Tag Archives: European Union

This Super Bubble Is About to Pop, by Nick Giambruno

The supper bubble in question is Europe. From Nick Giambruno at internationalman.com:

France’s new president can’t keep the European Union together.

In early May, France elected globalist darling Emmanuel Macron. His victory gave the EU a short-term boost. However, it did not change the fundamental problems with Europe’s artificial mega-state.

Doug Casey agrees…

Doug Casey: The EU was built upon a foundation of sand, doomed to failure from the very start. The idea was ill-fated because the Swedes and the Sicilians are as different from each other as the Poles and the Irish. There are linguistic, religious, and cultural differences, and big differences in the standard of living.

Artificial political constructs never last. The EU is great for the “elites” in Brussels; not so much for the average citizen.

Meanwhile, there’s a centrifugal force even within these European countries. In Spain, the Basques and the Catalans want to split off, and in the UK, the Scots want to make the United Kingdom quite a bit less united.

You’ve got to remember that before Garibaldi, Italy was scores of little dukedoms and principalities that all spoke their own variations of the Italian language. And the same was true in what’s now Germany before Bismarck in 1871.

The chances are better in the future that the remaining countries in Europe are going to fall apart as opposed to being compressed together artificially.

I think it’s unlikely the Europe of tomorrow will look anything like the picture below.

A Fool’s Vision of Europe’s Future

Europe is far more likely to splinter and eventually resemble the map below. It shows what Europe would look like if all its current separatist movements were to succeed.

Europe—If All Its Current Separatist Movements Succeed

To continue reading: This Super Bubble Is About to Pop


Strangers, by The Zman

People don’t like being ruled by remote, faceless technocrats and apparatchiks. From the Zman on a guest post at theburningplatform.com:

The purpose of the European project, at least the purpose sold to the public, was to provide long term stability to the continent, particularly economic stability. The lesson of the first fifty years of the 20th century was that nationalist competition among states led to economic instability and war. Therefore, cooperation among the nations of Europe on economic matters, as well as a common defense, would keep the peace and allow all nations to prosper together, as one continent.

Talk to sophisticated Europeans and they will give you some version of how a united Europe has kept the peace. Many will argue that open borders and a single currency have been the solution. The Euro has become a symbol for the end of individual people, replaced by the common people of Europe. One people, one currency. The economic and political arguments for Europe have become a religion of sorts for the sophisticated types. This was obvious in the Brexit vote, with all the shrieking and panic after it.

The trouble is the Euro is proving to be unworkable and possibly a disaster for Europe. Since the end of the Cold War, when the project was supposed to come into its own as the new organizational model for the continent, it has been one crisis after another. The answer each time has been a doubling down on political and bureaucratic unification, which results in a new crisis. Each time they muddle through one problem, the result in a new set of bigger problems to be addressed.

To continue reading: Strangers

ECB’s First Chief Economist Warns – The EU is a ‘House of Cards’, by Michael Krieger

Yes, the European Union is doomed and will collapse, probably sooner than most people think. From Michael Krieger at libertyblitzkrieg.com:

None of the following about the EU will come as a surprise to most of you, but the language used by Otmar Issing is nevertheless pretty remarkable.

The Telegraph reports:

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.

“One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB’s first chief economist and a towering figure in the construction of the single currency.

Prof Issing said the euro has been betrayed by politics, lamenting that the experiment went wrong from the beginning and has since degenerated into a fiscal free-for-all that once again masks the festering pathologies.

“Realistically, it will be a case of muddling through, struggling from one crisis to the next. It is difficult to forecast how long this will continue for, but it cannot go on endlessly,” he told the journal Central Banking in a remarkable deconstruction of the project.

The regime is almost certain to be tested again in the next global downturn, this time starting with higher levels of debt and unemployment, and greater political fatigue.

Prof Issing lambasted the European Commission as a creature of political forces that has given up trying to enforce the rules in any meaningful way. “The moral hazard is overwhelming,” he said.

The ECB has “crossed the Rubicon” and is now in an untenable position, trying to reconcile conflicting roles as banking regulator, Troika enforcer in rescue missions and agent of monetary policy. Its own financial integrity is increasingly in jeopardy.

The central bank already holds over €1 trillion of bonds bought at “artificially low” or negative yields, implying huge paper losses once interest rates rise again. “An exit from the QE policy is more and more difficult, as the consequences potentially could be disastrous,” he said.

“The decline in the quality of eligible collateral is a grave problem. The ECB is now buying corporate bonds that are close to junk, and the haircuts can barely deal with a one-notch credit downgrade. The reputational risk of such actions by a central bank would have been unthinkable in the past,” he said.

Prof Issing slammed the first Greek rescue in 2010 as little more than a bailout for German and French banks, insisting that it would have been far better to eject Greece from the euro as a salutary lesson for all. The Greeks should have been offered generous support, but only after it had restored exchange rate viability by returning to the drachma.

To continue reading: ECB’s First Chief Economist Warns – The EU is a ‘House of Cards’

He Said That? 4/23/16

From Pat Condell (born 1949), Irish writer, polemicist, and former stand-up comedian, YouTube video “Come on, Ireland” (20 May 2011):

Indeed, if there’s one thing a euro politician despises and fears more than anything it’s the democratic will of the people. And this is because many of those who run Europe today were politicised by sixties pseudo-Marxist utopianism, which they’re still determined to impose on the people – for their own good – regardless of what the people might want. They believe in centralised state control: society as a project – their project. It’s the mentality that ran the old Soviet Union, and it’s the mentality that has driven the European Union forward against the wishes of the European people, imposing a constitution on the whole of Europe that hardly anyone was allowed to vote for, and imposing a single currency on the whole of Europe that’s now falling apart at the seams. But they won’t abandon it because they consider it a vital step on the road to full political union, and the abolition of all European nation-states under a central socialist dictatorship.

It’s Gotten So Bad in Europe, Even Eurocrats Begin to Worry, by Don Quijones

SLL has written that, “Europe is Toast.” Now it appears that a good chunk of Europe’s population is coming to the same conclusion. From Don Quijones at wolfstreeet.com:

“Demands for further escape referendums.”

You know that things are bad when even the firmest believers begin questioning their faith. That’s what’s starting to happen in Europe, where the EU faces a dizzying constellation of threats and challenges and even the staunchest of eurocrats are beginning to express doubts.

Many people have lost trust in “entire institutions, whether national or European,” laments European Parliament Chief Martin Schulz. In an interview with the Frankfurter Allgemeine, he warned over a possible “implosion of the EU” due to the blossoming Euroskeptic movements in member states.

The main reason for Schulz’s gloomy disposition is the Dutch referendum vote last week against an EU-Ukraine trade agreement. It was the third referendum in a row that has gone against the EU’s interests, following Greece’s rejection last summer of the Troika’s latest plan and Denmark’s decision earlier this year not to seek closer security cooperation with Brussels.

In time-honored fashion, the EU’s response was to carry on regardless, announcing that it will shortly propose granting visa-free travel to Ukrainians despite the outcome of the Dutch referendum. In January, European Commission President Jean-Claude Juncker warned that if the Dutch voted NO, it could spark a “big constitutional crisis”; now, it’s as if it never happened.

“It may look as if we’re ignoring the Dutch voters, but we have to keep our word to Ukraine, which has met the conditions (for visa-free travel),” a Commission source said. It’s a risky strategy:

Large ranks of Dutch people are already deeply frustrated with the EU and their numbers are growing as fears about high immigration, slow growth and economic insecurity have risen. This is the second time in a decade that Brussels has ridden roughshod over the wishes of a majority of Dutch voters, who will have the perfect opportunity to express their dissatisfaction in national elections next year.

By ignoring the concerns of Dutch voters, the Commission has done itself no favors in the next European referendum, which is the most important of all.

On June, 23, the people of Britain will be granted the choice whether to stay in the EU or go its own way. If they follow in the footsteps of the Greeks, Danes, and Dutch before them, and vote against the EU’s interests, things could begin to unravel. As Schulz warned: “If the British leave the EU, there will be [other] demands for further escape referendums.”

To continue reading: It’s Gotten So Bad in Europe, Even Eurocrats Begin to Worry

For Brexit! by Justin Raimondo

From Justin Raimondo at antiwar.com:

Nationalism versus globalism: Which side are you on?

Nationalism in on the rise in every region of the earth. In the face of an increasingly globalized world, the banners of tribe, tradition, and particularism are being unfolded in unabashed defiance. From Paris to Peoria the battle-cry is heard: Preserve our sovereignty!

Nationalism has had a bad reputation ever since the 1930s, when it was associated with colored- shirt-wearing thugs, militarism, and war: raging across Europe, it ignited a horrific conflagration. The pan-European idea was created largely in reaction to this bloody history, and yet the result has been a counter-backlash of nationalism, a new sort that has little if anything to do with its historical antecedents.

In the West, this current wave of nationalism, for the most part, is relatively pacific: instead of promoting aggression across borders it is intent on making those borders impenetrable. The old Bismarckian nationalism was statist and super-centralist as well as expansionist; the new nationalism is often (though not always) libertarian, decentralist, and uninterested in foreign adventurism (i.e. “isolationist”).

The best example of this is the new nation of Catalonia, which is seeking to part peaceably with Spain. With their own language, a long tradition going back to medieval times, and a relatively healthy economy compared to the rest of the Iberian peninsula, the Catalonians long to break free. The Spanish central authorities have reacted with all-too-predictable hostility, threatening to send in the tanks – and the European Union (EU) has taken Madrid’s side, declaring that an independent Catalonia will be isolated both economically and diplomatically.

Here is a classic case of the new nationalism in its purest form: arrayed against it are not only the centralists in Madrid but the super-centralists in Brussels.

If the Catalonians exemplify the new nationalism, then the EU represents the hyper-centralist and imperialist character of globalism –an open conspiracy by the transnational elites to crush all particularities beneath the iron heel of homogeneity. Indeed, one of the EU’s intellectual architects, Alexandre Kojeve, longed for a “universal homogenous state,” which he believed was inevitable. (Kojeve, by the way, inspired Francis Fukuyama’s vision of the “end of history,” which the neocons took to heart.) In the wake of World War II, as the nations of Europe heaved themselves up out of the rubble, European intellectuals and policymakers sought out a program that would make the rise of nationalism impossible. The “family of Europe” fit the bill.

To continue reading: For Brexit!

German Judges Pooh-Pooh Obama’s Sacred US-EU Trade Pact, by Don Quijones

From Don  Quijones at wolfstreet.com:

A damning indictment.

This past week saw the ceremonious signing of the Trans-Pacific Partnership (TPP) in Auckland, an event whose prime purpose was to convince the world that a trade agreement that most people have not even heard of and which has so far been approved by only one (Malaysia) out of 12 elected parliaments is already done and dusted.

Even the Sidney Morning Herald concedes that it was a giant PR exercise:

It masks the fact that for Australia and most TPP countries, the public debate and parliamentary process to pass implementing legislation, leading to final ratification of the deal, is just the beginning, and it will be a rocky road.

The road will be particularly rocky in the U.S. where the treaty’s safe passage through Congress and the Senate is far from guaranteed. Indeed, the trade agreement has become so toxic with the voting public that not a single presidential contender dares to endorse it. Even the former US Trade Representative, and now Senator, Rob Portman, has come out against TPP, albeit for the wrong reasons, most tellingly the fact that he, too, is up for reelection this autumn.

However, the biggest blow to the global corporatocracy’s bloated designs did not come from the U.S. It came from Germany, where the German Association of Judges (DRB, an association that also includes prosecutors) just issued a damning indictment on the EU’s proposal to establish an “investment court system (ICS)” for the TPP’s sister treaty, the Transatlantic Trade and Investment Partnership (TTIP).

To continue reading: German Judges Pooh-Pooh Obama’s Sacred US-EU Trade Pact