Europe Anti-Austerity Rallies Turn Ugly

Source: PressTV

Police forces have clashed with anti-austerity protesters in Spain, Greece, and Romania, arresting several activists and injuring many others.

During the latest such protests in Spain, police scuffled with demonstrators in the capital Madrid on Sunday, detaining three people and wounding several others.

Scuffles broke out when 'indignant' Spaniards gathered at a Madrid subway station to protest against rises in the cost of public transportation. Dozens of protesters entered the station and refused to pay, shouting slogans such as “I don't pay for your crisis.”

In the Greek capital Athens, riot police attacked around 2,000 demonstrators protesting against job cuts outside parliament, before detaining three and injuring one.

The demonstrators say Athens has failed to decrease its debt, despite massive lay-offs. Last year, the Greek government cut 10,000 jobs and announced plans for further lay-offs in 2012.

Clashes between riot police and demonstrators have also erupted in the Romanian capital Bucharest for a third day in a row.

At least seven people, including a number of police officers, were injured in the confrontations.

The demonstrators chanted slogans against President Traian Basescu, whom they blame for the country's falling living standards, and called on him to step down.

The demonstrations originally started on Thursday in a show of support for Deputy Health Minister Raed Arafat, who resigned earlier in the week, and as a protest against a pension freeze and a 25 percent cut in public sector wages approved by Romania's center-right government in July 2010.

Arafat, a doctor born in Palestine, had harshly criticized a draft healthcare reform bill and entered a dispute with the president, who is a main supporter of the potential law.

Bankers have seized Europe: Goldman Sachs Has Taken Over

Source: Global Research
Paul Craig Roberts

On November 25, two days after a failed German government bond auction in which Germany was unable to sell 35% of its offerings of 10-year bonds, the German finance minister, Wolfgang Schaeuble said that Germany might retreat from its demands that the private banks that hold the troubled sovereign debt from Greece, Italy, and Spain must accept part of the cost of their bailout by writing off some of the debt. The private banks want to avoid any losses either by forcing the Greek, Italian, and Spanish governments to make good on the bonds by imposing extreme austerity on their citizens, or by having the European Central Bank print euros with which to buy the sovereign debt from the private banks. Printing money to make good on debt is contrary to the ECB’s charter and especially frightens Germans, because of the Weimar experience with hyperinflation. 

 

Obviously, the German government got the message from the orchestrated failed bond auction. As I wrote at the time, there is no reason for Germany, with its relatively low debt to GDP ratio compared to the troubled countries, not to be able to sell its bonds.

If Germany’s creditworthiness is in doubt, how can Germany be expected to bail out other countries?  Evidence that Germany’s failed bond auction was orchestrated is provided by troubled Italy’s successful bond auction two days later.

Strange, isn’t it. Italy, the largest EU country that requires a bailout of its debt, can still sell its bonds, but Germany, which requires no bailout and which is expected to bear a disproportionate cost of Italy’s, Greece’s and Spain’s bailout, could not sell its bonds.

In my opinion, the failed German bond auction was orchestrated by the US Treasury, by the European Central Bank and EU authorities, and by the private banks that own the troubled sovereign debt. 

My opinion is based on the following facts. Goldman Sachs and US banks have guaranteed perhaps one trillion dollars or more of European sovereign debt by selling swaps or insurance against which they have not reserved. The fees the US banks received for guaranteeing the values of European sovereign debt instruments simply went into profits and executive bonuses. This, of course, is what ruined the American insurance giant, AIG, leading to the TARP bailout at US taxpayer expense and Goldman Sachs’ enormous profits.