Thursday, September 26, 2013

International Conspiracy To Sap And Impurify Our Precious Bodily Fluids.

I mentioned several reasons yesterday, why it is possible that the new German government might have to fight a battle for the euro they cannot win. I included the Republicans and their most likely successful attempt to damage the reputation of the US. But we are seeing struggles against sanity for the purity of our bodily fluids elsewhere, too.

I am convinced that the next Merkel junior partner will be - unlike the current one - actually interested in doing what needs to be done to safe the euro. Both parties have some more or less promising plans to finally - after years of senseless misery - get something done. These include

  • eurobonds (which now have a different name)
  • a banking resolution mechanism that deserves the name
  • at least reduced austerity in the periphery
  • some actual attempt to increase investment
  • (they also want to increase taxes in Germany which will not be helpful since Germany needs more domestic demand)
Merkel is an actual scientist, so since the evidence is clearly showing that austerity has failed miserably, she might also be willing to switch course, dragging her party along. She is also very pragmatic, which will help.

But it may be too late. We might just be in for the perfect storm next month. In Italy 87 of Berlusconi's People of Freedom party senate members are threatening to resign if he is removed from the senate next week. In that case new elections seem likely since the government won't be able to act anymore. They are probably the only ones who are on the level of Republicans when it comes to unpatriotic and destructive behavior.

In Germany, the Bundesverfassungsgericht will make a decision on the OMT program. It is not at all clear what the decision will be, the only thing that is certain is that the ECB itself will not be directly affected, but the Bundesbank might be. Many ordo-liberal economists want the promise that it holding the union together gone, they favor complete chaos over the ordo, I guess.

In Greece, a group of special forces reservists seems to be threatening a coup d'etat. They demand among other things that the government resign immediately. Well, I actually understand where they are coming from, the government signing a memorandum of understanding is the moment that sovereignty and therefore democracy dies in that country.The Greek government in particular is unable to do its job and even 8 Universities had to close recently. The incompetent troika negatively affects the live of all Greek citizens.

So we might just be in for a dysfunctional government in Italy, a coup d´etat in Grecce, while in Germany the constitutional court prevents the ECB Bundesbank from acting. The damage that the republicans can cause in the US seems tiny in comparison. Now it is hard to tell if the Greek reservists have any real influence in the armed forces. The group themselves declared that it is not typical that a coup would be announced in advance. But, the Berlusconi party is risking the whole coutry on purpose just to keep a criminal in office. Brig. Gen. Jack D. Rippers actions seem more reasonable than that (hence the heading).

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