Saturday, May 19, 2012

EUSSR: ESM, Voluntary Declaration of Bondage


"For someone to be considered a bond labor slave, they would have to take, or be tricked into, a loan".~~ From Different Forms of Slavery
The ESM is not a bailout fund, but a permanent, irrevocable guarantee issued as of July 1 by the citizens of the EU nation states to the banks. Those banks lend money to countries that have run up a deficit in  their budgets. But the ESM is of no use to indebted peoples or states, like Greece and Ireland. The ESM is a tool to prop up the euro, so that financial markets will continue to have faith in the common currency.
The purpose of the ESM is to continue deficit spending and to prevent governments from having to live according to their means. The policy of austerity, on the insistence of Germany, has been rejected by the Socialists in France and Greece. They prefer high expenditure and higher taxes (which they'll extract from the rich) and call it a Pact for Growth. But regrettably, no: austerity plus lower taxes equals growth, not more spending. (Search term: Laffercurve)
The thing is, lots of banks do not even have the money. That money is first printed by the ECB in so called LTRO's. That money is lend to banks at 1% interest rate, who use it to buy sovereign bonds. Heaven knows when that closed circuit of debt recycling will collapse!
It is cheap to blame the banks. Marx based agitation groups like Occupy don't mind being the handmaidens of state. Politicians like Hollande and Tsipras prefer the game of promising free trinkets for as long as they possibly can. But these freebies are paid for by debt for which we're now all have to pay the price.
The Dutch tax payer is on the hook for 40 billion euros and that's just for starters. If the governors of the ESM believe bigger firewalls are needed, the government just need to ask and the national states must deposit the money within 7 days, unlimited. The governors can bring law suits to enforce the issue, but the governors themselves are immune to legal prosecution, of even simple audits.
"We began planning the Revolutionary War in order to issue our own money again"~~ Benjamin Franklin .
Who knew that the corruption riddled former European Commissioner Jacques Santer was nominated in January to head an arm of the temporary bailout fund, EFSF? But I digress.
Because of the relatively closed circuit between the ECB, the banks and the bond market inflation is as yet within limits. But without doubt money is leaking into the normal economy. The ECB's policy of Ctrl+P will at some point lead inevitably to inflation of consumer goods and deflation of properties. 
Conclusion: Club Med is caught in a cage which makes monetary policy impossible: they end up as slaves to the North. The North - particularly the last remaining countries with triple A status - NL, FI, LU and GE - will end up paying forever for the illusion of a cabal of ideologues. 
This machine of enslavement from hell must be stopped immediately if enormous damage is to be averted. 
More in
Latest news on Geert Wilders law suite against the state: "Geert Akbar! Wilders Saves NL From ESM Treaty!!!"
! Update ! DDS: "Brekend: behandeling ESM wordt uitgesteld" (Dutch Parliament postpones debate on ESM Treaty)
Book! The Tragedy of the Euro (free PDF)
"Whenever destroyers appear among men, they start by destroying money, for money is men's protection, and the base of a moral existence"~~ Ayn Rand