Samizdata quote of the day

Brian Micklethwait (London) · European Union

The tight financial integration of the eurozone, together with the essentially political decision to cement all domestic claims into a foreign currency (the euro) was deliberate: thereafter no sovereign could expect to regain independence. A razor-wire fence was erected to prevent members from leaving the enclosure. Now that some inmates are proving excessively troublesome, that same razor wire is a formidable barrier to getting them out.

– G. R. Steele

November 20th, 2011 |

5 comments to Samizdata quote of the day

• RW

  November 21, 2011 at 11:13 am

  An occasion when I’m forced to use the word WOW.

  I recommend checking out Steele’s links to papers by a guy called Whittaker, particularly the second one. A clear analysis of a problem overlooked by the commentariat and no doubt deliberately swept under the carpet by the politicians.

  Essentially the eurosystem enables national governments to continue to borrow from the ECB whether the ECB (and Merkozy) wish it or not…

• Paul Marks

  November 21, 2011 at 12:58 pm

  The Euro was indeed a political project – deigned to further “political integration” the “European Project”.

  Actually the European elite were quite open and honest about this – it was only the British elite who pretended the Euro was basically an economic idea.

  Whether the British elite, in general, were lying to themsleves or to the British people I do not know.

  Certainly certain indivdual members of the British elite understood the truth about both the Euro and the Eurpean Union (which is, and has always been, a project to create a “country called Europe” – as part of a wider world order). But have chosen to lie about it.

  Such individuals (who knew of the effort to destroy British independence, but lied by pretending there was no such effort – even as they personally worked to destroy their own country) were clearly guilty of treason.

  “But Edward and …… fought in World War II”.

  So what? To say that so and so killed people in World War II does not answer charges of treason committed years after World War II – it is simply an effort to change the subject.

  As for the Euro – treating it as if it was a economic thing:

  Well if it was an economic thing THERE WOULD BE NO CRISES (none at all).

  So the Greek government can not pay its debts?

  Well that is very sad, it means the Greek government goes bankrupt, but that should in no way “destroy the Euro” (if it really was an economic project).

  Ditto Italy, Spain and so on.

  Lots of debts do not get paid, some governments go bankrupt (as used to happen quite a lot – for example in the time of Philip II alone Spain went bankrupt three times).

  And, yes, various banks in Germany closed their doors and depositors lose their money (very sad for them – but not as bad as endlessly bailing out such banks).

  But no real effect on the Euro.

  Why should it be destroyed by the above – IF IT IS A ECONOMIC THING (like the gold and silver coins of Spain during the time of Philip II)?

  This is why such people as Jim Rogers could not understand what the crises was about – just let the Greek (and possibly other) government go bankrupt and various banks close their doors.

  Massive recession – yes certainly, but no “destruction of the Euro”,

  However, if it is a POLITICAL projects – then we would see endless crises talks and emergency actions, and the breaking of “European Union law”.

  The bailing out of Anglo Irish bank (by the Irish government – thus bankrupting Ireland) was not just unwise – it also breached EU law (the rule against state aid for private companies – that pro EU people used to tell me about “surely as a libertarian you would support this ….”).

  So did the EU bailout for Greece and other nations – against EU law.

  And the “war over the European Central Bank” – with naughtly Germany (according to my dear friends the Economist magazine – and the rest of the msm) preventing the “ECB” creating new money (from NOTHING) and using it to buy government debt.

  That would also be against EU law.

  But actually it is ALREADY HAPPENING (and has been for some time).

  So much for naughty Germany preventing it.

  I think what the “debate” is about is whether the ECB should break their own laws a lot or “only” a little – over whether the “monetary expansion” should be limited (the German position) or unlimited (the msm position – including that silly man at the Daily Telegraph).

  But, either way, the thing is political – not economic.

  If it was economic bankrupt governments (and bankrupt banks) would be allowed to go bankrupt.

• Current

  November 21, 2011 at 3:55 pm

  “Essentially the eurosystem enables national governments to continue to borrow from the ECB whether the ECB (and Merkozy) wish it or not…”

  Yes. I wrote about that this time last year.
  http://www.cobdencentre.org/2010/11/ireland-has-opened-pandoras-box/

  That article can be seen as an introduction to Whittaker’s eurosystem article, which contains many details I didn’t know.

• John Galt

  November 21, 2011 at 4:10 pm

  Everyone knows that the only solution to this crisis is the transformation of the ECB into the lender of last resort and the monetization of debt across the entire Eurozone.

  Although this is specifically outlawed (laid down by the Bundesbank), it is also a fundamental requirement that this happen as the foundation of a Federal Europe.

  This ‘reluctance’ by Merkel and others is just a front to appease the German people and to stop the lampposts getting their piano-wire decorations for Christmas.

  By forcing this ‘beneficial crisis’ (the first of many) through before the German general election in September / October 2012, Merkel shows her colours as a true European even if it means certain electoral defeat. Since that already appears to be on the cards it is only a matter of time before the printing presses at the ECB are allowed to roll.

  Let me assure you, once they start they will never stop – just like the US Federal Reserve.

• 'Nuke' Gray

  November 22, 2011 at 1:35 am

  All together now, sing the new European anthem- “Deutschland, Deutschland, uber alles!”

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