The French Revolution is still alive and well. In France, French President Emmanuel Macron’s abysmal approval ratings have simply continued to collapse. He has suffered as the French have reviewed his elitist lifestyle mixed with his attempts to reform union and then throw in his controversial immigration policies. Many now believe he will collapse to under an approval rating of 10% perhaps matching his predecessor the socialist Francois Hollande, who was so unpopular, he didn’t even bother to attempt a second term.

Now, the National Rally (formerly National Front) party’s candidates for the May European Parliament election are beating Macron in the polls. This is the first time the far-right party has overtaken Macron’s centrist movement in the polls which is a mirror of events in Germany with the rise of the AfD. The May elections coming in 2019 appear to be headed to another major political blow for the EU. Macron’s “En Marche” ticket is failing as is the case for Merkel in Germany.

The latest data from Euro Stat for September 2018 demonstrates the complete failure of the ECB and its Quantitative Easing. The Euro area (EA19) seasonally-adjusted unemployment rate came in at 8.1% in September 2018, which was down slightly from the year/year perspective of about 8.9%. This above all proves that the entire theory of the Quantity of Money is bogus. It also demonstrates that the Austerity Policy of Europe has caused unbelievable social damage resulting in what is being called the Lost Generation with unemployment among the youth reach 60% in Southern Europe.

Without a COMPLETE rejection of Austerity and a COMPLETE overhaul of the European Union structure, there is absolutely NO HOPE what so ever of Europe coming out of the death spiral. This will only get worse as politicians, with ZERO experience in trading markets, will debate and refuse to accept responsibility for their actions. Then you opened the doors to refugees when unemployment is at a serious high? And you wonder why there will be civil unrest and backlash against migrants?

As Einstein pointed out, you cannot possibly solve our problems with the very same thinking process that was used to create them

QUESTION: Mr. Armstrong; I watched the new documentary on your solution. I really want to thank you for everything you do and for free. It is so nice to see someone who actually gives back and has no personal agenda to enrich themselves. My question is this. You mentioned the reason why the United States economy was the envy of the world and differentiated it from Germany which has an export model economy that is why they supported the euro, to begin with. What do you see for Germany ahead?

Thank you

CB

ANSWER: Germany has an export-dependent economy which has directly benefited from the continent-wide trade liberalization and the creation of the Euro which eliminated foreign exchange fluctuations for German manufacturers in Europe at least. However, that simply means that Germany also has the most to lose from a worsening Euro crisis and a resulting wave of Euroscepticism. The political freedoms lost with the creation of the Euro will tear Europe apart. The refusal to consolidate the debt within Europe was profound. The Italy Crisis demonstrates what I have been warning about. BECAUSE there is no central debt, Brussels sticks its nose into every budget of every member state. The economic conditions within Europe are different between each member. Germany is an export economy and Greece is a tourist economy. There are great differences between each member so one policy does not fit all.

They are trying to PRETEND they are creating the United States of Europe but that is a joke. The refusal to have consolidated the debts created an unsustainable political union. The USA has a federal debt and budget. Washington does not stick its nose into the budgets of all 50 states. They issue their own debt which is NOT ACCEPTABLE for reserves of any bank. They are also all on their own paying different rates of interest according to their credit rating. In the EU, they are trying to manage the budgets of every member which will only lead to political differences. The structure is absurd and then the banks have to be politically correct and hold the debt of all member states. Thus, the risk becomes if one member is in a crisis, they bring down the entire system. In the USA, if Illinois goes bankrupt, it has no impact on the dollar, the national debt, or politics in Washington.

The greatest risk to Germany is the collapse of the Euro means that the single currency relieved their manufacturers of having to manage currency risk. Suddenly, the currency risk returns, the export model fails, and the lack of a domestic consumer market means that the economic conditions in Germany decline rapidly because of their dependence upon everyone else doing well.

The Spanish prosecutor wants to send the politicians of the Catalan independence movement to prison for 25 years. The prosecutor has demanded that the former Deputy Regional President Oriol Junqueras should effectively die in prison. The absurdity of what is going on in Spain reflects that there is no democracy still standing. Dictatorships always call treason anything which seeks to overturn their power. The Catalonia movement was NON-VIOLENT, it was Madrid that has been the violent aggressor.  The prosecutor charged them with rebellion. The Attorney General realizes this will reflect badly on Spain, so he is in favor of replacing the charge of rebellion with the less serious charges of sedition. The mere fact that they would seek criminal charges against political leaders in a non-violent movement that sought a democratic solution is a warning sign that to Spanish independence advocates for this removes any democratic resolution and signals that the only resolution will be another civil war in the future.

The last Spanish Civil War was Jul 17, 1936 – Apr 1, 1939. The beginning of the current movement really started to rise in 1999. We will see this rise as a direct reaction to these criminal charges. The next civil war is Spain may become much more obvious by 2022.