well, the present problem of EU. Or the problem of capitalism when it comes
to the point of a economic depression.
We need to understand, or to identify the cause of the ascent and fall of
Wall Street's stocks. Why middle class people was investing in stocks?
Why after the crash of Wall Street it looked like we would had landed on
the moon just crashing?
So, the famous "free market" was not really solving any problem. The system
had crashed. Why the market crashed? Because of the industrialization. The industrial items were sort of costly and the costumers were middle class of
some ranking. Once they all had bought some industrial good, they get
indebted with the banks or just do not want to buy more cars for they do not
needed. When the customers of industrial goods get scarce, we start to preach
them to borrow money to buy industrial goods. The banks need to loose the
requirements to lend the money. But it is a question of time, that most people
with capacity to buy industrial goods get ruined.
I remember some comments complaining the all nations become protective of their
own markets and were not buying. Thus crisis was not that people got ruined,
or lost their capacity to buy, but it was interpreted as other nations getting
closed and protective of their own markets.
But the fact was that all middle classes were ruined, both in the US and in
Europe. Then, apparently the crisis was mainly the heavy industry that had
stopped selling. Why? Lack of costumers.
Her we invented the European Community, later called EU. By extending the
number of nations the industrial nations thought "this is not going to stop",
or this conglomerate of nations is not going to get ruined.
But, first of all, it was needed the new nations would pull down the tariffs
on imports. For the poor nations of Europe had some tariffs to retard the
amount of imports and debts. I remember when Spain entered into the EU. We ignored what really meant. They made not any debates in TV presenting the
pros and cons to enter. I recalled someone asked, what it means "the freedom
movement of capitals?" Nobody knew. I did not know the meaning of this.
One ventured, it means if Germany, by example want to put a factory in Spain
we cannot tell no. OK, all thought it was a good thing to have a German
factory in Spain.
Then, the common currency. What it meant? It meant you could not devalue
your currency to make more expansive to buy imports. Then, the poor nations
had not any way to control the imports, for you could not impose tariffs and
you could not devalue your currency. Well, when our local banks would had not
more money, they could not lend money for people to buy foreign cars or TVs
he it comes the freedom of movement of capitals. The exporter nations could
lend the banks of poor nation money enough to buy cars and other industrial goods.
then, when the banks cannot return the money at time, the nation had to assume the debt of those banks. Then some poor nations of Europe have a debt of 130
or 150% of the GNP.
Then, we are now before a sort of economic depression. Young people have
little perspectives of work. It is young people that start to listen to
"innovative ideas" that promise them solutions.
Nevertheless the present lack of jobs is not a real problem. The real problem
would be the exhaustion of fossil fuels. This would guarantee a real
Armageddon for us all. Now, the crisis of the middle east is coming to us
with all the power of their excess population. I vaguely saw the civil war
of Syria, but I did not know that they had exhausted their oil already. But
not only the exhausted the oil, they had problems with their harvest of grain
and a lot of people had migrated from Iraq to Syria, increasing the problems.
There exist to projects for a gas pipeline. One sponsored by Saudi Arabia and
US is passing by Syria to Turkey. The other pipeline would go from Iran to a
port in Syria and is sponsored by Russia.
Then, you see there are many reasons for a civil war in Syria. Excess
population, scarcity of food, exhaustion of oil, immigrants from Iraq, etc.
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