Nassim Taleb recently stated that is impossible for a democracy to face and solve problems like the current financial one. Politicians just can't. With their "Ultra Bright" smile they keep on repeating their mantra that - if you only would vote for them - everything will be all right. The problem is, they will have no problem to let the system fail as it is not in their interest to be a solve it. A better word for the current politicians would be a "promiser".
Now the current EU Commission President Jose Manuel Barosso - not a politician but a civil servant - joins many bloggers and a few economists, with an apocalyptic vision that democracies could disappear in Southern Europe. Reason for Barroso's utterances: debt that cannot be paid off. Barrosso also describes the many promises from the "promisers" who kept on saying: "Just borrow the money, phone Wall street for creative accounting, print the stuff, falsify the statistics, anything to keep the populus happy".
So apparently democracies only work when the sun is shining? What a shit system is that? We haven't reach the bottom yet, but we will when pension funds and financial institutions fall apart. Apparently our current capitalist system works only when the interest on capital invested by old investor is being paid off with capital received from the new investors, also called a "Ponzi" or "Pyramid" Scheme. To feed this system it needs constant bubbles to keep the machine running. But, when Central Banks are unable to blow new bubbles, new investors dry up and the system is falling apart!
We, people in the West, do have a "Social Contract" with the Power Elite, which says: "Whatever it takes, you keep the system going and growing and we do not complain or revolt". Is the Power Elite panicking because they are defaulting on their part of the Social Contract? It looks like it. If Barroso is right expect riots and blood on the street. Prepare to get out of the grid!
First Shot: Telegraph - UK: Italian economists slam austerity measures
Second Shot: Reuters: EU recession next year almost inevitable - Soros
Third Shot: Telegraph - UK": The Euro Mutiny Begins.
Nightmare vision for Europe as EU chief warns 'democracy could disappear' in Greece, Spain and PortugalDaily Mail
Democracy could ‘collapse’ in Greece, Spain and Portugal unless urgent action is taken to tackle the debt crisis, the head of the European Commission has warned.
In an extraordinary briefing to trade union chiefs last week, Commission President Jose Manuel Barroso set out an ‘apocalyptic’ vision in which crisis-hit countries in southern Europe could fall victim to military coups or popular uprisings as interest rates soar and public services collapse because their governments run out of money.
The stark warning came as it emerged that EU chiefs have begun work on an emergency bailout package for Spain which is likely to run into hundreds of billions of
A £650 billion bailout for Greece has already been agreed.
John Monks, former head of the TUC, said he had been ‘shocked’ by the severity of the warning from Mr Barroso, who is a former prime minister of Portugal.
Mr Monks, now head of the European TUC, said: ‘I had a discussion with Barroso last Friday about what can be done for Greece, Spain, Portugal and the rest and his message was blunt: “Look, if they do not carry out these austerity packages, these countries could virtually disappear in the way that we know them as democracies. They've got no choice, this is it.”He's very, very worried. He shocked us with an apocalyptic vision of democracies in Europe collapsing because of the state of indebtedness.’
Greece, Spain and Portugal, which only became democracies in the 1970s, are all facing dire problems with their public finances. All three countries have a history of military coups.
Greece has been rocked by a series of national strikes and riots this year following the announcement of swingeing cuts to public spending designed to curb Britain’s deficit.
Spain and Portugal have also announced austerity measures in recent weeks amid growing signs that the international markets are increasingly worried they could default on their debts.