Anti-Austerity Protests Grow in Europe

By PATRICK DONAHUE | BLOOMBERG | APRIL 30, 2012

A recession in Spain and forecasts of rising unemployment in the 17-nation euro area are amplifying criticism of the German-led austerity agenda in election campaigns this week in France and Greece.

With Spain’s largest unions leading marches involving thousands of protesters in 55 cities yesterday, Prime Minister Mariano Rajoy’s government battled to prevent Spain from becoming the next country to seek a bailout. In France, where the presidential-election runoff is set for May 6, Socialist frontrunner Francois Hollande pushed back against German Chancellor Angela Merkel’s focus on deficit reduction.

“Watching Spain now is exactly like watching Ireland around October 2010 before Ireland was forced into its bailout,” Megan Greene, a senior economist at Roubini Global Economics LLC, told Bloomberg Television’s “Street Smart” on April 27. “The government can’t win no matter what it does.”

Spain’s economy shrank in the first quarter as the nation officially entered its second recession since 2009. Gross domestic product contracted 0.3 percent. Joblessness in the euro area probably to rose to 10.9 percent last month, the highest since 1997, according to economists surveyed by Bloomberg.

As Spanish joblessness reached almost one in four of the working-age population, Hollande demanded that euro-area leaders move to promoting growth from cutting budgets, as agreed by 25 European governments in the so-called fiscal pact. Merkel drew the line at re-opening talks on the fiscal treaty, though she said growth could be boosted with labor-market reform and European Union funding.

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Economic Dispair Makes Suicide Rate Explode in Greece

By ERIK KIRSCHBAUM | REUTERS | APRIL 28, 2012

On Monday, a 38-year-old geology lecturer hanged himself from a lamp post in Athens and on the same day a 35-year-old priest jumped to his death off his balcony in northern Greece. On Wednesday, a 23-year-old student shot himself in the head.

In a country that has had one of the lowest suicide rates in the world, a surge in the number of suicides in the wake of an economic crisis has shocked and gripped the Mediterranean nation – and its media – before a May 6 election.

The especially grisly death of pharmacist Dimitris Christoulas, who shot himself in the head on a central Athens square because of poverty brought on by the crisis that has put millions out of work, was by far the most dramatic.

Before shooting himself during morning rush hour on April 4 on Syntagma Square across from the Greek parliament building, the 77-year-old pensioner took a moment to jot down a note.

“I see no other solution than this dignified end to my life so I don’t find myself fishing through garbage cans for sustenance,” wrote Christoulas, who has since become a national symbol of the austerity-induced pain that is squeezing millions.

Greek media have since reported similar suicides almost daily, worsening a sense of gloom going into next week’s election, called after Prime Minister Lucas Papademos’s interim government completed its mandate to secure a new rescue deal from foreign creditors by cutting spending further.

Some medical experts say this form of political suicide is a reflection of the growing despair and sense of helplessness many feel. But others warn the media may be amplifying the crisis mood with its coverage and numbers may only be up slightly.

“The crisis has triggered a growing sense of guilt, a loss of self-esteem and humiliation for many Greeks,” Nikos Sideris, a leading psychoanalyst and author in Athens, told Reuters.

“Greek people don’t want to be a burden to anyone and there’s this growing sense of helplessness. Some develop an attitude of self-hatred and that leads to self-destruction. That’s what’s behind the increase in suicide and attempted suicide. We’re seeing a whole new category: political suicides.”

Police said the geology lecturer, Nikos Polyvos, who hanged himself, was distraught because a teaching job offer had been blocked due to a blanket hiring freeze in the public sector.

NATION IN SHOCK

Experts say the numbers are relatively low – less than about 600 per year. But increases in suicides, attempted suicides, the use of anti-depressant medication and the need for psychiatric care are causing alarm in a nation unaccustomed to the problems.

Before the financial crisis began wreaking havoc in 2009, Greece had one of the lowest suicide rates in the world – 2.8 per 100,000 inhabitants. There was a 40 percent rise in suicides in the first half of 2010, according to the Health Ministry.

There are no reliable statistics on 2011 but experts say Greece’s suicide rate has probably doubled to about 5 per 100,000. That is still far below levels of 34 per 100,000 seen in Finland or 9 per 100,000 in Germany. Attempted suicides and demand for psychiatric help has risen as Greece struggles to cope with the worst economic crisis since World War Two.

Nikiforos Angelopoulos, a professor of psychiatry, has a busy psychotherapy practice in an upmarket Athens neighborhood. He said the crisis has exacerbated the problems for some already less stable people and estimates that about five percent of his patients have developed problems due to the crisis.

“We’re a nation in shock,” he said, even though he suspected that it was the media coverage of suicides that had increased dramatically rather than the actual numbers of suicides. He nevertheless says the crisis is behind a notable rise in mental health problems in Greece.

“I had one patient who came in with a severe depression – he owns a furniture making company that got into financial trouble and he had to lay off 20 of his 100 workers,” he said. “He couldn’t sleep and couldn’t eat because of that. He said his good business was being ruined and he couldn’t cope anymore.”

The furniture maker spent four months in therapy and was also helped by anti-depressants, Angelopoulos said.

“He’s better now. He realized what happened just happened. But there are many others who are unstable or psychotic to begin with and the crisis is increasing their anxiety and insecurity.”

Angelopoulos, 60, has also suffered himself because about 20 percent of his patients can no longer afford his 100 euro ($130) per hour sessions. Some have asked for a half-price discount while others tell him they simply can’t afford to pay anything.

“I never turn people away,” he said. “If a patient says to me ‘I have no money’, I couldn’t tell them to go away. I tell them okay you don’t have to pay now but remember me later.”

HAPPY GREEKS?

There are several possible explanations for Greece’s low suicide rate that go beyond the fact that the country has an abundance of sunshine and balmy weather.

To avoid stigmatizing their families, some suicidal Greeks deliberately crash their cars, which police often charitably report as accidents. Families often try to cover up a suicide so their loved ones can be buried because the Greek Orthodox church refuses to officiate at burials of people who commit suicide.

Another important factor behind the low suicide rate is that Greeks have extremely close knit families as well as a highly communicative and expressive culture.

“Greece is a country where everyone will talk to you,” said Sideris, the Athens psychoanalyst. “You’ll always find someone to share your suffering with and someone’s always there to help.

“It’s not only the good weather. It’s the powerful network of support that has made the suicide rate in Greece so low. It’s still there but this crisis is still too much for some people.”

Many Greeks have also not lost their sense of humor.

Dimitris Nikolopoulos, a 37-year-old salesman, laughed at the idea that the suicide rate was so low because Greeks are well-adjusted and a generally happy people.

“Greeks used to be very happy people because we were living off money that didn’t belong to us,” he said with a wry smile. “But sometimes you have to face reality. It wasn’t our money.”

Eastern Mediterranean Floating on Oil and Gas Riches

by William Engdahl
Boiling Frogs
March 6, 2012

The discovery in late 2010 of the huge natural gas bonanza off Israel’s Mediterranean shores triggered other neighboring countries to look more closely at their own waters. The results revealed that the entire eastern Mediterranean is swimming in huge untapped oil and gas reserves. That discovery is having enormous political, geopolitical as well as economic consequences. It well may have potential military consequences too.

Preliminary exploration has confirmed similarly impressive reserves of gas and oil in the waters off Greece, Turkey, Cyprus and potentially, Syria.

Greek ‘energy Sirtaki’

Not surprisingly, amid its disastrous financial crisis the Greek government began serious exploration for oil and gas. Since then the country has been in a curious kind of a dance with the IMF and EU governments, a kind of “energy Sirtaki” over who will control and ultimately benefit from the huge resource discoveries there.

In December 2010, as it seemed the Greek crisis might still be resolved without the by-now huge bailouts or privatizations, Greece’s Energy Ministry formed a special group of experts to research the prospects for oil and gas in Greek waters. Greece’s Energean Oil & Gas began increased investment into drilling in the offshore waters after a successful smaller oil discovery in 2009. Major geological surveys were made. Preliminary estimates now are that total offshore oil in Greek waters exceeds 22 billion barrels in the Ionian Sea off western Greece and some 4 billion barrels in the northern Aegean Sea.[1]

The southern Aegean Sea and Cretan Sea are yet to be explored, so the numbers could be significantly higher. An earlier Greek National Council for Energy Policy report stated that “Greece is one of the least explored countries in Europe regarding hydrocarbon (oil and gas-w.e.) potentials.”[2] According to one Greek analyst, Aristotle Vassilakis, “surveys already done that have measured the amount of natural gas estimate it to reach some nine trillion dollars.” [3] Even if only a fraction of that is available, it would transform the finances of Greece and the entire region.

Tulane University oil expert David Hynes told an audience in Athens recently that Greece could potentially solve its entire public debt crisis through development of its new-found gas and oil. He conservatively estimates that exploitation of the reserves already discovered could bring the country more than €302 billion over 25 years. The Greek government instead has just been forced to agree to huge government layoffs, wage cuts and pension cuts to get access to a second EU and IMF loan that will only drive the country deeper into an economic decline. [4]

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Europe is Pouring Money into the Banker’s Bottomless Pockets

SpiegelOnline
February 28, 2012

A German minister has broken with the official government line by saying Greece should be encouraged to quit the euro. The comment, made to SPIEGEL, comes ahead of Monday’s parliamentary vote on the second bailout. Some newspapers, including the tabloid Bild, agree that it’s time for Greece to leave.

Monday’s German parliamentary vote on the second bailout package for Greece has been overshadowed by a rift within Chancellor Angela Merkel’s center-right coalition about the wisdom of granting fresh aid, with Interior Minister Hans-Peter Friedrich saying Greece should be encouraged to leave the euro.

In an interview with SPIEGEL published on Monday, Friedrich said: “Greece’s chances to regenerate itself and become competitive are surely greater outside the monetary union than if it remains in the euro area.” He added that he did not support a forced exit. “I’m not talking about throwing Greece out, but rather about creating incentives for an exit that they can’t pass up.” It was the first time a member of the German government called on Greece to leave the currency.

An opinion poll published in Bild am Sonntag newspaper on Sunday showed a majority of Germans agrees with Friedrich, a member of the Christian Social Union (CSU), the Bavarian sister party to Merkel’s conservative Christian Democratic Union.

According to the survey conducted by pollster Emnid, 62 percent said they wanted parliament to vote “no” on Monday afternoon. Only 33 percent were in favor. Almost two-thirds said they were convinced that Greece can’t be rescued from state bankruptcy. The parliament is all but certain to back the €130 billion ($175 billion) package because the opposition Social Democrats and Greens have said they will side with the coalition and vote in favor of the aid.

Friedrich’s comment brought him criticism from his coalition partners as well as the opposition.

Foreign Minister Guido Westerwelle, a member of the pro-business Free Democratic Party (FDP), the junior partner in Merkel’s coalition, told the newspaper Die Welt on Monday: “I don’t understand the political speculation about a Greece outside the euro zone. What has been negotiated and agreed should apply, on both sides.”

The parliamentary group leader of the opposition Green Party, Jürgen Trittin, described Fredrich’s comments as “absurd” and called on Merkel to restore order in her ranks. “I ask myself how much longer the chancellor wants to keep on watching the goings-on in her coalition,” he told the public radio station Deutschlandfunk.

“It’s a difficult matter and no one knows if it will succeed,” said Trittin, referring to the bailout. “But if we don’t take this step today, failure is guaranteed.”

The Social Democrats issued a statemented saying: “The CSU is completely out of control.”

German media commentators are divided on Greece. But the mass-circulation Bild newspaper, a reliable barometer of German public sentiment, comes out strongly against it on Monday. It runs the banner headline “STOP!” on its front page and appeals to German lawmakers not to pass the bailout. It also features short statements from leading German economists saying the fresh aid won’t solve Greece’s problems and calling for the country to leave the euro.

In an editorial, Bild writes:

“Against its better judgment, Europe is pouring money into a bottomless barrel. Europe can only master this crisis if it does what most experts have long been demanding. The Greek economy can only become competitive and resume growth with its own currency — not with the strong euro. Continuing with the old recipes won’t work. That is why today’s parliamentary vote will be bad for Greece, bad for Germany and bad for Europe.”

The left-wing Berliner Zeitung writes:

“Let’s remain realistic. Greece won’t manage to get back on its feet even with the second bailout package. The planned debt cut won’t be enough, the reforms aren’t getting underway and the country is breaking down under the weight of the austerity programs. Even Finance Minister Wolfgang Schäuble doesn’t rule out that new bailout packages will be needed soon. Greece lacks an important instrument for restoring its health: it’s own currency. If Athens had one, the country could devalue its money in order to become cheaper in the world market. A weak currency can work like a huge economic stimulus program.”

“A Greek exit from the euro zone would not end the EU’s solidarity with Greece. That’s because Greece could still count on help from its EU partners. The rescue could end up being cheaper and — far more importantly — less painful for the Greeks.”

The conservatve Frankfurter Allgemeine Zeitung writes:

“If Greece quits, it will fall back 12 years into the year 2000 — and how many years would the other members of the euro zone go back in time? They would deliver three-fold proof that they’re firstly not capable of objectively assessing a country’s application to join (which would make any future expansion of the euro zone questionable), secondly that they’re incapable of even getting a small partner through (let alone a slightly bigger country one day) and thirdly that they can’t make the realization of their political visions irreversible.

“This wouldn’t just cause Schadenfreude among the global competitors but raise the question wether membership of the EU itself is final or if it wouldn’t be wise for some countries to orientate themselves elsewhere such as Moscow or Tehran.

“And once the permanence of the EU has been rocked to its foundations, this part of the world wouldn’t fall back to 2011 or 2001 but to the years 1991, 1981 or even further back.”

Documents Detail a March 23 Greek Default Plan

Government to Freeze Bank Accounts, Eliminate Euro, Restrict Capital Flow

by Mac Slavo
SHTFPlan.com
February 16, 2012

That a default in Europe is coming has never been the question. For the astute observer the only thing at issue is how and when it will happen.  While the mainstream financial media and government officials have tried to spin this story as one that involves only Greek debt, the fact of the matter is that this isn’t isolated to a single country. Italy, Portugal, Ireland and most other European countries are in exactly the same boat.

Despite all of the propaganda and machinations from leading financial powers like the United States, Germany, and France, it’s should be clear that there is no viable solution to the debt debacle facing Europe. As such, we should understand that a situation similar to what led to the Great Depression of the 1930′s is now unfolding once again. The ability of entire nations to pay off their debt is now in question, and given the sheer size of the numbers we’re talking about, any reasonable person could agree that there is simply no plausible resolution that will make all parties whole again.

This has been playing out in Greece for nearly three years, and we may very well be just weeks away from the dreaded moment when it finally becomes official. An exclusive report detailing internal bank documents from two major Wall Street players says that we may have much less time than we think as insiders prepare for a financial doomsday next month.

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