News & Analysis
EU Unraveling – Now It's Holland's Turn
The Dutch government's failure to reach an agreement in talks to achieve tough spending cuts could see ratings agencies cut the country's prized AAA-rating and nervous investors push up the country's borrowing costs, and it will also have wider implications for the euro zone as a whole, analysts said on Monday. Prime Minister Mark Rutte will meet the Dutch queen on Monday afternoon to tender the government's resignation, Dutch broadcaster RTL reported. – CNBC
Dominant Social Theme: This is only to be expected. Wars are not won in a day, and neither will be the battle to save the EU.
Free-Market Analysis: Like some kind of rolling contagion, the insolvency affecting the Southern PIGS is spreading northward toward the supposedly solvent part of the EU.
Now it's Holland's turn. We learn that austerity hasn't been a soft sell in Holland any more than it has been in Greece, Portugal, Spain or Italy. Or Ireland, for that matter.
Of course, we figure the elites orchestrated first the downfall of Europe, from what we can tell, and then the following austerity. But maybe it is not working out as planned.
True, there are elite apparatchiks running Italy and Greece now, but the public furor hasn't died down and in the case of Greece and Spain seems to be growing stronger.
We figure this is partially because of what we call the Internet Reformation. The STATED plan (the Euro-crats have admitted as much) is that a Euro-crisis would eventually bring greater union to the unruly empire-in-progress.
The Eurozone is extremely important to the one-world government that is apparently being built brick-by-brick by the dynastic families of Europe and America. But the Internet itself has evidently and obviously exposed these plans.
What was intended to have been built in secret is being exposed with regularity. And the economic woes that should have provided an implacable impetus for a closer union may be working against the very plans that created the rolling Euro-depression in the first place. Here's some more from the article:
Dutch Finance Minister Jan-Kees de Jager sought to reassure investors on Monday, telling CNBC in The Hague that the Netherlands had always displayed budget discipline and would continue to do so. "The perception of financial markets is always important...and that's why I also have the message for financial markets that for decades the Netherlands have shown a solid fiscal budgetary policy and this will not change. In any government we have seen in the past we have seen solid policy and this will remain in the future," de Jager said.
The talks between the Dutch multi-party coalition government and the right-wing "Freedom Party," or PVV, which supports it in parliament, dragged on for seven weeks. On Saturday, Prime Minister Mark Rutte announced the talks had collapsed and blamed PVV leader Geert Wilders for the failed negotiations ...
"With Saturday's decision, it looks likely that new elections will be announced shortly," Carsten Brzeski, senior economist at ING, said on Monday. Alastair Newton, political analyst at Nomura, said there may still be a possibility of an agreement; but, if so, "it looks to be a slim one at best given that PVV leader Geert Wilders has already openly called for elections."
Holland was committed to reducing its budget to the three percent limit demanded by the larger EU. But the "political will" apparently has vanished – and now the government is about to as well.
With a budget gap of closer to five percent than three, political parties in the Netherlands are already proclaiming that the target is unapproachable and must be formally changed.
The pols in Holland are not alone. In France, presidential candidate Francois Hollande intends to roll back budget-cutting measures as well, if he wins. Meanwhile, Greece is in flames, Spain simmers and the public temper is none-too-good in Portugal, Italy or even Ireland.
The notion being floated today within certain analyses via the mainstream media is that a formal agreement to lift budget deficits is the only way out for the EU. Maybe the target shall be closer to four or five percent than three.
But it is not so easy, is it? The European Central Bank will implicitly accept a decision to print more money were budget deficit reductions to be eased, but that would not sit well with the country that matters most, Germany.
The German public has its own resentments. It fears, in aggregate, being taxed either directly or via price inflation for the rest of Europe. These fears have already led to one constitutional crisis and could doubtless lead to a second one.
Conclusion: It is not so easy, therefore, simply to proclaim that the ECB will have to print more because Europe as a whole is not accepting "austerity." The ramifications, in fact, are enormous – and may have a significant effect on the euro, if it survives.
Posted by Danny B on 04/25/12 12:03 AM
This is from The Daily reckoning;
"In Spain, the real unemployment rate is nearly 25% - close to Great Depression levels. Of the country's 10 biggest companies, 8 are now priced below liquidation value.
It's 'suicide by austerity,' says Paul Krugman."
Well, that pretty much tells you what to expect every time austerity strikes.
Here are some numbers from John Birch.
"The high school dropout rate continues to rise. Those students that do graduate and go to college require an increasing amount of remedial assistance. In addition, recent polls show 52 percent of college entrants are liberal and 48 percent conservative. At graduation, 88 percent are liberal and 12 percent conservative."
88% liberals??? Who is going top pay the taxes?
Posted by runderwo on 04/23/12 09:04 PM
Population control/healthcare scarcity meme shows up in unfamiliar territory.
How Psychedelic Drugs Can Help Patients Face Death
Click to view link
'We need careful and controlled scientific studies showing the efficacy of these drugs so funding can continue.' Broader awareness of these sorts of end-of-life psychedelic studies could be good for everyone, the researchers say. 'If insurance companies knew about our outcomes, they might get a lot more interested in what we're doing here.' Griffiths continued: 'When you make people less afraid to die, then they're less likely to cling to life at a huge cost to society. After having such a transcendent experience, individuals with terminal illness often show a markedly reduced fear of dying and no longer feel the need to aggressively pursue every last medical intervention available. Instead they become more interested in the quality of their remaining life as well as the quality of their death.'
In a future still far off, Grob imagines retreat centers where the dying could have psilocybin administered to them by a staff trained for the task.
Posted by runderwo on 04/23/12 08:58 PM
Czechs Protest New Austerity Measures in Prague
Click to view link
Up to 90,000 Czechs, angered by austerity and corruption, marched in some of the biggest demonstrations in their country since the fall of Communism to protest the austerity measures and rampant corruption that have brought the center-right government to the brink of collapse.
Posted by Jones on 04/23/12 06:59 PM
" It is not so easy, therefore, simply to proclaim that the ECB will have to print more because Europe as a whole is not accepting "austerity." The ramifications, in fact, are enormous - and may have a significant effect on the euro, if it survives. "
I think that the Sun will rise tomorrow morning... the rest is guesswork.
Posted by johnblenkins on 04/23/12 05:37 PM
The Moneylenders, Have the tribes of Europe,
all political hues, dancing on the hot head, of the debt pin.
" More austerity, less austerity" the elite's enablers cry.
The simple fact the debt is fiat false of no value in real terms.
Foisted on the 99% by the 1% at the point of a totalitarian gun.
Clearly makes all demands void by way of fraud et al.
How can a voting poulace be SO STUPID???
To tolorate these political rats of nearly all colours.
(Ron Paul not included.)
Until we collectively turn wrong to right.
We are there to be plucked.
Posted by Trimergo on 04/23/12 04:58 PM
The problem in this case is that the Dutch government pressed hard to get the 3% rule passed. They did this to show voters they agreed with Geert Wilders' Freedom Party's view of the necessity of strict monetary policy within the EU. This policy is backfiring now.
Posted by Bobby7 on 04/23/12 04:30 PM
How To Deal With Dutch People
(1) Many foreigners call everything Dutch…well…'Dutch'. Don't! The word Dutch reminds Dutch people of the word Duits which is used for Germans and other things he dislikes. A Dutch person is a Hollander or a Nederlander.
(2) As a foreigner, don't ever try to speak Dutch. Not only will you get an enormous headache but the Hollanders will not understand what you mean. Foreigners are supposed to speak English or Gibberish. In the latter case they will be an easy target for pickpockets since they will not be able to talk to the police.
(3) Don't ever try to eat 'drop'. (Dutch Licorice) Drop is a sort of candy that can only be eaten by Hollanders. It can be recognized by the colour: black. The taste is a blend between earwax and paint (black). Hollanders absolutely adore the stuff and eat many kilo's of it. There is a nationwide conspiracy to look at the faces of foreigners that were made to believe the stuff is actually edible.
(4) Don't buy wooden shoes. They will look completely ridiculous. Which is the reason they will try to sell them to you. A Hollander himself would not want to be found dead wearing them.(Preferably a Hollander doesn't want to be found dead at all).
(5) Don't make holes in the dikes. Such behaviour is commonly disapproved and in extreme cases it can get you stoned by wooden shoes. But feel free to put your finger in the dike if you feel the urge. It will at least get you a few laughs from the natives.
(6) A Hollander is always right and he knows it. With this in mind it is very easy to cope with most Hollanders. If you ever get in an argument with a Hollander, tell him he was absolutely right and that you now realize how wrong you were. Now he will go crazy: Since you're a foreigner, you can never be right. You agree with him, therefore he couldn't be right. Impossible. He's a Hollander. But…then…he…Now is the time to take a step back and observe how the Hollander will try to strangle himself with a tulip.
(7) Mills are inevitable.
(8) It is not necessary to fake interest for tulips, mills, wooden shoes or cheese. Every Hollander knows you came for the soft drugs and the Amsterdam red-light district. Both are widely spread and easy to find. Just ask any Hollander over age 6 or a French tourist. (See points 19 and 20)
(9) Avoid soccer fans at all times. Soccer in Holland is just an excuse to crush the skulls of practically everybody else, including yours. This mainly takes place when the game is lost…or tied…or won. It is extremely foolish to stand next to a cop during these festivities (see point 10) Also remember never to mention the 1974 cup finals near a Hollander. He will instantly pull you into a long-lasting litany about how good 'Orange' played then and how good…blablablabla…
(10)Cops in Holland are mainly used to throw stuff at. If you get the uncontrollable desire to hit someone, take on a cop. No Hollander will pay any attention if you hit a cop, put a knife in his cranium or firmly kick him in the butt. Cops represent authority and not one Hollander recognizes a higher authority then himself. You will notice the fact that most cops are actually foreigners that were lured into this job.
(11)Hollanders do not like spending money. They would rather cut of an ear. A Hollander will be your friend for life if you give him something for free. This might explain the great success of McDonalds in Holland. The story that copper wire is an invention of two Hollanders fighting over a found cent is absolutely true.
(12)Holland is small. It is sometimes rumoured that Holland is so small they take it inside when it's raining. This is not true because it rains 365 days a year. This also explains the wooden shoes: they float. Yes…Holland is small and Hollanders are very proud of it. They will use any opportunity to say that Holland accomplished such great things for such a small country. A fitting answer would be to refer to it's colonial past. Which brings us to point 13.
(13)If you want to insult a Hollander - and sooner or later you will want to - tell him you don't think he's a pacifist. Now start running for your life. He will not stop trying to prove he's the most peace-loving person in the world until your intestines are on the street. As mentioned earlier, mentioning the so-called colonial past in Suriname or Indonesia, will instantly reduce the Hollander to a sniffling child, begging for forgiveness.
(14)Hollanders are supposed to be tolerant. Nonsense. They just make too much money selling drugs and Malaysian women, to miss the opportunity to make so much profit.
(15)The most important way of public transportation in Holland is the bicycle. Feel free to take any bike of which you can pick the lock. Just don't expect your own bike to be in the same spot where you parked it 3 minutes earlier. Hunting season for bikes is open 365 days a year. Good luck!
(16)At almost every bread meal in Holland you will find a mean looking big knife with a sharp slide in it. It is called a 'kaasschaaf' and is used to cut very thin slices of cheese (Yes, it's a Dutch invention). Never cut cheese with a regular knife, you will make yourself completely ridiculous. Another typical eating tool is the so-called bottlescraper. Beware, don't use it for that annoying itch on your back. It's designed to scrape the last bits of yoghurt or mayonnaise out of the bottle. A Hollander will use every millimeter of the product he bought. He paid for it, he'll eat it, no matter what.
(17)At the time this was written, the Dutch economy was doing pretty good. Hollanders maintain the idea that this is the result of intensive negotiations between different parties like unions, employers and politicians. They even have a name for it: the poldermodel. One likes to convince foreigners this poldermodel is the key to a successful economy and if those same foreigners would be smart enough to follow their example, their economy would be flourishing as well. This is a load of crap. Hollanders just like to talk, talk, talk. By calling all this chattering negotiating they give themselves the impression they're doing something useful. Talk is never cheap in Holland.
(18)Hollanders drown fried patato-sticks (Chips) in litres of mayonnaise and put it in a pointed paper bag. This is called : Een patatje met. One such bag is able to keep you alive for an unlimited period of time. It is only uncertain if this is a life worth living. But there have been sightings of tourists actually enjoying a patatje met.
(19)Holland has a unique service for -mainly- France tourist. At the moment they pass the border, they are enthusiastically welcomed by youngsters in fast cars. These youngsters have the explicit wish to show these tourists the way to the many interesting tourist-attractions Holland has to offer. Strangly, they always end up in a coffee-shop or drug house though. (see point 20) Weird people, the French.
(20)There is a fast and foolproof way of embarrassing yourself in Holland.Enter a coffeeshop and ask for a cappuccino with a biscuit. Coffeeshops -remember this- do not sell coffee. They do however have a large variety of stimulating products at reasonable prices. For unknown reasons, coffeeshops are very popular amongst young French tourists.
(21)A 'Fries' is a sort of spare-Hollander that lives in the north in a province all for themselves. They love frozen water, Beerenburg (a form of euthanasia with alcohol) and endlessly pointing out that other Hollanders are not Fries. The rest of Holland looks at this behaviour the same way parents will look at an obstinate child.
Posted by SSMcDonald on 04/23/12 03:56 PM
If the liberal socialist wins the election in France, PIGS will change to PFIGS. How can a voting populace be SO STUPID????
Posted by victorbarney on 04/23/12 03:40 PM
Mark my word, we are about to enter into a UN(also functions under a MARXIST, "ANTI-CHRIST" CHARTER EVEN DENYING A SPIRITUAL WORLD WHICH IS THE "ONLY" SIN THAT CAN NEVER EVER BE FORGIVEN) and NOW, THANKYOU TO "WOMEN ALONE," WE HAVE PUT THE "RIGHT" ANTI-CHRIST(MARXIST) OVER U.S. AT THE RIGHT TIME IN HISTORY! Yes, WOMEN BEGAN MAN'S AGE AND NOW ARE ENDING IT JUST LIKE THEY BEGAN IT(i.e., INTELLECTUALIZING!)" Watch, especially starting this coming SEPTEMBER 16, 2012 when the two-witnesses of Revelation, chapter 11 first appear! As written YHWH does NOTHING with FIRST revealing it to his people. Just saying...
Posted by nithsdale on 04/23/12 03:01 PM
The Dutch politicians are following the lead of their "cousins" in Belgium, who tendered their tto the King there but were very honest when they did so. They said that Belgium could not be ruled since it was now divided in three parts... .the Dutch, the Flemish and the Muslims
Since then Belgium is without a political leader, just following "suggestions" from the EU Parliament that sits enthroned in Brussels.
Your conclusion that somehow the crisis in Europe works against the EU is far off the mark. The crisis allows the EU to seize control of all agencies "governing" Europe, including Great Britain et al!
Next move is World Government and Washington will fall like all other capitals. It is too late to stop the juggernaut.
Posted by alexsemen on 04/23/12 02:16 PM
Danny you are dreaming !!??
Posted by alexsemen on 04/23/12 02:15 PM
Yes Dave , it is the only solution possible : Iceland model.The only logical, mkoral, and economical feasable mesure.
Just a memento: The Netherlands has requested for at least 3-4 years before crisis to Germany to follow the 3% discipline . Every week or twon the Netherlans Finance minister 'was in Germany or France to impose the respectation and fully implements of all decision about introduction of the Euro.
What did creative Sarkozy France and the stupid teutonic Germans !?
Not any problem we must and will be coussy to tresspas the 3% . It is beter so. They did it !
And now the German-France prostitution let all Europe to pay for they blatant stupidity !
Also Germany must provide the Goldman sachs and onther Robbarons with at least 3-4 trillions in th enext years.
Who will pay !!?? The Europe population of course. !
This is market economy and free -market !!?? This is the Capitalism !!??
Free plundering !
Posted by Dave on 04/23/12 12:12 PM
Part of the problem that the MSM seems to overlook is the flight of capital from the stressed economies like Spain, Greece ect. People who have any savings are pulling their money out of the local banks and depositing it into the German banks. This is screwing up the reserve ratios of their home banking system to the benifit of the Germans.
A massive default is the best course of action, like Iceland demonstrated. Next step is to get off the fiat money standard and finaly scale back the reserve ratio banks are allowed to something like 2 to 1.
Posted by Danny B on 04/23/12 11:32 AM
"The German central bank is campaigning against 'indefinite expansion' of the money supply and seeking to limit losses it would face if the euro splintered"
Click to view link
Ahh, so Germany would be saddled with the Euro debt. Everybody wants to hitch their government cart onto German productivity.