Via Mark J. Grant, author of Out of the Box,
“When you say you agree to a thing in principle you mean that you have not the slightest intention of carrying it out in practice.”
-Otto von Bismarck
In what has become a typical pattern; Europe has a summit, everyone says this, that, their own variation of that and the other to appease their citizens and it is not until days later that some sort of reality begins to be released to the Press. Not only has this become the pattern but it generally comes over the weekend when the markets are not open and when no one is paying much attention. It is a purposeful scheme and useful I suppose for dampening effects and it allows the bliss to continue. In the meantime there is no ESM in place, only $65 billion left in the EFSF after Spain and Cyprus are funded and the German Constitutional Court declared over the weekend that there would be no ruling on the ESM until September 12. For those that believe in the usefulness of firewalls, which would not include me, you are now staring at bricks to build dollhouses and it is not just the flank but the center that is fully exposed and vulnerable.
Not long ago I wrote a piece about how to rank the statements be various European governments and governmental agencies. Germany got the top score as they are the paymaster and because nothing in the European Union will be happening without their acquiescence and the Golden Rule lives on; “He that has the Gold rules.” Over the weekend Ms. Merkel made her position quite clear; there will be no money lent to any banks until there is a financial oversight authority that has the regulatory powers to control the finances, the economy and the banks of every nation in Europe. There are several ways to read this of course with the first being “that Berlin, through Brussels, will control the money of every nation in Europe before any help will be provided” and the second viewpoint is “that Berlin, through Brussels, will control the money of every nation in Europe before any help will be provided.” You may choose number one or number two because both are exact and exactly correct. It is not just a loss of some sovereignty that is being requested but absolute control of the economy of every nation in Europe, fiscal domination centered in Belgium and a Brussels that is the puppet of Berlin. He that controls the finances and the banks of a country controls the country; make no mistake here and this is exactly what Germany is trying to accomplish.
Ms. Merkel cited various attempts by any number of political leaders to get at the money without all of this being in place as she responded, “All of these attempts will have no chance with me or with Germany.” In other words, a resounding “Nein” to Spain, Ireland, Greece, Portugal and Italy that any money would be lent directly to their banks without full and absolute submission. Now you can make nice all you like and you may think it impolite to foster ill intentions on Germany but the facts speak resolutely for themselves; Germany has banged the gavel and stated that any money for any banks will not be given until they control the nations of Europe and that is “period and end of story.” World War I was fought with rifles and tanks and World War II was fought with planes and aircraft carriers and World War III is being fought with Euros and Capital and in each case, without exception, Germany has tried to control the Continent of Europe.
There is a long history of lambs being led to slaughter and all of the reasons given for Germany’s position does not change the result one whit. You may cloak it all under the banner of financial responsibility and Germany wanting to control how their money is spent and the masquerade is obviously wonderfully successful as hardly any objections are heard but where this is going is no different than Germany rolling in with her tanks and assuming control. This is Vichy reborn and Anschluss déjà vu and the takeover of Poland just accomplished on a different battlefield. The weapon is money and not armaments and while the stench is more polite the demand for victory has not lessened.
“The art of concentrating strength at one point, forcing a breakthrough, rolling up and securing the flanks on either side, and then penetrating like lightning deep into his rear, before the enemy has time to react.”
-General Erwin Rommel