economics, EU, gas, Karl Denninger, paying the piper, Russia, USSA
He’ll get them too, either grudgingly from the fools in the EU or else, happily, from China and India. Karl Denninger writes about the wider implications of the new financial-monetary order for the free nations and the WereWest.
Medvedev, Russia’s deputy chairman of their Security Council, has specifically pointed out that our inflationary credit policies — in the US and Europe — will no longer be tolerated by either Russia or China.
‘No matter if they want it or not, they’ll have to negotiate a new financial order,’ Medvedev said. ‘And the decisive voice will then be with those countries that have a strong and advanced economy, healthy public finances and a reliable monetary system. And not with those who endlessly inflate their public debt, issuing more and more pieces of paper into circulation which aren’t backed by national wealth.‘
The United States and, to a large degree Europe as well, have run monstrous deficits for the last two decades. Europe did it to “rescue” the PIIGS, if you recall during the time of the “great financial crisis”, and that “stimulus” has never been withdrawn. The United States did the same sort of thing during the time of the housing blowup, which followed the tech wreck and again, that was never withdrawn.
Europe, as with the United States, thought they could add to their fiscal insanity without consequence by importing a whole bunch of lower-skilled people who couldn’t pull their own weight at or above median per-capita GDP in the name of “diversity”, never mind the cultural divide brought by such immigration that further exacerbated the fiscal cost of doing so beyond bare economics.
Read the whole thing. Tomorrow, Russia may well and truly start this thing rolling by turning off the gas to Europe. Either way, it’s a new world. And no, the idiots in Mordor will not do what needs to be done. You see, the conventional (wrong) wisdom in Gorgoroth holds that restoring the real dollar and nixing all the fake debts would destroy the economy, so it’s much better to simply destroy the economy. Please do your part by watching TV, jabbing^10, and voting this fall.