AUSTERITY = MASSIVE FAILURE IN EUROPE = BANKSTER DEBT SCAMS

AUSTERITY = THE BIG MISTAKE = Latvia No Austerity Success = PRIVATIZATION + BANKSTER SCAMS

Click for Source Article by Hudson and Sommers

Michael Hudson and Jeffery Sommers: a distinguished professor at the University of Missouri-Kansas City and associate professor at the University of Wisconsin-Milwaukee respectively

HUDSON + SOMMERS = Advisers to Latvia’s government on alternatives to austerity.

MYTH: Latvia AUSTERITY is example for Europe on the way out of its financial dilemma = slashing wages. GOV = CHOSE AUSTERITY + FEED BANKSTERS but PEOPLE = WANT PROGRESS and ANTI-AUSTERITY = So 10% of People/Labor force emigrates to other countries holding unemployment rate to “just” 15% today = VICTIMS OF BLIND NEOLIBERAL “FREE-MARKET” SCAMMING OF BANKSTERS AND OTHER WHITE-COLAR CRIMINALS + BANKSTER OWNED CENTRAL PLANNERS.

Latvia = Horrible Austerity Failure = Awful Model for Greece or anywhere else. = YET ANOTHER FAILURE FOR CONSERVATIVE NEOLIBERAL POLICY = LATVIANS RUN FROM THIS DISASTER.

LIE: Latvia’s one year of economic growth after plunging 25% in 2008-10 = Billed by NEOLIBERAL SCAMMERS AS SUCCESS = 20% Unemployment soared as Swedish shutdown foreign capital inflows.

Swedish mortgage loans = Inflate Latvia’s real estate bubble = Left Latvia with a deep current-account deficit.

Latvia choose to reject devaluation in favor of the Euro (Peg) + Most meet the eurozone criteria = Cut public sector wages by 30% + Driving down overall wage levels and consumption to match its low labor productivity. = “OPPOSITE THEORY” = THAT AUSTERITY SHOCK THERAPY + POVERTY = PROSPERITY (YES FOR BANKSTERS AND CROOKS + BOND TRADERS GETTING BAILED OUT).

Latvia MADE TO LOOK GOOD BY LOANS FROM EU and IMF bailouts of BANKSTERS = NOW THE PEOPLE MOST PAYOFF THESE LOAN DEBTS that fall due. = Went from Low public sector debt of 9% of GDP to MUCH HIGHER AFTER BANKSTER BAILOUTS DEBT.

Latvia’s main problem = Mostly private sector debt = Mostly Mortgage Debt FROM GREEDY RECKLESS BANKSTER CAUSED INFLATED HOUSING BUBBLE = Massive property + Entire families of joint DEBTS (signatories). BANKSTER insurance agency insisted on BACKUP SIGNATORIES TO RUIN ENTIRE FAMILIES TO PROTECT BANKSTER CRIMINALS AND THEIR SCAMS.

LATVIAN PEOPLE = HATE AUSTERITY + PAYING BANKSTER BAILOUT DEBTS = SINGLE DIGIT APPROVAL OF PARLIAMENT

ADMINISTRATION STAYS IN POWER USING DIVIDE AND CONQUER (D&Q) = ETHNIC POLITICS = RUSSIAN SPEAKING PEOPLE VERSUS EXPLOITING OLIGARCH SCAMMERS VERSUS AUSTERITY FREAKS = “AUSTERITY FREAKS” WON IN THIS D&Q GAME USING ANTI-RUSSIAN SENTIMENT.

Latvians = 10,000 Protested against austerity in January 2009 in the dead of winter + Teachers, nurses and farmers did demonstrations of their own. = Police Suppressed the protesters = THEN 200,000 Latvians (10%) resigned themselves to emigrate = At an accelerating rate that reflects the austerity being inflicted.

AUSTERITY FAILURE = LOSS OF 10% OF POPULATION LEAVING COUNTRY = ZERO ECONOMIC SUCCESS WITH AUSTERITY! + Birth rates fell during the crisis – as is the case almost everywhere austerity programs are imposed. = Europe’s highest rates of suicide + Road deaths caused by drunk driving. + Crime is high with prolonged unemployment + Police budget cuts. + POORER Education = Soaring brain drain alongside blue-collar emigration.

FACT = AUSTERITY IS MASSIVE FAILURE IN LATVIA + GREECE = 10+% EXODUS OF PEOPLE AND TALENT AND YOUTH = OLD PEOPLE REMAIN

AUSTERITY = RESULTS IN ELDERLY POORLY ORGANIZED LABOR FORCE UNDER BLIND “FREE-MARKET” SCAMMING OF BANKSTERS AND OTHER WHITE-COLAR CRIMINALS + BANKSTER OWNED CENTRAL PLANNERS.

FACT = D&Q Ethnic divisions can distract voters from PAIN OF AUSTERITY + ETHNIC FEAR = MOTIVATE VOTERS TO VOTE AGAINST THEIR OWN BEST INTERESTS