There has been a gradual realization since the election that this is an Existential crisis, not one that economists can solve. However, most economists don’t do existentialism.
Sartre’s “indifference of ‘things in themselves’ to the human will” has now defeated the best minds in Europe, so all we can do is sit back and watch what happens. We have plainly lost control, whic presupposes that we ever were in control.
Economists are hidebound by angst, cherishing their freedom to offer solutions but fearful that their offered solution will somehow limit that freedom.
The facticity of being Irish determines our choices and limits our capacity to accept a European solution. Existentialism asserts that people actually make decisions based on the meaning to them rather than rationally, so each nation in Europe is doing exactly that.
Despair in existentialism is more specifically related to the reaction to a breakdown in one or more of the defining qualities of one’s self or identity. If a person is invested in being a particular thing, such as a bus driver or an upstanding citizen, and then finds their being-thing compromised, they would regress to a state of despair–a hopeless state.
The existential notion of the Absurd contains the idea that there is no meaning to be found in the world beyond what meaning we give to it. This meaninglessness also encompasses the amorality or “unfairness” of the world. This contrasts with “karmic” ways of thinking in which “bad things don’t happen to good people”; to the world, metaphorically speaking, there is no such thing as a good person or a bad thing; what happens happens, and it may just as well happen to a “good” person as to a “bad” person.
Because of the world’s absurdity, at any point in time, anything can happen to anyone, and a tragic event could plummet someone into direct confrontation with the Absurd.
It seems that we have now entered the economic realm of the absurd, so fore-warned is fore-armed.
Relax. It’s all sorted. Those that turn the wheels of power know exactly what is going to happen. The solution to the European debt crisis is further European integration leading to a federalist European state. What better way to coerce a eurosceptic populace into joining a United States of Europe than by fear. It has worked with every referendum on EU integration so far but for the final push to end national sovereignty once and for all, only the threat of the total collapse of society will do.
There will be no collapse of the Euro or break up of the European Union. In fact the opposite will happen with each country compromising more and more of their national interest for the sake of financial stability. The reason for this is because the ruling elite of Europe, in every country of the EU (our own included), are European federalists even though the majority of the citizens are probably not. Fear of being left alone or left behind will have the infantile citizenry of Europe running after the ever threatening, ever protecting ruling elite.
Eurobonds will happen and we will submit to whatever demands are made from us to ensure it happens and the Chinese will buy them by the trillions to hedge against the dollar and those that control the wheels of power will keep them spinning.
The present ruling elite of Europe remind me of the court of Louis XVI just before the revolution, with Czar Cosy relishing his role as Dauphin de l’Europe. One can also hear Angela Merkel say “Let them eat austerity” when been told that the people of Europe are being starved of vital services due to cutbacks. When the boss of Barclays Bank, who has been paid £75 million in the past five years and a BONUS of £6.5 million last year, says ‘WE must continue with the policy of austerity’, is it not time to take out the guillotine?
Having said that, it is worth noting that the bankers who funded the European Monarchs are still with us (still funding them) and they are even more powerful than ever, still lining the pockets of the ruling elite and demanding their share of the taxes. So who really is in control? Is there any difference between those who sit at the top of the pyramid and the mafia?
I don’t think so. But don’t take my word for it.
You wrote: “the bankers who funded the European Monarchs are still with us”
Surely you mean the bankers who bankrupted the European monarchs? The merchants destroyed the European aristocracies by means of bankruptcy. Could it be they are now destroying the European nation states by the same means?
The only people who can protect us from the financial markets are our politicians. They are the only sector in our societies who have access to the power to rein-in the predatory financial oligarchs. Their first act in our defence must be to regulate the holy of holies – the financial markets; to protect our nations and our public and private assets from the financial war being waged on them by the financial sector; especially the hedge funds. As a minimum to outlaw credit default swaps. But much more is needed.
In fact I contend the financial sector needs to be placed into receivership and wound-down.
No one in the media is talking realistically or sensibly about the financial markets. The fact is the financial markets are actively attacking and bankrupting the nations of the world. In a sense, which is not entirely metaphorical, this is the 3rd World War. We were taught to expect a nuclear holocaust but instead we are getting a financial holocaust. And out of this holocaust, over and above the obscene looting of our national and private assets, will come a new world order.
We need a new world order – that much is clear; but do we want one ruled by financial oligarchs?
Way back at the start of the world financial crisis G. Soros averred to the problem which I succinctly state as ‘diverging eco-political beliefs presiding over a common currency with no common treasury in Europe’. However, he believed the Euro would survive.
The US is a bankrupt economy and S&P trying to save its credibility has indirectly called its hand. The Chinese have there hand in the US cookie jar with a hand full of cookies and can’t get out without loosing the majority of what is in their hand. German prosperity is hostaged to exports and the delayed effect of fiscal rectitude will impale their export prosperity.
Greed in its pure economic sense is healthy but when it transgresses into being avaricious then rational is sacrificed and all hell breaks loose. The avaricious financial markets stimulated with deregulation’ free flow of capital has created a wolf pack that exceeds the power all nations put together and this wolf pack will tear at the weaknesses of this Global economic animal until it is torn asunder and they will eat themselves to get the spoils of this floundering economic beast.
Pile your gold and silver high and as high as you can but if the turmoil we are now witnesses ascends to chaos then Gold and Silver are hard to eat. If David is correct about Italians trying to flee to Switzerland with their cash then chaos is here.
And if you think that politicians know what is going on then you are as dumb as they are. Professor Albert Bartlett eloquently shows that politicians don’t even know what exponential means.
mathematically perfected economy explains why this system is in crash mode and no matter how hard they apply the brakes impact is imminent.\
+1 but its not a question of “financial oligarchs”, above the oligarchs is the system itself.
Its more a question of an objective, quantifiable, mathematical and measurable system of usury built on precepts that bind a complex set of financial interactions together into a dynamic whole.
The problem is its a flawed system built upon the selling of debt by those acting in service of the system.
The flaws in the system becomes unstable under certain conditions and begin to break down the system itself.
That’s where we are now. I’ll leave you to work out what those flaws are:}
I should correct myself there. Just as there was in the case of Enron financial shenanigans, there are different levels of complexities involved.
On the one hand, there is the visible one of stocks/bonds/markets/trading/computers/hedging/futures/derivatives/GDP/GNP/budgets etc and on.
On the other hand, there is a more simplified and hidden away Jeffrey Skilling book of Enron accounting loopholes and high risk practices driving the global economy since deregulation. Its the latter that are easily understood and grasped, the former is smoke and mirrors.
in a great position in Europe, having the benefit of the euro, and not having to pay for debt levels through euro-wide bonds. Germany is getting a bit of a free lunch.
Lets use supply and demand market forces. Italy, like all countries SHOULD be able to get its act together and balance its budget PLUS start paying off some debt through fiscal means. All this IS possible through just hard work for Italians. It may be painful, especially the lazy and the many millions in cushy jobs, but thats whats needed. Thats what the “markets” want to see.
6% is not that far from 5% or 4% which is a reasonable real interest rate on a currency that aims to have inflation at 2%. And if the Italians can re-finance what they have to in 2011 and 2012 even at 6% levels they should be happy with that. Market forces will determine the rates (unless market manipulation or ‘herding’ is happening),
and the Italian rates should drop in time, IF they have been able to deliver fiscally. Money will compete for those bonds and the rates will come down in the auctions, etc.
Market sentiment CAN drive rates through the roof, a reverse bubble if you will, and in those times countries do need stop gap measures. BUT, they still have to get their acts together. The US is no different even with all the currency reserve advantages it has. You cant be fiscally inept forever.
But what to do:
– Euro-land should be ‘forced’ to have a euro-wide-bond mechanism that each country can use. Not easy to agree on that though now as the euro has been created without such a mechanism, but possible.
– countries have to get their debt to manageable levels, including US, JP, UK and even DE. The euro targets of 3% budget deficit limites and 60% debt/GDP ratio’s were theoretical exercises that have failed.
What I would like to see globally, and perhaps the Chinese want this as well, is the creation of a better money system where it represents value and is not fiat, where work that is done gets rewarded and is protected, and where credit cannot be created out of a computer system. That is the only way long term that the human race can have a fair system of money.
But we compete to the ‘death’, we are human, we err. QED.
Agree with your last paragraph there, but take issue with ‘Euro-land should be ‘forced’ to have a euro-wide-bond mechanism that each country can use’
The reason is the EMU system is structurally flawed. It never followed its own Stability & Growth rules, the result being that ruling elites milked the system. The debt sent out to the peripheral countries was squandered and wasted.
So, supporting the broken EMU project would be exactly similar to the Irish government guaranteeing the debt of Anglo. See where this has got us. Plus there is the whole issue of the true extent of eurozone debt eg in Spain?
A better functioning money system based on new rules with debt writedown is the only way to do this.
At some stage it has to be realised the bike is too broken to fix:)