by Georgi Stankov, January 20, 2015
I am exalted. The mouthpiece of the Western Orion-Reptilian propaganda, BBC has just admitted that:
1) Western democracy is suffering from profound deficits “Europe’s “crisis of democracy” is a gap between elites and voters, There is “a gaping hole at the heart of European politics where big ideas should be.” and that “political earthquakes could be in store for Europe in 2015, according to research by the Economist Intelligence Unit for the BBC’s Democracy Day.”
2) All the announcements of the Western governments with regard to the alleged recovery of the economy since the 2008 crisis are blatant lies and that the crisis is still ongoing and deepening: “Will we ever really get over the financial crisis? Six years or more on from the start of it, the world economy is still struggling to generate a convincing recovery. Among the headwinds is debt, the factor that took us into the crisis in the first place.” Then BBC goes on to confirm what I have been writing for the last four years: “In the meantime, since the crisis began, global debt has actually risen… The most recent figures come from the Institute of International Finance (IIF), a group that represents the financial services industry. As of June this year it estimated that global debt, excluding the financial sector, was equivalent to 245% of total global economic activity or GDP. That’s up from 214% in September 2008 when the financial crisis was going into its most intense phase.”
Then BBC pulls the rabbit out of the hat: The total debt of the USA and the UK, without their financial debt and the amount of risky derivative speculations (20-50 times bigger than the world GDP) exceeds 500% of their GDP (For example Russia has 13% debt to GDP). Eurika! This is a day to celebrate when a miracle happened – the blind presstitutes of the Orion MSM have opened their eyes for the truth to the first time.
My dear friends, this is the most auspicious day, when we witness a veritable breakthrough of the truth amidst the ranks of the ruling cabal in the darkest citadel of the Orion empire – in the UK and its central bullhorn of propaganda – the BBC.
These two confessions of the BBC with regard to the two key factors / trends, which I am stressing in all my articles since I opened this website, will very soon lead to the collapse and “sudden death” of the Orion matrix.
The democratic deficits in the West have created an abyss between the people and the ruling criminal cabal that can no longer be hidden and will very soon destroy the civil society in Europe as well as in the USA, which is already much more advanced in this respect.
The gargantuan debt of the USA and the UK, and to a lesser extent of continental EU, has already destroyed the national economies of the AAA (Anglo-American-Assholes) and have made them unable to lead a new world war. They know that they have already lost. The recent escalation of the US proxi war in Ukraine against Russia with the full support of the US army command, will not help the Kiev Nazis not to lose their fratricide war, just as they have already lost the Donetzk international airport.
While the approval rates of Putin are at an all-time-high and the solidarity of the Russian people with his policy grows, the Western ruling cabal are like paralyzed hamsters in front of a cobra, while their approval rates are nose-diving. Long gone the wet dreams of the Ape Cameron and Bombama to oust Putin from power with “colour revolutions”.
We, the PAT, are now the true champions of the End Time by employing our Sacred Flames to create the most favourable scenario for our ascension.
Be aware (and proud) of what we have achieved. Or do you think that the latest revelations of the BBC are random events? NO, they are the result of my and your ongoing transmutation of the human minds at the soul level and at the physical level with an unmatched perseverance and journalistic dexterity that now drives amok the dark ones and also their minions, the idiotic Internet trolls, who are overwhelmed by their utter hopelessness to grasp this rapidly changing world.
This is our glorious victory and a Waterloo for the dark cabal – make no mistake about the significant turning point, we reached yesterday. This is a sweeping victory over the dark ones and the ramifications of it will be felt in the coming days when Syriza wins the elections in Greece and leaves the Eurozone, and the ECB will have committed its harakiri with the new 550 billion QE, aping the Fed that has already destroyed the economy of the Empire of Evil with three or four consequent QEs.
Below I am publishing the two BBC articles as of yesterday together, so that you can perceive better the close relationship between the two basic factors for the collapse of the Orion matrix – the widening democracy crisis and the rising debt of the Western world.
BBC Democracy Day: Europe ‘faces political earthquakes’
Political earthquakes could be in store for Europe in 2015, according to research by the Economist Intelligence Unit for the BBC’s Democracy Day.
It says the rising appeal of populist parties could see some winning elections and mainstream parties forced into previously unthinkable alliances.
Europe’s “crisis of democracy” is a gap between elites and voters, EIU says. There is “a gaping hole at the heart of European politics where big ideas should be”, it adds.
Low turnouts at the polls and sharp falls in the membership of traditional parties are key factors in the phenomenon.
The United Kingdom – going to the polls in May – is “on the cusp of a potentially prolonged period of political instability”, according to the Economist researchers.
They say there is a much higher than usual chance that the election will produce an unstable government – predicting that the populist UK Independence Party (UKIP) will take votes from both the Conservatives and Labour.
The fragmentation of voters’ preferences combined with Britain’s first-past-the-post electoral system will, the EIU says, make it increasingly difficult to form the kind of single-party governments with a parliamentary majority that have been the norm.
But the most immediate political challenge – and test of how far the growing populism translates into success at the polls – is in Greece. A snap general election takes place there on 25 January, triggered by parliament’s failure to choose a new president in December.
Opinion polls suggest that the far left, populist Syriza could emerge as the strongest party. If it did and was able to form a government, the EIU says this would send shock waves through the European Union and act as a catalyst for political upheaval elsewhere.
“The election of a Syriza government would be highly destabilising, both domestically and regionally. It would almost certainly trigger a crisis in the relationship between Greece and its international creditors, as debt write-offs form one of the core planks of its policy platform,” the EIU says.
“With similar anti-establishment parties gaining ground rapidly in a number of other countries scheduled to hold elections in 2015, the spill-over effects from a further period of Greek turmoil could be significant.”
‘Immigration and austerity’
Other examples of European elections with potential for unpredictable results cited by EIU include polls in Denmark, Finland, Spain, France, Sweden, Germany and Ireland.
“There is a common denominator in these countries: the rise of populist parties,” the EIU says,
“Anti-establishment sentiment has surged across the eurozone (and the larger EU) and the risk of political disruption and potential crises is high.”
Its analysis is that populist parties and movements – of the left, the right and the indeterminate – are moving into the space that has opened up between the old political parties and their traditional social base.
Opposition to governance from Brussels, immigration and austerity are key themes and rallying cries for many of these parties.
‘Upsurge of protests’
Meanwhile, alongside the rise to prominence of populist movements, there has been an upsurge of popular protest in many parts of the world in recent years.
The EIU estimates that significant protest movements surfaced in more than 90 countries during the past five years – in the main, it says, led by young, educated, middle class individuals who resent their political leaders and who prefer Twitter and other social networks to the traditional political soap box.
“An upsurge of popular protest has swept through Europe, the Middle East, North Africa and Latin America in recent years. Other regions such as Asia and North America have been less susceptible, although have not escaped entirely,” the EIU says.
“The mainsprings of the protests have been different – some have been responses to economic distress, others are revolts against dictatorship; some are expressions of a popular desire to have their voices heard by political elites, others express the aspirations of new middle classes in fast-growing emerging markets.”
Global debt: How worried should we be?
Will we ever really get over the financial crisis? Six years or more on from the start of it, the world economy is still struggling to generate a convincing recovery.
Among the headwinds is debt, the factor that took us into the crisis in the first place.
In the meantime, since the crisis began global debt has actually risen. The hoped-for financial healing has happened only in a few scattered parts of the global economy.
The most recent figures come from the Institute of International Finance (IIF), a group that represents the financial services industry. As of June this year it estimated that global debt, excluding the financial sector, was equivalent to 245% of total global economic activity or GDP. That’s up from 214% in September 2008 when the financial crisis was going into its most intense phase (Please observe, that this crisis was entirely caused by excessive debt, Note, George).
The IIF describes the continued build-up of debt as “worrisome”.
These figures cover debts owed by governments, households and businesses outside the financial sector. They don’t cover all countries, but the vast bulk of global debt is included.
Financial companies, such as banks, have reduced their debts (This is of course an outrageous lie, the leveraging has skyrocket in the last 6 years, Note George). The IIF says that is desirable, but as they are essentially intermediaries between the ultimate lenders and borrowers, “their debt reduction does not influence the assessment of sustainability of the debt burden to the economy”.
The persistence of the debt problem was highlighted by another recent study by the International Center for Monetary and Banking Studies (ICMBS) and it tells a similar story.
Its language is rather technical, referring to leverage, which in this context is a measure of debt burdens.
Its title gives the key conclusion: “Deleveraging? What Deleveraging?”
To quote the report’s assessment slightly more fully: “Contrary to widely held beliefs, the world has not yet begun to de-lever and the global debt-to-GDP [ratio] is still growing, breaking new highs.”
If you do include the financial sector for the rich economies, the total figure in the ICMBS report has at least stabilised at 385% of their collective GDP, a level that is nonetheless very close to its all-time high (If you include the financial sector, the main culprit of all debt, it is well over 3 000% to GDP as I have repeatedly stressed; note, George).
Those countries were the source of the bulk of the build-up in global debt levels before the crisis.
Since then, it is the developing world, especially China that has driven the rise in debt. In the case of China, the report describes the rise in debt as “stellar”. Excluding financial companies it has increased by 72 percentage points to a level far higher than any other emerging economy. The report says there have been marked increases in Turkey, Argentina and Thailand as well.
Emerging economies are particularly worrying for the authors of the report: “They could be at the epicentre of the next crisis. Although the level of leverage is higher in developed markets, the speed of the recent leverage process in emerging economies, and especially in Asia, is indeed an increasing concern.” (The financial crisis will unfold like a global conflagration as all national economies are now in a state of default, probably with the exception of Russia and China, note, George)
Although the most recent financial crisis was in the rich countries, we don’t have to go all that far back in history to find debt crises in emerging economies that caused tremors, though not full-scale financial earthquakes, around the world.
There were a succession of crises beginning with Mexico in 1996, continuing in Asia, Russia, Turkey, Brazil and then Argentina early in the following decade.
Signs of improvement
There are also some (?), though not many (!), more positive signs in the global debt situation.
In the rich countries, the financial sector has reduced its debt (Bullshit).
The UK and the United States account for most of that. In the UK, however, while it has fallen it is still at historically very high levels.
The same two countries have seen significant reductions in household debt, measured as a percentage of GDP (leading to a massive impoverishment of the middle class and the masses as a whole, Note George).
But government debt has risen in both. For the UK, if you add that still high financial sector debt you get a total just shy of 500% of GDP. To spell it out, that is the estimate from the International Center for Monetary and Banking Studies and it covers households, business, including the banks, and the government.
The British figure is a good deal higher than the US or the average for the eurozone but significantly lower than Japan. On government debt alone, the British figure (for 2013) is lower than the US or, by a small margin the eurozone.
Now there is an argument that debts are less troublesome if they are owed by governments rather than by households. The Nobel Prize-winning economist Paul Krugman wrote: “Families have to pay back their debt. Governments don’t – all they need to do is ensure that debt grows more slowly than their tax base.”
But others, such as American professors Carmen Reinhart and Kenneth Rogoff, argue that beyond a certain point, government debt tends to hold back economic growth. They say the threshold is about 90% of GDP. A significant number of countries, mainly rich ones are close to or above those levels. Their work has been the subject of controversy. While admitting some errors, they have defended it. (This is the usual bullshit of the US economic presstitutes, Note, George)
In any event, the authors of the ICMBS report argue that there are features of the current situation that make the large debt burden, public and private, more of a problem. They refer to the “poisonous combination of rising leverage and slowing growth”.
The point is that debt payments – interest and repayments of the original loan – are easier to keep up-to-date for borrowers with a rising income.
And that brings us to the “poison” that the ICMBS report refers to. Debt is high and economies are growing more slowly than before the crisis, so they are not generating the incomes to service the (growing) debt as rapidly as they were.
There has also been a fall in inflation rates in many countries. Inflation can help limit debt burdens. Household incomes, company revenues and government tax receipts all rise but debt payments are often fixed. Low inflation, especially if it is lower than borrowers expected when they took their loan, weakens that process and leaves debt burdens heavier than they would have been.
But there are some who say the picture painted by the ICMBS report is excessively gloomy. You can find some of them in the report itself, which includes a record of a discussion of its findings.
Mark Carey of the US Federal Reserve said he would have toned down a little the size of the disaster we are facing, and that the situation is not as bad as described. He said there is no obvious downtrend in economic growth and pointed out that a great deal of American debt has a variable interest rate. That would reduce the debt burden as inflation falls.
Angel Ubide of DE Shaw Group and the Peterson Institute of International Economics in Washington described the assessment of China as “a bit apocalyptic” and thought it should have been more balanced. He saw a prospect for credit going increasingly to highly productive private firms – which would presumably be able to meet their debt obligations.
Carlo Monticelli of Italy’s Ministry of Economy and Finance recalled that China has $4 trillion in foreign reserves. He also noted the large numbers of people still in the countryside who could support further economic growth by moving to industry or becoming more productive farmers. That implies more economic growth to meet the debt payments.
The conclusion: there is not really any consensus on just how worried we should be about the global debt situation or China’s in particular. But you can be sure that economic policy officials – in central banks, finance ministries and international agencies such as the IMF – will be watching it warily. You can also be sure that we won’t really be shot of the legacy of the financial crisis for a long time yet.