Interesting report , it touches on Europes central problem for just a second ( heavy reliance on credit / debt) but does not ask why and then predictably retreats into its IMF shell.
But the productivity graphs post 1980s are interesting…………..(labour productivity post Industrial revolution was chiefly a result of the interaction of technology and fossil fuel resourse use ,post 1980ish it seems we have gone back to a earlier era of cotton picking)
It obviously all about article 123 but lets not go there - lets talk about labour market reform and all that jazz.
Look lads European countries shut down all prospect of long term growth in the early 80s.
They killed their Nuclear programmes as interest debt repayment on the states money supply ate into rational capital expenditure.
They spent almost all they had (not very much) on roads as bank consumer credit was where the “growth” appeared to be - but this was a result of this money deflation / credit inflation period….which meant more cars essentially.
It appeared to work after the oil glut period of the mid to late 80s but now not so much as the capital (oil) is now mostly gone.
Europe is now essentially South America - a failed collection of states , I can’t see a way out - the extraction phase was just too long and deep.
The capital and the people who understood deep technological capital formation are mostly dead or retired so labour productivity will only marginally increase when you bring in slave labour conditions.
This IMF report is typical really - it treats nations as areas of arbitrage to be gamed against each other , just as previously Banks lured countries into Industrial warfare with each other until it became unsustainable in the Nuclear era.
“Growth” is not , I repeat not increasing debt over and above GDP and it never will be.
Nobody is asking why Ankara is the favourite for footloose multinational capital while Athens is in the Doghouse.
From the Railway Gazette
18 June 2012
“TURKEY: A contract for the construction of the first stage of a planned Ankara - Izmir line suitable for 250 km/h running was signed by Minister of Transport Binali Yildirim and a consortium of Sigma, Burkay, Makimsan and YDA on June 11.
The YTL700m contract covers 167 km of new line between Afyonkarahisa and a junction with the existing Ankara - Konya line at Kocahaccili.
This segment forms the first phase of a three-stage YTL4bn project to complete a 624 km fast line linking Ankara with Izmir via Usak. On completion this will cut journey times between the cities from an uncompetitive 14 h by the existing 825 km rail route or more than 8 h by road to 3 h 30 min by fast train. ”
In many ways Turkey is a far more corrupt place then Greece……..
This movement away from internal money sovereignty post 1970 favours Dark Credit “Capital” as it gifts them leverage power over countries - they can then engage in systematic labour arbitrage operations that destroy the real wealth base / potential of countries withen a few generations.
Why did Turkey get a larger Spice ration these past few years - Answer cheaper labour , larger profits for the slave merchants.
But these inflation / deflation games - used to extract pounds of flesh destroy real wealth capital over time as you need stability to engage in long term projects.
Who knows when they finally build those Turkish high speed lines Finance will move to other pastures , people will have no money to buy tickets and the investment will be a waste of real resourses.
And yet London unlike Paris does not want to give its European Hinterland/ playground surplus oil / capital needed to feed the hinterlands activities and thus service the always in physical trade defecit financial capitals.
So they dumped this practical capital light project for capital heavy Crossrail …….!!!!
This despite the fact Docklands light rail has seen a 12.8% increase in passengers from the 2009/10 to 2010 /11 period. (69.4 m to 78.3 m trips)
Croydon trams - perhaps a more appropriate example also experienced passenger growth during this period from 25.8m to 27.9 m.
All of these investments means more excess oil can be burned by the Hinterlands but the city does not care as long as it gets its interest meal , even if austerity kills the poor debt victim….. as there is always more debt saps waiting to service a bankers consumption whims.
But you are dealing with true Dorks in this world who do not understand how national economies work and have no Industrial historical sense / balance…..or loyalty to anything but mammon - in the words of Brian Coleman, the mayor of Barnet and London Assembly Member for Barnet and Camden said “It’s not feasible, it won’t happen. Ideas like this are thought up by men who probably still have a train set in the attic.”
Yes its true - where else does he think ideas come from ?
These Market State monsters destroyed the entire scientific /engineering boffin culture of the UK beginning in the 1960s to service a idea about money which was flawed and yet they simply don’t care , they extract and extract and extract.
They are a pox on us all.
Fancy capital intensive projects are utilised to pay corporations via Keynesian stimulus packages whose true role is to pay down hyperinflated private credit rather then achieve real world goals with the minimum of real resourse inputs ,
The Dudding line is a prime example of this…see above.
The keep it simple stupid meme is lost to Keynesians it seems -breaking glass has been replaced by digging holes in the ground.
We must expose petrol heads as unwitting agents of the debt opium producing crowd as their “growth” was a illusion (it destroyed more capital then was created)
Much can still be done to prevent the Easter Island syndrome from creating a total collapse although the momentum is clearly with the Heads of these criminal organisations - we need to stop the expenditure of energy on irrational net extractive activities that is the natural characteristic of bank credit activities that then socialise these malinvestments via “sovergin” debt extraction - a classic one two debt peonage system.