Is it still late to ignite economic freedom (aka Classical Liberalism)in Europe?

 

It’s official: The French have decided to go back forty and some years back, and the Greeks, well, the Greeks as it seems have made a statement to Europe that they couldn’t care less of what the EU-in-chieftain says. The electoral results that came in two days ago gave rise to some unlikely victors and EU orientated losers.

Tribal politics is the best way to explain the results of the election in Greece. The results are as follows for Greece:

New Democracy: 17-20%
Pasok: 14-17%
Syriza: 15.5%-18.5%
Independent Greeks: 10-12%
Golden Dawn 6-8%

The New Democracy party, as stated on Wikipedia, are the conservative liberal party that won this years election. How liberal (in the European sense) they will be, is yet to be seen.

The election of the other parties are a sign of frustration, in my opinion. Nothing more, nothing less. When the till now ruling PASOK party is being challenged by the radical Left: Syrizia and the radical Right: Golden Dawn, you know that the depression has lingered on in its fifth year and that the population is ready to go native.

The French, yet again have disappointed. Not that Sarkozy was any better; I personally see no difference between the two. Hollande is a Mitterand wannabe and a firm believer in the socialist doctrine. Not surprising, he is calling for greater ECB firepower to bring growth to France, even if that means purchasing power redistribution from its neighboring co-Europeans, the Germans. Saying NO to austerity and a burgeoning public sector, Hollande at least publicly says what the supranational institutions of The EU were made for: Buying political votes and making sure that the next credit cycle doesn’t happen; at least well into his last term as El-Presidente.

Just like the Germans, Mr. Hollande has to stop the rise of national debt, which is unlike the current mainstream figure of 86,1%, but more like 150%, when all the liabilities, guarantees and rescue money (which doesn’t exist) is added up. A great iconography is brought to you by ZeroHedge.

So, if France chooses to rise its absolute debt level, it will have to rely on the ECB to step in and make sure that its debt targets are met.

Because, if they don’t, it will bring about an interest rate spike that happened in Italy, Portugal and Spain. The additional ECB funds will certainly end up in the banking system at the largest French banks, who will in turn step in and by whatever the ECB deems too much. The banks will take the purchased bonds and collateralize them at the ECB for even new funds.

The ring-around-the-rosy splurge will continue. Maybe after fascilism has its go to run the economies of Europe for about a couple of years, maybe, just maybe, the serfs will finally realize the fact that freedom doesn’t only have a social concept tied into it, but rather an economic one as well.