De ce suntem obligati sa renuntam la Leu si sa trecem la Euro (Art. 137, Constitutia Tradatoare): "Imposing austerity during a time of recession just from a purely economic point of view makes no sense. Say for Greece, it just increases the debt. It cuts back growth, so there is no way out of it. The countries, Spain and Greece particularly, they do not have control over their own currencies. So, they can’t do what the US or any country that prints it own money could do. They can’t reduce the value of their currency and grow their way out of it, they can’t do that, they are using the euro. So, they are trapped. Austerity will make the situation worse. In Greece there is plenty of internal problems but it is particularly striking in the case of Spain because before the collapse of the financial system which not the fault of the government, that’s the fault of the Spanish banks, and including the German banks which were doing the lending, before this collapse in 2007 the Spanish state budget was in quite a good shape. And in fact, Spain has some of the lowest expenditures in Europe for social services and so on. So, it is not the matter of government expenditures, it is a banking problem and it is getting worse. And even the business press and the financial press are criticizing this. In fact, the IMF has began the back off from these policies because it is so obvious where they lead economically. And it is worth remembering that the ECB is much more reactionary than its US counterpart, the Federal Reserve. The Federal Reserve has a double mandate. One mandate is to control inflation, and there is not a hint of inflation inside. The other mandate is to maintain the full employment. Of course it doesn’t do much about that, but at least it makes some gestures. The ECB has only the first mandate – to control inflation. And it has to control it at an artificially low level of 2% that’s imposed by the Bundesbank which is very harmful to the economies. And there is no mandate at all to do something about employment. So, its policies have actually been worse than those of the US Federal Reserve, its counterpart in the US. And it is showing in Europe. One of the consequences of it was actually described by the President of the ECB Mario Draghi. He’s made an interview to the Wall Street Journal in which he said – the social contract in Europe is unsustainable, it is dead, we have to give up on a welfare state. From the point of view of elite and wealthy sectosr, it is fine with them, they never liked the welfare state. And if it is dismantled it is too bad. And that’s where Europe is going unless there is a big change." Read more: english.ruvr.ru/2012_12_11/Assad-is-facing-assassination-no-matter-what-happens-Noam-Chomsky/
Posted on: Tue, 09 Jul 2013 07:45:45 +0000
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