The package to rescue the euro zone cobbled together last weekend did not have the lasting effect many had hoped for. After a brief spike of the markets on Monday the rest of the week saw the European stock market and the euro continue their slide downward. Dr. North of EURef is illustrating his thoughts on the euro (in a post aptly titled 'Crash and Burn?') with a picture of a plane in a rather dire state.
A report in the Financial Times(via Euro Intelligence) has it that at first 'the growth implications of the austerity packages ha[d] not yet filtered through to the financial markets'. The FT reports that investors are getting scared by two factors – the prospect for economic growth in view of the austerity programmes, and the now prevailing assumption that the ECB is likely to keep lose monetary policies irrespective of inflationary developments.
This state of affairs does not prevent the EUrocrats from trying to get the maximal benefit from what they evidently view as yet another of those 'beneficial crises', that provide an opportunity to further centralize political powers in Brussels, while the citizenry is preoccupied with the drama of the moment.
Bruno Waterfield warns us that Herman Van Rompuy, the EU President, has set up a task force to build a new "gouvernement économique" to cover all 27 member states of the Union. This new body, with strong support from France and Germany, holds its first meeting on May 20.
First among the more infuriating aspects of the plan is the stipulation for EU powers to vet budgets of the 27 member states before the draft laws have been presented in the parliaments of respective member states.Says Ambrose Evans-Pritchard: "Fonctionnaires and EU finance ministers will pass judgement on the British (or Dutch, or Danish, or French) budgets before the elected bodies of these ancient and sovereign nations have seen the proposals. Did we not we not fight the English Civil War and kill a king over such a prerogative?"
Rather surprisingly, given the Germans opposition to handing over money to delinquent governments like the Greeks, Angela Merkel seems to be in full support.
"If the euro fails, not only the currency fails. Europe fails too, and the idea of European unification. We have a common currency, but no common political and economic union. And this is exactly what we must change. To achieve this - therein lies the opportunity of this crisis."Or, in other words: Never waste a good crisis.
But the acquiescence of Mrs. Merkel is all the more puzzling in light of the (apparently successful) attempt at naked extortion by French president Nicolas Sarkozy, who, according to the Australian, threatened to pull France out of the euro zone last weekend, if Germany would not agree with the monstrosity delivered late last Sunday.
Back to the question that started this post. It would seem to me that a beneficial crisis is one that is in essence contained, but is allowed to rage within such parameters as our leaders deem necessary to meet their objectives. But what if the crisis grows beyond the control of even the leaders?
Even in the Netherlands the call to bring back the guilder (NL) is growing stronger every day. And slowly it is dawning on the financial markets that, despite the rescue-package, Greece will probably not be able to repay her debts (it really is a measure of the total and utter irresponsibility of the entire Greek apparat to have let it get this far). Thus leaving the 'colleagues' between a rock (increasingly unwilling citizens) and a hard place (increasingly skeptical markets).
I find myself strangely optimistic these days. Yes, there is a financial storm heading our way. And it will be a bad one, leaving many (possibly including yours truly) without a meaningful job. We probably have to prepare ourselves for some hard times ahead. But if we have to suffer that to be rid of the anti-democratic and rather tyrannical cabal roaming around Brussels, it will be worth it.
The EUnion was built on the foundation of strong economies in Western Europe, and the promise to adhere to the 'stability pact'. Or rather, it latched on like the parasitical bloodsucker it really is. While I am aware the cost in human misery my deepest wish entail, I do hope that the economic crisis deepens to the extent that the EUnion collapses under its own weight. Only then will we be able to rebuild our nation and our continent in a manner the EUnion so utterly falsely claimed it would: Prosperous, free and sovereign.
And as to Napoleons retarded nephew threatening to leave the euro: F..k you! I dare you, you miserable schmuck. Ever since the even when we were a 'Community', rather then the EUnion that is holding us in a death grip right now, we have been handing you money to prop up your agricultural sector. You think you can do it by yourself? By all means, go and piss off and leave us to spend our money on our own stuff, you bug-eyed midget!
(With my apologies to my regular reader for this sudden outburst of rather blue language).
Financial Times: Europe’s missing foundations
Business Week: Euro Breakup Talk Increases as Germany Loses Proxy