LATEST: The Telegraph 26 May 2010: Herman van Rompuy, Permanent EU President: "Nobody ever told the proverbial man in the street that sharing a single currency was not just about making peoples' lives easier when doing business or travelling abroad…. Being in the 'Euro zone' means, monetarily speaking, being part of one 'Euroland'." He also confessed that the euro had been flawed from the moment of its creation in 1992, a situation that had not been made clear to voters. 

Summary: The EU´s Greek rescue plan turns out to have secret exit criteria that can ruin donor countries like Germany and France. If a country has to borrow at a higher interest rate than it gets from Greece, in order to participate,  the other donor countries have to reimburse the difference. Are they not willing to do so, or if a donor country's national constitutional court overrules its participation, such a country withdraws from the action - and the others must bear its share. Should such faltering befall Spain it can break the backs of donor countries. Now Prof. Schachtschneider´s complaint has been acepted for examination by the German Constitutional Court. If he succeeds - and there are clear treaty and constitutional violations - the euro will probably be finished. This is goodies for Rothschild´s Soros, who along with others have bet high on being able to crack the euro before the end of the year - and  is already believed to speculate against Spain, as well. This article brings a wide range of statements by prominent politicians and economists before and now. These are blatant lies about the benefits of the monetary union, although the participating countries' economies were so different that it could only go wrong, which prominent economists also pointed out. After the Greece bail-out, the same people are now saying the exact opposite of what they said earlier - a few even believe that they have always said they would make rescue packages - although they just said the opposite. One  really gets the impression that the elite intend to drive our economic system into chaos with great profits for the Rothschild banks who started the crisis - and are wont to rob tax payer money through bail-outs. "Order out of Chaos" is the illuministic motto (and the EU has declared itself illuminist). But before that they usually are making the necessary chaos themselves. The intention has always been to use the euro and its crises to create a dictatorial union, the United States of Europe under elitist control. 

Kissinger-order-chaos“The euro was adopted really for political purposes, not economic purposes, as a step toward the myth of the United States of Europe. In fact, I believe its effect will be exactly the opposite”. - Nobel Prize Winner Milton Friedman, 2001.
The euro zone is in trouble: BILD 23 Maj 2010: Secret exit clauses of the Greek bail-out: If a donor country for its part must even take a loan and must pay more interest than it gets back from the Greeks it should have the difference replaced. If the other euro countries are not ready to reimburse it, the donor country can exit the bail-out. In the contracts, the donor countries guarantee to pay the loans, even if individual countries, e.g. for political reasons, are unable to pay their shares. In this case, the first loans would possibly have to be financed solely by some lenders. Should the ECJ or any national Constitutional Court decide the bail-out to be unconstitutional the country in question would end its participation. Prof. Schachtscneider´s complaint has now been taken up by the German Contitutional Court. Should he win the euro will be in very serious trouble – and democracy would prevail again.

The Telegraph 25 May 2010: BNP Paribas said this would escalate quickly into a systemic crisis if Spain were in such a position, because the other countries cannot carry an ever-rising burden. The bank warned the euro project itself may start to disintegrate rapidly if these rescue provisions are ever seriously put to the test- which George Soros & Co have bet to do this year. He has said he wants an EU finance minister, i.e. the United States of Europe – besides our money, of course. Fear that America kan slip back into a double-dip recession is returning. Larry Summers, White House økonomic tsar, has called for another bail-out to keep the recovery on track, warning that American economy is still in a “deep valley”.  It does seem correct what Infowars wrote on 13 May 2010: Infowars 13 May 2010: What will the people of the member nations gain from this mass centralized union? They will simply see more of their earnings and their savings siphoned off to Brussels to prop up a failing paper currency they had never asked for in the first place. It will also mean their national vote counts for even less as unelected foreign bureaucrats are provided vastly more influence on the national economic policies of their governments. The secret clauses are apt to make the richer EU states go bankrupt too – and then: Ordo Ab Chao – order our of chaos, the New World Order  (see videos on right margin of this blog) strategy. The EU professes this illuminism (explanatory statement)  Teir tool: secret deceit and delusion Their aim: dictatorial power and our money.

The following is from a collection of statements  about the euro, stereotypes presented to us by “our” leaders time and again from the introduction of the euro – even up till one or 2 months ago. Notice the often arrogant character of the remarks before the Greek Bail-out. Then all of a sudden the responsible political and ECB leaders are stating exactly the opposite of what they previously said before bailing Greece out, and making a euro rescue fund of 500bn euros + 250bn from the IMF – and letting the ECB buy junk bonds from failing euro countries – all with tax payer money.

Think Tank Euro-liarsOpen Europe: They Said It.
Ultimately, the Eurozone crisis is not simply about economic failure but also a breakdown in trust between the political class and European citizens. When the idea of a single EU currency was floated, a number of promises were made to voters around
Europe. Politicians, central bankers and opinion formers told us that without the euro our countries would suffer economically, unemployment would rise and growth would stagnate. We were told that differences in economic structure and competiveness
weren’t a problem as members states’ economies would “converge” once inside the currency union and that strict rules would ensure budgetary discipline.

Meanwhile, they said, the EU Treaties guaranteed that taxpayers in one Eurozone country would never be forced to ‘bail out’ a foreign government. In countries such as the UK, politicians in the pro-euro camp maintained that a monetary union could function
perfectly well without further political and economic integration. Those opposing the single currency on such grounds were labelled ‘anti-European’.
In short, we were told that the single currency didn’t really pose an economic risk and that it would not require further political and economic integration.

One thing has become painfully clear: the EU elite simply got it wrong on the euro. This note highlights that the politicians who sold their citizens the euro failed to either grasp or tell the whole truth about the single currency. This is a call for greater honesty about the future of European cooperation and a reminder of the urgent need to find a new model that is both politically and economically sustainable; one that is more in tune with the interests and preferences of European citizens.

The Maastricht Treaty and Statutes of ESCB and ECB
“The Community shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project”. - Article 104b, Maastricht Treaty, 1992.

“When exercising the powers and carrying out the tasks and duties conferred upon them by the Treaties and this Statute, neither the ECB, nor a national central bank, nor any member of their decision-making bodies shall seek or take instructions from Union institutions, bodies, offices or agencies, from any government of a member State or from any other body”.
- Article 7, Statute of the European System of Central Banks (ESCB) and of the European Central Bank (ECB).

And today
“Euroland, burned down. A continent on the way to bankruptcy”. - Front page of Der Spiegel, 5 May 2010.

German Chancellors  Helmut Kohl and Angela Merkel
“I am certain the success story of the Deutschmark will continue with the success of the euro”. - Then German Chancellor Helmut Kohl, 1998

“We have a Treaty under which there is no possibility of paying to bailout states in difficulty”. - German Chancellor, Angela Merkel, 1 March 2010.

“Germany has always benefited from ECB independence […] Protecting people from inflation: that’s what really matters. And that’s why ECB independence is a crucial aspect we will not accept to put into question again”. - German Chancellor, Angela Merkel, 2007.

And today
“We said time and again, if the stability of our currency was in danger, we would act quickly and decisively. And this is the point that we've reached”. - German Chancellor, Angela Merkel, 3 May 2010.

“Every one of us can see that the current euro crisis is the hardest challenge Europe has to meet since the Treaty of Rome was signed. It’s an existential challenge, and we must rise up to it”. - German Chancellor, Angela Merkel, 19 May 2010.

“This must be done to avoid a chain-reaction to the European and international financial system, and contagion to other Eurozone states. There is no alternative”. - German Chancellor, Angela Merkel, 5 May 2010.

“In 2000 we had a situation when we were confronted with the question of whether Greece should be able to join the Eurozone […] It turned out that the decision [in favour] may not have been scrutinised closely enough”. - German Chancellor, Angela Merkel, 28 April 2010.

“The German chancellor can make as many admonitions as she pleases. She could even threaten to turn down the request for aid. But this is no more than politically motivated banter. In the end, Germany will transfer its billions over to Greece - the pressure from European partner states and the financial markets is too strong”. - Editorial, Die Welt, 26 April 2010.

Pres. of EU Commission José Barroso .
“An enlarged EMU area will be positive both for the Eurozone area and for the countries joining”. - Then Commission President Romano Prodi and then Commissioner for
Economic and Monetary Affairs Pedro Solbes, 2000:

“The euro is a protection shield against the crisis”. - European Commission President, José Manuel Barroso, 5 February 2010.

I like to compare the EU with the empires” – European Commission President, José Manuel Barroso 
And today
“Member states should have the courage to say if they want an economic union or not. Because without it monetary union is not possible”. - European Commission President, José Manuel Barroso, 13 May 2010.

Herman van Rompuy, Permanent EU-Pres.
"We are working in order to have some crisis cabinet" - without changing the Maastricht Treaty - which could include the European Comission President Jose Manuel Barroso, the head of the European Central Bank Jean-Claude Trichet and Mr Van Rompuy, a source later said - EUObserver 25 may 2010.

Jean Claude Trichet, Chief of the European Central Bank
“The thrust of the spirit and of the letter of the Treaty is that everything is done to construct the euro area as an optimum currency area. First by ensuring that it incorporates economies that have already proved being convergent in the fiscal field as well as in the monetary and financial fields”. - Then Governor of the Bank of France, Jean-Claude Trichet, 1997.

“I will defend European Central Bank’s independence under any circumstance and with all my strength”. - ECB President, Jean-Claude Trichet, 2007.

“No government or country will be able to expect special treatment. The Central bank will not change its principles just because the sovereign bonds of a member state no longer
fulfill the appropriate criteria”. - Jean-Claude Trichet, ECB President, January 2010.

Wim Duisenberg, 1. ECB Chief
“There is no bank in the world as independent from politics as the European Central Bank”. - Wim Duisenberg, the first President of the European Central Bank, 1998.

“It is sometimes said that while the single monetary policy may be ‘right’ for the euro area as a whole, it is ‘wrong’ for many individual countries within the area. I disagree with this view. First, it overlooks the fact that within a single currency area adjustment can occur via prices and wages”. - Then President of the European Central Bank, Wim Duisenberg, 1999.

ECB Board members
“The 'no bailout' principle is anchored in the EU treaty and has to be taken absolutely seriously. It is not possible to defuse the problem here through direct financing”. - ECB Executive Board Member, Ewald Nowotny, 2009.

“The Treaties set out a 'no bail-out' clause, and the rules will be respected. This is crucial for guaranteeing the future of a monetary union among sovereign states with national budgets. Markets are deluding themselves if they think that the other member states will at a certain point dip their hands into their wallets to save Greece”. - ECB Chief Economist, Jürgen Stark, 6 January 2010.

And today
“The European Central Bank's stunning decision to purchase government debt of some euro-zone governments, just days after appearing to reject the idea, has pushed the bank further into the realm of politics, raising doubts about its independence”. - Wall Street Journal, 11 May 2010.

“The purchase of sovereign bonds poses severe risks to political stability, and I therefore view this part of the decision of the ECB – board, even in this unusual situation, critically”.
- Axel Weber, Bundesbank President, 12 May 2010.

“Against all its vows, and against an explicit ban within its own constitution, the ECB has become involved in financing States. Obviously, all of that will have an impact”. - Former Bundesbank President, Karl Otto Pöhl, 18 May 2010.

"The negative impact this decision will have on [ECB’s] credibility as an independent monetary authority seems to be irreversible”. - IE Business School Professor, Daniel Fernández Kranz, 10 May
2010

Other economists
Nobel Prize winning economist Robert Mundell, sometimes described as ‘the father of the Euro’, 1999. “The euro area: How big will it be? My own prediction is that by the year 2002 the European monetary Union will include its current 11 members plus Greece (which is already committed to join), Sweden, Denmark, and Britain. By 2005, Slovenia, the Czech Republic, Poland, Hungary, and Estonia will also be in. And by 2010, assuming all goes well and the monetary union is prosperous, no country in Europe will want to, or be able to, afford to stay out. Thus, Slovakia, Croatia, Lithuania, Latvia, Romania, and Bulgaria will all join the monetary union”.

“I have no doubt that monetary union can function very well without far-reaching political union. On the contrary, there could even be a risk that excessive centralisation or
harmonisation of economic policies might stifle healthy competition and weaken economic efficiency”. - Then ECB Chief Economist, Otmar Issing, 2001.

And today
“The benefits of monetary union, in particular lower interest rates and the elimination of exchange rate risk, have not always been used wisely and have tempted some countries
to live beyond their means […] In addition, fiscal policy often failed to use higher growth and lower interest rates to reduce deficits sufficiently. In economies with rigid or only
partly flexible labour markets, all these large expansionary stimuli resulted in accelerated wage increases that were well in excess of productivity growth, reducing price competitiveness and exports of domestic firms”. - Bundesbank President, Axel Weber, 22 March 2010.

“There is a grave threat of contagion effects for other member States in the monetary union and increasing negative feedback loop effects”. - Bundesbank Chief, Axel Weber, 5 May 2010.

“All European countries are currently living beyond their means”. - ECB Executive Board Member, Lorenzo Bini-Smaghi, 13 May 2010.

“It was thought that the euro would trigger […] a wave of modernisation in the weaker countries. That hasn’t happened […] Now the monetary union is becoming an inflation union”.
- Joachim Starbatty, Tuebingen University Professor, 22 May 2010

And even before, as well as  today
The Greek Government deficit for 2008 was revised from 5% of GDP (the ratio reported by Greece, and published and validated by Eurostat in April 2009) to 7.7% of GDP. At the same time, the Greek authorities also revised the planned deficit ratio for 2009 from 3.7% of GDP (the figure reported in spring) to 12.5% of GDP […] Revisions of this magnitude in the estimated past government deficit ratios have been extremely rare in other EU member States, but have taken place for Greece on several occasions”. - European Commission report, ‘Greek Government deficit and debt
statistics’, 8 January 2010.

“Persistent competitiveness divergences and macroeconomic imbalances within the euro area cause a risk to the functioning of Economic and Monetary Union. In the years preceding the crisis, low financing costs fuelled the misallocation of resources to often low productive uses, feeding unsustainable levels of consumption, housing bubbles and the accumulation of external and internal debt in some member states. The competitiveness gap reached an all-time high just before crisis”. - European Commission communication, 12 May 2010.
 
EU Commissioners and the IMF
“Solidarity is possible, [and] will exist. A bailout is not possible and will not exist”. - Then EU Commissioner for Economic and Monetary Affairs, Joaquín Almunia, 29 January 2010

Greece, Portugal, Spain, these economies and others in the euro area share some features. In those countries we can observe a permanent loss of competitiveness since they are members of the Economic and Monetary Union”. - Then Commissioner for Economic and Monetary Affairs, Joaquín Almunia, 3 February 2010.

And today
“Greece is highly indebted and lost about 25% of its competitiveness since euro adoption. At the end of 2009, the general public deficit reached 13.6% of GDP and public debt had increased to 115% of GDP. Even with the lower deficits envisaged under the program, the debt as share of GDP will continue to peak at almost 150% of GDP in 2013 before declining thereafter”.
- International Monetary Fund, May 2010.

“The exceptional combination in Greece of lax fiscal policy, inadequate reaction to mounting imbalances, structural weaknesses and statistical misreporting led to an unprecedented sovereign debt crisis”. - European Commission communication, 12 May 2010.

“We knew that Greece was cheating, it was clear as soon as they joined that there was something wrong [with their figures]”. - EU Commissioner for Trade, Karel De Gucht, 5 May 2010.

EU politicians
“The euro has been a rock of stability, as illustrated by the contrasting fortunes of Iceland and Ireland. Joining the single currency would be a major step”. - Former Labour MEP Richard Corbett, 20095.

“I think it’s possible to go to monetary union without going to political union”. - Then UK Prime Minister, John Major, 1995.

“The decision to launch the single currency is the first step and marks the turning point for Europe, marks stability and growth and is crucial to high levels of growth and employment”.
- Then UK Prime Minister, Tony Blair, 1998.

“People should note that the Euro will not only be just as stable as the D-Mark, but also a lot more capable”. - Then German Economy Minister Hermann Müller, 1999

“The euro is not Heaven, but it has a very special virtue […] It will become the same unit of measure for several different states, which in turn will no longer be able to sweep their
sins and their weaknesses under the carpet of their national currencies”. - Italian Prime Minister, Silvio Berlusconi, 2001

“Aid for Greece would be the wrong signal. We must not create a precedent that other Eurozone countries can refer to in the future […] It cannot be possible that German taxpayers have to pick up the bill for mismanagement in Greece and elsewhere”. - German Economy Minister, Rainer Brüderle, 24 March 2010.

“[Greek Prime Minister] Papandreou has said that he didn’t want one cent. The German government will not give one cent, anyway“. - German Economy Minister, Rainer Brüderle, 5 March 2010.

“There is no legal basis [for a bailout]. The European Treaty even explicitly forbids EU member States from transferring their debts to others, and we should stick to that”. - Swedish Finance Minister, Anders Borg, 2009.

“If we remain outside the euro, we will simply continue to subside into a position of relative poverty and inefficiency compared to our more prosperous European neighbours. Remember, we are already only the tenth richest nation in the EU in terms of national wealth per head. Yet you seem to think that such relative decline is a price worth paying for the sentimental satisfaction of retaining increasingly meaningless ‘control’ over our own interest rates”. - Lib Dem leader, Nick Clegg, 2001.

And today
“I don’t think the euro is for now. I go even further and say I don’t think interest rates under the Eurozone over the last few years wouldn’t have been right for the British economy […] I accept that Eurozone interest rates over the last few years would have been wrong for Britain”. - Nick Clegg, Lib Dem leader, 7 April 2010.

“So it's very, very important that we now make progress, both when it comes to consolidation - not only long-term but short-term consolidation - but also when it comes to a common facility to deal with the urgent problems Swedish Finance Minister, Anders Borg, 10 May 2010.

"It is an absolute general mobilization: we have decided to give the Eurozone a veritable economic government”. - French President Nicolas Sarkozy, following the agreement to commit
an additional €500 billion in loans to struggling Eurozone countries, 9 May 2010.

“We cannot allow the bankruptcy of a euro member State like Greece to turn into a second Lehman Brothers […] The consequences of a national bankruptcy would be incalculable. Greece is just as systemically important as a major bank”. - German Finance Minister, Wolfgang Schäuble, 18 April 2010.

“Supposedly we have no money for tax cuts, no money for school upgrades, no money to maintain parks, no money to fix our streets […] but suddenly our politicians have billions of euros for the Greeks who have deceived Europe”. - Bild, 28 April 2010.

Greek Politicians
“We must enter the euro with a clean sheet on all the criteria”. - Then Greek Finance Minister, Yannis Papantoniou, 1999

'If Greece will join the EMU, if we continue to improve the economy, then we will win the elections. I understand that a lot of people are struggling but they will soon see that they
sacrifices were worth it”. - Then Greek Prime Minister, Costas Simitis, 1999.

Pinocchio2And today

“We are in a terrible mess”. - Greek Finance Minister, George Papaconstantinou, 16 February 2010.

“The Commission has been provided with incorrect figures for six years. Indeed, part of the responsibility was on Greece, but the Eurozone also lacked the tools to notice that”. - Greek Prime Minister, George Papandreou, 23 May 2010

Comment
Here is the reason why the euro was prematurely launched – although many could see that the gap between the participants was too wide, the morals and cultures of the participants too different:  “We commit to promote a strong coordination of economic policies in Europe. We consider that the European Council must improve the economic governance of the European Union and we propose to increase its role in economic coordination and the definition of the European Union growth strategy”. - Statement by the Heads of State and Government of the euro area, 25 March 2010. The New World Order quest for regional abolishment of national states was the reason – the consequent impoverishment of people is indifferent to this group of illuminist rulers, who are already playing chess with us as pawns. The above reveals incredible stupidity or corruption.