The most recent “news” out of Europe is that a) THE bailout is on its way and b) democracy is for the birds.
First, every day there are rumours suggesting anyone from China to the IMF (aka the US taxpayer) are ready to dump money down the European sink-hole as if there hasn’t already been a constant, IV-drip of newly printed dollars sent to any and all banks in Europe. But, we are told, if only more money were sent then all would be well. If only further debt was piled onto debt, then rainbows would take the place of the dark storm clouds. Anyone with a rudimentary understanding of finance, economics or common sense understands that (apologies for the almost cliché) adding more debt to a debt crisis is not the answer and in fact is the exact opposite of what should be done.
The new “plan” out of Europe is too simply change previously agreed upon laws. Obviously, this being Europe it does not require citizen consent (known as democracy). I’m not a fan of democracy, but Europe pretends to be in their speeches, academic journals and advice to others. Their actions suggest otherwise. I can’t help but think that the tribes of Europe have not changed much over the years. What used to be accomplished with soldiers and weapons on various battlefields is now attempted with soldiers wearing a uniform of a suit and tie and financial weapons at central banks and in boardrooms.
Who could argue that this way isn’t slightly more humane? Sure, most of us are herded into debt-serfdom, with no way to save money, less good jobs, high inflation, but at least we all have iPhones right?
The real issue is what happens when financial warfare no longer works and the tribes of Europe resort to their old habits once again.