Eurozone Collapse: Greece grinds to halt amid mass austerity strike

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A far-reaching national strike against new outrageous austerity measures has left Greece totally paralyzed. Thousands are marching in the streets of Athens in protest against measures that unions say will sink the country’s already-flagging economy.

The 48-hour strikes have brought most of the country to a standstill, shutting down public transport, schools and air traffic control. Hospitals are also working with skeleton crews. Broadcasts and publications were halted until further notice as journalists joined the nationwide strike.

“About 10,000 people on Syntagma square right now. More arriving. All peaceful,” RT correspondent Peter Oliver wrote on Twitter. Police cordoned off areas around government buildings in Athens in preparation for possible violence. Extra officers were also called for crowd control during the demonstrations.

The protests are expected to continue throughout the week, culminating on Wednesday to coincide with a parliamentary vote on the new austerity measures. The new round of budget cuts the Greek parliament will vote on Wednesday has enraged a population already exhausted by economic belt-tightening. Athens is currently debating measures that aim to allay bankruptcy through some $17 billion in cuts by 2016.

Demonstrators shout slogans during a protest against new government austerity bill aimed at securing international aid needed to prevent the debt-crippled nation from defaulting, in Thessaloniki on November 6, 2012. (AFP Photo/Sakis Mitrolidis) 

Image from Twitter/@AZakharyan_RT

The Greek government remains divided over the issue, with the Democratic Left Party that comprises one-third of the governing coalition refusing to back the measures. The second-largest member of the union government, Pasok, has also seen dissension in its ranks, with several MPs refusing to back the package.
The measures stipulate a two-year increase in the Greek retirement age to 67, and several tax hikes. The new package also includes provisions making it easier to fire civil servants, which has provoked the ire of public workers amid a current unemployment rate of over 25 percent.

The austerity package is required for Greece to qualify for a bailout loan from the ‘Troika’ – the European Commission, the European Central Bank and the International Monetary Fund. Previous austerity measures slowed Greece’s economy, shrinking its economy by one-fifth since the financial downturn began in 2007. The outlook for 2013 is bleaker still, with the country’s debt at 189 percent of GDP and further austerity looking increasingly likely.

The Greek capital has seen numerous protests over the past months, with Athenians rallying against austerity they criticize as bringing the country perilously close to collapse. Anti-austerity demonstrations in Greece have frequently turned violent, leading to clashes between police and disgruntled youths.

Protesters from the communist-affiliated trade union PAME march outside the parliament during a rally in central Athens November 6, 2012. (Reuters/John Kolesidis)

(RT)

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Swiss Army Preparing for Violent Unrest Across Europe

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One of the world’s richest nations openly expressed concerns over the possible outcome of Europe’s continuing financial troubles, and is currently conducting army exercises against the possibility of riots along its borders.

In September, the Swiss military conducted exercises dubbed ‘Stabilo Due,’ with scenarios involving violent instability across the EU.

Switzerland has maintained an avowedly neutral stance for decades, and refused to join the eurozone when presented with the opportunity.

Bern’s biggest fear is likely the disorganization of neighboring nations’ armies that would follow general instability; the eurozone crisis and the severe austerity measures in the EU are forcing member-states to significantly slash their military budgets. If protest continues to spread across Europe, police and armed forces may find themselves ill-equipped to manage the unrest.

“I will not rule out that we will need the army in the coming years,” Swiss Defense Minister Ueli Maurer said last Sunday.

The Swiss Defense Ministry has pressed ahead to modernize the country’s army despite political opposition. With its multibillion-Franc military budget and an army of around 200,000 soldiers, the country also plans to purchase new ‘Saab Gripen’ jet fighters.

“Minister Maurer, accompanied by whispers from the top uniformed leadership in Switzerland, is trying to raise awareness that Europe’s massive fiscal-cum-political crisis could get very unpleasant,” John R. Schindler, a professor of national security affairs at the US Naval War College wrote in an article for the XX Committee website.

The Chief of the Swiss Armed Forces, Lieutenant General André Blattmann, likewise revealed plans to deploy an additional four battalions of military police (1,600 soldiers) to protect strategic points across the country. Blattmann is expected to present the plan in December.

Professor Schindler predicts that, “if the next Anders Brievik were to target Muslims, not fellow Europeans, things could get unimaginably ugly very quickly,” which could trigger widespread Muslim uprisings in Europe.

Switzerland, however, stands in stark opposition to the multicultural policies and thinking now common in other European nations. In 2009, Switzerland passed a national referendum banning the construction of Islamic minarets.

And while the global economic crisis has forced several European nations to cut military expenditures, Switzerland has maintained relatively consistent levels of defense spending.

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Greece to Run Out of Money by November

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Greece will run out of money as early as the end of November, if it doesn’t receive the scheduled bailout plan payment, according to the PM. Budget cuts - a precondition for bailout – are starting to severely hurt the economy. The officials from the European Commission, International Monetary Fund and European Central Bank- the so-called “troika” – are currently in Greece to check the country's progress in fulfilling the terms for receiving the aid. If their report doesn't pave the way for the payment of the next €31bln ($40bln) tranche of the country's bailout, Greece could be forced to default on its debts and perhaps leave the euro.

Prime Minister Antonis Samaras said he is confident the money would arrive on time, but in an interview with the German daily Handelsblatt published Friday warned that it is “very difficult'” to make the further cuts to pensions and wages the country's debt inspectors are seeking. “The troika is demanding above all further cuts to pensions and wages. That is very difficult, because we are already bleeding,” he said. “The existing cuts already go to the bone. We are at the limit of what we can expect of our population.” Greece has relied on bailouts from increasingly impatient international creditors since May 2010. In return, it imposed a punishing austerity program, repeatedly slashing incomes, hiking taxes and raising the retirement age.

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EU-IMF Rescue Program Destroying Greece: Greek Union

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Greece’s leading private sector union says international auditors monitoring Greece's compliance with its EU-IMF rescue package would have failed their own evaluation.

"Their program has destroyed us, pushing the Greek economy into recession," Yiannis Panagopoulos, head of the GSEE, an umbrella union with some 700,000 members, said on Friday.

He made the remarks in Athens after meeting with the EU-IMF mission.

Panagopoulos called the auditors "charlatans," adding, “If (the auditors) were civil servants and had to be evaluated, it is certain that they would have been fired."

The auditors are inspecting Greece's finances, and urging the government to fulfill its promises to evaluate the civil service and cut 150,000 state jobs by 2015.

Athens is obligated to make spending cuts of 11.6 billion euros ($14.1 billion) over the next two years in order to keep getting loans.

The money is supposed to be saved by making cuts in pensions, health support and other benefits.

"We told them that if the measures reported in the newspapers are carried out, recession in 2013 will be over 5.5 percent and unemployment could approach 28 percent," Panagopoulos noted.

GSEE has vowed to present a "dynamic" response against the cuts.

Greece has been at the epicenter of the eurozone debt crisis and is experiencing its fourth year of recession, while harsh austerity measures have left about half a million people without jobs.

One in every five Greek workers is currently unemployed, banks are in a shaky position, and pensions and salaries have been slashed by up to 40 percent.

Greek youths have also been badly affected, and more than half of them are unemployed.

The long-drawn-out eurozone debt crisis, which began in Greece in late 2009 and reached Italy, Spain, and France last year, is viewed as a threat not only to Europe but also many of the world’s more developed economies.

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Eurozone Collapse Accelerating: Euro Slips to 12-year Low

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The common currency dipped as low as 94.61 yen in morning Asian trade. The euro tumbled below 95 yen for the first time in almost 12 years on Monday as dealers rushed to the safe-haven Japanese unit owing to growing fears about Spain s debt crisis. The common currency dipped as low as 94.61 yen in morning Asian trade -- its lowest level since November 2000 -- from 95.38 in New York trade on Friday.

It was changing hands at 94.66 yen by 0320 GMT. The euro was also weak against the dollar, treading around two-year lows at  $1.2112, while the dollar bought 78.15 yen. The euro fetched $1.2152 in New York trade Friday while the dollar was at 78.48 yen. Dealers have been moving out of the euro after the borrowing costs on 10-year Spanish bonds soared to euro-era highs above seven percent, which is seen as unsustainable for the government to service.

With yields so high, unemployment at 24 percent and the economy expected to remain in recession throughout next year, analysts say Madrid will likely need a bailout on top of the one agreed for the country s banks last week. The Japanese currency -- which hit record highs against the dollar last year -- has been increasingly viewed as a safe-haven amid worries about Europe and a lumbering US economic recovery. But the strong currency has taken a toll on Japan s exporters by making their products pricier overseas while shrinking the value of their foreign income.

Officials in Tokyo have repeatedly warned that the yen was overvalued and previously intervened in forex markets in a bid to temper the unit. "As I ve been saying, I will take decisive steps against speculative movement of excessive volatility," Japanese Finance Minister Jun Azumi told reporters. "As far as the current situation is concerned, I m watching it carefully," he said in Tokyo Monday, according to Dow Jones Newswires.

Also Monday, the government said the Japanese economy faces growing downside risks stemming from the European debt crisis, adding that it was increasingly concerned about the outlook for the nation s export sector. In its monthly economic report for July, the Cabinet Office said the overall economy was "on the way to recovery at a moderate pace". But a Cabinet Office official added that: "The downward pressure on our economy through negative effects on exports and financial markets is increasing."

"Against the euro, we ve been seeing quite a strong yen," the official said. National Australia Bank said in a note that "Europe is to blame with a renewed flare up in euro-peripheral bond markets," noting Spain s 10-year borrowing costs spiked to euro-era highs. Japan s Prime Minister Yoshihiko Noda held talks with Bank of Japan governor Masaaki Shirakawa on Monday morning, Jiji Press and other media said. Shirakawa declined to give details of the talks after the meeting, and said only said the pair had "a frank exchange of opinions", the reports said.

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China Threatens With Furious Retaliation In Growing Trade Wars

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Last week it was the Fairness Distributor In Chief threatening China with WTO action over its unfair duties on US car imports. Before that it was Europe trying to protect its crumbling trade at all costs with its primary trade partner. Now, it is China’s turn to retort to the world’s beggars, and all those who just happen to ravenously import its iWares with the reckless abandon of a gadget junkie.

FT reports: “Beijing has threatened swift retaliation against a range of European Union industries if Brussels presses ahead with an investigation into government subsidies granted to two Chinese telecoms equipment companies.

The Chinese threat was delivered at a meeting with EU trade officials in Beijing late last month that was arranged at the behest of Chen Deming, China’s commerce minister, to try to defuse a brewing trade dispute that is straining commercial relations between the two sides. Instead, it collapsed into acrimony, with the Chinese warning their EU visitors that they would respond to any investigation of Huawei and ZTE Corp by probing subsidies granted to European agriculture, automotive, renewable energy and telecoms companies. “Put it this way: it’s not like they went for a beer after and watched football,”one person briefed on the meeting said.” None of this is new: recall China Lays Out Conditions Under Which It Will Bail Out Europe; Does Not Want To Be Seen As“Source Of Dumb Money“ in which Li Daokui “added that Beijing might also ask European leaders to refrain from criticising China’s currency policy, a frequent source of tension with trade partners.” Looks like we can scrap those “China bails out Europe” (ignore the fact that the Chinese economy itself is imploding for a second) rumor in perpetuity.

FromFT:

Karel De Gucht, the EU trade commissioner, declined to comment. An EU official sought to play down the meeting, saying that Brussels would wait to see what level of co-operation the Chinese would provide in an effort to ward off a formal trade complaint.

Nonetheless, concerns about the Chinese reaction – and pressure from worried member states –appear to have put on ice a case that once seemed imminent, according to several EU diplomats. They said it was now unlikely that Mr De Gucht would act before September.

In the meantime, both sides are bracing for another trade confrontation in the solar industry. European solar companies have been preparing a complaint accusing Chinese competitors of using improper government subsidies to underprice them, and requesting punitive tariffs. That complaint could materialise as early as this week, according to people familiar with the matter, and could also trigger Chinese retribution.

Combating Chinese government subsidies has been one of Mr De Gucht’s top priorities. The cutting-edge telecoms equipment industry, in which Huawei and ZTE have quickly gained market share, would be a signature case.

Yet it is one thing for bureaucrat to sabre rattle, it is something totally different for idiotic trade war proposals to get traction with corporations:

Mr De Gucht’s case has been undermined by a lack of support from European telecoms companies – Ericsson, Siemens-Nokia, and Alcatel-Lucent – which fear that any action from Brussels could harm their own business interests in China’s fast-growing market.

In an effort to get around that, he has drawn up plans to launch the complaint at the commission’s initiative – and not based on a complaint from a company –setting a new precedent in EU trade defence.

Trade analysts in Brussels said that some member states had also expressed reservations about the case after receiving complaints from Beijing. Germany is understood to be wary of igniting a trade war with China before a planned visit by Chancellor Angela Merkel in August.

And now that China has told Europe what it can do with its empty threats, it is time for it to shift its attention to the US.

(infowars)

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Netherlands to abandon Euro

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The Dutch government has collapsed after failing to win coalition support for its austerity plans. Elections are set to be held in September and analysts say one of the EU’s strongest economies may bring the unified currency’s demise. Zionist stooge Prime Minister Mark Rutte, a strong advocate of the Euro, has been trying to get the Parliament to adopt 14-16 billion euros worth of austerity cuts. The deficit slashing is aimed at getting the Dutch budget deficit under the three per cent of deficit to GDP limit established by the new EU fiscal pact. Rutte was unable to win the support of the far-right Freedom Party, whose leader Geert Welders said his country should not fund the new European Stability Mechanism and, at the same time, be expected to implement Brussels’ budget deficit caps.

“We don't want to cut spending by 14 billion euros and at the same time transfer billions of euros to Brussels for the horrible ESM emergency fund and the weak Greeks”, Welders noted. At the same time, the Dutch government’s austerity measures came under criticism from the leftist opposition Labor Party. Its leader Diederik Samsom admitted that the three per cent deficit limit existed, but stressed that the Netherlands did not have to comply “if there are exceptional circumstances in the economy.” After failing to obtain the necessary support from coalition partners, Rutte, who is the leader of the center-right People’s Party for Freedom and Democracy, tendered his resignation and said new elections were likely to be held in September, after the summer break. The now-acting premier is still hoping to obtain the support of minor opposition parties to pass his legislation.

Journalist Neil Clark believes the Dutch are largely angered with the fact with the EU fiscal pact that imposes deficit limits on its signatories. “The people have had enough of austerity”, Clark told RT. “Holland’s GDP growth in the ten years since it’s had the Euro has just been 1.5 per cent. And they’re now being told that because of this absolutely insane fiscal pact that was agreed upon last year. It will destroy the good life that the Dutch people have been used to over the years. And unsurprisingly the Dutch are saying, it’s enough.” He also said leaving the Euro was now a possibility for the Netherlands. “I think if Holland were to leave the Euro, and that’s not such a far-fetched idea now, as it might have appeared a few years ago, then it really is game over. Because Holland has been a strong ally of Germany in the drive towards the Euro and I think it would be an enormous blow.”

A number of Eurozone economies have adopted austerity measures to reduce their massive budget debts and deficits. These measures have not been met with much popular support especially in such crisis-hit countries such as Greece, Spain and Italy. The Dutch economy is in much better shape and the Moody’s agency maintains AAA rating for the country’s economy, though it did consider the government crisis to be a “negative factor”.

Enticing Fury

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“I Want France Out of Eurozone & NATO!” - French Presidential candidate Nicolas Dupont-Aignan

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French Presidential candidate Nicolas Dupont-Aignan

Enticing Fury

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