When I had the honor of leading the True Finn Party to electoral victory in April, we made a solemn promise to oppose the so-called bailouts of euro-zone member states. These bailouts are patently bad for Europe, bad for Finland and bad for the countries that have been forced to accept them. Europe is suffering from the economic gangrene of insolvency—both public and private. And unless we amputate that which cannot be saved, we risk poisoning the whole body.
These guys have been reading Tickers.
Here’s the interesting part of this – they’re hitting virtually all of the correct points. You can’t solve a debt problem with more debt. Lowering interest rates doesn’t help if you continue to borrow, it only makes the problem worse.
Debt only becomes less toxic as you remove it from the system!
The money did not go to help indebted economies. It flowed through the European Central Bank and recipient states to the coffers of big banks and investment funds.
Yep. Just like here. We blew nearly $3 trillion in deficit spending over the last three years, which “coincidentally” just happens to be approximately the amount by which financial firm credit contracted.
Gee, where’d the money go? I’ll tell you where it didn’t go – it did not help the consumer. And despite Zillow and others claiming there has been $9 trillion in home value lost, mortgage debt has only declined by $530 billion. Where’s the rest?
Being hidden, that’s where.
That was not to be. As former Finance Minister Brian Lenihan recently revealed, Ireland was forced to take the money. The same happened to Portuguese Prime Minister José Sócrates, although he may be less forthcoming than Mr. Lenihan about admitting it.
Nobody was “forced.” They decided to blow the bankers. The choice did, and does, exist to tell them to go screw instead. If you had actual representative government that’s what would have happened. But you don’t. You have a captured government, where people vote in straw polls and then get serially financially raped by their alleged “representatives.”
Insolvent banks and financial institutions must be shut down, purging insolvency from the system. We must restore the market principle of freedom to fail.
Yep. I’ve been singing this song since 2007. It still applies today.
This is not just about economics. People feel betrayed. In Ireland, the incoming parties to the new government promised to hold senior bondholders responsible, but under pressure, they succumbed, leaving their voters with a sense of democratic disenfranchisement. The elites in Brussels have said that Finland must honor its commitments to its European partners, but Brussels is silent on whether national politicians should honor their commitments to their own voters. In a democracy, where we govern under the consent of the people, power is on loan.
My my, someone in government understands that in fact all government flows from the consent of the governed?
I like this guy. How is Finland’s immigration policy?