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Published On:30 August 2011
Posted by Indian Muslim Observer

Deepening European Economic Crisis

By Dr. Abdul Ruff


The ongoing terror wars in Islamic nations being waged illegally by the NATO terror syndicate led by the USA-UK terror twins have deadly impacted upon not only the climatic conditions with extra air pollutions, but also on the economies and finances of the western nations themselves.


The bitter experiences of the 1930s threaten to repeat themselves in a more monstrous manner. The public purse in Europe and elsewhere is being looted in order to save the banks and the assets of the wealthy, while education, health and old age care are being destroyed and the youth pushed onto the streets with no prospects.


Western powers have resorted to austerity measures to cut social expenditures. One farcical austerity measure follows the next, aggravating the recession, which in turn rips new holes in the public sector. The decline of the world economy is accompanied by growing national tensions, threatening the continued existence of the EU, and increasingly brutal imperialist wars, as in Afghanistan, Pakistan, Iraq and Libya.


Governments in Europe have refused to tax speculative profits, high incomes and wealth. Offenders of all sorts like the stock exchange gamblers and speculators who have driven entire national economies to the wall, without being in any way held accountable for their crimes. The markets, and particularly the financial markets, have demonstrated their destructive power. Speculators are driving governments and dictating policies that plunge society into ruin and destroy the livelihoods of broad layers of the population..


The economic conflict in Europe does not run between nations, but among various layers of society, between classes. Those western nations talking about democracy refuse to see that the financial institutions and large corporations are expropriated and put under democratic control.


In Europe, governments and parties are arguing over whether the insatiable appetite of the financial markets can be satisfied by the creation of so-called euro bonds, or whether the euro should be abandoned. The introduction of euro bonds would extend the brutal austerity measures, to which countries such as Greece, Ireland and Portugal have had to submit, throughout the rest of Europe. Many others are prepared to abandon the euro, break up the European Union and follow the path of national rivalries, conflicts and wars.


The unilateral USA emerged from the World War II as the dominant economic power. Today, the US is itself the focus of the crisis, and no country or alliance can assume its role as the anchor of the world capitalist economy. The demise of the USSR in 1991 was proclaimed as proof that socialism had failed and the unrestricted capitalist market had triumphed. The current financial crisis is even more fundamental than eighty years ago when Europe slid into fascism and war, and the American bourgeoisie responded with a program of social reforms, in the form of President Franklin Delano Roosevelt’s New Deal.


For the first time in history, western governments are being driven by financial developments which they are unable to influence, as crisis of the world’s stock exchanges and financial markets is increasingly spiraling out of control that might force the governments with further budget cuts. The panic on the stock markets shows that traders are expecting a deep recession, already heralded by stagnating growth and rising unemployment rates. European leaders Angela Merkel and Jewish Nicolas Sarkozy, the leaders of the fourth- and sixth-largest economies in the world, met at an emergency summit with the aim of calming the markets.


Economic life in capitalist nations is not planned according to the needs of society but according to the anarchy of the market and the profit interests of the owners of capital. The prerequisite for the defense of social and democratic rights is a socialist program but the western terrocracies spun socialist mode. Worst, the trade unions and social democratic parties continue to enjoy countless state privileges and are less serious about working people. They work in tandem with government to divide, paralyze and suppress all opposition from below.


The world's public debt crisis, simmering for months and market upheavals in the USA and Europe being witnessed almost put a seven-decade economic experiment to the premature end. As the debt ceiling in the U.S. Congress raised the prospect of a default by the world's biggest borrower, the crisis has threatened to engulf nearly everyone. Since massive doses of deficit spending constituted the only possible cure for the global economic collapse, even small countries such as Greece and Ireland have enacted plans to sharply cut their budget deficits.


But war in energy rich Islamic world for more assets is not the answer. The strategy of continuing the wars (and adding one in Libya) is that ending them would cause a rise in unemployment, a drop in spending and the loss of jobs in the arms sector industries.


Too much of energy and resource consumption is leading to a rise in energy and commodities prices. The world is now controlled by the arms traders, liquor-drug dealers, real-estate controllers, commodity traders, casino owners, bankers, insurance companies, irate members of the Saudi Royal Family, dictators, oil companies, media outlets and lords, hedge funds, pension funds.


As long as the special interest firms can buy the greedy politicians nothing will ever change and monetary policy will always be in favor of big business, in good times or bad. I believe the worst is yet to come in terms of a long recession and a continuing debt crisis worldwide.


America and its allies have been at war with Islam and Muslim nations on the pretext of 9/11/2001, when the country was attacked allegedly by a group of “radical extremists” but the recent developments show CIA is behind the attack. NATO chose to “retaliate” by going to war against an Islamizing country that was a seen as a threat even by hypocritical Arab nations: Afghanistan is a country that the then US President Bush Jr. disliked for political reasons. .


The war on terror that enabled bush Jr to get reelected to White House, ruin many Muslim nations, kill millions of Muslims, terrorize entire world, also has totally depleted the US treasury - to the point that the White House and Congress are now immersed in a titanic battle over a $4 trillion debt ceiling.


The Obama regime is engaged in finding answer as to how much money can be borrowed for the War on Terror. Unfortunately the decision was made to finance this war by debt instead of taxes. This decision is one of the prime reasons USA and Europe are in the current financial mess. The other prime reason is the decision that was made to eliminate regulation of Wall Street and corporations by the same administration, which allows corporate greed to run amok. Unfortunately USA did not learn any lessons from the last ten years as they are still fighting the “invisible”, fake enemies and those wars financed by debt and are still allowing Wall Street and corporate executives to enrich themselves.


The great debt experiment has left the Western world with a problem that has no easy solution. The outcome is hard to predict, but in the end it is likely to involve the reduction of both private and public debts to levels that the markets consider sustainable


If the West sneezes, the East catches cold and when western terrocracies are caught in economic and financial crises or facing other problems, that deadly affects eastern economies as well. West has several supporting agencies like G7, G8, G20, WB, IMF etc to cushion up the weakening economies. UNSC is being exploited by them to squeeze eastern economies. Western powers after draining Japan now depend too much on China for its resources to ward off economic and financial crunches.


Needles to remind Obama and his terror colleagues from Europe that they are responsible for serious climatic troubles as well as human annihilation in now occupied Muslim nations from Afghanistan to Libya and it is time is indeed fast running out for them to wind down all wars in Islamic world.


Save humanity, earth and climate!


[Dr. Abdul Ruff is Specialist on State Terrorism. He is Chancellor-Founder of Center for International Affairs (CIA). He is former university Teacher, Analyst in International Affairs and an Expert on Middle East. He can be contacted at abdulruff@gmail.com]

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Posted by Indian Muslim Observer on August 30, 2011. Filed under , , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

By Indian Muslim Observer on August 30, 2011. Filed under , , . Follow any responses to the RSS 2.0. Leave a response

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