By Chris Freind
Pop Quiz:
Are the Euro-technocrats (and their America backers) who orchestrated the bailouts of Greece, Portugal, Ireland, Spain (and soon Italy):
A. Really smart guys, hell-bent on world domination, who are trying to prop up the Euro to create a one-world currency (to complement a one-world government, of course);
B. Really connected guys with close ties to the banks and governments receiving the hundreds of billions being doled out so cavalierly — and who are undoubtedly being “taken care of” for all their hard work in sending those vast sums to their friends;
C. Good-hearted souls who fall into the category of “there is no such thing as perfect men, just perfect intentions” — leaders who truly believe that more-debt-solves-everything economic policies, while not perfect, are the only salvation for a continent near collapse;
D. Cowards who know damn well what they’re doing won’t work, but are kicking the can down the road (again) so that the implosion won’t happen on their watch; or
E. Just plain morons. And that’s not meant as a mean-spirited personal attack, but merely a point-of-fact description.
Answer:
F. A little of all everything.
It’s clear brain trust across the pond is trying to prop up the Euro — or, more accurately, save it from extinction. But to be fair, the conspiracy theory doesn’t work because there aren’t enough smart people in Europe to even think about such a feat. Let’s be honest: since they can’t even identify what their problems are, let alone how to solve them, anything more grandiose than keeping their heads above water is simple folly.
Are there folks financially benefitting from the bailouts? Absolutely. Anytime incomprehensibly large amounts of money are changing hands, insiders make out like bandits, because often times they are. Some of that corruption is illegal, to be sure (and difficult to prosecute since those at the top are often in on the deal), but there is also widespread institutional corruption, where many of these financial transactions are immoral, unethical, and “criminal,” just not illegal.
So while the corporate hacks and pols “get theirs,” the people get shafted. And with such an arrangement, why would anyone expect change, since there is no incentive for policy makers to rock the boat? Those who do stand up are often lambasted back into silence, and the European march towards oblivion continues.
Are there some European leaders who believe bailout after bailout is the best — and only — policy to right the ship? Absolutely. Of course, these people live in a bubble of naiveté borne from never holding private sector jobs. To them, free enterprise is a hindrance, not a solution, so they cannot relate to the countless obstacles businesses must navigate to survive — and keep people employed. And thus can’t understand why so many companies are laying off and shutting down.
They never had to meet a payroll, never dreaded issuing pink slips, never worried about how to pay skyrocketing health insurance. They never had to compete while handicapped with needlessly high energy costs, and never cursed up a storm because of crushing taxes and ridiculous, job-killing regulations. More important, these leaders never experienced competition and all the wonderful things that striving to be the best brings out in people.
Bureaucrats thrive in a spread-the-wealth, homogenous environment where mediocrity is the norm, and aspiring to greater things is forcefully beaten down. Sadly, they have never been imbued with the vision that complacency is the enemy, and that the constant drive to develop better products and services, and how to most innovatively bring them to market, is the only tide capable of lifting all boats.
Instead, they harbor the view that a paternalistic, politically-correct government knows best, believing that government solutions are the only answer.
The problem with bailouts, of course, is that there is no such thing as “government” money; in a democracy, it is always the people’s money sent to the government with the reasonable expectation that it will be spent with restraint and wisdom. In Europe’s case, as in America, that train has jumped the tracks.
Instead, spending has increased so exponentially that entire nations are effectively bankrupt. “Government” money has been made so easily available to all people for all things that the sense of entitlement has wiped out any incentive to work harder and be more productive. Europe has become a continent of sloths, more content to lazily enjoy a siesta and draw a lavish pension at 45 years old than put in the work necessary to make one’s life — and their children’s future —better.
And now it’s time to pay the piper. We no longer live in a world where problems will work themselves out in a year or two, but instead will be with us for the long haul until people want to face the truth. But until that hard look in the mirror occurs, and that’s not likely, Europe’s deterioration will only accelerate.
* * *
Nothing the Europeans are doing will solve the problem, since they are simply robbing Peter to pay Paul. Spain is paralyzed by debt and has whopping 25 percent unemployment rate. And their “solution?” Take on even more debt! That’s like buying a $40,000 Ford with zero in the bank and claiming a “savings” of $60,000 because you didn’t get the $100,000 Mercedes. Earth to Europe: have we met?
Like Greece, nothing will change in Spain in spite of the bailout. People will not tolerate cuts in pensions, services or programs, and will riot should they be slashed. Leaders will talk common sense austerity measures, yet end up caving. And why not? They just suckered Europe (mostly Germany) and the United States into giving them $125 billion to do as they please. Instead of implementing reforms, it will be Business As Usual with Other People’s Money. Layoffs will continue, defaults will increase, and more companies will close because unaffordable entitlements and a horrendous work ethic will remain intact.
But soon, Spain will be a distant memory as Italy, whose financial crisis is even larger, teeters on collapse. All the money in the European Central Bank wouldn’t be enough to save that nation, so the Eurocrats will just keep the printing presses cranking out increasingly worthless Euros.
So while Europe chooses to keep its head where the sun doesn’t shine, pretending all will be soon be ok while in reality runaway inflation sets in, all eyes will look to America. As the world’s largest debtor nation, will it continue to borrow from China while sending billions to the Middle East because it willfully ignores its unparalleled energy resources? Reserves so vast, by the way, that America could again become the planet’s dominant manufacturing powerhouse if it produced and utilized what would amount to the world’s cheapest energy.
The truth is that neither Republicans nor Democrats have done what is necessary to fix America’s debt crisis and sagging economy, and it will get a lot worse before it gets better. Despite that negative prognosis, however, the United States still has an ace up its sleeve that Europe does not.
It possesses the indomitable can-do spirit — the most productive, powerful and awe-inspiring force the world has ever known. Simply put, it is that unique American ability to blow through roadblocks and solve any problem when it gets its head in the game. Europe may never awaken from its deep slumber. But when America does, China will begging for revamped trade policies and the arrogance of the Middle Eastern oil barons would be put in check, once and for all.
And only then will the world finally be right again.
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