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talkpoliticsEU To Establish Powerful Financial Authority
http://www.spiegel.de/international/business/0,1518,648107,00.html
"...According to the plans, the European controllers would be given the right -- in cases where a crisis is foreseeable -- to directly intervene in financial markets."
Because Rahm Emanuel once said that no crisis should go to waste, I hereby present to you the perfect storm:
- A subprime mortgage and derivatives originated crisis wipes out the financial sector at both sides of the Atlantic.
- People's money is being used to "stimulate" the economy and resurrect the "dead" financial sector by throwing money at it with no strings attached.
- The financial sector uses that money to pay enormous bonuses to their employees so they could buy more yachts and continue to live like barons.
- People get pissed and start yelling against that. The authorities respond with either ignoration or a crackdown.
- The people are told there's no other way - they should tighten the belts some more if they're to emerge from this mess whatsoever.
- Countries like Greece and Italy see their governments collapsing, and new unelected bureaucrats (friendly to the EU) being appointed to pass the "rescue" measures imposed by the EU itself.
- The EU leaders and decision-makers themselves are forming an unelected body, a super-government of the entire continent, who gather behind closed doors to decide what new "directives" they're going to drop down onto the member countries.
- Some smart-heads in Brussels come up with the ultimate solution: "We need an all-European financial authority which would control all fiscal policies and intervene anywhere across the EU territory at times of crises".
And crises abound. Crises, of course, being caused by those very financial sectors that so heavily sponsor the election campaigns of said politicians; those same financial entities who possess the major media in said countries; those who basically fund the economy; who are intertwined with the central banks of the countries.
Now, frankly, I think I can understand how some people would go nuts and indulge in all sorts of wacky and not so wacky conspiracy theories.
But of course, having a unified political entity without having the respective common fiscal and monetary policy (and all the respective authorities that come with it) just doesn't work, does it? This argument makes perfect sense, it couldn't be otherwise - the system itself is meant to be designed that way. (Then you'd wonder how come they didn't come up with this idea earlier? Why now? Maybe because you need a good crisis to have the people agreeing to such drastic measures). After all, that's the idea - One Ring To Rule Them All.
http://www.spiegel.de/international/business/0,1518,648107,00.html
"...According to the plans, the European controllers would be given the right -- in cases where a crisis is foreseeable -- to directly intervene in financial markets."
Because Rahm Emanuel once said that no crisis should go to waste, I hereby present to you the perfect storm:
- A subprime mortgage and derivatives originated crisis wipes out the financial sector at both sides of the Atlantic.
- People's money is being used to "stimulate" the economy and resurrect the "dead" financial sector by throwing money at it with no strings attached.
- The financial sector uses that money to pay enormous bonuses to their employees so they could buy more yachts and continue to live like barons.
- People get pissed and start yelling against that. The authorities respond with either ignoration or a crackdown.
- The people are told there's no other way - they should tighten the belts some more if they're to emerge from this mess whatsoever.
- Countries like Greece and Italy see their governments collapsing, and new unelected bureaucrats (friendly to the EU) being appointed to pass the "rescue" measures imposed by the EU itself.
- The EU leaders and decision-makers themselves are forming an unelected body, a super-government of the entire continent, who gather behind closed doors to decide what new "directives" they're going to drop down onto the member countries.
- Some smart-heads in Brussels come up with the ultimate solution: "We need an all-European financial authority which would control all fiscal policies and intervene anywhere across the EU territory at times of crises".
And crises abound. Crises, of course, being caused by those very financial sectors that so heavily sponsor the election campaigns of said politicians; those same financial entities who possess the major media in said countries; those who basically fund the economy; who are intertwined with the central banks of the countries.
Now, frankly, I think I can understand how some people would go nuts and indulge in all sorts of wacky and not so wacky conspiracy theories.
But of course, having a unified political entity without having the respective common fiscal and monetary policy (and all the respective authorities that come with it) just doesn't work, does it? This argument makes perfect sense, it couldn't be otherwise - the system itself is meant to be designed that way. (Then you'd wonder how come they didn't come up with this idea earlier? Why now? Maybe because you need a good crisis to have the people agreeing to such drastic measures). After all, that's the idea - One Ring To Rule Them All.
(no subject)
Date: 19/11/11 19:29 (UTC)(no subject)
Date: 19/11/11 19:41 (UTC)I had some hopes for Mario Draghi; he has just done his best to kill those hopes (http://www.ecb.int/press/key/date/2011/html/sp111118.en.html). In his view, it’s all about credibility, defined thusly:
Unbelievable. Right now, the ECB has too much
credibility on the inflation front; the spread between German nominal
and real interest rates, which is an implicit forecast of the inflation
rate, is pointing to disastrously low medium-term inflation (http://krugman.blogs.nytimes.com/2011/11/01/repost-european-inflation-targets/):
On
the other hand, there has been a severe loss of credibility in the
promises of European governments other than Germany to repay their
debts:
There
are strong self-fulfilling aspects to this crisis of confidence — which
is why Europe desperately needs the ECB to act as lender of last
resort, and short-circuit the vicious circles.
But no, the ECB
will defend its credibility. And it will end up as the highly credible
defender of the value of a currency that no longer exists.
(no subject)
Date: 19/11/11 19:52 (UTC)(no subject)
Date: 19/11/11 20:23 (UTC)(no subject)
Date: 19/11/11 20:28 (UTC)Wait, what?
Date: 20/11/11 04:41 (UTC)(no subject)
Date: 19/11/11 20:39 (UTC)(no subject)
Date: 19/11/11 21:06 (UTC)The United States of Europe...either they do it or quit the Euro, cause this pattern will just lather, rinse and repeat as long the Eurozone members can pretend the current way of doing it makes sense.
(no subject)
Date: 19/11/11 22:17 (UTC)The only way to get out of a hole is to stop digging.
(no subject)
Date: 19/11/11 22:21 (UTC)But it seems doubtful that it would be tolerated, so I doubt the Euro lasts another 5 years.