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It has taken me a while, but I finally worked it out , I think, the economic Commissioner Olli Rehn has no secrets anymore as far as I’m concerned. For years I've made the mistake of taking Europe's economics Commissioner seriously, but it now transpires that his whole world view is a massive exercise in teasing and perhaps comic irony. It seems to be deliberately aimed at winding us all up. To be more specific, for some years now, Mr. Rehn has been repeatedly announcing publicly that the euro zone crisis over, only to be proved consistently wrong. So wrong, in fact, that he has become a standing joke. Indeed, you have been able to set your watch by him. Every time Mr. Rehn opens his mouth to claim final vindication of the policies the European Commission is imposing on Europe's dispossessed, you kind of know that the storm is about to break out anew. And now he's done it again. "The data…supports, in my view, the fundamentals of our crisis response: a policy mix where building a stability culture and pursuing structural reforms supportive of growth and jobs go hand in hand", he said in response to news that the euro zone has finally emerged from recession. He's joking, right? Indeed he must be, and by going just a little bit too far in his claims, he's given the game away. It was good while it lasted, but now we know that even Mr. Rehn cannot believe in what he says, for otherwise he surely would have tempered his remarks with a few caveats. Well, NO, a "policy mix" which has reduced large parts of the euro zone to abject ruin has apparently been "building a stability culture", and though you couldn't possibly surmise it from the data, it's all "supportive of growth and jobs". Breathtaking, isn’t it ? Is The Euro a “Procrustes” currency ? In Greek mythology, Procrustes was a rogue character who tortured people by stretching them or cutting off their legs, so as to force them to fit the size of an iron bed. In general, when something is Procrustean, different lengths or sizes or properties are fitted to an arbitrary standard…Reminds anyone of anything? Right wing neoclassical economists tell right wing neoclassical economists, "hang in there guys, you're doing ok!" Meanwhile, the surplus of labor which arrives as a result of the Banking Crises and the resulting reduction in public spending is helping wages to depress, just as planned. Wage stagnation will theoretically lead to lower market prices and eventually growth. Just don't tell the employees or
recognize the fact that corporations are hiving off their profits in offshore jurisdictions rather than investing them in plant and workforce to enable such future theoretical growth. Previous state owned organizations and institutions are in the process of being sold for less than market value to the private sector, further stimulating growth as the private sector gets to bring efficiency savings and the profit motive to previously unrealized markets. Just don't tell the public whose taxes were used to build just such institutions and who will not benefit financially from their dissolution, such pleasures go to the markets via re-sell values, contracting, outsourcing and government grants. Monetarism in the form of quantative easing is helping to reduce the cost of credit, theoretically facilitating a return to growth led consumerism via credit cards, mortgages and loans. Just don't tell the heavily indebted EuroZone public of the return to business as usual or the small-medium enterprises who find that the European banks would rather invest in financial services than the high street. Please note, everything possible is being done to ensure the banks are ok and the desires of Capital are met; conventional mainstream neoclassical economics is the 'scientific' justification we all need to know this, is the right way forward. We will have growth again soon, and the social pyramid will be reasserted. However, to set the record straight, in the Greek mythology, Procrustes who was a son of Poseidon and had a stronghold on Mount Korydallos at Erineus, on the sacred way between Athens and Eleusis. There, he had an iron bed, in which he invited every passer-by to spend the night, and where he set to work on them with his smith's hammer, to stretch them to fit. In later tellings, if the guest proved too tall, Procrustes would amputate the excess length. It’s being said that nobody ever fit the bed exactly, because secretly Procrustes had two beds. Back to the United Europe All said and done about Mr. Commissioner and about the great recovery of the eurozone, coming down to the real “united Europe”, Czech Members of Parliament have voted to dissolve their Parliament this august 2013, paving the way for early elections. New elections will end months of political turmoil after Prime Minister Petr Necas's government collapsed in June amid a bribery scandal. A government of technocrats, formed by President Milos Zeman in July and opposed by the main political parties, resigned, and fresh elections are expected to be held in October. The proposal to dissolve parliament was proposed by the three main parties and was backed by 140 legislators in the 200-seat lower house of parliament. Figures released by Eurostat, the EU's statistical agency, showed that a stronger than expected performance by the single currency's two biggest economies - Germany and France - helped haul the euro zone out of recession. Financial markets had been braced for a rise in euro zone GDP following the increase in industrial production reported on Tuesday but were surprised by news that Germany grew by 0.7% in the second quarter and that France grew by 0.5%. Along with the rest of the world, the euro zone fell into a deep slump in the winter of 2008-09 before recovering in 2010 and early 2011. But a second leg of the downturn then commenced as a result of the euro zone’s sovereign debt crisis, which hit confidence, led to a mothballing of investment and resulted in the imposition of hard-line austerity programmes.
Despite the growth in the second quarter, the European Commission still expects the euro zone to suffer a second full calendar year of falling output in 2013, with growth resuming in 2014. Eurostat's figures showed that Italy and Spain - the single currency's third and fourth biggest economies - both remained in recession in the second quarter of 2013. Spain's economy shrank by 0.1% percent on the quarter, while Italy posted a 0.2% decline. The Dutch economy also contracted by 0.2% but Portugal – one of the three countries that required a financial bailout – recorded the fastest growth of any euro zone country with 1.1% quarterly growth. Funny - some friends just returned from France on a hunt for bargain property - looked at a 3.5M Euro estate that was asking 1.2M. They passed because as they stated, "you could smell desperation in the air - shops in the nearby town were shuttered - there was no activity on the street"... Can someone explain how France is growing? The MSM is getting very desperate trying to create "green shoots"... Do you think we are stupid enough to believe this BS?....am so disillusioned with this it’s incredible. It's just a cycle which lasts 10-15 years. Growth-Depression, Growth-Depression. Couple this with increasing house prices which are doomed to crash again we have the same thing happening. Europe obviously hasn't learned and as the saying goes they will be doomed to repeat the past. Date: august 21. 2013
Mircea Halaciuga, Esq. 0040-724.58.1078 www.SIPG.ro
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