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Award winning author and economist Tomas Piketty calls out Greek crisis hypocrisy, ‘Germany has never repaid its debts’

Tomas Piketty, “What a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations.”

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Post originally appeared on Zerohedge.

One year after Tomas Piketty sold a record number of economic textbook paperweights which virtually nobody read past page 26, once again showing the power of constant media hype, the French economist and wealth redistributor is out and about, this time pouring more gasoline on the fire started by the IMF last week when it released the Greek debt sustainability analysis showing Greece needs a 30% haircut, only to be met with stern resistance by, who else, Germany who know very well that should Greece get a debt haircut it will unleash the European dominoes which not even all the bluster and rhetoric of the ECB can halt.

And while Piketty’s book may have sold out in socialist France, it seems Germany did not leave a pleasant taste in the celebrity economist’s mouth, and in an interview with Germany’s Zeit magazine, translated into English, the Frenchman just made sure he will never sell another book east of the Rhine. Here is the reason why:

When I hear the Germans say that they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations.

… Germany is really the single best example of a country that, throughout its history, has never repaid its external debt. Neither after the First nor the Second World War.However, it has frequently made other nations pay up, such as after the Franco-Prussian War of 1870, when it demanded massive reparations from France and indeed received them. The French state suffered for decades under this debt. The history of public debt is full of irony. It rarely follows our ideas of order and justice.

What he said is perfectly factual and accurate, but in the new normal, truth is not a welcome commodity, especially when it pulls the scab on the single biggest problem with the modern economy, namely the gargantuan debt overhang (see Greece) which nobody can possibly default on without triggering massive contagion around the globe and thus leaving (hyper)inflation as the only possible way out.

A good question is whether this philosophical contrast exposed by Piketty is also indicative of the fundamental schism that is appearing not only within the Troika, where the IMF effectively won Tsipras’ referendum for him, but also within the Eurogroup, where Germany may soon find itself increasingly isolated as not only peripheral countries but soon France start clamoring for debt haircuts not only abroad but also back at home…

Full interview:

Thomas Piketty: “Germany has never repaid.”

In a forceful interview with German newspaper Die Zeit, the star economist Thomas Piketty calls for a major conference on debt. Germany, in particular, should not withhold help from Greece. This interview has been translated from the original German.

Since his successful book, “Capital in the Twenty-First Century,” the Frenchman Thomas Piketty has been considered one of the most influential economists in the world. His argument for the redistribution of income and wealth launched a worldwide discussion. In a interview with Georg Blume of DIE ZEIT, he gives his clear opinions on the European debt debate.

DIE ZEIT: Should we Germans be happy that even the French government is aligned with the German dogma of austerity?

Thomas Piketty: Absolutely not. This is neither a reason for France, nor Germany, and especially not for Europe, to be happy. I am much more afraid that the conservatives, especially in Germany, are about to destroy Europe and the European idea, all because of their shocking ignorance of history.

ZEIT: But we Germans have already reckoned with our own history.

Piketty: But not when it comes to repaying debts! Germany’s past, in this respect, should be of great significance to today’s Germans. Look at the history of national debt: Great Britain, Germany, and France were all once in the situation of today’s Greece, and in fact had been far more indebted. The first lesson that we can take from the history of government debt is that we are not facing a brand new problem. There have been many ways to repay debts, and not just one, which is what Berlin and Paris would have the Greeks believe.

ZEIT: But shouldn’t they repay their debts?

Piketty: My book recounts the history of income and wealth, including that of nations. What struck me while I was writing is that Germany is really the single best example of a country that, throughout its history, has never repaid its external debt. Neither after the First nor the Second World War. However, it has frequently made other nations pay up, such as after the Franco-Prussian War of 1870, when it demanded massive reparations from France and indeed received them. The French state suffered for decades under this debt. The history of public debt is full of irony. It rarely follows our ideas of order and justice.

ZEIT: But surely we can’t draw the conclusion that we can do no better today?

Piketty: When I hear the Germans say that they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations.

ZEIT: Are you trying to depict states that don’t pay back their debts as winners?

Piketty: Germany is just such a state. But wait: history shows us two ways for an indebted state to leave delinquency. One was demonstrated by the British Empire in the 19th century after its expensive wars with Napoleon. It is the slow method that is now being recommended to Greece. The Empire repaid its debts through strict budgetary discipline. This worked, but it took an extremely long time. For over 100 years, the British gave up two to three percent of their economy to repay its debts, which was more than they spent on schools and education. That didn’t have to happen, and it shouldn’t happen today. The second method is much faster. Germany proved it in the 20th century. Essentially, it consists of three components: inflation, a special tax on private wealth, and debt relief.

ZEIT: So you’re telling us that the German Wirtschaftswunder [“economic miracle”] was based on the same kind of debt relief that we deny Greece today?

Piketty: Exactly. After the war ended in 1945, Germany’s debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece. Instead, both of our states employed the second method with the three components that I mentioned, including debt relief. Think about the London Debt Agreement of 1953, where 60% of German foreign debt was cancelled and its internal debts were restructured.

ZEIT: That happened because people recognized that the high reparations demanded of Germany after World War I were one of the causes of the Second World War. People wanted to forgive Germany’s sins this time!

Piketty: Nonsense! This had nothing to do with moral clarity; it was a rational political and economic decision. They correctly recognized that, after large crises that created huge debt loads, at some point people need to look toward the future. We cannot demand that new generations must pay for decades for the mistakes of their parents. The Greeks have, without a doubt, made big mistakes. Until 2009, the government in Athens forged its books. But despite this, the younger generation of Greeks carries no more responsibility for the mistakes of its elders than the younger generation of Germans did in the 1950s and 1960s. We need to look ahead. Europe was founded on debt forgiveness and investment in the future. Not on the idea of endless penance. We need to remember this.

ZEIT: The end of the Second World War was a breakdown of civilization. Europe was a killing field. Today is different.

Piketty: To deny the historical parallels to the postwar period would be wrong. Let’s think about the financial crisis of 2008/2009. This wasn’t just any crisis. It was the biggest financial crisis since 1929. So the comparison is quite valid. This is equally true for the Greek economy: between 2009 and 2015, its GDP has fallen by 25%. This is comparable to the recessions in Germany and France between 1929 and 1935.

ZEIT: Many Germans believe that the Greeks still have not recognized their mistakes and want to continue their free-spending ways.

Piketty: If we had told you Germans in the 1950s that you have not properly recognized your failures, you would still be repaying your debts. Luckily, we were more intelligent than that.

ZEIT: The German Minister of Finance, on the other hand, seems to believe that a Greek exit from the Eurozone could foster greater unity within Europe.

Piketty: If we start kicking states out, then the crisis of confidence in which the Eurozone finds itself today will only worsen. Financial markets will immediately turn on the next country. This would be the beginning of a long, drawn-out period of agony, in whose grasp we risk sacrificing Europe’s social model, its democracy, indeed its civilization on the altar of a conservative, irrational austerity policy.

ZEIT: Do you believe that we Germans aren’t generous enough?

Piketty: What are you talking about? Generous? Currently, Germany is profiting from Greece as it extends loans at comparatively high interest rates.

ZEIT: What solution would you suggest for this crisis?

Piketty: We need a conference on all of Europe’s debts, just like after World War II. A restructuring of all debt, not just in Greece but in several European countries, is inevitable. Just now, we’ve lost six months in the completely intransparent negotiations with Athens. The Eurogroup’s notion that Greece will reach a budgetary surplus of 4% of GDP and will pay back its debts within 30 to 40 years is still on the table. Allegedly, they will reach one percent surplus in 2015, then two percent in 2016, and three and a half percent in 2017. Completely ridiculous! This will never happen. Yet we keep postponing the necessary debate until the cows come home.

ZEIT: And what would happen after the major debt cuts?

Piketty: A new European institution would be required to determine the maximum allowable budget deficit in order to prevent the regrowth of debt. For example, this could be a commmittee in the European Parliament consisting of legislators from national parliaments. Budgetary decisions should not be off-limits to legislatures. To undermine European democracy, which is what Germany is doing today by insisting that states remain in penury under mechanisms that Berlin itself is muscling through, is a grievous mistake.

ZEIT: Your president, François Hollande, recently failed to criticize the fiscal pact.

Piketty: This does not improve anything. If, in past years, decisions in Europe had been reached in more democratic ways, the current austerity policy in Europe would be less strict.

ZEIT: But no political party in France is participating. National sovereignty is considered holy.

Piketty: Indeed, in Germany many more people are entertaining thoughts of reestablishing European democracy, in contrast to France with its countless believers in sovereignty. What’s more, our president still portrays himself as a prisoner of the failed 2005 referendum on a European Constitution, which failed in France. François Hollande does not understand that a lot has changed because of the financial crisis. We have to overcome our own national egoism.

ZEIT: What sort of national egoism do you see in Germany?

Piketty: I think that Germany was greatly shaped by its reunification. It was long feared that it would lead to economic stagnation. But then reunification turned out to be a great success thanks to a functioning social safety net and an intact industrial sector. Meanwhile, Germany has become so proud of its success that it dispenses lectures to all other countries. This is a little infantile. Of course, I understand how important the successful reunification was to the personal history of Chancellor Angela Merkel. But now Germany has to rethink things. Otherwise, its position on the debt crisis will be a grave danger to Europe.

ZEIT: What advice do you have for the Chancellor?

Piketty: Those who want to chase Greece out of the Eurozone today will end up on the trash heap of history. If the Chancellor wants to secure her place in the history books, just like [Helmut] Kohl did during reunification, then she must forge a solution to the Greek question, including a debt conference where we can start with a clean slate. But with renewed, much stronger fiscal discipline.

This interview was translated by Gavin Schalliol.

References:

http://www.zerohedge.com/news/2015-07-06/piketty-germany-has-never-repaid-its-debts-it-has-no-standing-lecture-other-nations

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Roman Catholic priest removed from parish for burning LGBT flag

Priest’s removal ordered by his bishop, alleging the priest was mentally ill.

Seraphim Hanisch

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Fox News reported that a Roman Catholic priest was removed from his post in a Chicago neighborhood by his cardinal (bishop) and sent away for “pastoral support” for burning an LGBT “rainbow flag”, after reciting a prayer of exorcism.

The original newspiece, by Mitchell Armentrout of The Chicago Sun-Timeshas this to say:

The priest who ignited controversy last week by burning an LGBTQ-friendly flag on church grounds against the orders of Cardinal Blase Cupich has been removed from his Avondale parish.

Cupich sent two of his top deputies to Resurrection Catholic Church on Friday to notify the Rev. Paul Kalchik that he was being removed as pastor, according to two sources close to the priest.

In a letter to parishioners and staff released Saturday evening by the Archdiocese of Chicago, Cupich wrote that he has “become increasingly concerned about a number of issues at Resurrection Parish.

“It has become clear to me that Fr. Kalchik must take time away from the parish to receive pastoral support so his needs can be assessed,” Cupich wrote.

Kalchik could not immediately be reached for comment.

According to the sources, Kalchik and his elderly parents have received death threats since he defied Cupich on Sept. 14 by burning the banner, which featured a cross superimposed over a rainbow. There also have been threats of vandalism to the church, the sources said.

Kalchik told the Sun-Times during an interview in his office on Tuesday that at least one person had forced their way into the church at 3043 N. Francisco Ave. last weekend, leaving a door open but not causing any damage.

The 56-year-old priest first announced in a Sept. 2 church bulletin that he planned to burn the flag, after he found it in storage where it apparently sat for more than a decade.

Cupich, who has shared Pope Francis’ more welcoming attitude toward gays in the church, told Kalchik not to burn the flag, but the priest said he did it anyway “in a quiet way” during a closed ceremony with seven parishioners, featuring a prayer of exorcism over the torched banner.

The flag-burning drew the ire of LGBTQ-equality activists, including Ald. Deb Mell (33rd), who led a small demonstration across the street from the church on Wednesday, calling on Pope Francis and Cupich “to send this hateful bigot packing.”

Kalchik — who has said he was sexually abused by a neighbor as a child, and again by a priest when he began working for the church at 19 — previously said the sex-abuse crisis plaguing the church is “definitely a gay thing.”

“What have we done wrong other than destroy a piece of propaganda that was used to put out a message other than what the church is about?” Kalchik said Tuesday.

Cupich wrote that he removed Kalchik “out of concern for Fr. Kalchik’s welfare and that of the people of Resurrection Parish.

“I have a responsibility to be supportive of our priests when they have difficulties, but I also have a duty to ensure that those who serve our faithful are fully able to minister to them in the way the Church expects,” Cupich wrote.

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This brings up some interesting questions:

  • While no one is supposed to hate sinners, Christianity strongly calls its supporters to hate sin. This priest’s flag-burning is very-clearly an example of taking this teaching to heart.
  • What kind of message is the Cardinal sending people about the teaching of the Roman Catholic Church?
  • Father Paul Kalchik was abused twice, and once by a priest, and his acknowledgment of the sex-abuse cases as a “gay thing” is well known in church circles. The Roman Catholic prohibition on married priests, which itself is not in line with Apostolic teachings, has contributed to the growing network of “gay” seminaries within that Church. Why does Rome go on hiding this?
  • All this comes down to the biggest question: Who is Rome serving? Homosexuality and its cousins are serious sins and they cause enormous and frightful trauma to those so impacted. If the Roman Church cannot call the truth out for what it is, then, what are they doing?

Further information about this situation, described on the Fox News website notes that Cardinal Blase Cupich had cautioned Kalchik not to burn the flag, but he reportedly went ahead with it and recited a prayer of exorcism before doing so.

The Archdiocese released a letter saying that “Father Kalchik needs to take time away from the parish to receive pastoral support,” amid a swirl of allegations that Cupich had threatened – through his vicars – for Kalchik to be forcibly committed to St. Luke’s Institute for further evaluation and treatment.

Kalchik had first announced that this flag, which was found in storage, would be burned in a church bulletin in early September. He was immediately warned by the Archdiocese of Chicago not to move forward with such an act. However, Kalchik did go ahead – later telling a local NBC reporter that the did so “in a quiet way” and that the flag, which also had a cross adorned over it, “was cut into seven pieces, so it was burned over stages in the same fire pit that we used for the Easter vigil Mass.”

The rainbow flag, set alight by parishioners earlier this month, once hung in the back of the sanctuary. Kalchik had reportedly spoken out in recent months, and even written to Pope Francis, about his own trauma as a victim of a predatory Roman Catholic priest.

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Every dirty Democrat trick shows in bid to oust Kavanaugh

American democracy truly is mob rule now, and the mob is stupid, with no one taking a moment to truly consider the situation.

Seraphim Hanisch

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The most amazing thing about what is ostensibly the last minute “Hail Mary” smear campaign by the left against Judge Brett Kavanaugh is how utterly transparently partisan it is. Let’s look at the list of tactics used thus far in this very dirty escapade:

  • Democrat Senator Diane Feinstein sat on this allegation for three months, until after the confirmation hearings were over (and after no other barnstorming tactic during the confirmation hearings worked against the nominee).
  • The accuser, Christine Blasey Ford, is a registered Democrat, and a feminist. RT notes that she appears to have a strong interest in politics.
  • Reports of “death threats” against Dr. Ford have been reported. This is a common feature of any anti-Trump attack, to relate him to some sort of “right-wing” radicalism. This radicalism does not exist among conservatives, but the media is determined to say otherwise.
  • Democrat Senate Minority Leader Chuck Schumer, naturally, believes Ford’s story.
  • Every Democrat senator is in agreement that this matter should table the confirmation vote. Some Republicans were at first but appear to be backing away.
  • A woman Democrat senator, Mazie Hirono, went on record telling men to “shut up and step up.” It seems abundantly clear that this assumes that there can only be one “step” that the men are expected to do. A second lady senator , Patty Murray of Washington, gave all men a warning against stepping off the plantation by saying “Women are watching.”
  • The Senate Republicans offered a chance for Dr Ford to testify on Monday. She refused, but now she is offering to come “next Thursday” – this is ten days later, past the October 1 start date of the US Supreme Court, and closer to the November Midterm elections.
  • UPDATE (Sept 24, 2018) – now another woman reports that Mr. Kavanaugh did a sexual thing to her, but again the report is also full of vagueness and “poor memory.”
  • Adding to that update, the attorney representing this woman is none other than Michael Avenatti, the attorney that represented Stephanie Clifford (“Stormy Daniels”) – there really seems to be a pattern here.

We interrupt this list to make this point. The issues at hand are threefold.

First, the Democrats and other left-wing activists are terrified that they will lose the “Warren Court”, which is the name of the Supreme Court Justice who was a major left-wing judicial activist that enabled the Court to “legislate from the bench” along liberal policy lines since 1969. If Kavanaugh comes in, even if President Trump is somehow magically removed from office, his mark will remain on the Court for at least a generation. Of course, the removal of President Trump is predicated on the Democrats regaining control of the House, which actually looks somewhat likely if polling data is to be believed, and of course a Democrat Senate. (The actual tiny caveat that the President has done absolutely nothing which warrants impeachment will not be taken into consideration. He is to be eliminated. That is Democrat point number one, and make no mistake.)

Second, if the Judge is confirmed, it will look great on the President’s achievement list and energize his voter base even more than it already is. The result could be that the Senate expands its Republican majority, and gains Trumpian conservatives in its ranks, which would likely help the President continue his really great agenda. A defeat in the House that holds or expands GOP, again with Trumpian conservatives, would solidify this, and make it more difficult to stop Trump’s re-election and further solidification of reforms in 2020.

Third, and probably even more important, is that the possibility of a third seat getting vacated on the Court in the time period between now and 2024 is relatively high. Ruth Bader Ginsburg is the oldest Justice on the Court, and she is a raving liberal. If she retires (which she promises not to do), or if she is retired by the processes of old age, Trump can score a three-peat and get a third constitutionalist justice into the Court and that will signal the closure of one of the biggest avenues of liberal activism.

To return to the list, some of the further characteristics that make this situation patently obvious are these:

  • As reported in The Duran, the smear job is looking a bit ragged around the edges as time goes by. President Trump called Dr Ford’s bluff by saying he is interested in having her come to testify and that it would be “unfortunate” if she didn’t do so. Ford’s response was as shown above, to try and delay this testimony.
  • The Hollywood “sisterhood” is on record defending Dr Ford. For them, she’s right. She said Kavanaugh did this, so she is right. And why? Because she is a woman, a feminist and a Democrat. She is one of them. It would very interesting to know if the sisterhood would stand behind a conservative woman raising such a concern against a Democrat, but we have President Clinton to show how well that all went.

This by no means concludes the list of characteristics, but as noted earlier here, anyone that does even just a little critical thinking about this can see that this issue is no moral outrage, it is strictly partisan hackery, making use of the greatest weapon against conservative men put in use over the last fifty years – the sexual allegation from a woman, who must always be believed, because the woman is always right. 

The unfortunate truth is that this tactic works. It works because most men are actually gentlemen. We honor women, and we are taught to defer to them in America, because that is what a gentleman does. Feminism takes this characteristic of men, especially in modern times who really want to make sure they treat the ladies right, and it throws it back in their face in contempt. It is so bad it even has a physiological effect on men, who are now marrying less, and having fewer kids. There are even physiological changes that result from this abuse.

Further, there is an appalling lack of critical thinking in our society. The British news site, The Independent offers a poll with questions about the Kavanaugh case. The astonishing lack of critical thinking is clearly evident as the reader votes his or her thought and then sees the results for that question. Going through the questions and observing their responses can be very illuminating.

Dr Ford is demanding an FBI investigation, but she has no date, time or location attached to the incident she accuses now-Judge Kavanaugh of perpetrating. Rush Limbaugh did a great job at showing just how absurd this demand actually is, given these glaring areas of non-knowledge and we include some of that transcript below:

What would happen, let’s say — I don’t know — in the last 10 years up to last week if any woman had walked into any FBI office in the country and said the following: “Hi. I’m here to report that I was abused 35 years ago. I was — I was — I was at a party. Uh, I was 15, a little bit to drink, and a 17-year-old guy pushed me down on top of a table and laid on top of me. And then — and then and then I think — I think — a friend came in and did something and anyway they left and I was left locked in the room. And I want to you to investigate.”

Do you think if somebody shows up at an FBI office with that story, if they show up in person with that story, that the FBI is gonna give it any time whatsoever? The agents are gonna look at each other with kind of wary eyes and they’re gonna crack silent jokes to one another. I’m not kidding. You take this out of the realm of a letter to a crazed, partisan United States senator, Dianne Feinstein, and just move this into the victim walking into an FBI office, “It was 35 years, 34 years. I’m not sure where. But I know that when I was 15, I was at a party, and some guy jumped on top of me.”

So let’s say the FBI agent decides to actually take this further and in a very respectful way says, “Well, Miss, were you raped or injured?”

“Uh, no, not really.”

“Did you report this or tell anyone at the time, 36, 35 years ago?”

“Uh, no.”

“What year was this, again, that this happened?”

“Uhhh, I’m not — I’m not sure. I think it was 1982.”

“Where did this happen?”

“I don’t know! I don’t know. I was so traumatized; I don’t remember any of it. I just remember some guy jumping on me and I was drunk and — and I don’t know. But I want you to investigate it.”

“Okay. Ma’am, were there any witnesses?”

“Just the one friend of his that pushed him off, and then they left before he could do anything.”

What would the FBI do with this, if that scenario happened in one of their field offices? I will tell you what they would do: Zip, zero, nada. And the reason for bringing it up this way is to try to shine some kind of a different light on this and try to put this kind of allegation in some kind of context. The president is handling this in a quite fascinating way. He’s saying, “I hope she shows up. I want to hear what she has to say. I really hope she shows up. I’m very interested in what she has to say. We all are. And if she shows up and if she’s credible, why, then we’re gonna have to do something about that.”

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James Woods Suspended From Twitter Over Satirical Meme That Could “Impact An Election”

James Woods crushes Jack Dorsey: “You are a coward, @Jack.”

Alex Christoforou

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Via Zerohedge


Outspoken conservative actor James Woods was suspended from posting to Twitter over a two-month-old satirical meme which very clearly parodies a Democratic advertisement campaign. While the actor’s tweets are still visible, he is unable to post new content.

The offending tweet from July 20, features three millennial-aged men with “nu-male smiles” and text that reads “We’re making a Woman’s Vote Worth more by staying home.” Above it, Woods writes “Pretty scary that there is a distinct possibility this could be real. Not likely, but in this day and age of absolute liberal insanity, it is at least possible.”

According to screenshots provided by an associate of Woods’, Twitter directed the actor to delete the post on the grounds that it contained “text and imagery that has the potential to be misleading in a way that could impact an election.

In other words, James Woods, who has approximately 1.72 million followers, was suspended because liberals who don’t identify as women might actually take the meme seriously and not vote. 

In a statement released through associate Sara Miller, Woods said “You are a coward, @Jack,” referring to Twitter CEO Jack Dorsey. “There is no free speech for Conservatives on @Twitter.

Earlier this month, Woods opined on the mass-platform ban of Alex Jones, tweeting: ““I’ve never read Alex Jones nor watched any of his video presence on the internet. A friend told me he was an extremist. Believe me that I know nothing about him. That said, I think banning him from the internet is a slippery slope. This is the beginning of real fascism. Trust me.”

Nu-males everywhere non-threateningly smirk at Woods’ bad fortune…

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