Kicking the Cannes Down the Road - by Stephen Lendman
Festering Eurozone economic crisis.
They met. They talked. They agreed to talk more and solved nothing. A November 4 Guardian editorial headlined, "G20 summit: slumping to the occasion," saying:
"Yes they Cannes? Sadly, in the end, no they couldn't." It's well known these summits are more talk than substance. Everything important is agreed in advance when possible. Technocrats do heavy lifting, not political leaders dependent on them.
Nonetheless, economic crisis demands better. Eurozone dealmakers failed. So did G20 leaders. As a result, they're "doomed to have to try again," but given their banker uber alles agenda, defeat again is sure. Only reckoning day delay is possible, not turning things around responsibly.
The best from Cannes was that:
"We all commit to further structural reforms to raise output in our countries." But who commits to what for whose benefit? "We will ensure the IMF continues to have resources to play its systemic role to the benefit of its whole membership."
IMF solutions are trouble, not ways out of it. Operating as loan shark crooks of last result, bad problems get worse.
The Guardian summed up Cannes, saying leaders "provided few answers. All the big questions still remain on the table for next time" under worse crisis conditions because who's willing to solve them responsibly.
If Eurozone leaders had a motto it would be sacrifice people and economies to pay bankers. Agendas that destructive assure bad endings. What's ahead may be unprecedented. Ordinary people, of course, suffer most. Already pain levels are extreme.
Nonetheless, high level meetings discuss ways to increase it with more layoffs, pay and benefit cuts. On November 7, Eurozone finance ministers met on whether to give Greece another eight billion euros ($11 billion). Later they'll consider much more, dependent on new social benefit cuts on top of others up to now.
Also considered were ways to boost European Financial Stability Facility (EFSF) funding to handle greater expected trouble. Already, multi-trillions are needed, more than all Europe can provide. Moreover, the longer crisis conditions fester, the greater the amount needed to keep troubled economies from collapsing.
In mid-2013, a European Stability Mechanism (ESM) will replace EFSF, going from bad to worse. Run by a Luxembourg-based Board of Governors, it's a supranational monetary and fiscal authority, bypassing elected governments to run Eurozone countries like despots.
As a result, elected leaders will be shut out. People across Europe have no say anyway. Neither do Americans. Western media scoundrels are silent. Millions know nothing about planned ESM dictatorship. Most understand little about causes and extent of today's crisis.
Everything tried so far failed. Financial crisis grips Europe. Italy may be next after Greece. Prime Minister Silvio Berlusconi's coalition faces possible collapse.
Bond yields tell much. Those on Italian debt instruments exceed 6.5%, and spreads off bunds near 600bps are perilously close to levels, precipitating Greek, Irish and Portuguese bailouts.