Friday, November 18, 2011

A new Europe for the 1%


In Greece and Italy the technocrats have taken the reins of government (Spain and Portugal may follow).

€urope is now divided into two: one poor, one rich. Germany and France are the 1%. In the poor Europe, political power is a theater to maintain social order to ensure the uninterrupted flow of capital (from Europe's center to Europe's periphery).

Who benefits? The 1%: Germany, Europe's main exporter, and poor Europe's 1%.

Germany comes to the rescue with a debt package, so that poor Europe may continue buying German manufactured products. The asymmetric relation will feed the prospects for the next crisis -yes, there will be another crisis.

Meanwhile, the imposed austerity measures on the 99% achieve the opposite of what they seek to solve. "Austerity" is a narrative designed to internalize debt guilt, to prevent social unrest, and keep business as usual (unfavorable labor contracts, low wages and fewer corporate regulations).

Who wins? Europe's 1%.

1 comment:

Anonymous said...

Very true.