Opinion (Paul Krugman, Nobel Prize winning economist): “The 130-billion euro aid will not save Athens from default, and ultimately Greece will have no choice but to leave the EU. Politicians are not paving the road for exiting the crisis, but leading the EU to the collapse.

“’Europe is a major threat not only to the US, but the entire world economy. A total failure of European politicians to develop a comprehensive anti-crisis solution… is evident.’

“‘The strategy of cutting back on spending during the crisis does not help.

“‘There is a widespread misconception that a time of saving is suitable for structural reforms because the transformation will make more people unemployed. Structural reforms must be carried out at a time of prosperity of the economy. The Lost Decade in Europe is the end of the EU story that simply will not survive such a weak growth.

“‘The crisis heats up society. The “Arab Spring” can spread around the world, or on the opposite, there might be a slant towards authoritarian regimes, like it happened in Hungary. The example of Hungary is a possible scenario for Europe, and it is very scary. The world is now in the state like in 1934, and the economic crisis creates high political volatility. … I have never seen such uncertainty. Any turn of events is possible in social order.”

My Comment: Again, he advocates expanding the economy, rather than bringing it to a reasonable size, and strengthening the consumer society, rather than against it. The EU will disappear not due to the lack of growth, but due to the lack of unity because it is not the EU by concept. And as for the possibilities of the Nazi regimes in the EU countries, Baal HaSulam wrote about it in his newspaper “The Nation (HaUma)” 70 years ago.
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