The Occupy Movement is just the beginning of a New Era

Date: June 30, 2011 | Author: Mark Winter

 

The capitalism as we know it is in its final phase of decline like the communist system was in 1989 and the western politicians should now tell the people the truth that we will not be able to maintain the status quo of the capitalistic system as it is. Neither in the US nor in Europe can we be sure that the annual growth in the coming years will lift us out of the economical and political crisis which the system is facing. It is more likely that there will be a collapse of the financial system, which this time will most likely begin in Europe and will send shock waves throughout the financial world. Although the world has developed and we are not at the same stage as we were 1929, the only solution to the problem would be either to have a fiscal union in the Euro Zone or to split up the Euro and return to the national currencies again. Europe and the world is running out of time and with the resolutions of the last meeting in Brussels, Europe has only gained more time to solve the problem, meaning that either the European leaders need to agree to an entire fiscal union or they have to change the Lisbon treaty in the way that countries which do not meet certain fiscal criteria have to leave the single currency. This will be the only solution to rescue the Euro and as such the whole European single market. If the political leaders in Europe will not come to any agreement in the next 12 to 24 month then we will probably see a worldwide financial meltdown which could turn out to be worse than the1929 great depression. I hope that the politicians of the western world are well aware of it and will take the necessary measures. However, it is very important that the pressure from the street like the occupy movement continues to overcome the old capitalistic system with private banks and corrupt and greedy bankers. We need to re-think the system and come up with a new plan, not communism, not capitalism; we need a third way to solve the current economic and financial crisis; either regulate the banks very restrictively or nationalize the banks so that the people, the tax payer gain control over the banks which they had to bail out with their money.

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The Nobel Peace Prize for the two most Powerful Protagonists of our Times

Date: August 30, 2011 | Author: Mark Winter

 

 

We are currently witnessing a clash of different economical cultures on both sides of the Atlantic, both in Europe and the USA. There's the old continent, which is somehow always a little envious and admires America for the innovative spirit and the optimism of the American people. Then there is also some criticism of America for its greedy attitude and and its unbridled extravagance. In return, the Americans often look suspicious to the old continent, but admire the rich culture. However, they often suspect Europe for the backwardness in many fields and also the unwillingness of Europeans to cut off old habits and their reluctance to walk a new ways. This new way that Europe has to go is to try more integration of Europe and finally to jump over the shadow of national egoism. Because in the end, every citizen can benefit from more integration in Europe; and every European should know that we are opposed to the Americans at a crossroad, and that we now have to decide for more integration or for a breakup of Europe. The latter would be, taking Europe's history into account, absolutely not recommended. First there is the dispute between the French and German economists regarding the independence of the ECB. The French are naturally more in favor of a more loose monetary policy whereas the Germans are more like stability fetishists. But just let's imagine what would have happened if the Fed chairman of the most important economic region, the United States have had not the possibility of a "Quantitative easing".

1. The interest rates in the U.S. would have risen to 15% or 20%, and the U.S. had experienced the worst economic crisis since 1929, with mass unemployment and a great depression
2. The global economy and major economic areas such as Europe, Asia and Latin America would have been affected and it would have initiated probably not only currency wars between the countries.
3. The euro zone would have been dissolved in a day and the euro would have been broken up.
4. Mrs. Merkel and Mr Schäuble and the moderate politicians of other countries would have been driven out of office by right-or left-wing populist parties.

Therefore in principle, there are no alternatives to the QE policy of the U.S. Federal Reserve and the ECB has to follow this monetary policy, unless the German political economist and stability fetishists wish to have a Europe like it was in 1930 with massive unemployment, famine and great depression. I therefore propose that the two currently most powerful people in the largest economies should be awarded the Nobel Peace Prize, because without their decisive action the world would have fallen into the abyss that Europe might still be facing. The ECB President Trichet leaves office in the most a difficult times but the new Italian Euro Chief Draghi might the right ECB president at the right time, as the Italians did not take the stability of the old Lira too seriously. After all a soft Euro would still be better than a deteriorating Europe that falls into an economic insignificance.

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The French Revolution in the heart of Europe – QE 1 is inevitable

Date: June 30, 2011 | Author: Mark Winter

 

 

The regulatory policy of the ECB is a complete affront for German Economists especially in regards to the independence of the ECB, but for Europe it's a blessing and we might even talk of a fiscal French Revolution, which Europeans have awaited so eagerly. The ice was broken when the ECB had bought Greek government bonds in March 2010, but the bond buying program for Italian and Spanish bonds is just the appetizer to rescue the Euro zone and to maintain the general financial stability in Europe and possibly worldwide. Speculators drive the political heads of the Euro zone in front of them, like wolves a flock of lambs, and every time a lamb is killed by the wolves, the next lamb is targeted and the ECB has to come up with bond purchase program for the troubled sovereign. This is crucial in this crisis, because otherwise we could bury the European project, and with it the longest peaceful period in the history of Europe would come to an end. The ECB is the only supra-national institution that has the ability to defend the Euro and the economies against the wolves like International hedge funds and other big speculators. Germany and especially Mrs Merkel and Mr. Schäuble should understand that this crisis can not be contained with nitpicking, but the only strong and determined action by the ECB. Why do the politicians in Berlin think that this financial and existential crisis of Europe would just pass by like a thunder storm, when countries like the U.S. and Great Britain were only able to contain the crisis by buying government bonds. It is high time that the European politicians get used to the political dependency of the European Central Bank, and take into account that a central bank does not act in a political vacuum. There is not much time left, the need for a European QE1 and QE2 has to come soon, so we as Europeans should not only trust in God but more in the vision and the political foresight of an ECB chief like Trichet. He is about to take the right measures and instruments in this crisis. Let Mr. Weber escape to Switzerland, to delight in a rock-hard Swiss franc, but the time will come, when Switzerland is knocking at the door of the Euro to become a member themselves. Ultimately, Germany, but perhaps also Switzerland will become a bit more European after the crisis and as such: Vive la Révolution!

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Merkels' Nuclear Meltdown

Date: May 24, 2011 | Author: Mark Winter

 

 

Angela Merkel experienced a political meltdown due to the defeat of the state election of Baden-Wuertemberg on Sunday and it seems that even the few supporters which she had in the CDU are going to turn their back on her. She did not have a choice though, because she proclaimed the state election in Baden-Wuertemberg as a referendum on Stuttgart21, the controversy about the train station project. She did not take into account a nuclear meltdown that has happened in Japan, which undoubtedly was a game changer for her. Anyway, I am very proud of the people of Baden-Wuertemberg, that they saw through Merkel's electoral tactics on nuclear policy, and the much criticized decision in the Lybia conflict in which of Germany stayed neutral. The CDU encountered in its home state a political meltdown, and if Merkel had real political decency, she would now call new elections, because after such a disastrous vote, you can actually no longer solve the pressing problems in Germany and Europe and just sit them out. Shameful is the coordination about the Libyan resolution that ultimately also falls back to the foreign minister Guido Westerwelle. How can a liberal politician not support a movement for freedom in a country that has been suppressed for many years by a dictator. Germany should have voted with the Western allies and should have agreed to a no-fly zone but instead they stayed neutral on the matter together with China and Russia. The political porcelain that they have broken is immense and with this position Germany has definitely not qualified for a permanent seat on the UN Security Council. It remains to be seen how the political situation t's going to be in Baden-Wuertemberg, but the days of Angela Merkel are now counted, because last Sunday the people have voted for a new democracy and participation of the people. In short: Politicians should serve the citizens and not vice versa. This is something that the FDP and CDU should think about.

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