Dissing Europe's Flawed Bailout Scheme - by Stephen Lendman
Piling more debt on over-indebtedness makes a debt crisis worse.
Heavily indebted Eurozone countries face insolvency. Adding more can't save them. Nonetheless, policy makers repeat past mistakes, compounding failure with more of it.
Banker occupation corrupts Europe and America. They decide what's best for them. Wrecked economies follow. So do mandated austerity measures, including public sector layoffs, wage and benefit cuts, tax hikes on workers, cuts for corporate crooks, and unrestrained economic freedom to pillage.
Selling out to bankers, Eurozone leaders pledged an "ambitious and comprehensive" debt crisis solution. Knee-jerk market euphoria greeted it. Second thoughts perhaps know what's so far revealed falls far short of resolution. In fact, crisis conditions will worsen, whatever short-term gains are achieved.
On October 30, Bloomberg headlined, "Europe Blowing Last Chance to End Crisis: View," saying:
"The euphoria over Europe's latest rescue package faded quickly. Now the question is whether European leaders will ever agree on measures needed to end the sovereign debt crisis, and whether they will get another chance."
Fixing it depends on hoisting bankers on their own petards. Otherwise, economies can't recover. None held hostage to bankers ever do. Resolving that issue is job one. Whether or not it's possible isn't known. So far, it's not even mentioned.
When economic shysters run nations, economies and ordinary people suffer. That condition plagues Europe and America. Instead of addressing dire conditions responsibly, policy measures so far adopted exacerbated them.
On November 1, London's Telegraph contributor economist Liam Halligan headlined, "Why the latest eurozone bail-out is destined to fail within weeks," saying:
Last week's Eurozone deal is more smoke than fire. It "made Western Europe's grotesque debt crisis even more acute, sowing further infectious spores of confusion."
Bond vigilantes signaled what equity investors should have known. Debt liabilities can't be resolved by more of it. A bad situation gets worse. In addition, other important issues remain unresolved. Details so far are sketchy.
Cooler heads know taking on water faster than removing it means eventual sinking. Economies are like leaky vessels. When they're big enough or interconnected like in Europe, trouble and contagion follow, and nations aren't supplying life boats, at least not to their working classes.
What's needed "urgently is a clean, transparent Greek default - allowing this (failed) economy to leave the eurozone, reestablish a" devalued drachma, manage its own monetary and fiscal policies, and start down the road of recovery.
The same holds for other troubled Eurozone countries. Entrapped in its straightjacket's killing them. Combining 17 dissimilar economies under rigid euro rules failed. It's just a matter of time until the entire alliance crumbles. Troubled Greece should act first. Others can then follow.
Describing all "non-solutions" so far as "extend and pretend," Halligan ended saying he gives last week's deal "two weeks" to fail.