- Mish's Global Economic Trend Analysis: IMF Pressures Spain to Lower Salaries, Raise the VAT, Eliminate Housing Deduction
Blogman's Notes: Those who argue that there is not a concerted effort to destroy the Middle Classes in the world and bring back the historic FEUDALISTIC model of a few Haves and a majority of Have-Nots are not paying attention to the policies being implemented by the Powers that be upon the majority of this world's inhabitants. The true meaning of Austerity is to raise taxes, not to benefit the people paying the taxes, but to enrich the Banksters who have gotten the world into the Greatest Financial Mess ever in history; the problems of the Great Depression do not even begin to compare to the problems in the world today. These additional taxes will further impoverish an already strained Middle Class worldwide but on top of that, the IMF, which is the mouthpiece of the Global Elite wants salaries to be cut. You don't have to be a rocket scientist to figure out that cutting salaries and raising taxes will make the taxpayers poorer; this formula will eventually lead the present Middle Classes into the Impoverished Classes, as is happening in Greece, and Spain, and Italy, and also in Ireland, Portugal, the UK and USA. If people still have a semblance of Middle Class prosperity in these nations, it is because of Government programs that have saved the people from being thrown out into the streets, as happening during the Great Depression. However, as the costs of bailouts for the big banks continue to mount, now in the trillions, that cannot possibly be brought under control, let alone be paid off, it is only a matter of time before Governments that work on behalf of the Financial Banking / Corporate Elite of the world throw their own citizens to the wolves as the effects of more and more stimulus (QE, money printing) wear off faster and faster. Like a drug addict that needs more and more heroin to experience the same high, and eventually dies from his addiction, the Global Economy too must die because of its addiction to more and more money created out of thin air to keep the engine running. The Powers that be cannot possibly not know that this will be the eventual outcome, but since they keep on feeding the Global Economic patient more and more monetary heroin, the day they decide to make the patient quit cold turkey will be the day that the Global Economic patient will die. We must keep in perspective that it will not be the few elite that will be effected by this coming collapse, since they will have engineered it; the costs will be borne, first and foremost by the Middle Classes, who actually have something to lose, and then by the poor classes, who have nothing material to lose but will end up losing their lives by the millions. There is no other possible outcome, the only question is how long before this outcome is no longer hidden from the majority that is at present kept sedated by the mainstream media. There are two perspectives and only two outcomes to this present Great Financial Crisis:
- Save the banks - kill the Middle Class: this is the perspective of the powerful Elites that manage the Finances of the world through banking houses in Europe and America that are more powerful than the government of any individual nation, including the US. Saving the TBTF banks by loading all the costs of saving these banks on to the backs of Middle Class tax payers, a powerful redistribution of wealth is taking place worldwide. The Middle Class which was the buffer between the Elite wealthy ruling class and the impoverished serfs is being eliminated by these 'bailouts' which in no way, shape or form bail out the Middle Class but rather leave them holding the bill. At the end of this road, the world that has included a bigger Middle Class over the past 200 years than at almost any other point in history, will have returned to the Feudal Model: a very few Haves, and a majority of Have-Nots (no Middle Class.) People may argue that this all happening by accident but the evidence would suggest otherwise!
- Save the Middle Class - kill the banks: from the perspective of the Middle Class, the only solution is to let the TBTF banks Fail, that's it. It may lead to short term hardship but would eventually lead to a much more vibrant Middle Class than exists even in the present day. With technological advances of the past 200 years, and especially in the past 50 years, it would be possible to eliminate poverty and have a more equitable world in which wealth is distributed more evenly not concentrated in a dozen or so banks worldwide. Since the people that control the banks, also control the governments and armies of this world, the odds of this solution being implemented are next to none. However as the descent of the Middle Classes into poverty accelerates worldwide, look for protests (as in Greece, Spain, and Italy) to increase, and eventually look for a brutal repression of such protests, as in Nazi Germany or in the Soviet Union to become the norm, not the exception. Anarchy may also be allowed to reign, at least for a season, in places like the US which has a heavily armed population. It may be the Elites' plan to allow the 'Useless eaters' to kill themselves off before intervening to restore an iron-fisted order!
I would have to conclude that what we will see eventually played out across the world will be solution #1, which means an end of the Middle Class as it has existed for the past 200 years or so. Sadly, it is the Middle Classes who are most to blame for their own demise; they have wholeheartedly embraced the Kool-Aid of DEBT, which is now proving to be their DEATH. Rack up your credit cards, and enjoy another vacation or two, all ye who call yourself the Middle Class today; your days are surely numbered for you have not valued the source of your wealth or guarded your liberties that were brought to you through much pain and struggle by your forefathers.