Fri 21 Jan 2011
EU Economic Governance - Forcing States to Surrender Last Souvereignty, Dictating All National Budgets, Killing the Euro
Summary: Chancellor Merkel and Pres. van Rompuy have said that if the euro fails, so does Europe. Many believe that the euro is failing - but it should probably not be welcomed: As Brzezinski said, regionalization is a precondition for the creation of world government. For a world currency, the bancor after Keynes, to be introduced, it is necessary that the dollar and the euro collapse.
But the EU continues the masquerade: Coming into force as of 1 Jan 2011, Barroso’s dear friend, the Rothschild minion and Trilateral commissionist, Jacques De Larosiere, has created a regulatory regime consisting of the same forces that so conveniently ignored the many danger signals of the financial crisis so favorable to the London and Wall Street bankers. This crisis brought the perpetrators huge amounts of money from homeowners who had to leave their homes, as well as from taxpayers through bail-outs as thanks for their reckless speculations. A European System Risk Management Board (ESRB) is full of Rothschild´s ECB and national bank leaders. Furthermore, there is the ESA, The European Markets Surveillance Authority: The European Banking Authority (EBA); a European Insurance and Occupational Pensions Authority (EIOPA); and a European Securities and Markets Authority (ESMA).
After having introduced very harsh austerity measures in PIIGS and other EU countries, the EU top now says that the measures do not hit deeply enough - despite severe protests against them. Much more austerity is needed, especially the welfare states are to be severely cut, including the pensionable age - and taxes and tax base are to be broadened. The EU demands the right to tax us. The Commission believes, this will increase employment - although people do not have money to stimulate demand. This, together with ETS fees and charges for useless CO2 sales at the bankers´ climate exchanges is a recipe for unrest in the EU. It looks as if the EU is up to this. To add insult to injury, the EU Commission with the Court’s assistance granted to 50,000 EU officials - including the Judges - a salary increase of 3.7% for so bravely having sent millions of Europeans into unemployment. The unions are furious.
The EU demands of protesting indebted countries that they must take an EU rescue package, whereby these countries lose all sovereignty to Brussels. Next on the list is now Portugal, although it says it does not need any rescue package. Specialists believe that these bailouts are completely useless: 1 They do not prevent contagion from the EU´s mortally ill euro concept 2. The rescue mechanism is a mess. 3. There is no plan to get countries out of the rescue mechanism. 4. Finally, all the errors associated the with the rescue mechanism have made a failure of the euro more likely. Investors can see quite clearly that the EU and IMF medicine does not work.
Personally I do not think that the euro will fail until these financial geniuses have pulled the last cent out of our pockets. The surveillance applies to the national budgets of all EU member states. With the upcoming diktat that the EU is to approve of all national budgets before they are laid before national parliaments, the EU is now reducing European states to mere vassals – and putting an end to “welfare”.
Angela Merkel said – as did EU Pres. van Rompuy: “If the Euro falls, Europe falls” – as though that were a tragedy. Which it is, in fact, for after the euro follows the Bancor, the World currency (see the IMF´s “Reserve Accumulation and International Monetary Stability”. And the already existing world government, that acc. to EU Pres. van Rompuy was introduced in 2009 as the G20, will openly govern the world which obviously cannot be governed even by regional governments like the EU. Zbigniew Brzezinski pointed out that world government was only possible through regionalization. So, let´s see how this plan is progressing.
EU´s state bail-out medicine is useless – seems a plot to force EU countries under Brussel´s control
Jan. 18 Bloomberg Business Week: This time around, it’s Portugal. And yet the script seems very similar to the one played out already in Greece and Ireland. Bond yields surge. The government denies furiously there is any need for a bailout. French and German leaders rehash some of their lines about the importance of European solidarity. And the guys at the International Monetary Fund and the European Union pack their bags and check flight schedules. Before you know it, the defiant words have vanished, and the bailout has begun.
It makes no sense: 1.It won’t stop the contagion. 2. The rescue mechanism is a mess. 3.There’s no plan for getting countries out of the rescue mechanism. 4. Finally, all the flaws in the rescue mechanism make a breakup of the euro more likely. Investors can see quite clearly that the EU and IMF medicine isn’t working.
EU Press Release 17 Nov. 2010 (docs 39/10, 40/10, 41/10, 42/10, 43/10 and 13694/10).
The Council adopted regulations establishing a 1. European Systemic Risk Board (ESRB), which will provide macro-prudential oversight of the financial system, and three new supervisory authorities at the micro-financial level, namely (constructed by the Rothschild puppet, De Larosière right with his “dear friend” José Barroso). De Larosière is also an old Trilateral Commissioner to let the previous puppets who failed to intervene against the fundamental financial insanity before the first financial crisis in 2008 carry on with their “supervision”):
2. A European Banking Authority (EBA); 3. a European Insurance and Occupational Pensions Authority (EIOPA); and 4. a European Securities and Markets Authority (ESMA). These 3 are called ESA: the European Supervisory Authorities.
The four new bodies will be part of a European system of financial supervisors, which will include the supervisory authorities of the member states. The ESRB and the EIOPA will be sited in Frankfurt, the EBA in London and the ESMA in Paris. The new system will be operational as from 1 January 2011.
The ESRB’s role will be to monitor and assess potential threats to the stability of the financial system. Where necessary, it will issue risk warnings and recommendations for action and will monitor their implementation.
Risks warnings and recommendations will either be of a general nature or concern individual member states or groups of member states. They will be addressed to the Council and, as appropriate, to the three new supervisory authorities.
The ESRB’s recommendations are expected to exert a major influence on addressees, with a high quality of analysis, while addressees will be required to provide adequate justification (”act or explain”). If the ESRB judges the reaction to be inadequate, it will inform the Council as appropriate. On a case-by-case basis, it could decide to make the recommendations public after consulting the Council.
The ESRB will be chaired by the President of the ECB for an initial term of five years.
All power to Rothschild´s central banks: A small steering committee will set the ESRB’s work agenda and prepare decisions. It will comprise the board’s president and vice-president, five other members of the general board who are also members of the general council of the ECB (three from euro area member states and two from non-euro member states), the presidents of the three ESAs, a member of the Commission and the chairman of the economic and financial committee (EFC).
The ESRB board’s general council will comprise its president and vice-president, governors of the central banks of the member states (Rothschild-governed – except for those of 5 countries), the President of the ECB – the CFR and Rothschild puppet, Jean-Claude Trichet – (or its vice-president, if its president also presides the ESRB), the presidents of the three ESAs, a member of the Commission, and (as non-voting members) the president of the EFC and representatives of the national supervisory authorities.
The ESAs will be responsible for ensuring that a single set of harmonised rules and consistent supervisory practices are applied by supervisory authorities of the member states. However, on account of the financial liabilities that may be involved for the member states, decisions taken by the ESAs must not impinge in any way on the fiscal responsibilities of the member states. Any binding decision taken by the ESAs will be subject to review by the EU courts. The ESAs will comprise high-level representatives of all of the member states’ supervisory authorities under permanent chairmanships. National authorities will remain responsible for the day-to-day supervision of individual firms, and a steering committee will be set up to ensure cooperation and to coordinate the sharing of information between the ESAs and the ESRB.
This surveillance applies to all EU member states – and EU approval of national budgets before they are laid before national parliaments reduces all European EU member states to vassals
The Telegraph 18 Jan. 2011: The EU is seeking new “budgetary surveillance” powers to vet the British (and all other EU memberstates´) budget before it is presented to parliament, according to government officials. A European Commission official said that the directive was needed for all EU countries to ensure “compliance with debt and deficit thresholds”. “Member states must ensure these rules apply to all political institutions and government sub-sectors for it to work,” he said.
The Financial Times Deutschland 20. Jan. 2011: The ESRB has an overrepresentation of (Rothschild´s) ECB and National Central Bank bosses. National Surveillance Authorities have no votes!
Some economists fear the ECB could have a double mandat, conflicts of interest between price and financial stability threatening. The money policy of the ECB and Central Banks is left without surveillance (cf. Alan Greenspan´s disastrous low interest policy!)
Bloomberg 20 Jan. 2011: “The problem is that these bodies are set up to solve yesterday’s problems,” said Peter Hahn, a former Citigroup Inc. banker who lectures on finance at Cass Business School in London. “They can never do more than flagging any issues,” and whether they can stop a crisis “is questionable”. Even so, “if you’re looking for an institution that will save us from the next crisis, this is certainly not it,” said Carsten Brzeski, an economist at ING Group in Brussels.
EU Press Release 12 Jan. 2011: Olli Rehn European Commissioner for Economic and Monetary Affairs: Without intensified fiscal consolidation, we are at the mercy of the market forces as we have seen. Without substantial changes in the way European economy functions, Europe will stagnate and will be condemned to the vicious circle of high unemployment, high public debt, and low economic growth. We can avoid that by determined fiscal consolidation and intensified structural reforms. All member States should primarily adjust their expenditure while protecting growth-friendly expenditure, especially education, research and innovation. When tax increases are necessary and in many cases they are necessary, economic distortions should be minimized. Indirect taxes are more growth friendly than direct taxes, and broadening the tax base is normally better than raising the rates. We also have to tackle macro-economic imbalances for the Member States with large current account deficits. The reforms of wage-setting systems and services markets are of paramount importance to enhance their overall economic competitiveness. Likewise, Member States with large current account surpluses need to identify and tackle the sources of weak domestic demand. This year will be without doubt a very challenging one for Europe again, but it can also be made the year when Europe overcomes its sovereign debt crisis, lifts its growth potential and reforms its economic governance. This calls for bold fiscal measures and structural reforms in each and every Member State.
EUOBSERVER 12 Jan. 2011: - Despite hundreds of billions having already been slashed from EU member-state budgets in the wake of the economic crisis, the European Commission on Wednesday said the cuts have not been deep or radical enough and demanded still more austerity from European governments. The EU executive outlined a series of stringent recommendations, dubbed the ‘Annual Growth Survey’, that it wants national capitals to adhere to.
In a show of cross-ideological unity, a trio of Europe’s top civil servants, the centre-right President Jose Manuel Barroso, liberal economic and monetary affairs commissioner Olli Rehn and left-wing employment chief Laszlo Andor outlined the plans in the European capital. Brussels wants to see further cuts to budgets in 2012 on welfare reform - including more conditionality attached to benefits, and a raising of the “premature” retirement ages.
Pension reforms however have proved highly controversial, with mass strikes in France over retirement age changes last year paralysing the country.
The three also called for a hike in the effective lending capacity of the EU’s bail-out mechanism, amid growing fears that the eurozone’s rescue fund might be insufficient should Spain or Belgium knock on its doors. However, reacting to the suggestion, both France and Germany declared the current fund was big enough. A power struggle over this has erupted between Merkel and Barroso. EU governments will in the spring consider the proposals. The commission’s proposals instantly provoked shock and outrage from trade unions.
EUbusiness 10 Jan. 2010: Germany and France want to press Portugal to seek a bailout in order to stop Spain and Belgium becoming the next euro crisis casualties. Paris and Berlin also want members of the 17-country eurozone to state that they are ready to do whatever it takes to save the currency union, including expanding a 750-billion-euro (970-billion-dollar) rescue fund. German and French experts are worried by the high interest rates Portugal is being forced to pay in order to borrow money from investors concerned by Lisbon’s public finances. Spain is of much greater concern to Paris and Berlin, with its economy twice that of Portugal, Greece and Ireland combined, a banking sector struggling with bad debts and unemployment at almost 20 percent. Investors are also becoming concerned by Belgium, which has been without a government for nearly seven months.
The Express 16 Dec. 2010: Next year’s EU budget was agreed yesterday – a controversial 2.9 per cent spending increase in the midst of a Europe-wide programme of drastic austerity measures in member countries. Euro-MPs were pressing for a six per cent rise earlier this year but settled on a compromise which sees the annual EU budget grow to 126.5 billion euros (£106billion) – a move that will cost British taxpayers an extra £450million a year, taking the UK’s total annual contribution to £8.5billion.
EurActiv 22 Nov. 2010: The European Court of Justice (ECJ) ruled that a 1.85% pay rise for EU officials awarded by member states is not in line with EU rules, confirming a 3.7% salary increase initially adopted by the European Commission. The pay increase will have an impact on around 50,000 EU civil servants, including judges at the European Court.
Comment: This is direct contempt for the millions of European employees sent into unemployment by the austerity measures invented by these EU officials.
EU Press Release 24 nov. 2010: EU Commisssion Pres. José Barroso on EU economic governance: The Heads of State and Government decided unanimously that treaty change is required to establish the mechanism. We should not accept a revision of the treaty that calls into question the voting rights of Member States. I’m happy that this argument was accepted.
Greece and possibly other of the most severely indebted euro countries have to suspend payments and give up repaying their debts.
Business.dk 17 jan. 2011: The proposal is being put forward by various parties today, including Goldman Sachs, Barclay’s and the British weekly magazine the Economist.
Several people think we should take inspiration from the Brady plan, which in 1980 was used to control a variety of developing countries through a controlled receivership. The big banks that had lent money to countries such as Ecuador and Costa Rica exchanged their claims for new bonds, which had either a lower interest rate or a lower nominal principal amount than the original loan. At the same time the debtor countries in different ways assured that the benefits of the new bonds would be paid.
In 2015, Greece’s debts will have reached 165 percent of her GDP and the country will thus have to spend 8–9 per cent of her GDP on paying interest. “It is unbearable for a small country with a fragile economy. Greece looks set to go bankrupt,” writes the Economist.
In 2015, Ireland’s debt would have reached 125 percent of her GDP, while Portugal’s debt would equal 100 percent of her GDP. These debt levels can be coped with if you are just to pay around four percent interest. Belgium can today. Last week, Portugal and Spain both sold government bonds, 1.25 and three billion euros, respectively, but at high interest rates. Portugal had to pay 6.7 percent interest, which is more than emergency loans from the EU and the IMF – an interest rate which the countries cannot afford in the longer term. And the market rate for ten-year Irish government bonds are now at 8.5 percent.
With more austerity measures to come from the EU, more rebellion/strikes can be expected - and PIIGS countries’ insatiable need for rescuing combined with the big banks´ corresponding greed will probably lead to the fall of the euro when the EU has taken over the EU countries completely, thus completing their EUSSR planned economy - ie. when the Union has pulled the last cent out of Northern Europeans´ pockets!
“A crisis should never go to waste”, US Secratary of the Treasury, Timothy Geithner, former Director of the New York division of the Federal Reserve, is quoted as having said.
Who are the EU supervisors who ignored all signals of danger before the first financial crisis? The same people that survey the economy of the EU states today – reinforced by Rothschild puppets of the European and national Central Banks, the ECB chairman also chairing the European Systemic Risk Board (ESRB). The ESRB and the ESAs represent a tremendous loss of national souvereignty to the supranational EU.
And it is fine for the ambitious EU Bureaucrats: EUbusiness 24 Jan. 2010: ‘Europe’ is making a power-grab for the purse-strings of the member states that fund it. “Europe’s responses will shape (budgetary) coordination for decades to come”. The problem, as ever, is one of “the transfer of sovereignty” from national capitals to Brussels, Belgium’s Finance Minister Didier Reynders said on Friday.
The EU is busy cutting the welfare states away – in spite of all the riots this has already brought about in France, Greece, Portugal, Ireland – and in spite of baffled trade union leaders.
This unemployment crisis, the plundering of Europeans via ruthless NWO eurocrats and politicians through their totally unprofessional euro project, their homegrown finansial/ øeconomic crisis serving as feed for the banker sharks: All this is the New World Order which created the EU and here – and which the EU is now helping to complete at our cost with its dictatorial approval and surveillance of all national budgets. This costs our “welfare”.