Sell out

Th Slog sounds the warning bell: Ever so quietly, with the acquiescence of Berlin, Brussels is planning to let the bankers off. In essence what the EUnion is planning to perpetrate is an 'instant austerity pact', possibly implemented as soon as the start of 2012. Fear are that the dreaded ESM, which will destroy any national sovereignty there still exists and deliver all of us into the hands of an untouchable clique of central bankers (see here).

But that is not all. To get the banking sector on-board the EUnion is said to offer a quid-pro-quo: Play along and you will not have to take a haircut on existing troubled sovereign debt (mainly Greece, but also Italy, Spain, Portugal and France). Since the debt of these countries needs to be serviced and reduced, since the bill has to be paid by somebody, this will mean the debt is rolled over onto the shoulders of the EUnion taxpayer and citizen. Us.

We will be told we will be bailing out the banks.

We will have to pay for those banks that squandered obscene amounts of money on ridiculously risky loans will not carry the burden of their ill-considered, even retarded decision-making. We will. And the higher taxes and falling living standards that must follow the enactment of this grubby plan will turn a depression into a slump, says the Slog.

This is not doom-laden panic mongering either. Over on Mish's we find corroboration: Latest Idiotic Plan: No Losses for Banks or Bondholders because "Losses Undermine Confidence"
That's right folks, we are going to bail out the banks and no one has to take any losses (except taxpayers of course who will "share" 100% of the risk). Otherwise there will be a "loss of confidence" in the same banks that plowed into Greek, Spanish, Irish, and Portuguese debt because supposedly there would be no losses on sovereign debt.

Now they have taken a no-loss idea that has already blown sky high, and want to expand it to the next level: "no losses on bailouts".

This plan is so stupid only government bureaucrats could dream it up.
The only true way to restore confidence is to punish banks that make stupid lending decisions, Mish writes. It is 100% of the losses should go to the bondholders, not zero percent.

What is worse: Our own government is said to have been convinced by Germany's slithering financial minster Wolfgang Schäuble to agree to this abomination. PM Mark Rutte and FM Jan Kees de Jager will once again sell out our wealth, our savings and our hard work to rescue multi-million euro bonus earning bank rats. It is immoral, it is supremely unjust and it is a complete betrayal of the oath of office both of them took when they were sworn into their current position.

This cannot stand. Spread this around as much as you can. Contact the Tweede Kamer member of your choice and ask them, for once, to represent you and yours and oppose this travesty. Tell others about it. Let us try to make sure that when our governments officials come back from the ESM summit later this week they'll notice a determined lack of consent by the people and a significant part of parliament.

3 opmerkingen:

Mr Ecks zei

Bit baffled by this one--not sure what the Slog is on about.

When it hits the fan, the banks will collapse and the state will try to bail them out anyway to stop the depositors (ie you and me) being ruined because their money has vanished. Running the presses so will prob cause hyperinflation. The only other choice the political scum have is to allow the banks to go and make nassive cuts in spending (which is harsh but better than the alternative). We will soon be in the biggest Depression since Adam was a lad and the state will be desperate for every penny to try and survive, let alone wiping out what little economic activity there is to ensure a comfortable life for their friends. 

Klein Verzet zei

Well, the point, as I understand it, is the craven disregard for the well-being of own citizens if favour of the well-being of those that are in large part culpable for this crisis, and don't need much help with their well-being in the first place.

You are right that if things proceed on the current trajectory the state will be in dire straits anyway.

But don't you think it is the first duty of any (just) state to ensure and protect the interests of its citizens first? They have a duty of steward-ship, I like to think. That is why they have the position they hold. Abdication of that responsibility, that is what I think makes this tale immoral.

DP111 zei

Of course, you KV and ordinary people such as me, will have to pay.

Lets say that the sovereign debt is 40 trillion. Assuming 400 million EU citizens, the debt can be paid in one year if each citizen paid just 100 Euros or 2 Euros a week. Not much eh?
Such an amount can be easily fudged into our energy bills as an AGW/AGCC tax, and not itemised in the bill.