Mish: 10 Things to Expect in Europe.

Just a short post this time in which I wanted to point to Mish's 10 short term predictions for Europe.  You have to scroll all the way down to the bottom of the post to get to them.  They are not even the main topic of his post but I have reproduced them here:

Ten Things to Expect in Europe

1. More bickering
2. More strikes
3. More emergency meetings
4. More trade wars, especially between Spain and France
5. Tobin Tax will backfire in France
6. Missed budget estimates across the board
7. Missed growth estimates across the board
8. Deep and lengthy recession will affect entire global economy
9. Recession will include France and Germany contrary to popular belief
10. End of Sarkozy's political career

The one I want to call your attention to is highlighted in red.  The reason I think this is important is because it highlights something I have said for a long time which is that those pointing the economic finger are themselves little or no better off than those they would accuse, condemn and seek to vilify.  In fact, long before Mish wrote that, I wrote very clearly that France and Germany are no better off than the PIIGS.  That was in June of 2011, a time when everyone actually believed that Germany and France were actually in great shape if only the PIIGS would not be so reckless.  Unfortunately, that was and still is all just propaganda.  France and Germany remain in the same boat as those who they played their vendor finance export scam with (the PIIGS). 

In fact, once the shell game of who gets stuck with the losses on sovereign debt fully plays out I wonder greatly if France and Germany will be in even worse shape on some fronts because I know damned well that their big corporations borrowed money in order to ramp up production for the phantom customers like the PIIGS and anyone else who is running a trade deficit with them.  The scam is quite simple at the top level although the details get complex very quickly.  In short, industrialists wanted to make more profits but the citizens of their own countries did not want to consume more.  So they looked outside the country.  But exporting to these other countries seeking profit never went well in the past because the weaker countries would get in debt over their heads and have to inflate their way out of it.  This gave them low credit ratings that disallowed any intelligent bank from financing increased levels of consumption by them.

So the money-scammers got together and determined that if everyone was under the same currency then their "customers" couldn't inflate their way out of the debt.  In their minds, this made the customers more credit worthy.  Actually, they believed no such thing but it was great cover to get more loans to ramp up production for these new, better, more credit worthy customers.   And so for a period of time it appeared to work.  Germany would sell the PIIGS things they really didn't need (else they would have built the capacity to produce them internally).  PIIGS were just making promises to pay that they knew they would never keep.  And so it went on and on until the Keynesian Krisis was unavoidable.   And so now here we are, potentially on the brink of WW3 because of all the people who are about to be very badly affected by the economic whipsaw which is heading toward us.

These are the wages of Keynesian thinking.  These are the wages of fiat currency and fractional reserve banking.  In truth we should just all throw our hands up in the air and laugh at ourselves for our global stupidity and gullibility.  We should just declare a debt jubilee and start over, this time with an honest money supply.  Within just a few short years we would be on track as a civilization and better off than ever. 

But this is not going to happen because such a return to honesty would leave a lot of con men cut out of the new prosperity.  These greedy bastards would rather see the whole world go down in a fiery ball rather than just accept the fact that they never personally have done an honest day's work in their entire lives and that their only real skill is the art of the con.   For the sake of themselves they would sell the entire planet to the Devil, and happily so.  Strike that. "Would" is too generous; they ARE doing it.  These people are more dangerous than any commonly understood terrorist faction.  They are the bankers and the elite moneymen of the world.  They are the masters of the universe in their own minds.  They are the Greenspans and the Bernankes, and the Geithners and the CEOs and officers of Goldman Sachs and JP Morgan.  They are the corrupt politicians that support the banks and bail them out of all responsibility for the problems they caused.

Unfortunately, they are also we.  We let them get away with it even though they do it time and again.  We don't want to speak up, speak out or get involved.  We would rather have the luxury of letting other people consume their time, their lives and their energy fighting the evil.  We are too busy, too self important or simply too ignorant to see or care what's going on and where it will eventually take us.  ALL of us.  We the people of the world.

I have seen the real enemy and it is us.