Martin Armstrong: A Total Failure of Socialism

A total failure of socialism

With one hand the EU Empty Vassals are lavishing largesse to make Ukraine dysfunctional.

eu-ukraine

Overall, the EU spent €851,989,423 on Ukraine during 2007-2014.

However, this “Known total amount” excludes items which are deemed sensitive for confidentiality or security reasons.

This probably explains why there is such a large gap between their total budget for Ukraine [€1,291,065,839] and their “Known total amount” [€851,989,423].

https://malagabay.wordpress.com/2015/11/01/buying-democracy-eu-style/

In April the Dutch people will vote on the European-Ukraine association treaty. In an interview with the NRC, a Dutch leading newspaper, Juncker warned the Dutch voters a “NO” will lead to a big continental crisis. “Russia and anti European movements will profit from a Dutch No, the Dutch has to vote yes for reasons not related to the treaty, the Dutch should act like an European strategist” according to Mr Juncker.

Juncker: “Dutch ‘NO’ Vote Will Lead To A Big Continental Crisis”
Submitted by Taco Denkers of Gefira
ZeroHedge.com – 10 Jan 2016
http://www.zerohedge.com/news/2016-01-10/juncker-dutch-no-vote-will-lead-big-continental-crisis

With the other the EU Empty Vassals are playing on their lyres as the periphery burns.

Two weeks ago, The Bank of Portugal shocked markets by bailing in senior Novo Banco bondholders.

Novo Banco was the “good” bank forged from the ashes of Banco Espirito Santo which had to be bailed out by the state in August of 2014.

The idea was to sell Novo Banco to pay for the cost of the bailout, but the auction process eventually floundered amid turmoil in Chinese markets (at least two of the potential bidders were Chinese) and uncertainty about whether this “good” bank would in fact need more capital given the elevated level of NPLs already on its books.

In November, the ECB told Novo it would indeed need to raise some €1.4 billion in fresh capital which the bank initially said would come from asset sales.

A little over a month later, Portugal’s central bank essentially just gave up. On December 29, the bank announced it was transferring €2 billion in NB senior notes back to Banco Espirito Santo which, like a ghost skyscraper in China, is set for demolition.

In other words, Novo Banco plugged the €1.4 billion hole by essentially declaring €2 billion in bonds null and void.

Creditors Accuse Portugal Of “Unfair, Populist Short-Cut” In €2 Billion Bank Bail-In
ZeroHedge.com – Tyler Durden – 14 Jan 2016
http://www.zerohedge.com/news/2016-01-14/creditors-accuse-portugal-unfair-populist-short-cut-%E2%82%AC2-billion-bank-bail

Mark next week in your calendar as that’s when the European authorities (read: creditors) will start reviewing Greece’s progress with regards to the reforms it had to push through in order to receive another bail-out package last summer.

This will be the first review since the bailout, and as Greece was extremely reluctant to push the reforms in the pension system of the country, as its lenders wanted the country to keep the average Greek employed until a higher age. Greece has submitted its proposals, but the main question (and fear) is that these plans won’t go as far as Europe would like them to.

This means Greece and the Eurozone leaders could be gearing up for another yes-no game and a prolonged period of ‘negotiations’ which could once again distort the Eurozone in yet another deep crisis. Yes, Greece did receive a first tranche of cash in the summer of last year, but it’s still spending quite a bit of cash as the country for instance has to cough up an interest bill of 1.4B EUR next month.

Another Year, Another Greek Tragedy… Starting Next Week!
Submitted by Secular Investor
ZeroHedge.com 10 Jan 2016
http://www.zerohedge.com/news/2016-01-10/another-year-another-greek-tragedy-starting-next-week

This leads Martin Armstrong to observe Europe is experiencing the “total failure of socialism”.

Portugal is starting to bail-in banks.

The fascinating aspect that nobody seems to see is that this is a total failure of socialism.

We have now gone beyond TOO BIG TO FAIL to TOO BIG TO BAILOUT.

Thus, all the promises from socialism collapsing from Social Security, to pensions and insuring banks.

This is BIG BANG — the total collapse of SOCIALISM as the result of politicians who are incapable of, not just forecasting the economy, but managing it.

They squander the money, and when the machine is empty they simply rob us blind to fill it up again.

Let The Bail-Ins Begin – Martin Armstrong – 16 January 2016
http://www.armstrongeconomics.com/archives/41912

Martin Armstrong also observes that Europe [once again] has a surfeit of dictators.

In Europe, not a single head of the Troika has EVER stood for election!
Unelected Troika
The people dictating the lives and direction of Europe by forcing the euro down the throats of everyone NEVER present themselves for election.

The European population has absolutely no chance to say these people are wrong or decide to vote them out.

Let The Bail-Ins Begin – Martin Armstrong – 16 January 2016
http://www.armstrongeconomics.com/archives/41912

Martin Armstrong suggests there is only one option.

There is no democratic process and that is what, historically, leaves only one option — REVOLUTION.

Let The Bail-Ins Begin – Martin Armstrong – 16 January 2016
http://www.armstrongeconomics.com/archives/41912

I would suggest the EU Empty Vassals have plenty of other policy options straight out of the US Play Book:

more confiscations – more control – more conventional warfare – more deaths – more disease – more disintegration – more dysfunction – more enemies – more laws – more mind medication – more police – more poverty – more propaganda – more prisoners – more re-education – more sectarian strife – more slavery – more stone age – more soldiers – more serfdom – more taxes – more television – more totalitarianism…

And finally [when all else fails] there is always the nuclear wasteland option because governments grudge giving-way gracefully.

Unfortunately, as the US Oligarchs look like they are gearing up to play hard ball with Russia [once again] then the final solution may simply arrive out of the blue as Europe [once again] gets caught in the middle.

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