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The Rotten Heart of Europe: Continent-Wide Collapse Imminent? (+video)

Photo Credit: Irish Times

Europe’s failing currency union … has been in crisis for more than three years, and there is a frighteningly high probability that it will end in continent-wide financial collapse and depression.

Nobody was more against the creation of the euro than Bernard Connolly, a senior European Commission official when the single currency’s foundations were being laid. He saw such danger in abolishing national currencies that he wrote a book warning against doing so in 1995. He has now republished the book (which cost him his job) with a new introductory essay [watch his engaging interview with Rick Santelli here]:

It is a timely contribution from someone who can lay more claim than most to foreseeing the long-unfolding crisis. Back in 1995 he wrote: “Trying to lock countries like France and Germany together via their currencies turns domestic monetary questions into international political conflicts. It damages the economic and political well-being of every country involved.” This now appears remarkably prescient.

Connolly’s argument was based on two pillars. The first was that Europe’s elites had become so obsessed with integration that they ignored all the risks and dangers of currency union in order to further their project. To this political argument he added an economic one: that the euro would not work because any and all attempts by governments to interfere in how markets determine exchange rates are economically and politically damaging…

Connolly dismisses as a “propaganda slogan” the claim that the EU has prevented war in Europe and describes those who talk of “building Europe” as being akin to Bolsheviks in their ideological single-mindedness.

Read more from this story HERE.

Social Breakdown From Continued Economic Issues Threatens European Stability

Photo Credit: Reuters

Unemployment has reached a new high in the euro zone and inflation remains well below the European Central Bank’s target, stepping up pressure on EU leaders and the ECB for action to revive the bloc’s sickly economy.

Joblessness in the 17-nation currency area rose to 12.2 percent in April, EU statistics office Eurostat said on Friday, marking a new record since the data series began in 1995.

With the euro zone in its longest recession since its creation in 1999 … the deepening unemployment crisis is a threat to the social fabric of the euro zone. Almost two-thirds of young Greeks are unable to find work, exemplifying southern Europe’s ‘lost generation’.

Economists and policymakers including Germany’s finance minister, Wolfgang Schaeuble, have said the greatest menace to the unity of the euro zone is now social breakdown from the crisis, rather than market-driven factors.

Read more from this story HERE.

France’s Hollande Seeks Formation of Single European Government

Photo Credit: APFrench President Francois Hollande called on Thursday for an economic government in the eurozone that would have its own budget, the right to issue debt, a harmonized tax system, and a full-time president.

Speaking at a news conference marking his first year in office, a day after economic data showed France had slipped back into recession, the Socialist leader said he sought to create a full political European Union (EU) within two years.

His proposals seemed likely to encounter stiff resistance from Germany, Europe’s leading power, which opposes mutualizing debt among European states and is reluctant to give the eurozone its own secretariat or create new divisions in the EU, of which 10 countries are not in the 17-nation single currency.

It also comes as Britain’s government faces growing domestic pressure to hold a referendum on leaving the bloc.

“My initiative has four points that I am putting to our partners. The first is to create an economic government with the eurozone countries which would meet every month with a real president appointed for a long period and who would be devoted to this task,” Hollande said.

Read more from this story HERE.

European Fascist, Israel-Hating Groups Linked to Iran Growing Rapidly

Photo Credit: ReutersInside the far-Right stronghold where Hungarian Jews fear for the future

By Colin Freeman. As the self-declared “capital” of the ultra-nationalist Jobbik Party, the town of Tiszavasvári prides itself on being a showcase for how the whole of Hungary might one day look.

Since winning control of Tiszavasvári’s local council three years ago on a pledge to fight “Gipsy crime”, the party has been on a vigorous clean-up campaign, banning prostitution, tidying the streets, and keeping a watchful eye on the shabby Roma districts at the edge of town. It even swore in its own Jobbik “security force” to work alongside the police, only for the uniformed militia, which drew comparisons with Hitler’s brown-shirts, to be banned by Hungary’s national government.

Yet Gipsies are not the only bogeyman that Jobbik has in its sights, as a sign on the well-trimmed green opposite the Communist-era mayoralty building suggests. Written in both Hungarian and Persian, it proudly announces that Tiszavasvári is twinned with Ardabil, a town in the rugged mountains of north-west Iran.

On the face of it, there is no obvious reason why a drab rustbelt town in Hungary’s former mining area should seek links to a city in a hardline Islamic Republic 2,000 miles away. But this is no ordinary cultural exchange programme, and friendship has very little to do with it. Instead, the real purpose of Jobbik’s links to Iran is to show their mutual loathing of the Jewish state of Israel, which the Iranian president, Mahmoud Ahmadinejad, notoriously declared should be “wiped from the pages of history”. Read more from this story HERE.

Dangerous Times: Europe’s New Fascist Movements Don’t Hate Islam

By James Lewis and Justine Aristea. There is something strange about the fast-rising European “crypto fascist” movements. They are peas in a pod — with similar political programs, and similar nationalist and anti-capitalist rhetoric. They all hate the two Satans of Iranian propaganda, Israel and America. Yes, the Persian Gulf supplies 40% of Europe’s oil and therefore has vast political power in all the countries where the cryptos operate. But they are realy monomaniacal about Israel, which has nothing like the power of the oil states. Most peculiarly, all those anti-foreigner movements don’t have a bad word to say about 50 million Muslims who now populate the capital cities of Europe. Not one bad word.

All the cryptos use the web to recruit and direct their followers. Just as the invention of radio led to Mussolini’s and Hitler’s mass appeal, the web is doing so for Giuseppe Grillo and all the others. Some of the cryptos therefore want the voting age to be lowered to 16, so they can catch ’em while they’re young.

These movements recruit many thousands of grossly ignorant teens, surfing the web. They use mystery names — Golden Dawn, Red and Black, Five Stars — as if they came from a single cookie cutter. They all try to absolve the faded Nazi and fascist parties of the 30s and 40s.

But most important, while the crypto cults rage against foreigners, none of them criticize mass immigration of Muslims. They treat Muslim immigration the way the U.S. media treat Obama.

This is too much of a coincidence. Human beings are not all alike. When we act like carbon copies, something else is going on. The Communist International (Comintern) has run look-alike parties in Europe since 1900. Local communist parties never criticized Comrade Lenin or smiling Uncle Joe. You could tell their loyalties by their blind spots. Read more from this story HERE.

U.S. Cancels Part Of Missile Defense That Russia Opposed

Photo Credit: DVIDSHUB

The United States has effectively canceled the final phase of a Europe-based missile defense system that was fiercely opposed by Russia and cited repeatedly by the Kremlin as a major obstacle to cooperation on nuclear arms reductions and other issues.

Russian officials here have so far declined to comment on the announcement, which was made in Washington on Friday by Defense Secretary Chuck Hagel as part of a plan to deploy additional ballistic missile interceptors to counter North Korea. The cancellation of some European-based defenses will allow resources to be shifted to protect against North Korea.

Aides to President Vladimir V. Putin of Russia said there would be no reaction until early next week, when they expect to be briefed by American officials. But Russian news accounts quickly raised the possibility that the decision could portend a breakthrough in what for years has been a largely intractable dispute between Russia and the United States. A headline by the Itar-Tass news agency declared, “U.S. abandons fourth phase of European missile defense system that causes the greatest objections from Russia.”

Pentagon officials said that those longstanding objections by Russia played no role in the decision to reconfigure the missile interceptor program, which they said was based on the increased threat from North Korea and on technological difficulties and budget considerations related to the Europe-based program.

“The missile defense decisions Secretary Hagel announced were in no way about Russia,” George Little, a Pentagon spokesman, said Saturday.

Read more from this story HERE.

European Parliament To Vote On EU ‘Ban On All Forms Of Pornography’

Photo Credit: ALAMYControversy has erupted over next Tuesday’s European Parliament resolution “on eliminating gender stereotypes in the EU”, meant to mark international women’s day, after libertarian Swedish MEPs from the Pirate Party spotted the call for a ban in the small print.
While not legally binding, the vote could be the first step towards European legislation as the EU’s assembly increasingly flexes its political muscle within Europe’s institutions.

The proposal “calls on the EU and its member states to take concrete action on discrimination against women in advertising… [with] a ban on all forms of pornography in the media”.

Kartika Liotard, a Dutch left-wing feminist MEP, is seeking “statutory measures to prevent any form of pornography in the media and in advertising and for a ban on advertising for pornographic products and sex tourism”, including measures in the “digital field”.

The MEPs are also demanding the establishment of state sex censors with “a mandate to impose effective sanctions on companies and individuals promoting the sexualisation of girls”.

Rick Falkvinge, the founder of the Swedish Pirate Party which campaigns for internet freedom and has MEPs, warned that there is “a clear majority in favour of this report, much because of its title and a belief that there’s nothing odd about it”.

Read more from this story HERE.

Biden Does Damage Control With European Leaders After Hagel’s Policy Flub

Photo Credit: marcnVice President Joseph R. Biden assured European leaders Saturday that the U.S. is not pursuing a policy of “containment” toward Iran, two days after U.S. Defense secretary-nominee Chuck Hagel mistakenly characterized the Obama administration’s policy.

“As President Obama has made clear to Iranian leaders, our policy is not containment — it is not containment,” Mr. Biden said at the annual Munich Security Conference in Germany. “It is to prevent Iran from acquiring a nuclear weapon.”

During his confirmation hearing Thursday, Mr. Hagel told the Senate Armed Services committee that the administration had a policy of “containment” toward the Iranian regime. After an aide slipped him a note minutes later, Mr. Hagel corrected himself and said, “We don’t have a position on containment.

That comment prompted Chairman Carl Levin, Michigan Democrat, to remind Mr. Hagel that the U.S. does indeed have a position on containment — “we do not favor containment.”

Mr. Biden didn’t mention Mr. Hagel’s stumble to the Europeans, but he did try to set the record straight. Addressing international sanctions against Iran for its nuclear ambitions, Mr. Biden said the Obama administration has “also made clear that Iran’s leaders need not sentence their people to economic deprivation and international isolation.”

Read more from this story HERE.

Video: Rick Santelli Says ‘We’ve Become Europe’

Rick Santelli made a stunning observation Wednesday about the shocking report that the economy actually shrunk in the fourth quarter last year.

“We are now Europe,” he declared on CNBC’s Squawk Box.

“Hey Joe,” Santelli said, “when you act like Europe, you get growth rates like Europe, and our discussions with economists sounds like we’re in Europe. They have the same discussions constantly.”

Read more from this story HERE.

Kremlin Leveraging Energy Exports to Europe

WASHINGTON – Russian agreement to a reduced natural gas price in a deal with Poland helps ensure Moscow’s near-monopoly over Europe’s natural gas supply and the enormous political leverage that the Kremlin can exert as a consequence, according to a report from Joseph Farah’s G2 Bulletin.

Gazprom, which has a near-monopoly on oil production and a full monopoly on natural gas exports, is viewed by experts as an effective tool of the Kremlin to not only be a weapon for political leverage but actually to greatly influence events in Europe.

Moscow’s strategy has been to undertake long-term contracts with lower natural gas prices. This has been aimed at countries which the Russians regard as strategic, particularly Germany.

However, a reaction is setting in among these countries. They don’t like the control that it gives to Gazprom and have decided to take the Russian monopoly to court.

Read more from this story HERE.

Lesson to the US: Social Welfare Costs Rapidly Sinking Europe

At the British Conservative Party conference, Chancellor George Osborne unveiled an initiative to jump start the nation’s economy. He also targeted welfare and the problem it is creating for the western world.

Calling handouts bloated, unfair and sometimes corrupt, Osborne suggested they are simply unaffordable. He believes they are crushing Europe’s advanced economies.

The UK Telegraph reported that his speech to the Conservative Party was likely well received by the British who show “a high degree of public support for further cuts in welfare spending. Where once the Tories were regarded as cruel and heartless for wanting to slash benefits, it now seems that they can’t be tough enough. Politically, Osborne is therefore pushing at an open door when he says this is not just about saving money – it’s about fairness and enterprise.”

Osbornes’ attack on welfare took a populist tone:

How can we justify the incomes of those out of work rising faster than the incomes of those in work, he asks, or giving flats to young people who have never worked when working people twice their age still have to live with their parents because they cannot afford a separate home?

More emotively still, he asked how it was possible to justify a system where people in work have to consider the costs of having another child, while those who are out of work don’t. By raising these questions, Osborne gives voice to a strongly populist message, but he also speaks to an underlying, economic imperative – advanced economies are long past the stage of being able to afford such largesse.

But welfare is only part of Britain’s problem. It is also facing – along with the rest of Europe – a potential meltdown from pensions and healthcare costs. The Telegraph points out that “these forecasts point to destruction of the very foundations of the European social market economy.”

The European socialistic model has failed miserably. The United States should run far, far away from this dead-end model of government, embraced by Obama.