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Old 06-17-2012, 12:40 AM   #1
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1931 all over again - A prelude to 1939 again?

Quote :
The European Union was created to avoid repeating the disasters of the 1930s, but Germany, of all countries, has failed to learn from history. As the euro crisis escalates, Berlin should remember how the banking crisis of 1931 contributed to the breakdown of democracy across Europe. Action is urgently needed to stop history from repeating itself.

Is it one minute to midnight in Europe?

The failure of German public opinion to grasp the dire state of affairs in Europe today is inviting a repeat of precisely the crisis of the mid 20th century that European integration was designed to avoid.

With every increase in the probability of a disorderly Greek exit from the monetary union, the pressure on the Spanish banks increases and with it the danger of a Mediterranean-wide bank run so big that it would overwhelm the European Central Bank. Already there has been a substantial re-nationalization of the European financial system. This centrifugal process could easily continue to the point of complete disintegration.

We find it extraordinary that it should be Germany, of all countries, that is failing to learn from history. Fixated on the non-threat of inflation, today's Germans appear to attach more importance to the year 1923 (the year of hyperinflation) than to the year 1933 (the year democracy died). They would do well to remember how a European banking crisis two years before 1933 contributed directly to the breakdown of democracy not just in their own country but right across the European continent.

Astonishingly few Europeans (including bankers) seem to remember what happened in May 1931 when Creditanstalt, the biggest Austrian bank, had to be bailed out by a government that was itself on the brink of insolvency. The ensuing European bank crisis, which saw the failure of two of Germany's biggest banks, ushered in the second half of the Great Depression. If the first half had been dominated by the American stock market crash, the second was all about European banks going bust.
We are witnessing history in the making AGAIN!

The first half was dominated by the American stock crash of 2008. The second, now, is dominated by Europe going bust.

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The political consequences are well known. But the Nazis were only the worst of a large number of extremist movements to benefit politically from the crisis. "Anti-system" parties in Germany -- including Communists as well as fascists -- had won 13 percent of votes in 1928. By November 1932, they won nearly 60 percent. The far right also fared well in Austria, Belgium, Czechoslovakia, Hungary and Romania. Communists gained in Bulgaria, France and Greece.
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The process of political fragmentation is also speeding up. In the last Greek elections, seven in 10 voters cast their ballots for smaller parties opposed to the austerity program imposed on Greece in return for two EU-led bailouts. Established parties are also losing out to splinter parties in Italy, where the comedian Beppe Grillo's Five Star Movement has just won control of the city of Parma, and in Germany, where a maverick party called the Pirates is all the rage. Less frivolous populists now have substantial support in France, the Netherlands and Norway. This trend is ominous.
Same scenario as the 30s - Same result will happen.

Full article here: The Germans have learned nothing from history
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Old 06-17-2012, 08:47 AM   #2
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That's one selective POV (and a rather globalist one at that). One could just as easily make the case that Germany is the only country that has learned from history (Weimar Republic) and understands that kicking the can by expanding the debt balloon is not a real solution. What folks like the author of that article are overlooking is that the EU was designed from the outset to push European nations into a political union (usurping sovereign power into some Federalized body). It was doomed to (economic) failure from the start the way it structured. They didn't have the political capital to realize the political union end goal from the start - the people of Europe would never have accepted it. I believe that this economic crisis was envisioned, planned and expected at some point to force the political union issue. I also believe that there will be a push from the globalist leaders to develop a "globero" (world currency) managed by a largely unaccountable global institution to effect the same dynamic on a much larger stage (scale).
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Old 06-18-2012, 07:14 AM   #3
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It is disturbing to see extreme socialist and facist type parties winning seats in the Greek Parliament. For example, the Golden Dawn party had 7 percent of this weekends vote:
http://www.marketwatch.com/story/the...ist=beforebell
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Old 06-18-2012, 02:11 PM   #4
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Originally Posted by PMBug View Post:
That's one selective POV (and a rather globalist one at that). One could just as easily make the case that Germany is the only country that has learned from history (Weimar Republic) and understands that kicking the can by expanding the debt balloon is not a real solution. What folks like the author of that article are overlooking is that the EU was designed from the outset to push European nations into a political union (usurping sovereign power into some Federalized body). It was doomed to (economic) failure from the start the way it structured. They didn't have the political capital to realize the political union end goal from the start - the people of Europe would never have accepted it. I believe that this economic crisis was envisioned, planned and expected at some point to force the political union issue. I also believe that there will be a push from the globalist leaders to develop a "globero" (world currency) managed by a largely unaccountable global institution to effect the same dynamic on a much larger stage (scale).
One thing you must remember is that this comes from a leading GERMAN publication, Der Spiegel, not from some outside observer. If it were from an outside observer, I would be much more inclined to brush it off. However, coming from the Germans themselves, I tend to lend more weight to it.

Yes, you are correct that the monetary union was deliberately flawed from the start, probably, as you have noted, to force political union. Any sane economist will tell you that you cannot have a common currency without the political power to back it up.
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Last edited by PMBug; 06-18-2012 at 04:23 PM. Reason: split message / keep thread on topic
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Old 06-18-2012, 04:26 PM   #5
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I don't read Der Spiegel regularly, but if the media in the US is any example, the paper is likely owned by a globalist and the paper reflects their editorial interests.
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Old 06-18-2012, 07:20 PM   #6
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Originally Posted by PMBug View Post:
I don't read Der Spiegel regularly, but if the media in the US is any example, the paper is likely owned by a globalist and the paper reflects their editorial interests.
Entirely possible. Especially when you consider that every news organization is biased in one way or another, some way more than others.
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BARTER is the money of PEASANTS.
DEBT is the money of SLAVES.
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