Submitted by Miles Kendig
Peace In Our Time
"History doesn't repeat itself - at best it sometimes rhymes." Mark Twain
The Rhyme This Time
In 1938 the citizens of the major European powers, Germany, France and the UK, along with isolationist America, having suffered grievously during WW1 were willing to believe almost any lie that supported the prevailing sentiment. Sentiment exemplified by the aforementioned timeless speech from Neville Chamberlain. Today I see a European political and economic elite clinging desperately to the notion that any action that calls into question the current construct of pan-European “unity” must be quashed to preserve the peace. The reality from the available evidence suggests that what these elites are more fearful of is broad realization that this current construct is as fatally flawed as the one in existence in 1938.
The flaws today are rooted in in several key premises and include:
- The foundation that all Euro area sovereign debt is equal in risk
- That the nations within the EU and more importantly within the EMU share a common goal of preserving the structure through accurate & timely reporting of national fiscal policies and actions
- That no member state will be called upon to fiscally support another member state
- That the common goals implicit and explicit of those nations within the structure will always endeavor to maintain their close relationship to ensure a smooth functioning and strong perpetuation of the structure
Today these premises seem as tragically laughable as those that underpinned European stability and peace in 1938. All one need to is look at the daily chart of where member states sovereign debt is trading in relation to one another or the like flows in the bank paper of the various member states to realize that all sovereign and money center debt is not created or considered equal. In this it has now become generally accepted that member states and their financial institutions will do ANYTHING to preserve the illusion of adherence to reporting standards while doing EVERYTHING within their power to circumvent them. In this every member state has an explicit need to perpetuate this unhappy set of circumstances. Circumstances that directly undermine the whole concept of relationship be it between individuals, firms, institutions and nations. These and their supporting cast of permeations are proving to be as durable as The League of Nations back in 1938.
I observe that a major difference between 1938 and today is that, using Czechoslovakia and Greece/Ireland/Portugal and soon Italy, Spain [PIIGS] as comparative examples is that the Czechs of 1938 fought annexation far more rigorously than the PIIGS nations today as the leadership of the PIIGS and indeed of all Europe are now members of this eras NSDAP. Now for all my German associates I am not equating Germany as ‘responsible” for all of Europe’s woes. Rather, as Wolfgang Manchu has noted, Germany’s banks, like those of every other NSDAP/EU/EMU member are hopelessly over levered and thusly fatally exposed to an unwinding of this flawed structure. In this Franco-German growth has been bankrolled by their own methamphetamine addicted money center institutions and those of other co-opted nations like Belgium, Luxembourg, The Netherlands, Austria, The PIIGS and more. Catch 22 since to introduce “Peace In Our Time” these very nations must first accept the insolvency of their economies and the theocracy that underpins them. No small wonder these very nations and their money center institutions no longer trust in the “special relationship” as evidenced, in part, by where what remains of market participants money flows. Made even more amazing, and not so, that most of these flows are being premised upon the money center institutions and their subservient governments positioning in this latest iteration of relationship loss.
Given the facts of life as they now exist it is no small wonder that the biggest appeasers to the status quo are, well, nearly everyone. Most especially those whose political power is premised upon what Charles Hugh Smith recently penned [bolding mine]:
Thus anyone who promises that their share of the swag will remain untouched wins, and anyone who suggests the swag is unsustainable is rejected as "judgmental" or "negative." To the degree a nation gets the leadership it demands, then the U.S. is in trouble. We're now a nation of spoiled teens who get to elect their parents. No surprise, the 'rents who never enforce any rules, never challenge their own bosses (the kleptocrats) and who dole out the most allowance win every time.
The only thing here is that the people of Europe and their social and political structures are even more dependent upon this supporting reasoning to perpetuate their incinerating political and economic structure. Wondering why the people of these nations are willing to do ANYTHING to include loss of what EU President, Jean-Claude Juncker calls national sovereignty, assets [like a sovereign bond, note or bill states it’s asset backed] and the further destruction of its financial future through the incestuous compromising of their financial and political institutions is laid bare. This set of circumstances that perpetuate the disintegrating structure of perpetual debt enslavement at the hands of the debt meth addicted dope slingers and users leads to a look and action many here off South Main Street USA already know all too well.
"Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." – Mark Twain