Saturday, July 28, 2012

Woj — ECB's Means (Lost Decade With High Unemployment) To An End (Structural Reform)

By working to prevent an all out collapse of the EMU, Draghi is merely taking the necessary actions to maintain his position. If Spain or other European countries must “suffer from a decade of recessions with unemployment over 20%” in order to implement the desired structural reforms than so be it. Whether or not that outcome is politically feasible remains an open question, but I have my doubts. Draghi was not the first to claim “it will be enough" and won’t be the last to make that claim either.
Read it at Bubbles and Busts
ECB's Means (Lost Decade With High Unemployment) To An End (Structural Reform)

The not so hidden agenda. The race in the West — Europe, the UK, and the US — the work force of the developed world to compete at the same level of wages and benefits as the emerging world is on. The belief is that wages and benefits in developed countries will fall as they rise in the emerging world, splitting the difference. The good news — outsourcing no longer a threat to employment in the developed world. The bad news — falling standard of living and rising inequality as the global economy heads toward a world of have's and have-not's in a neoliberal "paradise."

They actually think that this is workable politically. I suspect they realize it is not possible without political repression. So get ready for soft fascism.

Just as policy direction leads to totalitarian communism as the extreme on the left, so too does it lead to institutional fascism as the extreme on the right.

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