The financial crisis in the US and EU is transforming into a political crisis

Published 07.11.2014 22:47
Updated 08.11.2014 01:57

The core European nation-state system and the currently Anglo-Saxon-dominated economic and financial system is about to come to an end. The latest economic report of the EU Commission signals that it will not be easy for the eurozone to get out of the current financial crisis. At the moment, a political crisis awaits the EU, mixed with economic problems. The core alliance consisting of European countries like Germany, France and the U.K. as well as the U.S. is finishing. This means the EU is de facto over with its current structure. This core alliance was formed after World War II due to the monetary-financial issues which had become apparent right after the war. We can now see the end of this alliance by looking at the current situations in these countries. In the U.S. the ideological gap between Democrats and Republicans has widened significantly. In this sense, it was expected of the Republicans to seize the majority in Congress after already having it in the House. But this is not a welcoming development for world peace. Naturally, this result will lead to certain economic and political developments and we can argue that this situation increases the existing pressure on U.S. President Barack Obama, who from now on will be even more dependent on the Republicans. Coming closer to 2016, the year in which the U.S. presidential election will take place, the latest midterm election has a major importance in determining the path of the U.S. The neocons would like to hold back President Obama in two important areas. The first one is the economy and the latter is foreign policy. As we can also understand from the interest rate struggle, the neocons would like the U.S. to return to a period of high interest rates and a valuable dollar - just like in 1995 - neocons here don't only refer to Republicans. This term also describes the representatives of military-industrial complexes, which dates back to the 20th century. The interpretation of this transformation requires radical changes in foreign policy as well. This basically means the intruder and offensive U.S. will be back. If this happens, countries like Turkey will be in the crosshairs and we will be experience the current "siege mentality" even more. The U.S. will return to its de facto intervention measures used in the Middle East and Eastern Europe, including Turkey. Unlike what the current Democrat government is doing at the moment, the future government will not provide any chances to countries to govern themselves according to their own regional dynamics.

The Republicans will want to be direct partners in the governance of these countries. We saw the first signs of this in the events that on Dec. 17. It turns out now, that the war backing front in the U.S. had used their "Turkish origin but U.S.-based" organization in the Dec. 17 operation. The Gülen Movement, with their Pennsylvania-based leader Fethullah Gülen, is an instrument of the neocons, who also form terrorist organizations like the Islamic State of Iraq and al-Sham (ISIS). So if a new neocon government comes to power, countries like Turkey will be permanently under the threat of "internal" organizations and "foreign" related structures built within the state.

Moving on from this, for the Obama administration to enter a rational economic path, they should highlight new sectors such as IT and/or advanced technology. If the U.S. is to be a pioneer, it will be easier to finance its foreign trade deficit, or budget deficit, in this way. This would be a great development for world peace as well. But, it seems like the Republicans have blocked this path by seizing the majority in Congress. As a matter of fact, the comments by Dallas Fed President Richard Fisher affirm our concern regarding this issue; "It would be a disaster if the Republicans in the Senate lift the independency of the Fed". Starting from February, the Republicans in the Senate will start to manage the Banking Committee. Therefore, the fear of Fisher might be valid from January on. The Republican wing might take more control of the Federal Reserve by increasing the surveillance of draft law already making the agenda of Congress. If the Republicans interfere with the Fed and Janet Yellen's policies the U.S. will definitely revisit the issues of the 1995 period. In short, the valuable dollar and high interest rate period will start over. We hope that the world will not face this period again, which started in 1995 and lead to the 9/11 disaster and Iraq's occupation.

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