For
nearly ten years now, the key decision centers inside eurozone are
trying to hide the huge problems, pretending that the crisis is
behind, in order to maintain a completely failed economic model,
which also reveals, day by day, its authoritarian nature and despise
against real Democracy. The totally problematic structure of eurozone
makes things even worse.
In
Italy, we had another political
crisis and a constitutional coup because the new
majority and potential coalition government is not likeable to the
Brussels/Berlin axis.
In
Greece, things are not looking better. The country is about to exit
the IMF-type neoliberal program imposed by the Troika (ECB, European
Commission, IMF), in August. Yet, the economy is still in very bad
shape, drowning in stagnation, with unprecedented unemployment,
nearly zero growth and a national debt at 180% of GDP, which is
actually much higher than Greece's debt in 2010 (120% of GDP) when
crisis hit the country!
In fact,
the eurozone institutions and most of the European officials pretend
that things are getting better for Greece, stating that the country
has made progress, and one of the main reasons is because,
apparently, they want to hide their big failure. It seems that no one
really knows what will happen after Greece's exit from the program
because it is very doubtful that the so-called 'markets' will start
lending the country with a sensible interest rate. Our guess is that
the European mechanisms will silently continue lending money to the
country, under heavy surveillance (like the rest of the eurozone
periphery), selling to the media the common fairy tale of 'recovery'.
It's a
similar situation that happens right now concerning the Italian
banking system and the mega banking monster called Deutsche Bank, as
they are being kept on life support. A practice which, however, will
not be able to hold the system forever.
Indeed,
latest signs from the systemically significant German monster reveal
an ugly picture (one more time), which could create another financial
earthquake that could hit the eurozone foundations to the point of
no-return.
As
Sharmini Peries of the Real
News reports, the financial press has nervously
been reporting a looming crisis at Deutsche Bank, and of late another
troubling sign has surfaced when the CEO of the bank announced that
it will attempt to recover its profits by laying off over 9000
workers and closing about 10 percent of its branches, and cutting
most of its investment banking activity.
According
to Paul Steinhardt, director of Makroskop, the Institute for the
Study of Macroeconomic Policy, the problem is that Deutsche Bank is
overexposed to the investment banking sector, legacy assets, and
obviously these assets still lose money. What
one can say, is that Deutsche Bank has huge problems. If we have more
problems in Europe, we might well have more problems pretty soon
depending on what happens in Italy. Then, actually, you will see even
more problems with Deutsche Bank.
This is
a picture of multiple systemic threats coming from different sides.
Since the system is so unstable and interconnected, especially
regarding different factors inside eurozone, these threats may soon
come to the point of increasingly effecting each other, creating
accelerating instability and, quite soon, an out-of-control
situation.
Yet,
even these strong vibrations are not enough to alarm the deaf ears of
the eurocrats. They insist on their failed model with an almost
religious faith. And some of them, not only do nothing to change it,
but they behave as if they want to dynamite the foundations of their
beloved union.
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