Sunday, May 13, 2012

Europe Heading Toward A Melt Down

Chancellor Angela Merkel, the iron lady of Germany, has made it very clear to Greece, that if they don't continue austerity programs, there will be no continued bail out to deal with their debt from the rest of Europe.  Recent election of fringe parties in Greece, all opposed to austerity measures, is the reason Merkel issued her proclamation.  Newly elected Socialist President of France, Francois Hollande is meeting with Merkel in a few days to say he is opposed to austerity measures, even though the credit rating of France has already been downgraded once as a result of their National Debt.  Hollande, like Socialist President Obama wants to tax the "rich" and continue deficit spending adding to the National Debt, business as usual.  

Europe is headed toward a Melt Down.   Center Right Conservatives, like Angela Merkel and Prime Minister David Cameron of Great Britain, both pursuing austerity measures to bring down their National Debt to stabilize their financial systems, are on a collision course with Socialists all over Europe that do not understand Economics 101.   Socialists in Greece, Italy, Portugal, Ireland, Spain and France, in particular, have bankrupted their nations providing cradle to grave entitlements that are unsustainable.   Most of these countries just do not produce enough to pay for these entitlements.   It really is that simple.  

Germany is the most productive economy in Europe.  10 or more years ago, the Germans took steps to make their country more competitive in global markets, including cutting back on some entitlements.   While the French can retire at soon to be 60 again if Hollande gets his way and the Greeks can retire at 55, the Germans pushed their retirement age up to 68.   As such, it is very unlikely that that German people are in any mood to pay for early retirement in other countries; nor should they.  

The European Union will soon disintegrate, or at least countries intentionally heading toward bankruptcy will not be able to continue using the EURO as their currency.   What the Germans fear most from their historical experience is a devaluation of the currency and high inflation that led to Adolf Hitler.  As such, they will pull the plug sooner than later on countries that refuse to adhere to more conservative German economic policies.  When that happens, these countries will be forced to go back to their own currencies as they then default on their debt.   That day is coming.   There will be more riots in the streets of these bankrupt countries.   It is hard to imagine a positive end to this story.   

As we see these things happen, we will be watching what will occur in the US if we do not end our deficit spending and pay off our National Debt.  Socialist President Obama will add about $5 Trillion to our $16 Trillion National Debt in just his first term in office with no end in sight.   If Obama is allowed to continue down the path he is proposing, assuming the markets will allow it, which is not the case, another $10 Trillion will be added to our National Debt in the next ten years.   Long before, we will see the bankruptcy of the United States, riots on streets and civil strife.   We can't let any of this happen.

We have to sweep Socialists, at all levels of government, including President Obama out of office in 2012 and 2014 to prevent the bankruptcy of the United States.   All we need do is watch what is happening in Europe to see the end of our story if we don't make Obama a one term President.   We can do it.  We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.  In the mean time, we will see the Melt Down of Europe in the next few months or years.      

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