The European Union Was An AMERICAN Idea

George Washington's picture

Update: After writing this post, we stumbled upon an article written in 2000 by the lead financial writer at the Telegraph, Ambrose Evans-Pritchard, noting:

 

Declassified American government documents show that the US intelligence community ran a campaign in the Fifties and Sixties to build momentum for a united Europe.

 

***

 

The head of the Ford Foundation, ex-OSS officer Paul Hoffman, doubled as head of ACUE in the late Fifties. The State Department also played a role. A memo from the European section, dated June 11, 1965, advises the vice-president of the European Economic Community, Robert Marjolin, to pursue monetary union by stealth.

 

It recommends suppressing debate until the point at which "adoption of such proposals would become virtually inescapable".

***

The former Bank of England head Mervyn King said this week that the "depression" in Europe "has happened almost as a deliberate act of policy". Specifically, King said that the formation of the European Union has doomed Europe to economic malaise.

He points out that Greece is experiencing "a depression deeper than the United States experienced in the 1930s".

The depths of Greece's depression
The depths of Greece's depression Credit: RBS economics/RBS

Indeed.

Moreover – as Martin Armstrong has warned for decades – letting countries like Greece join he Euro without first structurally adjusting their debts was a recipe for disaster.

So it is fascinating to learn that the U.S. was largely behind the creation of both the European Union and the Euro.

The European Union: Funded By the CIA

Professor of International Security at the University of Warwick Richard J. Aldrich reviewed available historical documents, and concludes that the European Union was largely an American project:

US officials trying to rebuild and stabilize postwar Europe worked from the assumption that it required rapid unification, perhaps leading to a United States of Europe. The encouragement of European unification, one of the most consistent components of Harry S. Truman's foreign policy, was even more strongly emphasized under his successor General Dwight D. Eisenhower. Moreover, under both Truman and Eisenhower, US policymakers conceived of European unification not only as an important end in itself, but also as a way to solve the German problem.'

 

***

 

One of the most interesting US covert operations in postwar Europe was the funding of the European Movement. The European Movement was an umbrella organization which led a prestigious, if disparate, group of organizations urging rapid unification in Europe, focusing their efforts upon the Council of Europe, and counting Winston Churchill, Paul-Henri Spaak, Konrad Adenauer, Leon Blum and Alcide de Gasperi as its five Presidents of Honour.

 

***

 

The discreet injection of over three million dollars between 1949 and 1960, mostly from US government sources, was central to efforts to drum up mass support for the Schuman Plan, the European Defence Community and a European Assembly with sovereign powers. This covert contribution never formed less than half the European Movement's budget and, after 1952, probably two-thirds.

 

***

 

The conduit for American assistance was the American Committee on United Europe (ACUE), directed by senior figures from the American intelligence community. This body was organized in the early Summer of 1948 by Allen Welsh Dulles, then heading a committee reviewing the organization of the Central Intelligence Agency (CIA) on behalf of the National Security Council (NSC), and also by William J. Donovan, former head of the wartime Office of Strategic Services (OSS) [predecessor to the CIA].

 

***

 

The International Organizations Division [a newly-established branch of the CIA] was also involved in the fourth type of US covert operation — provoking dissonance in the satellite states. This effort was channelled through the National Committee for a Free Europe, later known as the Free Europe Committee, which controlled Radio Free Europe and Radio Liberty. Much of the work, done with the help of irascible exile groups under the Assembly of Captive European Nations (ACEN), was coordinated by the CIA's burgeoning Munich station, which also gave aid to resistance groups within eastern Europe.

 

***

 

The ACUE and its short-lived predecessor were only two of many `American' and 'Free' committees established during 1948 and 1949. Well-documented examples include the National Committee for a Free Europe (later the Free Europe Committee) and the Free Asia Committee (later the Asia Foundation). The Free Europe Committee, formed in 1948 by the retired diplomat Joseph E. Grew at Kennan's request, worked closely with the CIA to maintain contact between exile groups in the West and the Eastern bloc. Their campaign 'to keep alive the hope of liberation in Eastern Europe', was launched publicly in 1949 by the recently retired American military governor in Germany, General Lucius D. Clay." The initial membership included many senior government figures such as the former Assistant Secretary of State, Adolphe Berle, Allen Dulles and ex-OSS personnel such as Frederic R. Dolbeare. The Free Europe Committee purported to draw its resources from private subscriptions and various foundations, but in reality the majority of its funds came from the US government through channels managed by the CIA.

 

***

 

The United States persuaded Britain and France to give the exile groups associate membership of the Council of Europe. A year later the White House endorsed State Department plans to accelerate these efforts. Outlining their proposals in a special guidance paper entitled 'The Concept of Europe', they admitted their concern that the main propaganda effort in the East lacked the `positive qualities which are necessary to arouse nations'. Several studies had been made in an attempt to find a positive concept and the themes of 'European Unity' and 'Return to Europe' might rectify this problem. Its 'solely European' nature ensured that it could not be `dismissed as another manoeuvre of "American imperialism"'.

 

***

 

Unification was officially a central component of US policy — Congress had stipulated it as a condition of further Marshall Plan aid

 

***

 

The ACUE's work in continental Europe during the early 1950s also focused increasingly upon propaganda and mass action

 

***

 

In 1951, the majority of ACUE funds for Europe were employed on a new venture — a unity campaign amongst European youth. Between 1951 and 1956 the European Movement organized over 2,000 rallies and festivals on the continent, particularly in Germany where they received the help of the US army. One of the additional advantages of deploying American funds on the large youth programmes was that it helped to disguise the extent to which the European Movement was dependent upon American funds. In May 1952 Spaak decided that funds from American sources that had previously been used in the ordinary budget of the European Movement would now be diverted for use in the 'Special Budgets' used to support their growing range of new programmes. This disguised their source and avoided any accusations of American dependency. Again, in November 1953, Baron Boel, the treasurer of the European Movement, explained that it was essential to avoid a situation where opponents of European unity could accuse them of being an American creation. For this reason 'American money, quite acceptable for the European Youth Campaign and certain restricted activities, could not be used for the normal running of the Movement'. Through the use of `Special Budgets', the large sums from American sources did not show up in the ordinary budget of the European Movement."

 

***

 

As early as 1949, at the behest of Allen Dulles, the Ford Foundation was cooperating with the CIA on a number of European programmes." By 1950, the ACUE and the Ford Foundation were coordinating their efforts to support federalism." Moreover, by the mid-1950s, the senior figures who directed both overt and covert American support were increasingly synonymous. By 1953 both John J. McCloy and Shepard Stone, who had been instrumental in arranging for substantial covert government funds for the European Youth Campaign, were both on the board of trustees of the Ford Foundation. McCloy was also a director of the Rockefeller Foundation. By 1955, McCloy had become chairman of the Ford Foundation, while serving as chairman of the Council on Foreign Relations. Simultaneously, the same circle, including Retinger, McCloy, Allen Dulles, Harriman, David Rockefeller, Jackson and Bedell Smith were busy creating the Bilderberg Group, yet another organization that bridged the narrowing gaps between government, private and public organizations and between overt and covert on both sides of the Atlantic."

 

***

 

Most ACUE funds originated with the CIA.

 

***

 

Mutual Security Agency [an American agency created by Congress] funds were also used to support the European Movement, indeed the Mutual Security Act of 1951 explicitly stated that its resources were to be used 'to further encourage the economic and political federation of Europe'.'

A North American Created the Euro

This guy – Robert Mundell – is the father of the Euro:

Mundell

Born in Canada, Mundell taught at the University of Chicago for 7 years, and has since taught at Columbia University in New York for more 42 years.*

But didn’t Mundell create the Euro to help Europe?

Not according to Guardian, Independent and BBC investigative journalist Greg Palast, who explained in his book Vulture’s Picnic:

Who spawned this cruel little bastard coin?

 

I called its parent, Professor Robert Mundell. Mundell is known as the Father of the Euro. The Euro is often spoken of as a means to unite post-war Europeans together emotionally and politically and to give this united Europe the economic power to compete with the U.S. economy.

 

That’s horseshit.

 

The Euro was invented in New York, New York, at Columbia University. Professor Mundell invented both the Euro and the guiding light of Thatcher-Reagan government: “Supply Side Economics” or, as George Bush Sr. accurately called it, “Voodoo Economics.” Reagan-Thatcher voodoo and the Euro are two sides of the same coin. (Ouch! Some puns hurt.)

 

Like the Iron Lady and President Gaga. the Euro is inflexible. That is, once you join the Euro, your nation cannot fight recession by using fiscal or monetary policy. That leaves “wage reduction, fiscal constraints (cutting government jobs and benefits) as the only recourse in crisis,” The Wall Street Journal explains with joy—and sell-offs of government property (privatizations).

 

Why the Euro, Professor? Dr. Mundell told me he was upset at zoning rules in Italy that did not allow him to put his commode where he wanted to in his villa there. “They’ve got rules that tell me I can’t have a toilet in this room. Can you imagine?”

 

I couldn’t really. I don’t have an Italian villa, so I cannot really imagine the burden of commode placement restriction.

 

The Euro will eventually allow you to put your toilet any damn place you want.

 

He meant that the only way the government can create jobs is to fire people, cut benefits, and, crucially, cut the rules and regulations that restrict business.

 

He told me: “Without fiscal policy, the only way nations can keep jobs is by the competitive reduction of rules on business.” Besides bowl location, he was talking about the labor laws, which raise the price of plumbers, environmental regulations, and, of course, taxes.

 

No, I am not making this up. And I am not saying the Euro was imposed on the Old Country just so the professor could place his toilet at a place of maximum pleasure. The Euro is fashioned as an anti-regulation straitjacket that would eliminate gallons-per-flush laws, flush away restrictive banking regulation, and all other government controls.

Now does the destruction of Greece’s sovereignty make a little more sense?

As Palast pointed out in the Guardian:

The idea that the euro has “failed” is dangerously naive. The euro is doing exactly what its progenitor – and the wealthy 1%-ers who adopted it – predicted and planned for it to do.

 

***

 

For him, the euro wasn’t about turning Europe into a powerful, unified economic unit. It was about Reagan and Thatcher.

 

***

 

And when crises arise, economically disarmed nations have little to do but wipe away government regulations wholesale, privatize state industries en masse, slash taxes and send the European welfare state down the drain.

 

***

 

Far from failing, the euro, which was Mundell’s baby, has succeeded probably beyond its progenitor’s wildest dreams.

In other words, the Euro was intended to impose a Shock Doctrine straightjacket on Europe, where the big banks are stripping Greece and other countries of their public assets, pillaging, plundering and looting them of their natural resources and wealth.

* Mundell is Canadian. But having taught at American Universities for more than 50 years, we're treating him as an honorary American. In any event, he created the Euro while at Columbia.

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mianne's picture

George Washington, you are right. We all know it . The European Union , the Maastricht-Lisbon Treaty, TAFTA etc ...were created by the American Wealthiest in order to rule the European Countries .

The "democratically" elected presidents of all the EU countries have to obey the totalitarian orders of non elected European Representatives, co-opted by the American-Global bankers. Even after a UE country ( France) voted "NO" ( 55% "no" in 2005) against the Maastricht-Lisbon European Treaty in a democratic  referendum, the UE Treaty is imposed on the French. The European Union is a totalitarian entity created from abroad ( from the USA) against the interests of the Europeans.

 We all know that the European Union is an American idea and that its only purpose is to serve the interests of the USA and prevent every UE country from defending its own people's interests.

According to historians and lecturers such as François Asselineau, the USA operated the 35th principle of MING dynasty's WAR ART named "the Chain Strategy":

The 35th WAR principle consists in urging the enemy to hinder himself in absurd and autoblocking links which remove him any strategic and tactical mobility and which prevent him from being able to defend himself

"il consiste à pousser l'ennemi à s'entraver lui-même dans des liens absurdes et autobloquants qui lui ôtent toute mobilité stratégique et tactique et qui l'empêchent de pouvoir se défendre"

https://www.youtube.com/watch?v=GvSIThKyk6w   49:10

( https://www.youtube.com/watch?v=TI77DQZx9ZQ and https://www.youtube.com/watch?v=oev9krFdIQo and https://www.youtube.com/watch?v=Hj21sy8BOlc explain the fact ) .

That is the reason why the USA urged the 7 country European Union to include more and more culturally and economically mismatched countries, up to 28 mismatched countries, and is now urging them to include Turkey . Meanwhile the US-led rebellions , wars and bombings in Irak, Lybia and Syria obliged hundreds of thousand ( several million ?) people to flee the bombings  , flooding Western Europe, another way to hamper the nearly bankrupt European Union countries, threatening them of huge social explosions. Surprisingly, the US kindlers of the murderous world rebellions and wars never proposed to welcome the poor hundreds of thousand ( several million ?) refugees on the American shores.

Even our European Presidents are mere representatives of the American interests. The two candidates to the "second tour" of the Presidential elections in all the EU countries are the two winners of the first turn, the two most mentioned, watched , heard, candidates in the medias, the two candidates  whose gigantic campaigns were paid by the big international finance, mainly American, already owning most of the medias. In the European elections, both final candidates, "leftist" or "rightist"  are equally American / international finance representatives. You Europeans, no matter how you may vote for a President in such "democratic" election puppet theatres , the winner will be an American /Global finance representative puppet, governing in the name of your country, in your name, for the interests of the American/Global Finance. When will people be clever enough to vote for honest candidates without extremely expensive mediatic campaigns, honest candidates whose programmes are just plainly written on the posters hanging on  the Town Hall walls ?

The immediate problem for each European is how to free himself/herself of the "absurd links" of the "chain strategy".

Victory_Garden's picture

All moneychangers are Scumbags!

This is the greatest scumbag of them all that is still getting away with murder.

Clinton Foundation Donors Received Weapons Contracts During the Clinton State Department:

http://www.blacklistednews.com/Clinton_Foundation_Donors_Received_Weapon...

 

RichardParker's picture

letting countries like Greece join he Euro without first structurally adjusting their debts was a recipe for disaster...

Worked out prettty good for GS;

http://m.spiegel.de/international/europe/a-676634.html

Son of Captain Nemo's picture

If this is true and I believe much of it is given the names involved, it is too unbelievable to consider that what the U.S. and Britain did to Germany during WWII that Germany (in particular) would even allow the Anglo-Zionist alliance to "rinse and repeat" using them as fodder 70 years later!...

So much for "Vichy" France and the British Empire's "setting sun" as both made a business decision following that war that claimed more than 60 million lives thanks in large part to the success of their cartel with the North American colonial experiment in destroying what would have been Western Europe's greatest and most productive economy in the 20th and 21st Century had it not had to defend itself and go to war.. And the U.S. England and France knew it only too well!

At the end of the day you either hang your head in shame for taking the money off the "night stand" selling yourself and your Country down the shitter.

Even if the U.S. was instrumental with hatching the EU in those most illogical of "academic" think tanks known as Chicago and Columbia University the Europeans made choices along with their beds by allowing themselves to give up the most important fundamental aspect to their own individual identity and independence any free and prosperous Nation can have!...

There own currency!!!

Pairadimes's picture

There is quite a bit of truth in the telling of the story here, but the conclusion is flawed because this story is incomplete. The loudest voice for the unification of western Europe during the 20th Century belonged to Winston Churchill. As WW2 was ending, Churchill was the first of the Allied leaders to realize that the aspirations of the USSR went way beyond reclamation of their pre-war boundaries. Churchill believed all of Europe was in peril once the US had withdrawn its troops after the war. He campaigned for military, and increasingly for political and economic integration for the rest of his life. But his ideas didn't bear much resemblance to the union in place today.

The Dulles brothers, some of the most nefarious people to wield power in American politics, were brazen users and manipulators of America's post-war allies. Their only interest was in seeing the countries of western Europe used as a bulwark against Soviet expansion. They managed to expend much of America's credibility among these allies as obstinate and unprincipled servants of their own will to power. In some ways, these guys were the forerunners to todays necon conventions regarding the projection of power and willful use of force as adjuncts to diplomacy. We have so very little to thank them for. Eisenhower could have fixed this, and chose not to, or decided he was incapable of it.

The disastrous outcome of European economic integration does not require a conspiracy to explain the outcome. One needs to understand the Cold War era to see how this happened. There were reasons related to fear and security that set this path in motion.

Wisdom would acknowledge the good intentions along with the horrendous results, and set about restoring the complete sovereignty of the disparate units before the broken system destroys all of their economies and societies.

iAmerican's picture

Papists often pretend to be American, assuming the names of the Founders as "handles."

Only a Roman Catholic would pretend of the inability to see the Risen Babylon, "the real Anti-Christ" "engine for enslaving mankind" our Founder and Prophet identified, behind the ancient drive for European unification.

SmittyinLA's picture

ABENGOA -CLINTON CLIMATE FOUNDATION- EU

GLOBAL SOCIALIST HOMOSEXUALISM

A joint Jamie Gorelick - US taxpayer production

Theonewhoknows's picture
Theonewhoknows (not verified) Mar 4, 2016 8:35 AM

Aaaaaand now let's think abotu what NIRP is going to give Europe: Banks are getting ready for another 2008 - but this time they won't need taxpayers money to save the banks - they will need EVERYONE'S money to do that - and unless everyone take money out (Run on the Bank) they will tax every single acocunt with negative interest rates - bail in directive is being cooked up by the EU already - so now it is endgame- Check: http://independenttrader.org/are-we-waiting-for-another-2008.html

Rasrock's picture

American idea? Nonsense. It was the Third Reich's back up plan in case of failure drawn from Synarchist influence. The idea was subsequently supported by Anglo-American Establishment after the fact.  

pillory-hillary's picture

rather an UN-american idea.  rather a globalist / internationalist idea.  a rose by any other name stinks.

Ghordius's picture

which leaves me guessing what your definition for those words are

just recently I had a chat with a gal that put it this way: American = globalist; European = internationalist

meh      /bob

THE DORK OF CORK's picture

If you play around with the above Irish migrant stat you will find net outward migration continues into Oz,  Canada,  Usa and Uk...

meanwhile net inward migration has again increased from the EU and the rest of the world.

In the main what is happening is pretty simple to explain.

Native young Irish are going to North America and Australia..meanwhile wages are under continual pressure from Eu and rest of the world which has again increased in intensity 

 

This explains the rise of Irish Gdp which is actually subtracting from Irish wealth.

Much of the Irish gdp  increase is because of a increase in the provision for depreciation. 

 

Volaille de Bresse's picture

Dear Europe,

 

I hope you croak this year.

 

Sincerely,

A guy who lives in Europe but NOT a European

Ghordius's picture

"A guy who lives in Europe but NOT a European". well, yes, that was clear by your use of "Europe", wasn't it? You do know that it's a geographical term, don't you? Meanwhile, "European"... <snigger> so... where do we have to deport you after your hope get's fulfilled?  <snigger, snigger, snort, sniff, sniff>    /bob

Nutsack's picture
Nutsack (not verified) Mar 4, 2016 6:37 AM

A JEWropean idea, which helps explain why illegal immigration is being used by our socialist jew overlords to destroy America and Europe at the exact same time!!!!! Just a coincidence, braindead Goyim sheepletards????

 

The jew World Order cannot Flourish, unless all white countries perish.

WOWurstupid's picture

Yea Israel has so much support in the non western worldd tthey can't wait for their benefactors to be eliminat3ed. Nuts you are a retarded nazi. Think the CFR and the globalists are Jews? Ask hillary.

THE DORK OF CORK's picture

Banks need young people to engage in debt contracts,  directly via consumer credit and indirectly via the "national" tax system.

Ireland certainly does not have a national usury system as 80% ~ of the interest from the national debt flows to external actors.

 

Irish remittance outflows are also the largest in Europe as a % of Gdp.

In a functional colonial system you get a interest outflow and remittance inflow. 

This was Ireland pre 1979
It is not the case today.
Both a interest and remittance outflow is witnessed./p>

 

THE DORK OF CORK's picture

Underlying characteristic of the euro is the chronic lack of local purchasing power.

This forces countries to export their physical wealth in return for the company tokens.

The British and indeed the English have been doing this in Ireland since day zero

Draining the island of silver,  leaving no wine in return for our cattle.

The EU is very much a repeat of the UK union,  with its characteristic starvation of the periphery.


The EU is not a free trade area.

It is a forced trade area.

You can see this very clearly today.

Local money shortages in all of southern Europe is directing exports to the UK.

The young people are following the money.

Italy and Spain have very few 20somethings today given the extreme low birth rate of the 1990s

London has also run out of eastern European debt prions.

Me thinks Romania in the 80s was the model,  with the only difference being they are free to move (to London)

Net migration to the UK is now approaching half the live births.

Ghordius's picture

"Underlying characteristic of the euro is the chronic lack of local purchasing power."

don't get it. If I hold a 100 euro note in my paws, do I get less steaks for it in Cork then in Madrid?

"This forces countries to export their physical wealth in return for the company tokens."

I also don't get it. Does it mean that somebody exports steaks from Cork to Rome... for euros?

"Draining the island of silver,  leaving no wine in return for our cattle."

this is related, isn't it? does it mean you get less Spanish or French wine for the same 100 euro note in Cork as in Paris or Vienna?

"The EU is very much a repeat of the UK union, with its characteristic starvation of the periphery."

does this not mean that "Cork ought to free itself from the tyranny of Dublin", too? are we still talking about steaks for wine?

isn't your rigmarole here actually about... credit? bank credit, specifically? of the sort where Irish and "AngloIrish" banks... exaggerated, not long ago?     /bob

THE DORK OF CORK's picture

Ps The cattle for wine trade is a historical connection between pre Tudor expansion west of Ireland and the Spanish superpower of the time.

After the Tudor conquest there was no more wine

Food export from Ireland to England was more or less one way traffic.

 

THE DORK OF CORK's picture

Go to the trading economics website. 

Compare Irish M3 to Sterling M3 growth.

 

Better yet compare France with Spain.

 

Most of the energy consumed in Ireland is used to seek purchasing power abroad.

Compare Irish net migration figures with aviation fuel consumed internationally - it will blow your mind.

This energy is wasted,  not used for consumption.

 

The crisis in Ireland reached its terminal phase in 2006 and 2007 when net inward migration exceeded live births

Aviation fueled consumed peaked on 2007 (over 3 times 1992 levels)

as  far as I am aware this is unprecedented in world history.

It's as if a massive baby boom happened in Ireland 20+ years before 2007

These were the 80s eastern European kids.

Not many 90s kids remaining.

The banking system is now seeking to absorb Muslims and Martians..

 

We are not dealing with national banking systems now.

This is a post treaty of westphalia world.

Most of the energy is lost in transmission.

Ghordius's picture

the problem I have with those statistics is that I am quite used to national trade statistics being distorted/distorting by the "Rotterdam effect" that can happen in the EU

aviation fuel? wasn't Ireland growing into a kind of hub of sorts for all kinds of aviation companies, particularly in the period you described?     cheers /bob

THE DORK OF CORK's picture

You heard of the phrase " all roads lead to Rome"

 

Well all internal Eu trade flows to London.

Observe the Uks pink.book,  it a record of trade flows with respect to Europe and the world  ( it's really a colonial ledger)

The UK is in trade surplus with respect to North America and gigantic real goods deficit with respect to mainland Europe 

 

I try to imagine London as the fulcrum.

 

Ps Francis cuppola had a absurd piece about the London and Uk property market post war.

She never once mentioned net inward migration..!!! 

I tried to tell her much of the 80s boom was driven by Irish migration ( in concert with credit bank operations)

She shut me off

I even compared the Baltics with 19th Ireland.

This was too much reality for a British banker to publish I suspect.

That region comes complete with massive demographic decline,  absentee landlords and "handy" farmers moving in on the edges hoping to export wealth in return for company tokens

 

Ghordius's picture

"Well all internal EU trade flows to London". hmmm... would have to check on that, but anyway... so if the UK.... BreXits?         /bob

THE DORK OF CORK's picture

Well,  to be precise - all.SURPLUS Eu internal trade flows to London.

The bankers are extracting the free lunch obtained from the Industrial surplus.

However it's not that big anymore given the waste inherent in the long distance trade and global slave labour market.

We are living in a 19 th century like globalisation phase but with a jet age twist.

THE DORK OF CORK's picture

 Read Desmond Fennell.

A old Irish codger writing about the second American materialistic revolution re exported / imported into Europe.

 

I guess it's a bit like Gaelic Halloween exported to the states,  losing all its meaning and then reimported as pure trash - the kids meanwhile have no fucking idea.

Ghordius's picture

GW, funny and very entertaining idea, but there is a bit of a lack of... historical fundations in it

the first time a common monetary system was in place in Europe was 1865. And it lasted until 1927. That's seven years before the US banned private ownership of gold, btw.

it was called the Latin Monetary Union

as so many things european (or "eu"), it started with a treaty. which made the specifications, or regulations for how those coins would have to look like. do you see the... pattern? treaties, specifications, regulations?

the first treaty signatories were France, Switzerland, Belgium and Italy. Later many countries either joined, like Greece, or signed association treaties, of founded similar monetary unions like the Scandinavian Monetary Union

further, if you really want to examine why european countries started to thinker with the EUR project, you have to take XXth Century monetary history in account

starting with the Bretton Woods system of 1944 and ending with the Nixon Shock of 1971. a time also called by some as America's Exorbitant privilege i.e an ""asymmetric financial system" where foreigners "see themselves supporting American living standards and subsidizing American multinationals"."

so yes, you could say that "the father of the EUR is an American". but not that Mundell guy. the "father of the EUR" would be... RICHARD MILHOUS NIXON

it's very, very simple: Nixon was under pressure. of the kind of "bank runs". the French, starting in 1969 were sending battleships to NY harbour and presenting dollar bills to be redeemed in gold... as per Bretton Woods system agreements. if Nixon would have continued to honour the US committments of the Bretton Woods system... there would have been no change at all. european national banks would have continued to use the dollar in the "as good as gold" sense... because it would have continued to be convertible to gold, on demand

but Nixon did not want to do the homework for that. i.e. balanced budgets. and so we heard from him the words: "we are all Keynesians, now"

seriously, all this propaganda that the EUR is "evil" because it's an "American invention" is... cute

and our British cousins lap any explanation about the evilness of both EU and EUR like candy. they love it, it's a huge and profitable business. like those moronic books mentioned here, in particular from "Guardian, Independent and BBC investigative journalist Greg Palast, who explained in his book Vulture’s Picnic: "

I mean, GW, look what you posted here from that: "No, I am not making this up. And I am not saying the Euro was imposed on the Old Country just so the professor could place his toilet at a place of maximum pleasure. The Euro is fashioned as an anti-regulation straitjacket that would eliminate gallons-per-flush laws, flush away restrictive banking regulation, and all other government controls.". I refrain to comment here except in this: don't you smell the "Austrian School" odor? The... "libertarianess" of the thing?

Yes, look at Greece. Population uttlerly disgusted with politicians. Which, if they had the Drachma, they would have devalued it at will, or imposed even stronger capital controls. But Greeks have the EUR. Often in bills, i.e. cash, often in their safes or under their mattresses

GREEKS ARE USING (AND "WIELDING") THE EUR AGAINST THEIR OWN GOVERNMENT'S WISHES... AS IF IT WAS GOLD

look, GW, at a certain point in the future you might have to decide if you are a Keynesian/Neo-Keynesian or an "Austrian School" Proponent. Particularly since you post often here on ZH

all this anti-EUR stuff is entertaining, but it is always from a neo-Keynesian point of view. it is always from the POV of "Deficits don't matter" and "Devalue, dammit"

the Greek government would love to plunder the national currency among all the other things that it plunders after a long time of pretending that deficits don't matter

and neo-Keynesians of various stripes love to tell the story that all Greece needs is a whacking devaluation of the Drachma. sure, devaluation and inflation are a "free lunch", after all /S

so there you have it: Greece... the government would love to get rid of the EUR. Greece... the People... not

I side with the Greek People, thank you very much. You might want to reconsider if you don't want to do the same         /bob

Joe A's picture

Europe is America's bitch. And with TTIP the neoliberal coup d'etat in Europe will be complete. But they haven't learned from thousands of years of European history. Whether it is by some king or some flavour of religion or ideology, Europeans don't take well to being dominated by somebody. Europeans are all in favor for European cooperation but they like that their countries keep their sovereignty. The Euro is not even that bad of an idea but the Euro was designed by politicians for political purposes, not by economists in such as way that it would lead to sane economics.

Ghordius's picture

Joe A

I agree with:

"And with TTIP the neoliberal coup d'etat in Europe will be complete. But they haven't learned from thousands of years of European history. Whether it is by some king or some flavour of religion or ideology, Europeans don't take well to being dominated by somebody. Europeans are all in favor for European cooperation but they like that their countries keep their sovereignty. The Euro is not even that bad of an idea..."

and I disagree with:

"...but the Euro was designed by politicians for political purposes, not by economists in such as way that it would lead to sane economics."         /bob

Joe A's picture

Ghordius, I agree with your agreement but respectfully disagree with your disagreement.

Economists warned about the design of the Euro and how it did not offer any instruments to countries in trouble to raise interest rates to curb inflation and to go back to their own currency in order to become competitive agains (among other measures). Now countries have to resort to 'internal deflation': lowering salaries, pensions and social security; lowering public expenditure on schooling, health care, etc. But now they need to do that anyway on top of still having to pay back the loans. Greece would have had a real tough time if they had defaulted on their debt and had to go back to their currency but they would have been debt free. They have a real tough time now anway while the foreign banks were saved. The Euro was designed to favour banks and financial institutions. People, not so much.

Anyway, you changed your avatar. Do you still believe in the Euro or not so much? I believe in one, but a one that is different from what we have now.

Ghordius's picture

Joe A, we are in the middle of a huge currency war. If we had 19 currencies instead of one... we'd be engaged in an internal currency war among ourselves

that, btw, was the reason why we agreed on peace on the "monetary fronts" way before we engaged in the EUR project. watch the US, watch China: they... don't

example: Denmark. It's still in the so called ERM II (see European_Exchange_Rate_Mechanism). or the "monetary snake"

"Greece would have had a real tough time if they had defaulted on their debt and had to go back to their currency but they would have been debt free"

well, that's the point: they did not default. for all purposes, Greece could have defaulted and continued to use the EUR or switched to the Dollar or to gold or whatever

what I mean is that defaulting is one thing, the currency another. looking at the EUR as "the cause of Greece's problems" is imho obfuscation. Any country can get into financial and fiscal problems regardless of the currency it uses or switches to

(my avatar was changes after a bet. I'll put back something EUR-related after Easter)

note that we have nevertheless a kind of price stability here... while energy and commodity price wars rage on, and of course the mentioned monetary/currency wars, and CBs world wide are shooting at each other with FX reserves

so how would a better common currency look like according to your views? remember: stability... regardless of the "soft" wars that are raging on. they are real, and they are putting pressure on several currencies

remember that we continentals have to produce and trade just to keep our heads over the water. for every drop of oil, for every container that arrives in Rotterdam... something has to be produced and shipped elsewhere. sure, there are countries that think they are above such... grittiness. but we... aren't in that position. and generally speaking, most of us regard that kind of behaviour as... unsustainable       /bob

Joe A's picture

Greece got into trouble due to its own fault for sure. But banks should not be bailed out by taxpayers because the banks made bad investment decisions. Everybody btw. knew of the troubles of the Greek economy. Taxpayers bailing out banks is bad bad capitalism, I keep telling that. Even if they are 'TBTF'. Now Greece still needs to pay back the bailouts (with interest) and put in the austerity. That is because Greece was sacrificed in order to save a rogue capitalist system and a faulty currency called the Euro. The problems are not over in a long shot. The EU and ECB just kick the can further down the road (and sacrifice Greece) in order to save the others.

The thing is, the expansion of the EU and granting countries into the Euro was done too fast. Countries had no business being in either of them but this was done all for political reasons and for empire building. Why were Romania and Bulgaria allowed in when these countries are more corrupt and politically and legally less developed than ex-Yugoslavia countries? That was for the sake of expanding the Atlantic sphere of influence and that brings us back to this article: that the EU was an idea of the Americans in order to consolidate the Atlantic alliance and empire. Hence the next step: the inclusion of Ukraine into that sphere never mind that we risk a serious conflict with Russia over that. Europe is easy to divide and America knows that. What happens in their favor is that European leaders are also pretty stupid and naive: see the wars in Libya and Syria. As a result of that Europe is being flooded with migrants and terrorists hiding among them. That works in favor of the US. They want to control Eurasia in order to save their dominance over the world. So flooding Europe with muslems really works for them. (Some months ago an Austrian intelligence said that the US was paying refugees/migrants to make the journey).

19 different currencies might be problematic in currency wars but some would be shielded due to the strength of their economies. Now we run the risk that a few rotten apples ruin the whole pie. As far as how the common currency would need to look like: I am not a monetary expert but countries should only have been allowed in when their economies were healthy. Greece for sure was not but also Italy's economy at that time was justifying their entry into the Euro. And countries should have had the opportunity to redraw from the currency to get their house in order and then make their entry back.

And what is with the /bob thing? Another bet lost? Gambling too much? ;-)

Ghordius's picture

"banks should not be bailed out by taxpayers" -> that would mean "bail-ins" (or defaults) instead of "bail-outs". well, is is somewhat happening, here. but not all ZH articles are... nice about it

as a reminder, the EU expansion was spearheaded by the UK, with the US pushing. Bush Junior even wanted to give Turkey membership, and was pissed about Germany saying "it's not yours to give"

the same UK that is now going to leave us, perhaps. well done, Britain! first expand the club, then leave the club!

the US uses whatever it finds, Joe. the US did not have to invent anything "eu" in order to use/propose/do stuff. the US MIC - which is very influential - wants to paint Russia as the "evil" Bear. it's a business of sorts. meanwhile, it's still a bear, not a teddy bear.

and yes, unite what is divided and divide what is united is all part of the Great Game. "Some months ago an Austrian intelligence said that the US was paying refugees/migrants to make the journey". possible, yes. yet the fact that their countries have been bombed to oblivion is a bigger reason for them to pack and try to find some place where they do not get all that shit on their heads

both the US and Russia strive for "dominance and control of EurAsia". we have to cope with it, and them. preferably without (wasteful) wars

"European leaders are also pretty stupid and naive: see the wars in Libya and Syria"

that's a very complex thing. take Syria. take that "invisible-for-the-media" French nuclear carrier now operating off it's coast, garded by German warships, and supported by German Tornados from a Turkish airbase. flying missions with... Russian warplanes. what are they doing? what does your media at home explain about it? are they... protecting Russian planes and Assad.... from our allies, the Turks? from the Saudis? from... the US (allies or straight)? what do we want, in Syria? getting all those war refugees back where they belong? our media is either completely mute or completely overwhelmed about how to explain all this. meanwhile, people want simple explanations, and so leaders give simple messages. getting re-elected is not a matter of appearing intelligent or savy

"19 different currencies..." would be fish in a barrel for speculative forces which give even China headaches. witness how China warns Soros not to attack the Yuan. size is safety of sorts, for currencies. watch the Ruble. watch the British Pound. watch the headaches that Denmark and Sweden have. why are those two having the exact same monetary policies as the EUR, with similar rates? why did the CHF peg itself for a time to the EUR? the Swiss used the EUR as an anchor, in "monetary jargon". Healthyness of the economies is like "fundamentals". Do they currently... matter?

(it is my despicable boss "Mr. Ghordius" that lost that bet)          /bob

Joe A's picture

Well, it is a clusterfuck on multiple levels.

The UK wanting out of the EU actually raises my enthousiams for the EU to a certain extend. Fuck the Brits with their arrogance and their exceptionalism. Nevertheless, as we discussed in the past, my friend, the EU needs reform.

Bail-ins. Not so nice for depositors but tax payers should not bail out banks where they don't have an account anyway. Wishful thinking perhaps.

Libya, Syria and Eurasia? Clusterfuck. Both US and Russia/China fighting over it. Sometimes I also think that everybody just got a little bit carried away with Zbigniew's Brezisinki's plan (or however you spell his name). Well, it is all tied to energy. Recently the EU approved plans for a Greek Italian pipeline that brings oil (or gas) from Azerbijan to Europe but trashes a plan for a Greek Italian pipeline that brings it from Russia. Well whaddyaknow?

Breedlove -NATO's supreme allied commander in Europe- recently said that the migrant crisis is all the fault of Putin and Assad. That they weaponize the crisis to break Europe. He also said that more terrorists are hiding among the flow of people and with this he hints that Putin and Assad are responsible for this. Helloooo, ever heard of Arab Spring? This sounds like operation Gladio allover again. Sometime ago an American here on ZH told me that Europeans should not have any illusions that America will not turn Europe into a smoking pile of rubble over dollar and US hegemony. I am starting to believe him.

Size matters? Yes it does. So does gold. Build plenty of holdings of that and make sure you sit on it. If you don't hold it then you don't own it. Soros? That nobody until now has not send him to the pits of hell is a mystery to me. Anyway, things will continue to heat up. Know of any safe place?

GRDguy's picture

Nice try, but the old 1889 book "The Great Red Dragon: Foreign Money Power in the United States" gives a much better explanation.  Financial sociopaths will always try "to own the earth in fee-simple" as long as the 99% are willing to give them their money. Pure stupidity, but folks have been well-indoctrinated NOT to think for themselves.

blindman's picture

empires die over long periods of time and this encompasses and tolerates tremendous fucking confusion and murder, intellectual entertainment and blood on the streets as we are witnessing. at some point there arises a demand for truth and solutions to the obvious imbecility, i guess. maybe i just hope so? the system is fantastic and global blunderbuss, failed and fraudulent at the core. who will stand to sustain the unsustainable and call themselves responsible, the prospective "leaders"? that is the way of the doomed system. the true believers calling out for front men to usher in the time of doom. peace anyway poems^tm

blindman's picture

Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.
John Maynard Keynes/Quotes

blindman's picture

was keynes an american? hmmm....

nmewn's picture

Naw, an English crown subject ;-)

blindman's picture

keynes was an arrogant, self important, narcissistic, empiric, king psychopath
flat ass broke pud smoker representing a failed british empire in
july of 1944 at bretton woods, new hampshire. that is history.
and there is much moar and worse ....ongoing ..

blindman's picture

In the long run we are all dead.
.
The avoidance of taxes is the only intellectual pursuit that still carries any reward.
j.m.k.

nmewn's picture

Ok, lets accept at face value that all these things are true for shits & giggles.

If true, the EU is just an artificial monster created by Eisenhower, Truman, the CIA, Reagan, Thatcher and NYC bankers (I'll leave the obvious connotations of this "grouping" aside for the moment.

So that being the case, the "good thing" to do is destroy it, right?

Ghordius's picture

destroying is always good. always. as Dr. Krugman teaches us, there is nothing better then bombing glass pane factories. particularly Other People's factories, I presume?     /bob

nmewn's picture

But if it's artificial, if it's contrived, if it was in fact set up by evil manipulative people with their own hidden agenda to be a despotic thing...what then...leave it there...add an annex?

You may have noticed we're breaking a little glass over here too friend Ghordius ;-)

Ghordius's picture

nmewn, there is a huge lot of "manipulative people" and lots of hidden agendas, and lots of despotism to go around. look, an alternative explanation for all this "the EU is..." or "the EUR is...":

                 it... sells

that easy. it's "good" business, it is profitable business. particularly on the european island that is going to have a referendum on June 23rd about leaving the EU

seriously, it's a fact. if you write a juicy book about why the EUR is evil, or the CIA planned the EU... you make money. if you write an article on ZH called "The European Union was An AMERICAN Idea"... well, GW did it and we are generating clicks, and having discussions, and so on

where is the book that tells us that NY ought to have a separate currency, mainly because of Wall Street, so "unshackling Main Street from the financial wizard's despotisms"?

on the other side, "The Wizard of Oz", which has an hidden (gold related) argument along similar lines, is an evergreen of sorts

why is the EUR more "artificial" then the USD, which is based on a dozen of FEDs? where are the argumentations about the US "better off with a dozen currencies"?

look, both the EU and the EUR are kind of "itches" that the Brits still don't know how to scratch. as long as they are so incredibly undecided about them, strange and strangest theories will abound

and so long this goes on, books and such will be sold on them. fantasy... straight is often not enough, so here we have it: the industry of the "EU/R Theories", available of course also in the American markets    /bob

blindman's picture

it is out of london, yes. empire hand off with a catch,
John Maynard Keynes, that is the key.
https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF...

nathan1234's picture

Chalk and Cheese together in Europe.

Only a fools dream .

Or one for the banksters to strip wealth from all over Europe in one effort

Reaper's picture

The absurd idea is that any central committee, located within states or without, can be trusted to create something which does not benefit the creators. An unexamined question is who replaces the present central planners as they age or die out? All elites attempt to include their relatives as replacements. I.e. Bush, Clinton, Kennedy

Trust in any uebermenschen is for fools. http://www.iecjournal.org/files/croston-iec-nepotism-slides.pdf