs of another economic catastrophe have been there for a long time now, but with policy-makers fretting over how to save the euro, they have been ignored. Rather than attempting to stave off a double-dip recession by loosening monetary policy – and fiscal policy, too, among those member states that can still afford it – Europe has gone careening off in the opposite direction. Interest rates have been raised, and member states have been forced into self-defeating austerity programmes which, by destroying growth, have made underlying debt dynamics even worse. It is hard to imagine a more perversely inappropriate set of policies.


I add the following para as it I find it quite amusing given krugman's 'alien invasion' theory to rescue the US economy, and herein stating a race is underway between the European and US leaders to worsen the situation....


As the US economist Paul Krugman observed this week, American and European leaders sometimes seem to be engaged in a contest to see who can make the worst of a bad situation. The recent suggestion by Rick Perry, the Republican presidential hopeful, that Federal Reserve chairman Ben Bernanke should be roughed up and put on trial for treason, suggested that the US might still be in with a chance in this race to the bottom. Yet, despite the willingness of America’s political class to put naked self-interest before national economic wellbeing, they will always struggle to match Europe in the bad policy stakes.



The truth is that a project meant to tame Germany and integrate her into the heart of Europe has backfired spectacularly. Far from making economies converge, it has succeeded only in driving them ever further apart. From Britain’s island haven, we can only look on in horror as Europe once again stares into the abyss. The combination of tight fiscal and loose monetary policy that our free-floating, sovereign currency has allowed means that, in relative terms at least, we ought to fare better than our neighbours. But when the storm breaks, it will be small consolation to have the sturdiest raft.



Yes similar stories have been posted over re the Eurozone crisis, but it has now evolved into a more dire situation with the German economy, and Eurozone economy as a whole, seeing markedly reduced economic growth. The usual factors are cited throughout the article; poor policy decisions, fiscal policy, monetary policy, austerity and its adverse affect on growth. Meanwhile the debt crisis continues to mount and one of the very few remaining supports to save the Eurozone from almost certain meltdown is now itself weakening and in trouble. The slowing global economy is certainly not going to help, rather it will only worsen and hasten the deterioration in the Eurozone as it will elsewhere. I think we will see economic crises taking on a life of their own soon, under the umbrella of a global economic crisis, where no matter what politicians and their advisors suggest to remedy the situation, it will be too late.
edit on 17-8-2011 by surrealist because: (no reason given)




posted on Aug, 17 2011 @ 09:35 PM
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Perhaps Jeremy Warner's upcoming articles will finger the real culprits... Central bankers.


that Federal Reserve chairman Ben Bernanke should be roughed up and put on trial for treason...


So he makes us believe, standing up to the Fed is bottoming out? This guy must have played tuba in marching band. He's brandished the biggest mouthpiece along with lowest tone.

edit on 17-8-2011 by Americanist because: (no reason given)



posted on Aug, 17 2011 @ 09:46 PM
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Europe is getting thrown under the bus right now ... but that's probably a good place to hide for a while.

Watch what happens to the "traditionally" poor countires over the next few years. Very likely, Africa, etc will get austerity-squeezed into civil wars so atrocious, hardcore Hague tribunalists will be scrambling for barf bags.

The global financial system is overdue for a massive reset thanks to bubble after bubble. Oil is peaking, cutting out any possibility of growing out of this.

It's gonna get ugly.



posted on Aug, 17 2011 @ 09:56 PM
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reply to post by Americanist
 





Central bankers


and now East libya has a central bank a rothchild bank



posted on Aug, 18 2011 @ 06:34 AM
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Something is definately happening .
I found a thread that can link Aliens with our economic problems .

www.abovetopsecret.com...



posted on Aug, 18 2011 @ 01:25 PM
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Germany is economically in trouble now. The iphone toting impoverished yuppies from the tri-state area have finally run out of cash(?) to gullibly buy decontented BMW 3 serieses und Mercedes C-classes.



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