As many are aware, the EU ramrod “save the currency” treaty was quickly accepted by the countries who are all in on the Euro, while those who saw that drinking the Euro koolaid was likely to kill them, namely England, rejected the treaty.
For us, this exposed the fundamental differences in the English and those on the continent.
One of these differences being that the French tend to think of children as innocents who become corrupted as they age (which is why they are more apt to tolerate the immoral shenanigans of their governing class more than the Brits or Americans do), the English understand that children, as much as adults, are capable of both good and evil at any age. They hope for the best and, at their best, prepare for the worst.
This is why the French could not believe the premise of the Lord of the Flies. Why were these children portrayed as being aggressive to eachother?
While this observation is neither here nor there, we leave you with the French and English leaders as they interacted at the EU summit.
The big news over the weekend was the partial nationalization of the Belian Bank, Dexia. What? You’ve never heard of Dexia? Most people this side of the pond hadn’t up until a few weeks ago. This tiny $707 Billion hedge fund disguised as a bank, which just months ago passed the European bank stress tests with flying colors, has become the first official victim of the dearth of interbank funding in the Eurozone.
In a world full of potential butterfly effects, Dexia’s staggering juggernaut could have a knock-off effect for the US Municipal bond market.
Unfortunately for France, Belgium, and Luxembourg, things will not settle down in time for their governments to remain solvent. Chalk another set of Eurozone governments up to the “effective loss of sovereignty club.” Surrendering sovereignty to international banking interests seems to be working out well for Greece, Ireland, Portugal, and Italy, so why not join the fun?
Slovakia appears to be the only nation willing to stand up against the wave of bailouts and subsequent loss of sovereignty as the bailouts costs crush already strained government balance sheets. It appears that they may hold out a couple more days, enough time to find a compliant government (the current one was voted out in a confidence vote tied to the EFSF earlier today).
The situation in Europe is giving the world a frightening message: When push comes to shove, the governments can be counted on to work in the interests of the banks. How long this untenable situation can last is anybody’s guess, but if the Occupy Wall Street movement continues to gain traction, it is clear that the situation, if properly understood, could change very quickly.
The Euro Prepares to Claim More Sovereignty
Observant fellow taxpayers will note that we have qualified our previous statement with the words “if properly understood” because, at the moment, the Occupy Wall Street movement appears to misunderstand the roots of their many and varied forms of discontent.
Protesters apparently see nothing wrong with the government selectively fleecing the productive class as long as they receive their “fair share.” If we have correctly identified the Socialist tendencies of these protests (as last check they had not adopted a manifesto), then the logical outcome is simply the ouster of one form of parasite, the banking interests, for another.
The problem, of course, lies in what we use as money. Placing the power to create money in the hands of a Central Bank and then turning a blind eye as they shamelessly debauch the currency, giving an inordinate amount of purchasing power to those closest to the money printing operation (banks and government) and placing an inordinate amount of regulatory and tax burden to those farther away from the money printing operation (that would be you and I, fellow taxpayer), is perhaps the surest way to destroy man’s faith in the capitalistic system, and in the process lay the blame for every evil unleashed by the debauching of the currency on the capitalistic system.
Rothchild, Marx, and Keynes understood this. They also understood that only one man in a million would be able to understand how debauching the currency serves to concentrate power in the hands of few at the expense of many.
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