News & Analysis
Eurozone Still Failing
AXA fears 'fatal flaw' will destroy eurozone ... Analysts at the French financial group AXA see a serious likelihood that the eurozone will break in half or disintegrate, dismissing Europe's €750bn (£623bn) rescue package for Club Med debtors as a stop-gap measure that misdiagnoses the problem. "The markets are very nervous because they can see that there is a fatal flaw in the system and no clear way out," said Theodora Zemek, head of global fixed income at AXA Investment Managers. "We are in a very major crisis that has even broader implications than the credit crisis two years ago. The politicians have not yet twigged to this." Ms Zemek said the rescue had bought a "maximum" of 18 months respite before deeper structural damage hits home, with a "probable" default by Greece setting off a chain reaction across Southern Europe. "It would be the end of the euro as we know it. The long-term implications are at best a split in the eurozone, at worst the destruction of the euro. It is not going to end happily however you slice it," she said. – UK Telegraph
Dominant Social Theme: So many problems ... and yet we in the Eurozone must persevere. Courage!
Free-Market Analysis: The Daily Bell analyzes the dominant social themes of the power elite, and one of the most important fear-based promotions has been the inevitability of monetary union – expansive, global and ongoing. Thus, we have watched bemusedly as the EU brain-trust has staggered from crisis to crisis with its nose in the air and its many hands blurring from the desperate juggling it must do to keep the balls flying.
We have been consistent – for a number of years, in fact – in predicting the probable demise of this wretched juggling act. Again, as with other power-elite memes, our biggest surprise at this point is that the crisis has come sooner and is deeper than we expected, as we can see from the article excerpt above.
The Telegraph of course is one of our favorite mainstream sources for commentary on the EU because it is one of a very few publications (written in English, anyway) that provides useful and often insightful anti-EU reporting. Since the power elite positions its memes using Hegelian thesis-antithesis, one presumes that the Telegraph is providing an anchor-point of negativity that the more pro-EU, feel-good media can then proceed to counter.
The idea is, of course, that the truth lies somewhere in the middle ... only, no, no, no ... it probably doesn't. There is only so much truth that the power elite can massage with its memes. Not everything is a promotion and not everyone can be promoted. Not all mind-manipulation works. Money does not control all. In fact, when millions, even billions (?) get angry, money controls nothing much. Which is why, in fact, the elite spends so much time on its promotions. And why it is so very, very damaging when they start to fail institutionally. The financial crisis and the Internet itself have been responsible for the degradation of numerous of the elite's fear-based promotions.
Just as an aside, and to get it off our narrow collective chest, we want to state that we celebrate every drop of damage done to the EU and its euro. We still haven't gotten over the shock of watching some sort of obscure, made-up "Euro-celebration" years ago that sent a dozen young, shaven, gracefully dancing men out onto a stage in skirts. It was an epiphanic moment, in which the entire looniness of the EU was laid out, metaphorically anyway.
Sure, the modern EU man would wear a dress and be as sensitive as any woman. The whole hope of the vicious clique that was running the EU at the time was that hundreds of millions of men and women could be domesticated into some sort of mute, pan-sexual dumbness that would tolerate the kind of Orwellian, wealth-sucking takeover they had in mind.
Over the years we watched the malevolent vision flourish, the attempts to create a European army and to regulate "privacy" by collecting more and more personal and electronic information about people throughout Europe. Over and over the EU socialists struck out at business and entrepreneurs on a mission to defend the "Europeans" from the exploitation of businesses and the "evil" being done by such companies – even when the evil was merely one of transient, competitive monopolies.
Of course, people had a choice as to whether or not to patronize certain businesses, but they had no choice when it came to the EU. Time and again, against mounting opposition, EU leaders would sorrowfully aver that voters had come to the wrong conclusions whenever they rejected some precious EU vision – like the Union's despicable Constitution, for instance, the one that treated human freedom as something that was granted by the will of government. Voters were instructed to vote again and again. Eventually, the entire proposal was withdrawn and repackaged as a "treaty" to make sure that the only plebiscites involved were parliamentary.
Politicians, in fact, were the only ones fully trusted by those at the top of the EU heap, because national politicians could always be intimidated or bought off. We've heard stories of this kind of intimidation first hand, and the evil lurking at the heart of the EU is all the more evident in our view for its hidden nature – the iron fist in the velvet glove.
Make no mistake about it; the EU was and still is an empire-in-the-making with all the features of empire, the endless, corrupt prerogatives at the top and the glib manufacture of regulations for everyone beneath. Thousands upon thousands of regulations, in fact, more than Babylon's Hammurabi code, issuing out in a torrent from the dysfunctional nation state of Brussels and ruining – literally ruining – people's livelihoods and lives.
But now it may be coming to an end. The smooth-talking, silk-suited thugs of Brussels, those who dished out this horror on behalf of their elite paymasters are coming up against a wall that they cannot climb, a stumbling block they cannot intimidate, a barrier they cannot cross. It is the free-market itself, and right now it is having its way with a vengeance.
Sure, the Euro-crats are fighting back in every way possible, but the thing they counted on most is not taking place. The appetite for a closer political union has been lacking for a number of years, as illustrated by anti-EU votes. Now there is precious little good will left to lubricate an ever-closer political union. The notion was that faced with a splintering EU, the politicians would pull together and haul the electorate along. But the electorate, terrified and facing the deepest financial crisis since the Great Depression (and endlessly educated as to reality of elite machinations by the Internet), does not want to be tugged.
The Euro-crats can inch along, gradually gathering political power. But it is likely not enough to make a difference; and when exercised openly it will encounter political resistance. Meanwhile, the trillion-dollar bailout of "spendthrift" PIGS will eventually be seen for what it is, a stopgap measure not a solution. In reality, it is a series of loans that must be repaid, and thus has done nothing to alleviate the crisis, which is one of spending not liquidity.
The EU has been cast as a magnificent – noble – experiment. Not in our book. It was supposed to be a trade treaty, but it has morphed into a rogue political entity with ambitions for empire. It was supposed to be a way of bettering people's lives through free trade but it has transformed into a huge money-sucking bureaucracy that piles ever-more restrictive laws and regulations one top of the other.
Only a stronger and more perfect political union can "save" the EU. And, yes, it is reported that EU Council President Herman Van Rompuy intends to have one in place by year's end. He firmly expects to gather the authority, along with the IMF, to approve budgets of nation-states in advance of their parliamentary adoptions. But here is our question: How on earth does this "unelected" chief bureaucrat intend to implement such tremendous power. Does he really believe the British – or the Greeks or Spanish for that matter – will voluntarily submit to Brussels' approval?
Conclusion: There is a showdown coming. We think we can see the delineations more clearly. Brussels must have political control, but those who live and work in European nation-states are not likely in a mood to acquiesce. After 60 years of equivocation, lies and manipulations, the elite project that is the EU must reveal its true face and justify openly what it seeks to accomplish and why. We doubt its prospects.
Posted by Lila Rajiva on 06/16/10 01:34 AM
What did you think of the Polish plane crash?
I somehow felt the hand of the Eurocrats might be have been involved in it in some way, although the gist of most conspiracy mongering on it was that Russia was involved..
Click to view link
Reply from The Daily Bell
Posted by Gordon Sceptic on 06/16/10 01:11 AM
So AXA fears that a fatal flaw will destroy the EU! well bring it on and the sooner the better. The sooner that flawed structure is demolished the better for the suckers who have for a long time tolerated the intolerable. As Doug Casey said by all means have a free trade and travel zone but NOTHING ELSE. He is so right and the nonentity Rompooh and his parasites are sooo wrong.