The Worst Financial Moment in History (Not In A State Of War)
And yet, this is exactly what happened in several European economies between 2008–2018.
The effects of the 2008 global financial meltdown bear a strong message of events that can happen anywhere, no matter if an economy is too big to fail.
A 25% reduction in GDP is outrageous and destructive and only observed during wars or extreme physical disasters. For example, in weak economies like Haiti with the destructive earthquakes and natural disasters that ravage this small Caribbean nation.
However, what we are discussing here are economies that incorporate extensive infrastructure, a thriving workforce, and increased education and productivity levels, which were actually hoping to reduce the workforce inequality gap (wages) with the top European powers.
Some of these economies, were strong already (Italy, Spain), with better average income than the rest, and still received savage blows from the influential “Big Three” rating agencies (Moody’s, S&P, Fitch) that described bonds as junk and economies producing trillions of euro yearly as bankrupt.
The 2008 financial meltdown affected modern economies with infrastructure, an educated and skilled workforce, extensive trading networks, modern management methods, and technologically advanced with vast incorporated experience.
That one day, almost half of Europe woke up to realize inconceivable hardships were about to come, that until that moment most considered impossible for any of the EU economies.
All it takes is for the financial establishment to lose “trust” or instigate this loss of trust. And the latter happened.
The Trade-offs Of Abandonding Local Currency and Entering the EU
Understanding the dire consequences a high debt brings was not an objective for most governments or economic participants, and was rarely analyzed in economics schools and colleges. Eventually, debt and weak domestic politicical will were the tools used by forces within the EU to enforce a financial apartheid against several Southern European economies.
Upon entering the EU, governments of the smaller economies became feeble and powerless. Small economies were following each other in spending habits and other macro indicators, and in a young trade-free zone like the EU, everything was allowed (for a while).
The euro was agreed upon fundaments that limited inflation (until recently), with a target of 2.5% yearly inflation as a maximum. In the first decade, support from the stronger economies to new entries was decisive, aiming to reduce inequality, raise wages and standard of living, and advance infrastructure. This development in Europe strengthened the bonds of friendship and encouraged unity and cooperation between the European nations.
The dream was to create a united economic power that would present an example of how cooperation among nations solves issues that may divide us. The utter motive was to avoid any new destructive wars in Europe. Under these fundamentals, everyone in the EU agreed.
Yet, at the sight of the first serious dangers, all these fundamentals started crumbling.
Right after the crisis struck Europe, mass unemployment applied in my country (20%), as the EU violated the constitution, forcing unjust taxation at every level of the economy.
The cheerleaders in Brussels had already located the scapegoat that would suffer the maximum to sustain the top European financial establishments and the core of Europe.
Germany and its satellite states, reminiscent of the 1940s, assumed control and forcefully executed financial stagnation in their partner members, that for a few years even called them PIGS (Portugal, Ireland, Greece, Spain).
The highly trained and experienced workforce of the economy, the most productive and scientific part, was forced to immigrate to the US, Canada, and Germany. This "brain drain" has long-term effects that today are becoming obvious since gaps have widened in every aspect of the economic and social structure.
The worst part is this was well known to the decision centers of Brussels, yet, it was all enforced at will.
It was well known, that some economies would never be able to lower the debt under such conditions the EU enforced, yet this was the plan all along. Puppet politicians accepted everything with moderate reaction, and singlehandedly signed the demise of what would have been today a thriving economy.
The lies never ended.
And now someone reading this brainwashed from the 2010's propaganda will dismiss this thinking they know better, but no, this was just the brainwashing you suffered.
What I point out here is exactly how it all happened.
Problems existed in almost every economy in Europe, yet the massive blow had deeper roots than what will be analyzed within this series of articles. Some things are better left unsaid, sometimes.
The First Network of Financial Spammers Spreading Propaganda
I never expected mainstream media and forums to be susceptible to spam by zombie networks, but it seems these weaknesses have only grown all this time. Perhaps Google, YouTube, Reddit, Twitter, and the rest encourage such practices, as it helps some financial centers to proceed with decisions that the public would immediately reject.
The first time I observed a vast network of bots and paid accounts brainwashing the public and lambasting ethnic groups (not politicians) was in 2009.
Between 2009 and 2013 all these random internet accounts were operating to produce a negative sentiment against these four nations they called the PIGS.
It had nothing to do with governments or politicians. This fraud mechanism was attacking the people of these European nations. It was considered effective as it created a sentiment of suspicion and prejudice against
It created such prejudice that made me afraid to announce where I come from online, simply because hate was directed towards me from naive and brainwashed individuals, just for this reason alone. And I'm expecting hate now that probably those who read this learn about it. There are known propaganda networks that have grown throughout the years and terrorize individuals online to express peaceful and reasonable points of view. The enemy of authoritarianism (financial or not) is logic.
This network of internet trolls was constantly posting comments on the internet highlighting how the rest of Europe was supposedly angry with certain counterparts and acting as if it was the people vending their frustrations online.
Comments like "Greece/Portugal/Spain we want our money back" and other malicious drivel were persistent. It was supposedly concerned individuals who somehow felt entitled to make these requests. Supposedly other European taxpayers were about to lose money as another EU country was facing economic difficulties.
Therefore, they had to convince a large and ignorant part of the European population that sacrificing a few economies was not unethical.
And instead of helping them, under the foundations of unity and support the EU was built upon, these supposed EU citizens were reacting angrily and ... asking for money from bankrupt countries.
Nope, this was not real. Never was.
99% of these messages were coming from troll accounts and bots that eventually were all removed by social media and platforms as the spam produced was massive and fake.
Yet this brainwashing still lasts in parts of Europe, as these trolls succeeded in their purpose to undermine unity in the EU and sustain a false narrative to a small but important part of unaware, and financially illiterate North European citizens.
This event was also symbolic of recognizing how we forget that resolving differences in unity and respect generated all this progress for the EU, but the moment the first difficulty emerged, this unity evaporated.
Germany did weather that financial storm almost unharmed, but to succeed, several European counterparts had to suffer and still suffer to this day.
The gross mistake made by the US in handing out Europe's command to Germany was realized when Merkel and Schäuble came to power.
Their least interest was a European Union of cooperation, but instead, a financial entity that would serve the elite and protect the German economy, but demolish side economies to the ground.
Merkel was not just about Germany first, but Germany first, at the expense of European cooperation.
Europe Failed In Unity
In times of emergency, Europe failed massively, as every nation discovered enemies and scapegoats where it was previously only friends.
The news all over Europe proceeded in line with the vast spam campaign enacted in social media and brainwashed the globe to prejudice by acknowledging as valid any lies the mainstream (fake) news fed to the public.
Top European newspapers and news channels accused a few small economies that for decades had helped build the European dream and presented the merits of European cooperation, of being unreliable partners because of their debt, and decided to punish them instead of finding a viable solution to this madness.
Some economies were indeed loosely organized but with multiple steps taken towards fixing inherent issues of their structure and just about to escape decades of instability and transformation.
It was just a couple of years before the economic crisis occurred, with Europe having entered an era of prosperity where the lesser economies were thriving.
The debt to GDP ratio was the same (100%) for both Greece and Belgium in 2008, something that was deliberately not ever discussed, yet Greece was punished, but Belgium was not.
All the affected smaller EU countries (Ireland, Portugal, Greece, and Cyprus) were economies one step away from becoming too competitive to the core of the EU.
Therefore, the high debt-to-GDP ratio was really just an excuse.
Someone had to pay, so the top economies would stay strong and centralize the EU economy around them.
What mattered after WW2 was actual unity in Europe and not repeating the same mistakes.
Unity in a continent that has more to share by cooperating, rather than the bloody history of endless wars it attempts to avoid ever happening again.
And yet, this was just the first difficulty Europe had to face after WW2, and it all fell apart.
What The Elite Wanted
Some economies suffered more than others.
Some economies suffered from a massive exodus of skilled workforce, quality managers, and scientists, what was left was not enough to bridge the gap.
10 to 20% GDP decline and 15 to 25% unemployment made these economies look like a warzone.
Population declined, births declined, and the average life expectancy also did, since wages and health care were demolished.
What remained to cover the gap in the following two decades was incapable of doing so.
The outcome was that instead of Europe fixing the problem as it was supposedly doing, it only did things worse as the debt ratio of almost every European economy increased in these 15 years.
Brusells was fill of ignorant and incompetent for their elaborate destructions of the smaller European economies.
Every thinking person in the world knew Brussels was not making decisions to support any economy but was only damaging economies and guaranteeing their doom, with decades of instability and interventions.
Some economies never recovered, and the EU only made it worse inflating state and sovereignty issues.
In Conclusion
Of course, the public revolted, although in the end, the capable individuals left, and those that remained were incapable of altering the course of the financial disaster the EU that was supposed to help, brought upon them.
It was a financial version of shock and awe.
Nobody has forgotten or forgiven, except for those few who profited from this.
The financial collapse of 2008-2015 was a disgrace for Europe, and the fact is that the damage those leaders generated was massive. The consequences of the handling of this situation are obvious to this day, as the geopolitical influence of the EU is constantly reducing, and the vision of a united federation has almost collapsed. Trust is damaged irreversibly.
When the first moment of difficulty appeared, the time of need, Europe instead of displaying solidarity, decided to impoverish tens of millions with extreme financial measures of catastrophic proportions that only condemned economies for decades.
Cover Photo by " Matryx" on Pixabay
Copyright Disclaimer:
Material published in this content, is used for entertainment and educational purposes and falls within the guidelines of fair use. No copyright infringement intended. If you are, or represent, the copyright owner of images used in this article, and have an issue with the use of said material, please notify me.
Posting on:
● read.cash ● noise.cash ● Medium ● Hive ● Steemit ●Vocal
● Minds ● Twitter ●Reddit ● email ●telegram
Don't forget to Subscribe and Like if you enjoyed this article!
