IS THERE TOTAL AGREEMENT OF CAUSING RECESSION IN EUROPE?

Let us don't give him more turns the European Union, Germany, the BCE and the Anglo-Saxon qualification agencies, they agree because, to the world it interests him that Europe suffers a deep recession. The truth is that I don't guess right to do with clarity the reason, but that that if I do with clarity, it is that there is not any interest to avoid it. 

The situation of the European economy is swamped for almost three years as a result of the shake of Lehman Brothers, continued by the later sign of crash of Greece, the situation of the sovereign debts, and the systemic risk caused in the Spanish financial market by the explosion of the real estate bubble in Spain. We would say that the causes are clear, what misses me, is that in three years he has not been possible to channel any solution, rather on the contrary they become worse day after day creating the hopeless recession of the whole euro area.  

To repeat all the contradictory and useless movements now, you never program of rescues and guarantees summed up, changes of addresses in and of the BCE, governments not shaken by the pressures very democratic that say, meetings of high level that they have not offered any result etc. are not nothing else that the certification that my asseveration is certain. It is necessary to install a brutal recession in the old continent.  

Frankly it is that for many turns that he is given to the topic there is not another explanation, as example and alone of example, we can verify that the bomb that I begin the whole later process, you solves in hardly one year, however their sequels as if it was the effect of a damned cluster bomb, they are exploding continually in the European Union and the most astonishing thing is that one leaves that he goes exploding here and there without anything neither nobody makes absolutely anything. 

In little less than three years, the values of the European economy of any country have fallen more than 50%, in the USA they have been already for one year above the levels of when I explode the explosion of Lehman, the sovereign debts continue growing and deepening in the budgetary imbalances, already precarious since everything, the solution began it is insisted, it is to reduce and to clip the budgets of expenses of the states, but nobody speaks of reducing the debts neither of reactivating the revenues. 

The budgetary cuttings with the precipitation with which one wants to make, it brakes all possibility to maintain a productive activity in march, and automatically the possibilities to increase revenues to the arks of the states fall, the social cuttings begin because they cannot stay, this makes worse the restlessness and the fear in the citizenship and the private investment, these they leave the country and the other ones stop to consume, the country hopelessly stops and the debt like consequence grows, because the country should continue emitting debt to renovate the debt that conquers, but with but it cares and to more cost thanks to that the avid examining corsairs of Anglo-Saxon ratings, take charge successively of it.  

And they can already be clear the effects of the situation give same, because that the debt is not solved, neither he notices any global guarantee on the part of the euro group, when the thing, memory that I wrote several times that there would be began that globalized the surpluses of sovereign debts and to leave them in 50/60% of the respective GDP of each country, since it is a quantity dear logic of bearable indebtedness, and that for it the BCE should buy this surpluses, by means of a classic action in the financial world, the setting in circulation of new Eurus for value of the quantity of debt to absorb, what would take to a controlled devaluation and logic of the euro, because it was incomprehensible that the foreign currency of a continent in ruins, is until 40% more valued that the foreign currency world refuge as it is the dollar, that which said in passing, it was another control for the reactivation of the activity of the European industry. 

Neither he do , just the opposite more cuttings of budgets, more debts, but nations in danger, but ratings reduction, are less credits, to the investment and the consumption, in definitive to implant the recession, with what objective? that wanted to know me, now in these days it is that the euro leaves depreciating pushed by the markets it is spoken of arriving to figures of change of 1.20 for $, that said it I make but of 8 months, now no longer it will be enough because this devaluation has not been controlled and it has not provided reactivation some. 

Another curious fact in this respect, the BCE manufactures half billion Eurus to inject liquidity, the liquidity that I requested, and indeed the euro for that reason has been devaluated but the problem is that these new Eurus, all deposited another time in the BCE are, so the valiant action on the part of the Central Bank has not had positive repercussion some if not just the opposite, he has gotten lost the effect devaluation because it has not been used for what should be used, it is not possible to reactivate anything, because it continues in its origin place, it increases costs because it is a cash that surrenders superior interests to he gives them its retention, and he leaves the things the same as they were. 

The next cash setting that one will make unquestionably, took to the euro almost to the parity of the $ American at least to a change of 1.1 and the worst thing, we will have lost between 12 and 16 months during which will have fallen more deeply in the recession, and the debt will continue being in the same place and growing, maybe the deficits of expense of the states will be near 3% like he wants Germany stubbornly, but they don't doubt it the productivity it will be so sunken, the unemployment a lot but shot, and the economies so ruined that I fear myself that it will be an illusion the obtained reduction, because it will be necessary to recover the public investment to the big thing, to be able to take out Europe of the well of the recession in that we will be.  

The reduction of the budgetary deficit you should achieve otherwise that is braking the expense and increasing the revenues, not reducing the expense and the revenues at the same time that it is what is happening now, in such a way that the deficit differential continues anchored almost in the same proportions, they will already see it, I don't believe that they take a lot in realizing, it is but I believe that Mario Monti has already begun to realize.