Who Gains From The Eurozone Fiasco? China

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Subject:	FWC: Who Gains From The Eurozone Fiasco? China
Date:	Mon, 22 Nov 2010 07:12:15 -0800
From:	Jas Jain <jas_jain

FWC: Who Gains From The Eurozone Fiasco? China

"There is a much more general or global phenomenon in which powerful people cooperate to build an economic model that provides growth based on a great deal of debt. When the crisis comes, those who control the state try to save their favorite oligarchs, but there aren't enough resources to go around… Here is the present problem: It's not just the Irish elite that is under pressure and struggling to sort out who should be saved. It's also the European bankers who funded them."
 
Democratic govts exist to serve bankers, or Bankrupters and Fraudsters, in particular, and Corporate Crooks, in general. Hence, Democracy = Domination of Money. The primary objective of the govt., then, is to keep 'the people,' i.e., the demos, in line while their real masters do what the Crooks normally do. And what better, or lower cost, way to keep a working and taxpaying dope in line than to give him, or her, a vote?! I mean a useless vote. The Church has nothing over the high priests of democracy in terms of brainwashing the population about the sanctity and efficacy of the institution. Once doped, financial bloodsucking is effortless and without resistance. What a system! The question is: How much longer could such a system survive? Not until 2030. China would make sure of that. Before that the world would have to suffer thru the Greater Depression.
Chinese understand capitalism: Those who have capital get to dictate the terms. Chinese would continue to accumulate capital as long as they are allowed to. The American economy is on life support and part of that is being funded by loans from China. Not counting the life support of debt the US economy has been in depression for more than 13 years. Most democratic govts are on life support. China would win the Economic WW III by soundly defeating America and India. Democratic dopes would get their due. Lot sooner than most imagine (dopes don't think; they hope, wish, imagine, etc.).

Jas

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http://baselinescenario.com/2010/11/19/who-gains-from-the-eurozone-fiasco-china/#more-8292

Who Gains From The Eurozone Fiasco? China

By Simon Johnson

Ireland will get a package of support from the EU and the IMF.  Will the money and the accompanying policy changes be enough to stabilize the situation in Ireland or more broadly around Europe?  Does it prevent Ireland from restructuring its debt – or move the Irish (and other parts of the European periphery) further in that direction?

And who gains from the delay and mismanagement we continue to see at the highest European levels?

This is complicated economic chess within Ireland, across Europe, and at the international level.  In my Bloomberg column this morning, I suggest we look several moves ahead, recognizing the underlying political dynamic:

There is a much more general or global phenomenon in which powerful people cooperate to build an economic model that provides growth based on a great deal of debt. When the crisis comes, those who control the state try to save their favorite oligarchs, but there aren't enough resources to go around

…..

Here is the present problem: It's not just the Irish elite that is under pressure and struggling to sort out who should be saved. It's also the European bankers who funded them.

If the Europeans continue to fight among themselves, regarding who bears what losses – and who has to face what kind of public accountability – which other countries gain on the global stage?

Who has the ready money available to recapitalize the International Monetary Fund, if needed?  And it will be needed if Spain comes under serious pressure.

Who understands the strategic concept that piles of "reserve currency" can give you great political leverage?  It is hard to find such thinking among today's generation of American politicians.

And who is already playing international economic chess at the highest level?

China.

For my full assessment, please follow this link: http://www.bloomberg.com/news/2010-11-19/ireland-crisis-might-give-china-break-it-seeks-simon-johnson.html