Report on Eurozone investing for September 30, 2011
I) … Credit is evaporating globally and the Greek debt situation is worsening daily.
Credit is evaporating globally. Jill Treanor and Heather Stewart of The Guardian report The Bank of England yesterday warned of “severe strains” in financial markets and told banks they should cut staff and axe any dividend payouts to shareholders to boost their capital cushions. But at the same time the Bank’s new Financial Policy Committee appeared to concede that banks might need to eat into their capital cushions to keep credit flowing into the stagnating economy. The second report by the FPC, set up by the coalition inside the Bank to be responsible for financial stability, shows it has considered the need for “short-term measures” to try to prevent a re-run of the 2007 credit crunch.
Credit Writedowns reports on the severity of the Greek debt situation. Otmar Issing, a former chief economist of the European Central Bank, said that writedowns of 50 percent or more are necessary. “Greece will not get back on its feet without a serious reduction in debt,” he told the German news magazine Stern on Tuesday.
Simone Meier and Christian Vits of Bloomberg report on the largess of Greek Socialism. Former European Central Bank chief economist Otmar Issing, one of the architects of the euro, said Greece’s exit from the 17-nation monetary union is inevitable. ‘There is no other way,’ Issing told Germany’s Stern according the magazine. With Greece’s debt forecast to reach 160% of gross domestic product next year, the country needs to renege on at least 50% of its obligations and ‘that can’t happen within the monetary union,’ Issing is quoted as saying ‘The bitter truth, unfortunately, is that the Greeks have lived beyond their means for years and will now be set back many years by their artificially inflated living standards,’ Issing said.
Automatic Earth relates that the Greek bailout is built upon severe austerity measures. It is perhaps more than anything else a clear indicator of how the transfer of wealth takes place, from never-will-haves to never-will-have-enoughs. And the demands for further cuts just keeps on coming, in a vicious circle. The more cuts, the more the economy shrinks, the more demand for cuts there will be from the EU/ECB/IMF troika.
II … The EFSF Monetary Authority has been approved.
Spiegel reports European Union leaders agreed to expand the EFSF in July once it had become clear that the fund as originally designed was insufficient should the debt crisis which has befallen Greece continue to spread. The fund was also granted new powers, enabling it to buy up bonds from debt-stricken euro-zone countries in order to keep their borrowing costs down. So far, the European Central Bank has been tasked with such purchases . In addition, the EFSF will be able to indirectly bail out banks that run into trouble as a result of overexposure to bonds from indebted states such as Greece.
Christoph Dreier of WSWS writes that the German Parliament approved the EFSF out of self interest.
A week ago, the four leading employers’ associations in Germany spoke out clearly in favour of the rescue measures. Without the EFSF, there was a threat of “incalculable consequences for the European Union and for the common currency”, they wrote in an open letter to parliament. The fund was a “key means to hold the euro zone together.” The pressure from German big business meant that when it came to the vote only a handful of members of the ruling coalition rejected the bailout package. In recent weeks, several members of the CDU and FDP had spoken out against the law, on the basis of a right-wing nationalist perspective. The pressure from German big business meant that when it came to the vote only a handful of members of the ruling coalition rejected the bailout package. In recent weeks, several members of the CDU and FDP had spoken out against the law, on the basis of a right-wing nationalist perspective. Critics of the measure, such as Wolfgang Bosbach (CDU) or Frank Schäffler (FDP), had already stressed before the vote that they would speak out against any German liability for the debts of other countries. While the majority of the ruling elite currently sees Germany’s interests being upheld in a rescue of the euro under German domination, the voices are growing for a national road.
III … Many Austrian Economists believe that the EU is doomed and that the Germans will soon be printing D-mark.
Robert Wenzel cites the Ambrose Evans Pritchard article NEIN, NEIN, NEIN, And The Death of EU Fiscal Union which relates: “As Bundestag president Norbert Lammert said yesterday, lawmakers had a nasty feeling that they had been “bounced” into backing far-reaching demands. This can never be allowed to happen again. He warned too that Germany’s legislature would not give up its fiscal sovereignty to any EU body. In a sense, the Bundestag vote was much like the ruling by the Constitutional Court earlier this month. It too said “Yes” to the bail-out machinery, but that was not relevant fact. What mattered was the Court’s implicit warning that Germany had reached the outer boundaries of EU integration, that German democracy is under threat, and its explicit warning that the Bundestag’s fiscal powers could not be alienated to Brussels.”
Robert Wenzel writes: “I am not familiar enough with German politics to pass judgement on Pritchard’s view. All I know is that the Bundestag voted for one more round of Greek bailout money. That’s the way it’s been going, round by round. I’m sure that most German’s are tired of being played for saps. The question is do they have what it takes to ring in their leaders and stop them from going in a direction the German people don’t want to go. That is, will the German people really be able to stop even more bailouts for the PIIGS?” Perhaps the solution will be that the Germans go back to the d-mark, and the ECB without the obstruction of the Germans prints euros as though the entire non-German EZ was an olive republic.”
IV … Germans and Greeks are culturally different people, yet exist together in a monetary union.
Germany, The Industrious Republic, in joining the Euro currency union, entered into a monetary, banking, trade and investment bond, that is marriage, with The Olive Republic. The northern states are different culturally and economically from the southern and periphery states; the former are industrious, while the latter are club med. And furthermore, Greece has experienced so many Drachma devaluations, that it had to resort to the most extreme form of socialism and communism: the creation of the state worker system. Under Greek Socialism, practically all workers work for the government, and the Greek Constitution prohibits the firing of government workers. In Greece there is no meritocracy, one receives employment through patronage; for all practical purposes, there are only socialist and communist parties. In Greek households, at least one family member has a government job. Patronage led to pork as the number of government jobs increased and even farmers got new tractors. Greece went from a pony and cart economy and tourist haven, to a modern middle class European standard of living in the last decade. Banks in France loaded up on Greek bank stock, when the Euro came into existence; and German banks and French banks loaded up on Greek Treasuries, as their interest rate fell, and the value soared. Unfortunately, these institutions did not exit their investment in late 2009 and early 2010 as the Greek Sovereign Debt Crisis started to unfold; now Germany and France are wedded to default union.
Ambrose Evans Pritchard writes Intra EMU current account deficits have become vast, chronic, and corrosive. Monetary Union is inherently poisonous. The countries in trouble no longer have the policy tools: interest rates, QE, liquidity, and exchange rates, to lift themselves out of debt-deflation. Just as they had few tools to prevent a catastrophic credit bubble during the boom. Their travails were caused in great part by negative real interest rates set by the ECB (irresponsibly) for German needs. Their fiscal deficits (and remember, Spain and Ireland ran big surpluses in the boom) have exploded because of the Great Recession itself — as they have in the UK, US, and Japan. Germany imposes austerity alone, seemingly convinced that there are good imbalances (German trade surpluses) and bad imbalances (Club Med trade deficits). Well sorry, Frau Merkel, this is intellectually childish. Both imbalances are equally bad. Booth sides are equally “guilty”, to borrow your morality language. As I have written many times, this austerity fetishism repeats the fatal error of the 1930s Gold Standard when surplus states (France and the US then) failed to recycle their gold hoard and instead imposed the full burden of adjustment on the deficit countries,until these countries broke free and inflicted condign revenge.
Mr Evans Pritchard continues. Larry Hatheway and Stephane Deo at UBS have just issued a sequel to their report warning of violence or civil war if the eurozone crisis leads to break-up. “We believe the Eurozone sovereign debt crisis has entered a more dangerous phase. The main reason the Eurozone has been incapable of addressing its long-running sovereign debt crisis satisfactorily is because leaders have framed an in appropriate agenda. Focused on the need for harsh and widespread fiscal austerity, policy makers have lost sight of the underlying cause of the crisis.” … “That comprises the absence of institutions to manage the ‘imbalances’ problem between creditors and debtors within the monetary union, and the systemic flaws in the Eurozone’s financial and banking system, exposed by the 2008/09 financial crisis. “Obsession with fiscal austerity to the exclusion of all else is not credible in an environment of weakening growth in Europe’s core and recession in the periphery. The immediate problem, which policy makers have been unable or unwilling to address successfully, is the negative feedback loop between diminishing sovereign credit worthiness and weak, under capitalized banks. Improving sovereign credit though austerity is a long process, and, in any case, hard to pull off in recessionary conditions and when all one’s major economic partners are also in austerity mode. The weakest link, Greece, is now in a debt trap, which threatens to engulf other nations.”
Mr Evans Pritchard asserts The EMU should not be saved. It should be broken in two, or dismantled, in an orderly fashion of course. If the authorities can hold together 17 countries in EMU, they are surely capable of holding together a Teutonic Union and a Latin Union, each reduced to a more manageable fit and each more viable. Dr Merkel, what we have is the crisis of a foolish monetary union that ought to be shut down but is being kept alive because the priesthood has endowed it with sacred significance. Let stop this absurd quasi-religious charade. The euro is nothing but a currency. It has no intrinsic importance. To claim that Europe fails if the euro fails is hollow rhetoric. The great democracies of Europe will march on serenely.
Andras Gergely of Bloomberg reports Szalay Berzeviczy, global head of securities services at Italy’s biggest lender UniCredit SpA, relates that a Greek default will trigger an immediate “magnitude 10” earthquake across Europe, that is a Euroquake. Holders of Greek government bonds will have to write off their entire investment, the southern European nation will stop paying salaries and pensions and automated teller machines in the country will empty “within minutes,” wrote.
Don Melvin of the AP reports European Commission President Jose Manuel Barroso said “If we do not move forward with more unification, we will suffer more fragmentation,” he said in Brussels. “I think this is going to be a baptism of fire for a whole generation.”
Charles Hughes Smith relates We look at three more structural reasons the zone and its common currency the euro are doomed. Reason #1: The Imbalance between Exporting and Importing Nation …. Reason #2: The Euro Removed the Mechanism of Currency Devaluation … Reason #3: Crushing Private and Public Debts.
V … A revived Roman Empire is rising in the Eurozone.
Nature economist, Elaine Meinel Supkis writes The Holy Roman Empire Saves The Euro: Analysis As To Why. The tension between the Frankish Charlemagne empire and the northern German imperial kings began with the division of the Western Empire between three sons of Charlemagne. This internal battle raged for generations in Europe. It is a keystone, very powerful force deep within the systems in Europe which the EU hoped to override and in the end, eliminate. Tensions between Germany and France over who shall lead Europe is extremely ancient, very persistent and England’s powers lay in being the fulcrum of tipping the scales to one side or the other, over and over again, for the last 1,000 years.
The EU was created in order to stop this business. Here is an old story I wrote back in 2007 about the difficulties of creating a Holy Roman Empire in Europe: Diplomacy: A Short History Of The Tragic Babenberger Dynasty Of Austria
Just as my mother’s side was a long line of elites in England and Norman France, one sees things from the perspective of the ruling elites, naturally. Ancient desires and battles loom much closer to the surface. Germany hasn’t renounced its role as the head of the Holy Roman Empire. It merely has clothed it in somewhat different garb.
Understanding that Germany’s leaders do NOT want to crawl under a rock and hide is most important. Understanding why Germany is pissed off about bailing out Greece, Italy, Spain and above all, France, is key here! One cannot ignore the past, it dwells deep inside all systems, it is all systems in the end.
As we see from the Foreign Ministry in Germany, the above map clearly shows who Germany is interested in bailing out. Why? Well, when you ‘bail out’ someone, they have to follow your rules. That is, you get to rule them! Duh! So, if Germany bails out is true ‘sphere of influence’ this means they will control it more and more, over time. This, Europe fears greatly.
I know the Germans are very angry about bailing out the EU. But I also said, they would do this because they must do this to preserve their own internal empire! That is, Germany’s CITIZENS didn’t want to do this but the ELITES did! They had to sound angry while doing this but they did this overwhelmingly.
What do the Germans want? They want control of things. Naturally. They are the apex of the EU, they are far above their French rivals who neglected to build a sovereign wealth system, for example. France, on the other hand, has its own center of power and is using this, just as Germany is. The tension between both will lead eventually to another schism and this will follow nearly exactly the lines of the previous Holy Roman Empire and the French empire and they will battle for dominance in southern Europe and Eastern Europe with England being the fulcrum of power politics, as ever. I know the German people: they are ‘ants’ and thus, will go to work to prepare for things and ‘bite the bullet’ and make hard choices and then they will use their power to force the ‘grasshopper’ nations to do likewise…or else.
The Holy Roman Empire was a collection of distinct states with their own royalty and own languages and habits but were all part of the same system under the rule of the emperors who were more or less successful over time, it varied greatly. The Napoleonic attempt at cementing the Holy Roman Empire via conquest and marriage to the daughter of the Holy Roman Emperor didn’t save him from being crushed by the Russian tsar, for example, who then retreated back into his natural sphere of influence to resume the many battles for power with the Ottoman Empire. All of this messy history is crawling all over the rescue of Greece which is in debt more to France than Germany and France is openly scared and is begging Germany to save everyone because France will fall if Italy and Greece default. And Germany knows this. And this irritates the French no end! Trust me on this one!
This shows what goes wrong when people don’t understand the true nature of the floating fiat currency system: it is designed to be vapid and drives everyone and I do mean EVERYONE into this endless cycle of WEAKENING their own currencies vis a vis each other. The core operational methods of this system was set in motion by the Germans and the Japanese when they negotiated with the US to make their currencies stronger: they HATED this. They didn’t want to do this but the US forced them to do this. The meaning of the many meetings like the Bretton Woods meetings was to twist the arms of these ‘allies’ who are also dire trade rivals. This was done when Nixon cut the gold standard. Some method had to be found to keep the trade flowing but not too much flowing.
A mere 10 years later, Japan discovered that if they didn’t let US trade dollars recirculate back home again, they could make the yen weaker and weaker, insidiously. So, the typical FOREX holding of a central bank was usually a couple billion. Japan began to pour in more and more trade dollars until it reached a trillion dollars in 2000. Germany didn’t do this, at first. When the euro was launched, currency traders made fun of it. Because it was WEAK. Yeah!!! Germany was HAPPY. The exporters won! They exported like crazy to the US. The US was flooded not only with Japanese exports but German exports, too! Then, China began the holding of trade currencies only, unlike Japan, China held everyone’s currencies. Yen, dollars and euros. All three got stronger not just with the yuan but with each other as the Chinese decided which ones to dump into their FOREX holdings which is now the biggest on earth, bar none, dwarfing even the huge Japanese holdings.
This gives China huge power over FX markets. No one trading there, even top elite banking powers, can withstand a Chinese currency storm if they dump ALL of these holdings. Europe cannot afford to do this because, even though everyone wants a weaker currency, they most emphatically do not want a DESTROYED currency.
They want a slightly weaker, not Weimar collapse in the value of paper money! So, the Germans will seize control over Europe’s FX market system via controlling CREDIT CREATION and the fear of the non-Holy Roman German sphere of influence countries is, they will be denied the right to create credit. But the Germans don’t want a powerful euro. When the euro became too strong for export trade starting in 2002, the Germans didn’t like this.
The grasshopper nations loved it because they could buy foreign goods not from Germany but from Japan and China! And go all over the world, going to parties and on vacation! Whoopee! Fun. The grim German ant colony, on the other hand, was staring at destruction as the industrial base in Europe began to collapse. Thus, the need to have a weaker euro but not a dead euro.
Germany will keep the EU going but will the other EU nations want the Germans to do this? Ah! That is the real question here! They may exit. So the ring fence Germany will create will be for them to have the euro for their sphere of influence and all the other imperial parts of the French or Byzantine empire can go off to whatever they wish and basically, collapse.
THIS is the future, not Germany going off the euro. The Germans are being assured of this and I believe this is what will happen in the end. The only question is, will France exit the euro? England didn’t join precisely, in the first place, even when joining the EU, to be the fulcrum, already with their own currency! See? This is how analysis works: you look at the oddest things and above all, history.
Alan Franklin, a journalist for 37 years and editor of a newspaper in southern England, alan .firstname.lastname@example.org, relates The present format of the EU cannot last, and it was never intended that it should. Right from the beginning, the founders had grand, globalist ambitions. Addressing the European Policy Centre in September, 2000, Belgian Prime Minister Guy Verhofstadt described the subterfuge adopted to set up the embryonic EU.
“With the European Coal and Steel Community, the seeds were sown of the European Union of today.
It was the initial impetus to the development of a community approach, step by step forging European integration by joining, and sometimes also by abolishing, national sovereignty into a joint approach.”5
Turning to the next great leap forward, Verhofstadt said: “It is of the utmost importance to keep in mind a global vision of the ultimate goal of European unification.” This is a good thing, he explained, because “the European Union as it is now could never be the ultimate goal.” He said the pace of integration must never slacken lest, “in the worst case, countries will start to plead for the restoration of their former sovereignty.”6
Notice that national sovereignty — independence — is referred to in the past tense.
Next came the real bombshell. The Belgian said that there must be values underpinning this vast undertaking — the largest coming together of countries in the history of the world. But whose values? His answer: “the values which resulted from the French Revolution.”7
So, the values of the brave new Europe are to be those of the country which gave us the guillotine, the reign of terror and the time of blood washing through the streets of France! “The Portman Papers,” a quarterly newsletter keeping watch on developments in the superstate, says in its October 2000 edition: “Verhofstadt’s values come from this. Eight years before the French Revolution began in 1789 with the Declaration of The Rights of Man, the General Council of Freemasonry at Wilhelmsbad, convened by Adam Weishaupt, founder of the Illuminati, drew up the blueprint. Its evil spirit was epitomized in Maximilian Robespierre, whose technique of terror anticipated Stalin’s by 100 years.”8
The French Reign of Terror claimed over a million victims. Inmates of prisons were slaughtered. Human heads were counted up like scores on cards. The terror was justified in the name of “democracy.” Similarly the coming clampdown on free speech, religious freedom and free political parties by the “beast of Brussels” system is being justified by words like “anti-discrimination” and a “charter of rights.”
When I visited Strasbourg, the French city near the German border which, with Brussels, co-hosts the European Parliament, I was introduced to the head of the house of Habsburg, Otto von Habsburg, a man whose family dominated Europe for centuries. Full of charm and intelligence, he said that instead of war, a great new Europe could be built on peaceful cooperation. His ideas go far beyond this, however. In his book, The Social Order of Tomorrow, he writes: Now we do possess a European symbol which belongs to all nations equally. This is the crown of the Holy Roman Empire, which embodies the tradition of Charlemagne, the ruler of a united occident, the Crown represents not merely the sovereignty of the monarch, but also the ties between authority and the people. True, it is the monarch who is crowned, but in this sacred act he appears as the representative of the whole people. It should therefore be considered whether the European head of state, as the protector of European law and justice, should not also become the guardian of a symbol which, more than any other, represents the sovereignty of the European community.9
Dr. Habsburg wants to see Europe have an elected head of state — a man elected for life. This influence of both Charlemagne and the Habsburgs hangs heavily over the new federal Europe. The crown of Charlemagne, the first person to attempt to revive the Roman Empire in 800 AD, is an inspiration to those who promote the breaking down of nation states, and a Charlemagne prize has been established for those who work hardest for European unity.
One who did was ex-President Clinton, who in June 2000, was the first American president to receive the Charlemagne prize for his work in promoting European unity. He received the prize at the cathedral in Aachen, Germany, where the first Holy Roman Emperor lies buried.
In a report in The Daily Telegraph, President Clinton said the European Union should have at least 30 member states, including all the nations of the Balkans, Turkey and possibly even Russia. He said that European peace and prosperity now depended on the EU setting its boundaries ever wider. The report tated that Mr. Clinton was determined to be viewed as “part of a family of statesmen associated with European integration.”10
He held private talks with Helmut Kohl, the former German Chancellor, in Berlin. Although Mr. Kohl has been discredited by a party funding scandal inside the Christian Democrat Union party, he is still regarded as the most important force behind European integration in the past 30 years. It is easy to see how these two suspect “statesmen” have much in common, but it is difficult to see how the establishment of a major, often anti-American power block in Europe could be in America’s interests, and thus it is surprising that it has been American policy to push for greater unification of Europe.
1) “German Foreign Minister floats idea of elected EU president,” The Financial Times, July 7, 2000. This article was a report on a speech by Joschka Fischer to the European Parliament’s constitutional affairs committee.
3) This is a frequently quoted remark attributed to Paul-Henri Spaak. However, its original source is uncertain.
4) The London Times, August 19, 1997, quoting a speech by Jack Lang which he gave in Paris.
5) Speech by Guy Verhofstadt at the European Policy Centre on September 21, 2000.
6) Ibid. 7) Ibid.
8) The Portman Papers, October 2000. This is a quarterly newsletter concerning developments within the EU.
9) Otto von Habsburg, The Social Order of Tomorrow, Newman Press, 1959.
10) “EU must embrace Russia, says Clinton,” by Toby Helm, The Daily Telegraph (of London), June 3, 2000, page 12.
VI … Two German leaders, Angela Merkel and Jean Claude Trichet, are laying the foundation for the rise to power of a European Chancellor.
These two have received the much coveted, Charlemagne Prize, for strengthening the Union and shepherding the Euro through a time of sovereign crisis. Spiegel reports Angela merkel was awarded the Charlemagne prize on April 30, 2008. Angela Merkel is a globalist and very much dedicated to global governance, as the BBC reported on May 20, 2010, Angela Merkel as saying “If we are to have a global order and global governance we need to have an understanding for each other” And on June 2,201 Jean-Claude Trichet, soon to be retired president of the European Central Bank, (ECB), was awarded the Charlemagne Prize in Aachen. The general idea about the Charlemagne Prize, is that an honor is given to an individual who has worked to further the construction of “Europe”.
Obfso in article Tony Blair: EU Needs Elected President, Former PM Says. Tony Blair became the third British prime minister and the fourth British statesman to receive, in Aachen, the annual Charlemagne Prize, which is awarded to the statesman, of whatever ever nationality, who has done most for promoting European unity. Aachen, the “Rome of the North, was the favourite city and seat of Charlemagne (742-814), first of the Western emperors. It was in this delightful little city, with its hot springs and Roman remains, that he set about his titanic task of bringing back order to the Europe that had fallen apart with the fall of the Roman Empire itself. He did not hesitate to use the awesome name of Rome for his purpose: he was himself a patrician of Rome: on Christmas Day, 800, in St Peter’s basilica, in Rome, he had been crowned, Imperator Romanorum. The Holy Roman Emperor (German: Römisch-Deutscher Kaiser, or “Roman-German Emperor”) is a term used by historians to denote a medieval ruler who, as German King, had also received the title of “Emperor of the Romans” from the Pope. After the 16th century, this elected monarch governed the Holy Roman Empire (later called Holy Roman Empire of the German nation), a Central European union of territories of the Medieval and Early Modern period, according to Wikipedia in coverage of the Holy Roman Emperor
Janeh writes The Dark Ages are the period between the fall of Rome and the installation of Charlemagne as Holy Roman Empire on Christmas Day in 800. The Dark Ages were Dark not because religion ruled them, but because nobody did. When Rome fell, all effective government in Western Europe pretty much disintegrated. Nobody had the power or the resources to keep order, and the result was predictable.
Alex writes Charlemagne was saluted as Pater Europae. The division of Christendom due to the Reformation with the 1520s sounded the close for any Holy Roman Empire. It wasn’t theology which was the predominant drive from the break-up of Europe’s non secular unity. Quite, it absolutely was the ambition and avarice of kings and popes, and the expansion of nationalist sensation resentful of global command Third Period European Nation States. In 1751 Voltaire defined Europe as: A form of fabulous republic divided into a vary of states, some monarchical, the many people blended, but all corresponding with each other.
My Gambling Products writes Did you know all of the Kings in a standard deck of player cards actually represent real people? That’s right. The Kings are more than Kings in a deck of cards. Due to the fact that a standard deck of cards was created in France during the 15th century, the designer of the cards used historical figures to represent the Kings the deck that they designed. For example, Charlemagne is depicted as the King of Hearts, while Julius Caesar is represented by the King of Diamonds. Likewise, Alexander the Great is represented by the King of Clubs, while King David of the Bible is represented by the King of Spades.
Is fate operating, dealing out a new king? Will a Emperor of Europe, a European Monarch, rise to power? Might he have the title President of the EU? Will he be the Eurozone’s Iron Chancellor, and rule by diktat. Will this Sovereign, be accompanied by a Seignior, meaning a top dog banker who takes a cut? Will their word, will and way be the basis of moneyness, that is seigniorage?
Might this great leader be Herman Van Rompuy? Max Kasert of the AP reported that Angel Merkel, and Nicolas Sarkozy Seem To Rule 27 Nation EU, “Standing side-by-side, French President Nicolas Sarkozy and German Chancellor Angela Merkel chitchatted briefly with the [European Union] summit’s host, Herman Van Rompuy, the EU president. But they left no doubt about who really owned the meeting, and the European Union itself. They have formed a bond that has increasingly become the de facto voice and policymaker for all, whether the other 25 EU like it or not.”
Samuel Baxter writing in Beyond The EU Debt Crisis sees the rise to power of a streamlined leader. The New York Times noted that an assertive Germany “raises a more fundamental question, one with important historical overtones, not just for smaller European countries, but for France as well: Is the rest of Europe ready to accept overt German leadership?” For 500 years, Europe was the axis around which the world revolved. It was the leader in science, math, business, art, music, education and technology. During that time, monumental events of history emanated from Europe: the Renaissance, the French Revolution, the Industrial Revolution, and two world wars.The continent had the richest and most powerful nations, and one nation was consistently the heart of Europe’s power: Germany. Consider the Frankish-Germanic kingdom, the reign of Charlemagne, Otto the Great creating the Holy Roman Empire of the First Reich, the rule of Charles V,and the long-held Habsburg dynasty. Europe is poised to return as a driving force in world events. In the coming years, uncooperative, underperforming nations will become increasingly irrelevant and the reins of the eurozone will be handed to one streamlined leader.
Conservative and Austrian Economists are living in a pipe dream reality. For over fifty years, European Federalists have been working behind the scenes for a federal Europe, that is a United States of Europe, which by its very nature will require a strong political leader supported by a central banker. The federalists goals have been primarily political and secondarily economic.
Bible prophecy or Revelation 13:1-4 foretells that a Beast Regime will arise to rule in all of mankind’s seven institutions and ten world regions. A revived Roman Empire, whose power rivals that of Charlemagne, will arise out of Eurogeddon, that is the Gotterdammerung of nation state leaders and short sellers and bond vigilantes, Revelation: 13:3. And it will be ruled by a Chancellor, the Sovereign, Revelation 13:5-10, and a Banker, the Seignior, Revelation 13:11-18. The Diktat of these two will flow through a Fiscal Union as the Fiscal Sovereignty of former sovereign nation states will have been waived by national leaders. Freedom and Choice are vestiges of the former Neoliberal Regime. Neoauthoritarianism is the new regime which will be enforcing debt servitude.