Mervyn King was head of the Bank of England from 2003 to 2013. He confirms that the euro-zone’s weakest members will continue to have ever-worsening debt, poverty, austerity, and unemployment until they dump the euro and go back to using their own currencies.
Quite simply, if your government can no longer create money out of thin air, and if your nation has a trade deficit, then the only way your government and your nation can get any money is by borrowing it. The result is ever-worsening debt, austerity, and inequality. (No exceptions.)
“It is appalling and it has happened almost as a deliberate act of policy, which makes it even worse,” King says.
There is no “almost” about it. The bankers deliberately conceived of the euro scam in order to widen the Gap between the rich and the rest, and to destroy peripheral nations like Greece, so that those nations would have to sell their public assets to the bankers for a fraction of the assets’ worth. Local politicians went along with this because they were bribed by the bankers.
The bankers continually get away with their scams because the masses refuse to see the scams. For example, when the SYRIZA coalition was elected to the Greek government in January 2015, everyone called it the “end of austerity.” I, however, immediately said SYRIZA was a fraud, since SYRIZA championed the euro. I wrote comments in various blogs saying the bankers had installed SYRIZA in order to make Greek masses think their government cared about them while the masses were being raped. I said that because SYRIZA defended the euro currency that was killing Greece, there would be more debt and austerity.
In response, I got flamed. Many of my comments were deleted. No one wanted to hear the truth. Now Mervyn King has admitted that truth — but he will be ignored, just as Alan Greenspan was ignored when Greenspan said on national TV that the U.S. government can never become “bankrupt.”
What about the “Podemos” movement in Spain? Are they a fraud? No, because Spain is enjoying a sizeable trade surplus of 2.3 billion euros per month on average. Each month, 2.3 billion more euros flow into Spain than leave it. Thus, Spain does not have to borrow its money, and therefore has no reason to dump the euro.
So let’s repeat it again. If your nation has a sizeable trade surplus, then a common currency (the euro) is an advantage to your nation. The euro works in your favor. But if your nation has a trade deficit (even a small one), then a common currency will destroy your nation. You will be sucked dry by the bankers, and by nations in your currency bloc that have trade surpluses.
In the images below, the more time each nation spends in the red zone (i.e. trade deficit zone) the more that nation is destroyed by debt and austerity. France is as bad off as Greece, but average French people don’t feel the pain quite as acutely, since the French economy was much larger than the Greek economy to begin with. But French conditions get worse all the time, which is one reason why French people hate refugees. (The refugees are easy targets.)
Further down is Italy, which has been doing better the last three years or so. Since the Italian economy is not so bad off, the Italian people are not as anti-refugee as are French people.
BELOW: Spain and Portugal were disaster zones until late 2012. Foreign consulates in Portugal were flooded each day with people trying to get visas to move to foreign nations where Portuguese is spoken (e.g. Brazil, Mozambique, Angola, Guinea-Bissau, East Timor, Equatorial Guinea, Cape Verde, and São Tomé and Príncipe).
BELOW: Finland had a sizeable trade surplus before 2011, and therefore few money worries. In those days, average Finns were smug and self-righteous toward nations like Greece and Portugal. They called for austerity and more austerity.
But after 2011, Finland dropped into the red zone, and has been in a disastrous recession ever since. This happened because Finnish companies like Nokia were outmaneuvered by foreign competitors. Finland’s huge paper industry declined as the world went paperless, and politicians agreed to cut off trade with Russia at the behest of the USA and EU. Now average Finns are not as self-righteous toward Greece as they used to be. Now they are feeling the austerity that they had smugly wished on others. Now they too are in hell.
Unfortunately their politicians remain utterly corrupt. For Finnish politicians the solution is not to dump the euro and resume trading with Russia, but to impose more and more austerity on average Finns. Politicians refer to this attack as “market reforms,” “fiscal consolidation,” “structural adjustments,” “improved cost competitiveness,” and so on.
Sweden does not use the euro, and is a manufacturing powerhouse. Hence the Swedish government can create infinite kronas to pay routine government expenses, while enjoying plenty of money coming in from abroad in the form of euros and other foreign currencies. There is no red zone for Sweden.
Finnish politicians claim that Finland’s economy is in “recovery,” but the chart above shows them to be liars.
Since there are no jobs for youth in Finland, the youth indulge in drink and drugs. Politicians respond with more and more repressive measures. As they grind their people into the dirt, politicians say that average Finns should develop sisu (guts, grit, fortitude).
Before 2011, average Finns lived on Mt. Olympus. Now they live in the sewer. The cause? Corrupt politicians. The solution? Dump the euro and the current politicians. And diversify the economy so that it does not rely only on one or two key industries (e.g. electronics).
BELOW: Ireland seems to be recovering somewhat, but the UK and USA have been deeply in the red zone since the mid-1970s. However this does not matter for the UK or USA, since their governments create money out of thin air, and since U.S. dollars and since U.K. pounds sterling are very widely accepted in the world. Thus, for the UK and USA governments, austerity is entirely gratuitous. Its sole purpose is to widen the Gap between the rich and the rest.