by John Galt
June 3, 2012 17:10 ET
Ambrose Evans-Pritchard is back with the reality check in the U.K. Telegraph that has been sorely missed by most of the mainstream Bubblemedia and especially the political elites of Europe:
These key portions of this outstanding summary of the past week should terrify the sane and petrify the insanely ignorant:
Joschka Fischer, Germany’s former vice-Chancellor, said EU leaders have two weeks left to save the project.
“Europe continues to try to quench the fire with gasoline – German-enforced austerity. In a mere three years, the eurozone’s financial crisis has become an existential crisis for Europe.”
“Let’s not delude ourselves: If the euro falls apart, so will the European Union, triggering a global economic crisis on a scale that most people alive today have never experienced,” he said.
Mr Fischer has the matter backwards. The euro itself is the chief cause of the existential crisis he discerns. Yet he is right that three precious year have been squandered, and that Europe‘s policy mix has been atrociously misguided. The pace of fiscal tightening has been too extreme, made much worse by the ECB’s monetary tightening last year. This inflicted a double-barrelled shock on Southern Europe. The whole region was forced back into slump before it had reached “escape velocity”.
The disaster is accelerating with real risks of starvation in famine in Greece, war in and over the newly found petroleum resources around Cyprus, Spanish nationalist fervor returning with many of the elderly pining for the stability of the days of Franco, and Ireland now set on a course of domestic discontent unseen since the bloodiest days of the old IRA. Yet the powers that be seem to be quite content in dismissing the events, the news, and the tragedies from the masses by exercising their inexorable control over their media puppets. Propaganda only works when the stomachs are full yet the lessons of the failed Communist states and Fascist past have escaped the financial elites and their political lackeys. As this crisis accelerates in the weeks ahead,