The Euro conspiracy unravels

Europe continues to sleep-walk into disaster. We have the ludicrous spectacle of Sarko as bag-carrier for Angular. We have him telling the world that France and Germany are in accord, but he doesn’t tell us about what. The Economist quotes a Eurocrat as saying that this ‘partnership’ hides ‘the strength of Germany and the weakness of France’.

France has not had a budget surplus for nearly 40 years. It has one of the biggest debt ratios in the Eurozone. Its AAA rating is in doubt. And Angular has just given Sarko a firm ‘Nein!’ when he tried to persuade her to ante-up to save the Dexia bank. The solution to the Euro’s problems lies in sorting out Greece once and for all (and default seems inevitable, with Angular wanting the depositors to take a bigger haircut than they signed up to), throwing a firewall around solvent countries, recapitalising the banks, and re-writing the rules.

Now the wheels are coming off with a vengeance. It wasn’t meant to be like this.

When the Euro was first contemplated all those years ago, knowledgeable voices were raised against it, pointing out that anyone with ‘O’ level economics or a basic knowledge of history would see that a ‘one size fits all’ currency was a chimera, an unworkable fantasy, because different economies had different needs and were at different levels of development and efficiency.

History had shown that every time a multi-national currency had been tried it had failed. For example, if you had one economy that needed an interest-rate reduction to stimulate growth and another needed an interest rate increase to cool down inflation you would have a situation that was absolutely irreconcilable and could only end in tears.

And so it has proved.

It was cheap money that slew the Celtic Tiger, after it embarked on a crazy spending-spree causing rampant inflation when an interest rate hike was essential to cool it. The antis were derided by the pro-Euro claque as economic Neanderthals, Little Englanders, Luddites, and every other epithet that the Guardianistas could throw at them. But now the Great Conspiracy unravels. Brussels knew all along that a Eurozone couldn’t work without more.

That was part of the game-plan.

The Euro was just a step along the road. It was a tactical measure. The Eurozone was designed to fail. The real objective was not currency union but political union. A single currency cannot succeed without it, as the Brussels mafia well understood.

What was essential was the transfer of budgetary and fiscal powers to Brussels, so that individual member states would lose any control over national budgets, interest rates, taxation levels, borrowing powers – in short, all the elements essential to the independent nation-state. The members would become satraps of the EU Empire.

The dominant parties would be Germany and France. Germany would be the senior partner because of population size and economic strength. The French would be the German’s understrapper. With the advent of monetary/political union in Europe, all of Hitler’s war aims would have been achieved except for the wide-gauge railway between Berlin and Moscow.

Welcome to the Fourth Reich.