Towards an Genuine and Economic Union (Van Rompuy)....
And why this will and can NEVER work.
If you sell your euro's but keep these inside Europe, you can as well keep them...(Argentinian saying)
The European Union was established to bring prosperity and stability across Europe. Instead it has brought instability, an economic depression, unemployment and misery for millions.
This should allow for the appropriate policy mix with the single monetary policy in pursuit of price stability.
But to ensure stability and growth in the euro area, Member States have to act and coordinate according to common (communist/fascism) rules. (read by giving up your nationality/individualism)
- REALITY learns such is impossible. Large organizations by definition become uneconomic and always break up and disappear. Large organizations can be compared to Monopolies and Oligopolies, with communism or with means of production or labor controlled by a few happy. The USSR, Communist China, Hitler, Napoleon, Rome....a proof historic such never works.
- It is exactly because of the EURO (unified currency) that the PIGGS are suffering so much. The euro doesn't allow for the local entities to adjust and the situation will get worse until these countries break loose of the Euro-stein. The EMU can be compared to the unification Adolf Hitler was fighting for. He was defeated and so will Van Rompuy.
- Capitalism is based on individualism and it was individualism that brought prosperity to Europe and the USA. Individualism is the motor for prosperity and economic growth.
Fundamental building blocks:
1. An integrated financial frame work to ensure financial stability: it is Fractional Reserve Banking and Fiat Money created out of thin air which brings instability. The situation is so bad that the local National Banks are unable to cope with the problems. Therefore, the cry is to create a Supra-National bank (ECB) to bail out the national banks...what will they do the day the Supra-National bank ECB runs into problems? They clearly have no clue of what EXPONENTTIAL GROWTH of DEBT means. Making fractional reserve banking illegal would solve the problem over night. The European resolution sceme must be funded by the contributions of nationals banks...I wonder how these banks which are technically all bankrupt will be able to do so?
2. An integrated budgetary framework: just limit the spending power of the politicians and you've solved the problem. A budgetary framework has no sense if it is not enforced. It is exactly because of the fact that politicians keep spending beyond their means to attract more voters that there is a depression. The issuance of common debt (EUROBONDS) should be a way to bring more budgetary harmony. I don't see how one can solve the problems we're in now by making even more debt and how Euro-bonds can possibly bring more budgetary discipline..on the contrary.
3. An integrated economic framework: or 5 year plans like in the USSR - see above. The world economic activity is a cyclical and auto-correcting. The longer the natural correcting forces are not allowed to cleanse out the system, the harder the final crash. The USSR lived for 43 years only....before the communist/socialist system blew up in 1989. Ever since 1989 Russians have become richer and have their pockets full of money...while at the same time Western Europe is sliding into a depression....
4. Ensuring the necessary democratic legitimacy and accountability of decision making: we all experience that the undemocratic leaders of the Euro-zone want more control and expect the national governments to give up the local democratic elected leaders. Italy has a technocratic government put in place by the EMU, when Papadopulos wanted to have a referendum he was exchanged by a president appointed by the EMU. This is nothing more than a path towards the EUSSR.
Francis D. Schutte
July 1, 2012