The Chickens Have Come Home To Roost!

For decades the so called European powerful economies were encouraging Greek governments regardless of political ideology to keep borrowing money. Money which private and government central banks were lining up to lend to Greece at cheap rates.  They did the same with Spain, Ireland, Portugal and of course Italy.

Why you ask would rich Europeans like the Germans French, Dutch, Fins and others would be willing to lend such colossal amounts of money to countries of the periphery, when they knew very well those countries had neither the financial nor the natural resources to justify such risks?  WHY indeed?

When one starts digging deeper into the motives of these “wealthy” countries of the continent, one starts to discover, just like Dr. Heinrich Schliemann discovered in Troy - that there are more layers to the discovery...

If we go back a few decades, back to the 80’s or even before that, the economies of these EU countries [formerly known as the EEC- Belgium, France, West Germany, Italy, Luxembourg and the Netherlands] were not in such a great shape. From the mid 70’s on the dominant economies were those of USA and the up and coming economies of Japan and South Korea.  In fact if it weren’t for the USA pouring billions of dollars into Germany and France, these countries, in particular Germany, would have defaulted long ago as they did in the 20s, 30’s, 40’s, and 50’s. 

Dr. Albrecht Ritschl is an Economics Historian who was interviewed by The Spiegel and had some very interesting things to say regarding the EU crisis.

See Dr. Albrecht Ritschl’s interview in The SPIEGEL ONLINE by going to the link bellow:

http://www.spiegel.de/international/germany/0,1518,769703,00.html

The point is that the French Dutch and particularly Germany were looking for large markets to dump their products into, in order to jump-start their own economies. At the time their industries were stagnant and could not compete with the high quality fair priced products of the USA, nor could they have possibly competed with the high quality low priced products coming out of Japan and S. Korea.

Sooooooooooooooo….they looked at the peripheral Europe and decided to start expanding the EEC thus opening up new large and unrestricted consumer markets to benefit their own industries. They also started lending cheap money to the periphery who in turn, would start buying mostly German and French consumer products, thus allowing those two economies to achieve growths never seen before. It's really a very simple concept. I want to sell my product but don't have the consumer...you want to buy my product but don't have the money. I therefore lend you the money to buy my product. I screw you twice with the same deal.  I make money by selling you my product and I also make money by charging you interest on the money I loaned you to buy my product in the first place. So fucking simple you don't even see it coming.

So while German and French economies were on the up-swing and they were achieving REAL GROWTH the economies of countries like Portugal, Italy Ireland Greece and Spain were becoming paralyzed and inflationary as they found it easier to borrow cheap money from the north to keep their economies going [NOT growing] in the south.  They were importing everything mostly from Germany and France instead of developing their own industrial base and exporting their own goods and services.

For the last forty-five years the periphery had become the biggest consumers of German and French goods and consequently the biggest supporters of the German and French economies. Every penny the PIIGS borrowed, was eventually spent on purchasing French and German made goods. Whose economies benefited? Not the PIIGS'. While the PIIGS were buying Peugeots and Mercedes the Germans and French were buying olives and oranges. Every penny the PIIGS borrowed from France and Germany, went back into those economies. That is how Greece and the rest of the periphery came to neglect their own industries and remain underdeveloped and grossly indebted and dependant on their German and French brethren.  

One therefore has to conclude that Germany and France along with the other wealthier EU countries intentionally created the so called PIIGS in order to facilitate their own back-yard BBQ parties sort of speak...(pun  intended).   If it wasn’t for the millions and millions of PIGS consuming German and French products, these two countries along with the Netherlands, Belgium and few others,  would be down on THEIR knees kissing American Ass once again begging  to be bailed-out  just as they had done in the past.

Furthermore, if countries who were victims of German aggression during WWII, decide to restate their claims for reparations it will take Germany a whole century to stick her head out of the financial hole  and guess what…Greece would be one of those countries still entitled to reparations.

So now that the “chickens have come home to roost” and the PIIGS’ economies are in so much debt they are being flushed down the economic shithole; in my view, Germany, France and the rest of the hypocritical assholes of the EU have but one choice…that choice being – BAIL OUT the PIIGS or get BBQed on the same skewer with them.

Again This Is Not News…It’s Europe Boarding Charon’s Boat!

Signing Off…Dr. Politikong