'Run For Your Lives' … Euro Zone Considers Solution of Last Resort: The ink on the most recent European Union summit agreement was hardly dry before it became clear that it was insufficient. With investors now increasingly wary of Italy, the consensus is growing that the European Central Bank – and the IMF – will have to play an even greater role. But will it be enough? – Der Spiegel Online
Dominant Social Theme: We didn't want it. We didn't mean to suggest it. We don't think it's a good idea. But it looks like the European Central Bank and the International Monetary Fund will simply have to take a bigger role in solving this terrible crisis.
Free-Market Analysis: It is all too predictable. We've been writing for months on the possibility that the entire EU crisis is a kind of contrived one and this article post at Der Spiegel Online does nothing to discourage this supposition.
It's likely nothing more than a power elite dominant social theme, that the Euro-crisis is a deadly one and that the EU simply cannot figure out what to do. The meme is simple: Financial leaders with power and common sense must come to the rescue.
Isn't it obvious who the heroes are going to be? Why, the central bankers, of course! These good, gray men with careful phraseology and elliptical sentiments are the hope of mankind. When politicians dither and markets act irrationally these mavens of monetary price-fixing will get the job done.
A central banker is looking to lead the Greek unity government – which is unified with the efficiency of a shotgun marriage – and now Der Spiegel, Germany's leading elite mouthpiece, informs us that consensus is "growing" to have the IMF and ECB "play a greater role." What a coincidence.
And whose consensus is that? We guess Germans are standing on street corners all stolidly agreeing that the IMF and ECB must have their way. Considering that increased ECB involvement (and money printing) is anathema to Germans, we wonder how the top men at Der Spiegel actually know this. Here's some more from the article:
Half-Hearted and Half-Baked. Greece will keep the euro for the time being – that much is certain. But it also seems clear that this is neither a guarantee of economic health in Greece nor a secure future for the common currency. On the contrary, there were growing doubts on financial markets last week as to whether the resolutions reached at the late-October European summit would be sufficient.
At that meeting, European leaders leveraged their bailout fund to more than a trillion euros. But what was celebrated a week ago as a "tour de force" and a "breakthrough" is now viewed as half-hearted and half-baked. Hardly a politician or economic expert believes that Greece can be rehabilitated under the more current plan from Brussels.
And now there are also growing concerns about Italy. Interest rates for Italian treasury bonds reached a new record high last week, and the managers of the European Financial Stability Facility (EFSF) were unwilling to risk tapping the global financial markets. The planned issue of a new EFSF bond was cancelled at the last minute.
Not surprisingly, the mood was grim among the leaders gathered on the French Riviera last week for the G-20 summit. The conclusion, after countless discussions about the crisis, was that much more radical measures are needed. The International Monetary Fund (IMF) and the European Central Bank (ECB) are to take over the management of the debt crisis in the future, and Germany's currency reserves are no longer off limits.
OK, now we understand. It is not the average German who wants more involvement of the ECB or the IMF, but the G20 itself. This is laughable. Here's a list of G20 countries: 1. Argentina 2. Australia 3. Brazil 4. Canada 5. China 6. France 7. Germany 8. India 9. Indonesia 10. Italy 11. Japan 12. Mexico 13. Russia 14. Saudi Arabia 15. South Africa 16. Republic of Korea 17. Turkey 18. United Kingdom 19. United States of America.
See how this is manipulated? Who exactly is calling for more IMF and ECB involvement? Argentina? The Argentineans kicked the IMF out not long ago. China? What right do Chinese leaders have to advise on the internal politics of the EU? It's not as if the ChiComs are doing such a great job handling their own economy.
Indonesia? South Africa? Russia? … These are examples of countries that understand how to manage economies successfully? Don't think so. How about the UK and the US? Well, let's see; neither was a full member of the EU (including the currency zone) last time we checked.
In fact, the UK is so scared of a referendum on the matter it won't let its citizens vote on whether or not to leave the EU. As for the US, mention it and most will give a big yawn. This whole idea of a consensus is just more of what we call directed history. The whole game is being run by the Anglosphere power elite that wants to create world government and won't stand for anything less.
So here's what happened. A representative of these great central banking families and their associates and enablers "dropped by" while the G20 was in session. A memorandum was passed round instructing the various parties as to their "agreement." Lo and behold, everyone agreed! And then a press release was drafted. It said there was "consensus." There was no one to ask, of course. Most of the members were on the phone to their bankers, checking to see if their Swiss accounts had been credited yet.
As for the press release, it went straight to Der Spiegel, which put their crack reporters on the case. And now we've reported on what the magazine came up with. What a shock. The idea that Europe needs the firm hand of the IMF and ECB is nothing but a dominant social theme. The promotion unrolls; we'll see if in this era of the Internet Reformation it unravels.