The Broken Model Of The Eurozone


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    Alfred Palmer White Motor Company, Cleveland Dec 1941 I stumbled upon these few words in an Ambrose Evans Pritchard article the other day, and they hi
    [See the full post at: The Broken Model Of The Eurozone]


    Ilargi – “Before the euro, and the eurozone, countries like Greece, Spain, Italy, Portugal, would perform 20% or more lower economically than Germany or Holland would. And that was kind of alright, because periodically, their governments and central banks would revalue (devaluate) their currencies down against for instance the Deutschmark by those same 20% or so.

    Of course Germany hated this to an extent, since it made it harder for its industries to compete against Greek and Italian companies. Which may by the way well be a mostly hidden reason for them to push the eurozone on the Mediterranean. […]

    All anyone ever considered was a tide to lift all boats.”

    Which one is it: they wanted to lift all boats, or they wanted to make sure their competitors couldn’t devalue? I pick door number two, because isn’t this very similar to the subprime mortgage situation? To think that a whole lot of someones didn’t know what was happening from the get-go and what would happen in the end is really hard to believe. In fact, I don’t believe it.

    It’s just like the Trans Pacific Partnership is touted as going to be beneficial to all, and QE was going to lift ALL boats, and globalization was going to be such a great boon to everyone. Sounds all apple-pieish at first, until you get the bill. But it’s only apple-pieish to us, not the people furthering the agenda. They KNOW they’re going to reap billions while the going is good, and their plan is to throw their hands in the air when it all unravels and say, “Who could have knowed?”

    Of course, they won’t tell us in advance the potential end result (which they already know) because to spell it out would maybe see their plans stopped before they even got started (as people would be up in arms), or they’d have to lie and say that catastrophe could never happen because (fill in the blanks)…..and then they’d perhaps be held liable for the mess they created.

    No, they already know it’s always better to pretend that they haven’t thought things through and then wring their hands and shrug their shoulders when things don’t work out. You can’t really hold people liable for stupidity. That’s what they’re banking on.

    I say they knew it would end like this, but that they were going to make a fortune in the meantime. The strong against the weak (economically-speaking). Subprime countries.

    Formerly T-Bear

    Maybe slightly OT:

    The Guardian has one of the very finest examples of prostitute journalism up on display today:

    The Guardian has resorted to hasbara journalism, and in all likelihood the contamination must be considered to have spread in some degree to everything else it reports. A sure sign of the cancer of orthodoxy having taken hold is any reference still used of surface to air missiles being used in the downing of MH-17; the BBC is 100% fatally infected. The stenographer of the piece in The Guardian proceeds throughout referring as factual myriad statements for which no facts are in evidence. The writer’s presumption that this is journalism and they are journalists fall into the same category: facts not in evidence.

    Returning now to the regularly scheduled opinions of Professor Constipation aka Locked-in-load.

    Dr. Diablo

    How many decades do we have to see the same trick played before we stop pretending? Pretending “Oh how could they have knowed?” as Raleigh says.

    The Euro was simple: they wanted to concentrate and centralize POWER, and saw a nice bite would be Europe. But how to get that more power? Europe was doing pretty good since the war. You need a PREMISE, a plausible idea people can get behind, because sure as heck, they aren’t going to get behind your bare-faced plan of taking their national power and handing to a cabal of unelected bureaucrats. (Not kidding here, the EU is about as far from a democracy as the former Soviet Union was, fake elections, “appointments” and all)

    No. So clearly, you need to come up with a way to force the camel’s nose under the tent. A common currency is that way. Then you need bonds. Then, as Armstrong says, if you can’t get the taxation/government/common bond system passed because people are against your power grab, you force it into being in broken form (sans referendums, particularly when all the real referendums are voted down flat), and wait for the inevitable crisis that allows the power grab you wanted all along.

    And so we’re here. EU/ECB–disturbingly the same thing–and Draghi start printing money outside mandate to hold the pig together. Then claim power over the U.K. to make their rules and tax them when they fall a little short or are mad. Then establish international bank oversight, as violent extortion over the nations–more than they already claimed over their budgets–the right to dispose their leaders at will (Italy, Greece), already retaining the right to ignore the will of any nation or leader any time, for any reason, and all based on an end-run Treaty, not even a vote? …need I go on?

    And this was all just an “ill thought-out accident”? Really? When are we going to stop playing pattycake with these guys that are KILLING? MILLIONS of PEOPLE? Millions in suicide, poverty, crime, and despair? And we’re going to pretend–again and again and again–that it’s an accident nobody saw coming?

    Please. We need to call things by their true name and stop pretending if we’re going to get out of this thing with only the few million deaths we’ve already had. Can we start that now?

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