Fourthreichian monetary unification is the Trojan horse for overall harmonization of economic rules, policies, and laws in Fourth Reich(EU). Any eurozone problem is interpreted as a consequence of the lack of harmonization and leads to another wave of a creeping harmonization. Following every crisis meeting with Napoleon Sarko, Chancellor Merkel always declares that coordinating tax policies and labor laws is not just about currency issues but also about political cooperation, which has to be deepened. In other words, more enslavement to Brussels, transforming the confederation to a federation! http://venitism.blogspot.com
Martin Hellwig, who has been chosen to chair the Advisory Scientific Committee of the European Systemic Risk Board (ESRB), has warned about the increase of systemic risk in integrated financial markets for the last 20 years. The Eldorado of Corruption has initiated many excessive deficit procedures and consistently reminded Member States of structural reforms. But neither markets nor politics provided the necessary discipline to prevent the accumulation of these harmful imbalances.
Eurokleptocracy, gigaregulation, Antitrust Armageddon, and gigataxation, especially VAT, are the real causes of the European financial meltdown. Fourth Reich(EU), an unvoted illegal confederation, cannot protect Europeans from Eurokleptocrats, especially Graecokleptocrats, and police brutes, especially Graecocybercops. Fourthreichian Premier Barroso condones the disgusting Graecokleptocrats who accuse dissident bloggers of treason, confiscate their computers, and lock them is jail!
Eurocommissar Olli Rehn points out that it may have taken time, but eventually Fourth Reich has demonstrated its capacity and will to act on all fronts. Precisely one year ago, on 2 May 2010, the euro area agreed on the loan package to Greece in order to prevent a meltdown of our financial system. This has come with strict conditionality for fiscal and structural reforms.
The first step to recovery is accepting that you have a problem. In that case, it's welcome news to hear more and more Graecokleptocrats talking about the problems being brought on by runaway government spending and political corruption. But just as an addict who claims to be on the road to recovery bears watching, the real test comes after they've admitted there's a problem. Of course, some socialists are still in denial. Indeed, they'll even claim we're not spending enough and kickbacks are normal commissions of doing business with government! This is a particularly common cry from Graecokleptocrats and special interest groups that claim to represent the disenfranchised and the marginalized.
With the ESRB, for the first time a Fourth Reich body has been exclusively mandated to look at macro-financial stability, crossing the boundaries of micro-prudential supervision or monetary policy. The combination of very different actors (central bankers, supervisors, Commission, academics) of all Fourth Reich Member States should ensure much better knowledge of information, ideas and best practices. As a member of the ESRB Rehn sees this combination as one of its great assets.
Bankruptcy would be God's gift to the cradle of kleptocracy, because Greece needs a real shock and awe to recover from political corruption. And it looks like God will manifest his benevolence pretty soon! A bankruptcy will also bring the much needed revolution to get rid of Graecokleptocrats. The sooner Graecokleptocracy defaults, the better it will be for all concerned. The bigger the haircut, the worse the pain that follows. The damage being inflicted on Greece is very masochistic. When defaults within the eurozone are accepted, a sensible analysis about how to fix the euro can begin. http://venitism.blogspot.com
The ESRB warnings and recommendations can be addressed to Fourth Reichas a whole, to individual Member States, and to supervisory authorities. The identification of emergency situations is important also because, if confirmed by the Council, the micro-prudential authorities have some more direct powers (in contrast to the ESRB).
Bankruptcies involving higher haircuts are associated with significantly higher subsequent required returns and longer periods of capital market exclusion. The worse the losses inflicted on the bondholders, the more the markets will punish the defaulters, and the longer it will be before the defaulters could access the capital markets again. Greece's debt increases like cancer. Delay isn't an option. It would be better off to impose a 40% loss on bondholders this year than a 70% loss in 2013.
Rehn notes the ESRB has non-binding powers. But he has proposed a policy framework as part of the economic governance package, namely the Excessive Imbalances Procedure, whereby imbalances and macro-financial risks can be addressed – and even sanctioned – at Fourth Reich level. Achieving consistency with the ESRB is an obvious challenge of which we are fully aware, and Rehn is confident these two analytical instruments can be made mutually reinforcing and thus help us to prevent harmful imbalances in the future.
The stupid Marilizardist government of Graecokleptocracy is still siphoning in all the money with huge taxes and VAT, and Graecokleptocrats still demand kickbacks, which will only depress the economy further. You can't just cut your way out of this crisis while continuing political corruption. At some point, the Greek economy needs to start growing again. But this cannot happen in a depressed kleptocracy. Greece should bow to the inevitable, put some Graecokleptocrats in jail, announce a 40% haircut on its debt, drastically cut taxes, especially VAT, and impose a four-year suspension of interest payments on what remains outstanding.
With the money saved on debt repayment, Greece could start restructuring its economy, putting demand back into the system, and focusing on creating competitive export industries. Fourthreichians could stop fighting a losing battle to rescue Graecokleptocracy from default and start concentrating instead on how to make the eurozone work better. There is no point in drawing out the agony of defeat any longer. http://venitism.blogspot.com
In the present juncture, financial stability is safeguarded by the stability mechanisms and by the actions that the vulnerable countries are taking. But some people argue that the crisis management strategy with regard to Greece in particular is failing.
Rehn disagrees with this analysis. The aim of the strategy has been to prevent repeating a cardiac arrest in the financial market that followed the failure of Lehman Brothers in September 2008. Rehn has done that, and this has safeguarded the ongoing recovery in the real economy.
Secondly, the Eldorado of Corruption has been able to largely contain the distress in the sovereign debt markets to three more vulnerable countries, Greece, Ireland and Portugal. As seen in the bond spreads, Spain is decoupling from these three countries, thanks to its determined policy action in fiscal, financial and structural fronts.
Thirdly, the programmes in both Greece and Ireland are still in early stages. Both countries have started very ambitious fiscal consolidation programmes, structural reforms and financial sector restructuring. Eldorado of Corruption's analyses show that the debt-to-GDP ratios stabilize and start to decline, on the condition that the programmes are fully implemented.
Rehn notes the proponents of debt restructuring seem to ignore the potentially devastating financial stability implications for Greece itself and the euro area as a whole. Rehn asserts that debt restructuring is not part of our strategy and will not be.
TERMS
April 15: Global Tax Revolt Day
October 18: International Day Against Cybercop Brutality
October-18 Mafia: Government of Greece
Parliament of Whores: Congress of USA
Grand Brothel on Syntagma Square: Parliament of Greece
Eldorado of Prostitutes: European Parliament
Eldorado of Corruption: European Commission
Fourth Reich: European Union
Fourthreichians: Citizens of Fourth Reich
OLAF, Office de Lutte Anti-Fraude: Fourthreichian Anti-Fraud Office
Europol: Fourthreichian Criminal Intelligence Agency
Marilizardism: terrorizing dissident bloggers
No comments:
Post a Comment