Posted Mar 10, 2013 by Martin Armstrong
As we move closer to elections in Europe we will be confronted by a much more serious political crisis than appears on the radar right now. Merkel’s idea of saving the Euro by imposition of austerity upon southern Europe makes no sense. Their past debts exploded in real value terms when the Euro rose from 80 cents US to $1.60. Europe has for far too long valued a strong currency as a political accomplishment because their currencies were wiped out with World War II. This is why there was never a rise of any real European analytic service in currency because one was a traitor to ever forecast a bear market. Politicians used the rise in their currency as a validation of their success. But those days are long gone. The French dream of a European currency to rival the USA was never well founded. They failed to turn away from the socialistic policies that were necessary to establish such a strong foundation.
Adenauer Grandson is now challenging Merkel and while he is not give much respect as a possible victor, he is stirring up the mix so that the emperor may start to be seen without clothes. He would forgive all the debts and jettison Southern Europe to save the Euro. That would still fail to save Europe. Nevertheless, there solutions that would retain liberty, eliminate the Marxism, increase the living standards, and divert Europe from collapsing into war once again. But all of these possibilities require serious political reform and the letting go of power. Unfortunately, between the politicians and the Marxism academics hell-bent on creating an economy they think is best, there is no likelihood of saving the day. We simply have to watch and wait for the crash and burn. ONLY at that moment of pain can we turn the tide.