European Unemployment Numbers Disturbing
Unemployment continues to increase across Europe. The question now is not whether this causes the social fabric to fray - it has - but whether social unrest will increase, possibly even leading to revolution in some countries.
What's next? Well, austerity will probably be dismantled, rather than the social welfare system. And with that dismantling, given that European economies are in recession, we can expect increased government financing of social programs. All of this requires some form of money creation, probably via the issuance of government bonds to fund the programs. It seems the race is on to forestall higher unemployment, deflation, probably a greater recession or even a depression. And governments will do what they do best, and have done throughout history, to keep the people from their getting at their throats: debase the money and provide more bread, if not circuses, to the masses. It started before the Roman Empire, was practiced extensively during the Roman Empire, and continued thereafter, as has been considered necessary or convenient by governments.
Will it work this time? We're going to find out in the coming months and years. The bigger question, though, is has destruction of the money, and the doling out of food and distractions ever resulted in a happy ending. Far as I can tell, the answer to that is decidedly, "No."
More...
...the deepening unemployment crisis is a threat to the social fabric of the euro zone. Almost two-thirds of young Greeks are unable to find work, exemplifying southern Europe's 'lost generation'.Think I'm exaggerating? As we saw in our last post, German official recently stated that if the social welfare system of Europe is dismantled, expect revolution. I suspect these officials fear for their jobs possibly their lives at this point. And now, with the latest unemployment figures showing continued deterioration, those fears will only increase.
What's next? Well, austerity will probably be dismantled, rather than the social welfare system. And with that dismantling, given that European economies are in recession, we can expect increased government financing of social programs. All of this requires some form of money creation, probably via the issuance of government bonds to fund the programs. It seems the race is on to forestall higher unemployment, deflation, probably a greater recession or even a depression. And governments will do what they do best, and have done throughout history, to keep the people from their getting at their throats: debase the money and provide more bread, if not circuses, to the masses. It started before the Roman Empire, was practiced extensively during the Roman Empire, and continued thereafter, as has been considered necessary or convenient by governments.
Will it work this time? We're going to find out in the coming months and years. The bigger question, though, is has destruction of the money, and the doling out of food and distractions ever resulted in a happy ending. Far as I can tell, the answer to that is decidedly, "No."
More...
Comments