“We are living through a time where we face an enormous economic challenge,” Krugman told Russia Today (RT). “We are facing — obviously — the worst challenge in 80 years and we are totally mucking up the response.”
Traders of German Bunds and U.S. Treasuries agree and have sold PIIGS paper for other paper higher up on the food chain.
As a result, rates on Bunds and Treasuries have reached record-low levels Wednesday of 1.59 and 1.23 percent, respectively—levels that Dan Norcini of Jim Sinclair’s JSMineset.com said signals a Lehman-times-10 event around the corner. With Spain’s 10-year note spread higher by 520 basis points more than the yield on 10-year Bunds, a near-record level as well as depositors decidedly motioning into a trotting bank run on Spanish banks, Europe is again on the slippery slope to doom.
Krugman blames policymakers for the impending crash, fearing a replay of Nazi Germany as a result of a radical drop in standards of living on both sides of the Atlantic due to Germany’s (NYSEARCA:EWG) refusal to inflate the euro (NYSEARCA:FXE).
“We’re doing a terrible job. We’re failing to deal with it,” Krugman added. “All of the people, the respectable people, the serious people, have made a total hash of this. That is a recipe for radicalism. It is a recipe for breakdown.”
Forcing nations to swallow austerity contributed greatly to the rise of the Third Reich following severe reparations exacted upon Germany post-WWI—a mistake Krugman doesn’t forthrightly say in the RT interview, but may be inferred by his Jewishness, gleaned through numerous posts on his NYTimes Web blog and attributed to his notorious allegiance to a failed monetary system under intense fire from people of all nations affected by the crisis.
For the first time since the creation of the Fed, for example, the majority of Americans now understand that the Fed is not a public institution, but an independent one. “End the Fed” is almost as common a slogan today as “End the War in Vietnam” was during the presidency of Richard Nixon (1969-1975).
In Europe (NYSEARCA:VGK), at the tip of the spear between the Brussels globalists (by the American proxy, the Fed) and the people of Europe is Germany, where the political heat of rising nationalism and scapegoating of Arab and Turk immigrants, in particular, has emerged and reported by international press.
“No other religion in Europe makes so many demands. No immigrant group other than Muslims is so strongly connected with claims on the welfare state and crime,” best-selling author, former German politician and Bundesbank board member, Thilo Sarrazin, stated in German cultural quarterly Lettre Internationat of Sept. 2009. “No group emphasizes their differences so strongly in public, especially through women’s clothing. In no other religion is the transition to violence, dictatorship and terrorism so fluid.”
And, May 21, 2012, Israel Business published a Reuters article about Sarrazin’s newly released book, Europe Doesn’t Need the Euro, within which, he argued that Germany is being blackmailed by the EU to bailout the PIIGS to make further reparations for WWII.
Germany’s globalists “are driven by that very German reflex, that we can only finally atone for the Holocaust and World War II when we have put all our interests and money into European hands,” he stated in his book.
Germany’s initial bailout of Greece shows Germany’s “susceptibility to blackmail”, Sarrazin wrote, suggesting that crimes committed by the Nazi Party will be asked to be repeatedly atoned.
“This politics is turning Germany into a hostage of all those in the euro zone who may in the future, for whatever reason, need help,” he stated.
Krugman believes the West may have reached a tipping point, not only in the sovereign debt crisis, but in the social order, as well.
“There are a lot of ugly forces being unleashed in our societies on both sides of the Atlantic because our economic policy has been such a dismal failure, because we are refusing to listen to the lessons of history,” he told RT. “We may look back at this thirty years from now and say, ‘That is when it all fell apart.’ And by all, I don’t just mean the economy.”
Related: Vanguard European ETF (NYSEARCA:VGK), ProShares UltraShort Euro ETF (NYSEARCA:EUO), CurrencyShares Euro Trust (NYSEARCA:FXE), Vanguard MSCI Emerging Markets ETF(NYSEARCA:VWO), iShares MSCI Germany Index (NYSEARCA:EWG).
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