Euro Bailouts Not Working

Just last week, Spain was granted a $125 billion loan designed to shore up bank imbalances. After numerous bailouts in effort to save the European Union, surely this latest loan will solve the problem.

Memo to all the politicians and technocrats across the globe; the problem is far from being solved. In fact, most if not all of these measures are simply a variation of kicking the can down the road. With overwhelming debt, the EU members become slaves to those who "lend" them the capital or forgive loan components.

As bad as this is under governmental officials that can be voted out, (November cannot come quick enough here in the States), imagine the position of those being held accountable by technocrats who are not accountable to those they are governing over. Simply put; smothering.

While the fallout from this unfortunate circumstance mostly viewed from a financial perspective, the costs are far greater. The loss of jobs skills, of those who can find employment, the hopelessness of the encumbrances of escalating success and the breaking of the entrepreneurial spirit and robbing people of their identity are social costs that burden families and communities.

Historically, tyranny has come from out of control governments, who under the premise of helping those who are in need steal freedom from the citizenry right under the nose of the governed. While everyone watched European member countries embrace socialism and spend beyond their means for decades, we have recently been warned, most notably by Nigel Farage, how further bailouts would cause further erosion of member nations sovereignty, elevating hopelessness and despair for the governed.





Like a boulder rolling down a hill, the suffering continues. Countless bailouts have accomplished nothing, with billions having been wasted. Ireland and Portugal are shake, Greece is in crisis and Spain just got saved. Italy is real trouble also. Nigel Farage further explains.





While the bailouts have calmed waters temporarily, they have not solved the problem. In fact, these decisions will create deeper pain in the future as the bailouts become more expensive until they cannot be paid and the economies crash. What government entity led by whom will rush in to take over? A scenario similar to this did not go well in the 1930's.

Each of these countries need to break away from their slave masters and regain their sovereignty. At such time, although it will no doubt be painful, a firm foundation built upon freedom and capitalism can emerge with hope for the future for all of the citizenry.

It is just that simple.

Unleash The Squirmin' Dogs

It seems as if we are watching an upcoming train wreck as the Euro experiment marches toward collapse.  A plethora of plans have been implemented to rescue the ambitious alliance, but all have been abysmal failures.  The more the plans fail, the more the planners plan.

Beyond member governments engaged in socialism spending beyond their means and expanding entitlements beyond economic logic, what is traveling to the ash heap of history is their loss of their member sovereignty. Central planners never want a crisis, and we sure do have one, to go to waste.

While economic moves considered sound to establish stability and save the Euro may sound reasonable, unfortunately they likely mask the bold ambitions of the technocrats to slow creep control over the member states and their citizens.

Under such control, individual freedom, inspiration and the entrepreneurial spirit is crushed, robbing the people of their identity. As Nigel Farage so eloquently put forth in 2010, if you rob the people of their democracy, then all they are left with is nationalism and violence.  We got plenty of violence, as the citizens engage in civil unrest.

Who the hell do you think you are? Farage queried the EU administrators as they responded to collapsing member nations that it would be inappropriate for them to hold elections until their budgets were agreed upon. Democracy destroyed.

Sound far fetched?  Last Thursday, CNBC reported that Ex-ECB Chief Jean-Claude Trichet unveiled a bold plan to save the Euro.  Would yet another new plan present a blueprint for an escape of the wide ranging spiral the Euro is involved in or would such a plan steal more Democracy from the member citizenry?

The first paragraph of the story is alarmingly informative.  Please read: 

Europe could strengthen its monetary union by giving European politicians the power to declare a sovereign state bankrupt and take over its fiscal policy, the former head of the European Central Bank said on Thursday in unveiling a bold proposal to salvage the euro.

For the governing body, seizing this amount of authority would be similar to taking a country over without firing a shot. 

As Farrage asked, who do these people think they are? Free market capitalism, the best path to prosperity, is not free to work for member nations under this type of smothering control. Under the Euro, wealth has been destroyed under massive spending and entitlement programs, and the technocratic banker is in charge and has members under his thumb.

It would be hard to imagine that the central planners, given the history of their efforts, are foolish enough to think it will work this time.  The alternative, and the truth, is that the technocrats are aspiring to gain further control and are knowingly crashing the system.

Here in America, the same types of planners are now in charge, implementing the Cloward and Piven strategy.  Decisions that seem irrational to most, are part of the plan to steal and transform wealth, establishing a governmental control over the citizenry.  While Europe may be beyond  salvage, America has time to right the ship, although time is running dangerously short.

Freeing member nations from excessive taxation and regulation and having to adhere to budgetary control and allowing the pursuit of their own prosperity is the answer.  Those who continue to implement a socialistic policy of a cradle to grave nanny state will ultimately fail. Countries who embrace freedom, both for individuals and markets, will prosper.

Alarm bells are appropriately ringing everywhere.  This is not the time to turn to technocratic regulators, like Jean-Cluade Trichet, who claim to have a plan.

This is the time to seek freedom and embrace capitalism. It is that simple.

Extreme Conditions

The Eurozone experiment, based upon fellowship and trade, has resulted in the loss of sovereignty and freedom for each of the members, and it must be broken apart. 

Not withstanding the economic doldrums brought about by socialism, participatory countries have lost the opportunity for economic adjustments because they are no longer in control of their budgets due to being under the thumb of the EU, who extended bailouts. Since the EU is run by technocrats, who are unelected managers of the economic freedom of the participants, countries feel restricted and desperate while being governed by outside interests.

Nigel Farage, who has been a vocal opponent of the EU, notes the negative byproduct of the collapsing countries and what happens to the citizens when hope is lost, including civil unrest,which we have already seen as austerity measures have been implemented. Nigel goes on another epic rant:

 

Recent elections in Greece had the Greek citizens looking for answers from any and every various group who claimed to have answers to their economic conditions and fears. One such group that made sizable parliamentary gains in the elections was The National Party of Socialists, otherwise known as the Nazi party. Yes, that Nazi party.
Embolden by their gains, the Nazi party promptly issued a number of chilling threats, elevating fears of a return to much darker times. The familiar road being traveled in Europe is very dangerous, as Glenn Beck reported on The Blaze and in the following report on GBTV. Take a listen:





While perhaps well intended, the EU is destined to fail. The EU has not the funding to backstop the PIIGS, and with Greece imploding, the dominoes are lining up for the EU failure. EU countries seek a return to Democracy, and as Farage has said in the past, hopefully the markets take out the Euro, as it looks like it might.

The demise must happen quickly, because the extremes on the right and left are rising in similar fashion to how they did in the 1930's. Markets often take on a persona, and in this case I hope the market takes out the EU before one of these extreme groups gains too much power.

While many seem to have forgotten, it would be wise to remember the last time an extreme party rose to power out of similar economic and social conditions.

Market Trick

Halloween was not kind on the corner of Wall and Broad today, and with good reason.

While traders were receiving treats last week from the news of a Euro fix, it really is nothing short of a trick. We have been down this road before, and we will go down it again, and as we pass each exit for a real fix, the pain forthcoming gets deeper.

FOX Business' Judge Andrew Napolitano speaks with Nigel Farage, who has been on this story from the get go. Take a listen:



As traders woke up to learn of the impending blowup of MF Global, headed by former New Jersey Governor Jon Corzine, they found the futures in the negative. It should not have come as a surprise that Corzine, who blew an 8 billion dollar hole in New Jersey Chris Christie is now cleaning up, would fail miserably at MF Global. Fail at running the company yes, but apparently not in securing cash for himself, typical for Democrats in these positions. To think as recently as August Corzine was being considered by President Obama as a the new Treasury Secretary should indicate the level of complete incompetence leading this country.

This evening, Clusterstock reports of "hundreds of millions of dollars missing", which cannot be good for the markets, propped up by false fundamentals and already spooked by a myriad of issues, including on the domestic side a continuous mortgage meltdown.

But further concerns over the supposed Euro fix is what really what spooked the markets. Good money is being put after bad, bailing out entitlement expenditures which cannot, and should not, be sustained. As Farage put it years ago, the fixes won't work and we can only hope the markets derail this before things get really bad, as if they have not already.

Restated; they will soon run out of everyone else's money. Invest accordingly.

Is The Game Up?

The US financial markets blew up in 2008 in the aftermath of a housing crisis, a bubble caused by easy money and governmental influence, one far from in conclusion. According to the Obama administration, their policies pulled the US economy from the brink of depression and have jump started a recovery. And I am King Tut.

Birth Pangs. Day by day since, there continue to be warning signs of global financial collapse across the globe. From France burning two years ago to London two weeks ago, the natives are restless and are lashing out.

Broken in spirit, void of incentive and corralled from leadership, the youth who were promised a gravy train from a central planning government are violently attacking now that the money has run out. A history of Margaret Thatcher would seem appropriate.

Europe, joined at the hip in promoting global socialism, and through inclusion in the EU, search for stability by limiting member governments from operating independently with the necessary flexibility to innovate and increase production and individual wealth. Who could have seen the negative fall out coming?

Nigel Farage for one.

Farage hits a home run, one which should be absorbed as a shot heard round the world. Investors Business Daily notes in today's edition that Euro Zone debt fears start to hit France as the 10 year yield spread between France and Germany has tripled in recent weeks, which could be foretelling the financial contagion is spreading to the heart of Europe, just as Farage predicted.

Former FED Chair Alan Greenspan, The Maestro, who contributed to the easy money platform the housing crisis sprang from, weighed in on the Euro today, noting “The euro is breaking down and the process of its breaking down is creating very considerable difficulties in the European banking system,” Greenspan continues the European contraction would hurt profitability and stock values of American companies. You think?

The more central planners plan, the more their plans fail. The more their plans fail, the more they plan. Continue as they must to contain the fallout, we know one thing. Well, it won't work.

Greenspan correctly pointed out “The problem is that there is a growing cleavage in the economic and analytical and banking circles as to whether the Euro, which is the crucial issue here, should be 17 countries with very significantly different cultures” regarding the role of government, consumer spending and inflation. Indeed, while there can be alliances to further trade agreements, each country should have independent currencies for sound monetary policies to anchor allowing the necessary flexibility needed to create sustainable growth.

This is not the case in Europe, and with America moving swiftly to a cradle to grave entitlement nanny state, a global collapse is all but certain. PIIGS don't fly. Bailouts will lead to more bailouts, and at some point the money runs out.

Farage is quite right in hoping market principles derail the central planning elites prior to the spirit of the individual being lost for eternity. It is the principals of free market capitalism that provides the best path prosperity, and we must seek out and associate with leaders who are rock solid on this principle before the game is up.

Of course, in America, we always have the voting booth to cleanse out those void of our founding principles. At least for now.