The Nineteen Eighty-Four arrived in 2011 financial articles
September 24, 2017 Financial Portal Free Newsletter Bookmark Financial Portal Advertise Here Submit Your Article Other Financial Articles

Main Menu

Financial Polls
Financial Quotations
Financial Articles (Index)
Financial Articles (Categories)
Bank Directory
Gold Price Change
Silver Price Change
Platinum Price Change
Palladium Price Change
Rhodium Price Change
Copper Price Change
Nickel Price Change
Specialty Metals
Other Metals
Currency Rate Charts
Taxe Rates Worldwide
EUR USD
EUR GBP
EUR CHF
EUR JPY
EUR CAD
EUR AUD
USD EUR
USD GBP
USD CHF
USD JPY
USD CAD
USD AUD
EUR vs. Other Currencies
USD vs. Other Currencies
GBP vs. Other Currencies
AUD vs. Other Currencies
NZD vs. Other Currencies
DOWJONES Index
NASDAQ Index
NYSE Index
NIKKEI Index
FTSE 100 Index
TSX Index
CAC 40 Index
DAX Index
HUI Index
XAU Index
AEX Index
Index Reports
Housing Price Index
Oil Price Charts
Gas Price Charts
Commodity Charts
Meat & Livestock Charts
Softs & Tropicals Charts
Grains Charts
Forex Spot Reports
Mortgage Rate Reports
US Interest Rate
World Interest Rate
Financial News
Inter. Stock Exchanges
NY Stock Exchange
AMEX
Philadelphia Stock Exch.
London Stock Exchange
Euronext Lisbon
Korea Stock Exchange
Deutsche Borse Group
Yokohama Silk Exch.
Liverpool Cotton Exch.
Debt Collection Agencies
Insurance Companies in Ireland
Insurance Companies in UK
Insurance Companies in USA
Consulting Companies
Plastics Charts
Trade Organizations
Advertise For Free!
The Financier
Scam Letters
Other Business Resources


The Nineteen Eighty-Four arrived in 2011

By Roberto Bilro Mendes,
(Trainee Lawyer in the Financial Markets Department at SRS Advogados)


Advertisements:


"If freedom means something, it is the right to tell others what they don't want to hear."
George Orwell

focus mattersIt was when I realised that Angela Merkel will never accept the emission of Eurobonds that it strike me and I was able to finally name the feeling that I was having for a while. I fear that today’s Europe is a hostage of the “doublethink”! The younger ones, or the less fond of reading George Orwell literature, surely will not be familiar with the “doublethink” concept, however, I can imagine that many amongst you readers are just now recovering small pieces of images formed by the brilliant sentences that came out of Orwell’s feather to forever rest in one of his best works: “Nineteen Eighty-Four”. Maybe you are just now putting objections to the first lines of this text.

I am, however, pretty sure that today, our political and financial universe is prostrated to the strange concepts written in “Newspeak” language. In order to get to my point, it is necessary to explain the concept of “doublethink”. It is the ability to sustain two different opinions at the same time, given that those two opinions are contradictory amongst them. The capacity of holding in our minds two different beliefs, even knowing that one of them is completely wrong. To know that one thing is truth, but truly believe that it is a lie instead. It means, in few words: reality control!

This statement was matured. Do not think that this was something that invaded me during the night while I was hoping for the dreams to come, something that fulminated me on a freezing morning while I was waiting for the sweet comfort of a hot cup of coffee or even something that occur to me during a busy work day, even though it was present in those moments! It was something that grew, and matured in my spirit. First it was diffused and non-nominated, than it became a little bit clearer as the time flew by. And finally it was an absolute truth. I released myself of my own “doublethink” and embraced the truth. So let’s take a look:

The Collapse in the Euro Zone is imminent! Unless some unexplainable miracle happens, neither Greece, nor Portugal, Spain, Ireland or Italy will be able to maintain their memberships of the Euro Zone. The case scenario is quite obvious: the high debt countries will not endure to support heavy interest rates because their debts are already unbearable. By not being able to pay their debts, those countries will never be capable of creating the necessary conditions to recover the investors’ and the markets’ trust. And if that credibility remains unrecovered, it will be a problem with no solution whatsoever.

Even though it is only a step forward towards a solution, and not the solution itself, it is unequivocally necessary to turn the European Union into a whole financial reality. To obtain such a goal, a new market must be created through the emission of Eurobonds (some economists advance with a number superior to 8 billion Euros, which would mean the second greatest market in the World). The investors would be drawn into this market because it would be much more reliable. Another obvious benefit of the Eurobonds would be the reduction of the interest rate spreads to the sovereign debts of the Euro Zone memberships. All members except for Germany. And this is, I believe, the core of the problem. It is the main reason why the German Minister of Finance, Wolfgang Schäuble, has completely rejected the Eurobonds to finance the debts of the Euro Zone members, claiming that for such a thing to happen, the “European Treaty would have to be amended. “We have to solve the crisis within the existing treaty,” Mr. Schäuble said. Also the German Minister of Economy, Philipp Rösler, is against the Eurobonds, stating that “In a Europe where every member should be responsible, I believe that the emission of Eurobonds is not the correct path”. The Germans are capable of seeing the truth; they understand that Europe cannot continue to follow their plans; however they choose to disregard this truth using the “doublethink”. Only this explains the statements of Merkel’s cabinet. Not even the German argument of the pressure release over the Euro Zone members to reduce their deficits, that the emission of Eurobonds would grant, is unacceptable. Has this pressure worked? How is Greece? Has the situation improved? Not really!

Closing their eyes to the truth, Germany intents to create a Euro Zone at its own image, however, as time passes by, there is the risk of turning the European Union more and more likely to Greece. Like Joseph Stiglitz (Nobel of Economy in 2001) says “if the Euro Zone decides that the only way to continue is through the issue of Eurobonds, than Germany will have to leave Euro”. And continues stating that the Eurobonds “are even now a reality, but in a non-transparent way”. What Stiglitz means is that today the European Governments are financed by their Banks, and those Banks use government securities to get financed by the European Central Bank. If that diffused mechanism, which really acts like the issue of a Eurobond, is used, why does Germany back down?

If they realise that this is a way out of the crisis, and that the time is passing by leaving no hostages, why do they not show some signs of wanting to negotiate? The explanation appears now to me to be really simple and it is now that we return to the first sentences of this text: when doomed to the “doublethink”, a person does not simply say the opposite of one’s thoughts, one really thinks the opposite and is capable “to think that black is white, to believe that black is white and to even forget that one has ever believed the contrary” . Isn’t that what Germany has been doing?


1) “Nineteen Eighty-Four” Part II, chapter IX - «The Theory and Practice of Oligarchical Collectivism», George Orwell, 1949;



Published - November 2011













Free Newsletter

Subscribe to our free newsletter to receive news and updates from us:

 

Polls at Financial-Portal.com :

Poll #039
Will USA announce default on its debt?

Poll #036
Is there a secret world government?

Poll #034
Do you know that money is a good servant but a bad master?

Poll #033
Is Forex similar to gambling?

Poll #032
What is your occupation?

Poll #031
Do you ever spend money for things you can do without?

Poll #030
Do you know that it is extremely hard for a rich person to enter the Kingdom of God?

Poll #029
Why do you want to earn more money?

Poll #028
Are you determined and working hard to get out of debt?

Poll #026
What is your net yearly income (after taxes), USD?

Poll #024
What percentage of your income goes for paying your debts off?

Poll #023
What percentage of your income do you save?

Poll #021
What is the first step one should make to get out of debt?

Poll #018
Have you noticed that the more you give, the more you get?

Poll #017
What part of your income do you donate to charities?

Poll #016
What part of your income do you donate to Church?

Poll #015
What is the most important thing in getting out of debt?

Poll #014
What country has the healthiest (the most stable, reliable, and promising) economy?

Poll #013
Do you think credit cards are useful or harmful for people (not for bank owners)?

Poll #010
What currency is the strongest - in the long run (for the next 10-30 years)?

Poll #009
Do you have any savings?

Poll #008
Do you have any debts?

Poll #007
What is your religion?

Poll #005
What country are you from?

Poll #004
Do you think cash will eventually be removed from circulation?

Poll #003
What investment brings the highest profits with lowest risk?

Poll #002
What is the most reliable way to save money?

Christianity

Copyright 2004-2017 © by Financial-Portal.com
Legal Disclaimer