Posted Mar 2, 2013 by Martin Armstrong
Europe can look to the United States for its history lesson when you have a Sovereign Debt Crisis that is an epidemic among member states. The United States emerging market Sovereign State Debt Crisis of the 1839-1844 period was a serious economic event that destroyed the credit standing of ALL states and the Federal Government. This is what Europe must come to grips with. As the southern states fold because of austerity policies that are pointless, the entire continent is thrown into chaos.
What will emerge is already starting in Europe – Nativism. This has historically always been a problem whenever the economy turns down. The US built its Berlin Wall between the US & Mexico because Americans do not like the immigration. In 1844, the rise of Nativism appeared because of the economic depression taking the form of a political position of demanding a favored status for certain established inhabitants of a nation as compared to claims of newcomers or immigrants. Nativism typically means opposition to immigration and support of efforts to lower the political or legal status of specific ethnic or cultural groups because the groups are considered alien to the natural culture failing or unable to assimilate taking employment from native sons.
The Philadelphia Nativist Riots were a series of riots that took place between May 6th and 8th followed again by riots on July 6th and 7th, 1844. These riots took place in Philadelphia, Pennsylvania and the adjacent districts of Kensington and Southwark. They were a result of the economic depression that turned into riots against the new wave of immigrants manifesting in anti-Catholic sentiment at the growing population of Irish Catholics.
In the months prior to the riots, Nativist groups had been spreading a false rumor that Catholics were trying to remove the Bible from public schools. A Nativist rally in Kensington erupted in violence on May 6th. This turned ugly beginning a deadly riot that resulted in the destruction of two Catholic churches and many other buildings. Nativist Riots broke out again during July, after it was discovered that St. Philip Neri’s Catholic Church in Southwark had the audacity to arm itself for protection against the protestant mobs using religion as an excuse for violence. This time fierce fighting broke out between the Nativists and the soldiers who were sent in to protect the church. The protestant Nativists attacked the soldiers and numerous deaths and injuries took place.
The degree of violence helped nationally to fuel criticism of the Nativist movement who claimed to be victims. The Nativist Riots also exposed the need for local police rather than troops to maintain order. Eventually, the police department was formed and consolidated in Philadelphia in 1854.
The Sovereign State Defaults 1839-1844 is a lesson for Europe. The Euro will crack for the whole of the Euro cannot hinge on the austerity of Germany alone. Southern Europe and the French are really rejecting austerity and these diverse trends will be at odds with Germany and the Dutch. This will fuel the counter trend of separatism under the same Nativist ideas as 2013 comes in with a negative growth rate for Europe and unemployment among the youth is generally greater than 50%.It is just a matter of time.