Thursday, January 14, 2016

Will the European Union become a European Disunion?

ISIS has claimed responsibility for the Paris style attack in Jakarta in Indonesia yesterday, giving a taste of what to expect for the rest of 2016. ISIS has a research facility in which its scientists are inventing new systems to make heat seeking missiles and remote controlled car bombs. The US is in suspended animation, waiting for a new president to be sworn in next year. Till then hundreds of crucial posts in the administration will remain vacant as a hostile Congress refuses to confirm anyone nominated by Obama. The World Bank has cut growth estimate for this year from 3.3% to 2.9%. That is provided there is no major war or a natural calamity such as Fukushima. Legendary investor, George Soros is warning of a 2008 like crisis. The Royal Bank of Scotland advised investors to sell everything. There are risks everywhere, but it is Europe, which is quietly simmering away in the background, that could provide the biggest headaches. Greece could yet be thrown out of the Euro, Britain could exit the EU and increasing numbers of migrants could lead to the end of the Schengen agreement. European countries want Germany, the largest economy in Europe, to lead, but at the same time politicians do not want to be told what to do because they have domestic electorates to pander to. Germany is still suffering a guilt complex dating back to the Nazi era, which it blames on the hyperinflation in 1922-23, so is reluctant to assume leadership, while imposing austerity on highly indebted countries. It is the migrant crisis, on top of economic slowdown, that could cause real political problems in Europe. There is apparently an Arabic word for gang-rape, which is 'Taharrush', which is being heard in Europe. Over 500 women were sexually attacked in Cologne in New Year's Eve celebrations. Police in Sweden covered up sexual attacks by under-age migrants because of fear of reprisals. A girl of 17 is raped at a swimming pool in Munich and her 14-year-old sister sexually assaulted. A three-year-old boy is raped by multiple people in an asylum centre in Norway. Stories like these have led to revenge attacks on kebab shops in Leipzig, as anger grows against all immigrants. Firearm sales in Austria have increased by 350%. " Europe needs more cooperation, integration, risk-sharing and solidarity. Instead, Europeans appear to be embracing nationalism, Balkanization, divergence and disintegration," writes Prof Roubini. Exactly. Nationalism is born of politically correct fanatics. Opposite poles.

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