Wednesday, May 4, 2011

Portugal to be thrown into the bailout trap of EU under caretaker government

The caretaker conservative government of Portugal is accepting a bailout from EU that includes a plan for severe budget cuts (rejected by Parliament already, mind you) and deficit reduction (already failed) but that does not touch the salaries of the politicians, the military budget (Portuguese ships may be needed to bomb Libya or even Portugal itself) nor the taxes collected from the wealthy and imports.

The Portuguese economy has been severely damaged by, specially, Chinese imports, which are heavily undertaxed. This underlines how the EU and its globalist policies is being very harmful for local European producers, which have to compete with remote countries where labor rights and environmental regulations do not exist (or are extremely poor) and where currency value is comparatively low. 

I do not blame China or the USA for this but EU, which is keeping the euro artificially high (it's about 40-50% higher than it should, what is awful for the European economy, specially that of peripheral countries, which are pitted against remote hyper-cheap producers like said China).

This crisis should not be addressed by punishing with loans and more loans the affected economies but by devaluing the euro. However the stand of peripheral governments is so pathetically sold out that I see no dignified exit ahead. 

Soon, as it has been planned in some dark halls of global power and has been announced by the media all year long, Spain will be forced to a bailout by the plotting of Moody's and its Machiavellian sisters, EU will reject such a bailout, Spain will declare bankruptcy... 

This would be good in fact but it will cause that, instead of devaluing the euro, as would be logical, a struggle will ensue on whether Spain must be kicked out of the euro for declaring a bankruptcy or not. 

But this is not the real important matter: German and other speculator banks of core Europe (the liability of Spain is very much scattered around) will have to face the fact that they cannot get back all those loans and they will have to declare bankruptcy themselves. 

This will cause major upheaval, not just in EU but through the World. A new recession will be formally declared (even if we have never really got out of the previous one) and we can expect authoritarian governments taking over in several countries (notably Spain, where Rato's boys, which are the same as Franco's boys but with a civilian tie instead of military cap, are leading in the polls). However one can also expect increase in social struggle as soon as the right takes power (because the social-democrats play with that with an electoral aim).

I cannot see farther. What I know is that a lot of problems would have been avoided is the euro would be devalued some 40% or even just 20% maybe.

Who gains with this controlled demolition however? Beats me. Of course that some speculators are making millions and even billions out of this but it's just printed paper... what is being gained in the plane of true power? Who gains with a dismantled EU?

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