Wednesday, March 20, 2013

Europe Is A Mess - No Surprise

After the horrors of World War II, European governments moved quickly to create the cradle to grave nanny state.   The result of this Socialist and or Communist experiment in most European countries has been a huge government bureaucracy, very high taxes,  burdensome job killer regulations, stagnant growth, low productivity, perpetually high unemployment and high energy prices.   Of course, some countries like Italy, Portugal, Greece, France, Ireland and Spain have been worse than others; but the fact remains that all European countries have created a nanny state that is simply unsustainable. 

This is the same nanny state that Socialist President Obama is trying to bring to America and we see the end result; huge government bureaucracy, very high taxes, burdensome job killer regulations, stagnant growth, low productivity, perpetually high unemployment and high energy prices.   Europe is a mess and the US is not far behind. 

Apparently, it will take complete economic collapse for these Socialists to get the message.   The bank crisis is Cyprus is just the tip of a huge European iceberg.   It is impossible to continue borrowing forever to support a social system that is unsustainable.   And, the unprecedented move by the European Central Bank to tax bank savings, even insured bank savings, as a condition of a bail out for Cyprus will undermine the entire global financial system.   So far, the government in Cyprus voted NO; but that it not likely to last for long.   If they want the bail out to prevent complete financial collapse, they will have to do as the Germans tell them to do.   And, or the Russians are there to help in exchange for the rights to Cyprus' gas and oil reserves.   Such a deal. 

When this Blogger often says one day the Chinese will ask for Alaska in exchange for the Trillion dollars we owe them,  we see the precedent in the making with the Russian offer to help Cyprus in exchange for their off shore oil and gas reserves.   He who has the gold makes the rules.   Whether it be the Germans or the Russians dealing with the Cyprus banking collapse, both are in a position to dictate terms.   It is what it is. 

In the mean time, Europe refuses to really deal with its structural problems and as such it will eventually cause the demise of the European Union and the EURO.   Germany, the only productive country in Europe, is demanding austerity and so many European countries are cutting spending, just not enough.   However, at the same time, many European countries are raising taxes when they should be cutting taxes and regulations.   The combination of higher taxes and austerity has put Europe in a Recession that very well could turn to a Depression.   Obviously, the lessons of history and common sense economics are being ignored.

Yet, this is the Obama Plan for America.   But there is more to it in Obama's case.   Obama wants to "transform" America into a Socialist or Communist nation.   To do so, Obama is intentionally causing the economic collapse of the United States.   In the name of Social Justice, Obama wants to take from the Makers in our country and give to the Takers, his PEEP's, those on the dole, the 50% of Americans that pay no income taxes at all, illegal aliens, public employee union members, radical feminists and environmentalists, trial lawyers and Crony Capitalists.   To all of this, WE THE PEOPLE must stand up and say HELL NO. 

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