Welcome To The Hotel Europa...

Authored by Raul Ilargi Meijer via The Automatic Earth blog,

On Friday, in This is the End of the Euro, I said: The euro has become a cage, a prison for the poorer brethren. The finance minister proposed by 5-Star/Lega and refused by Italian president Mattarella, Paolo Savona, has called the euro a German cage.

There are now stories spreading that the coalition, Savona first of all, were secretly planning an exit from the euro. A series of slides Savona prepared in 2015 on how to exit the euro is used as evidence of that secret plan. But the slides are not secret. Yes, he has said that it’s good to have a plan to leave ‘if necessary’. But that’s not the same as secretly planning such a move.

Every country should have such a plan, and you would hope they do. A government that doesn’t is being very irresponsible. But it’s true, this is how both the EU and the euro have been designed: not just as a prison, but as a prison without any doors or windows. No way to get out. And that will prove to be its fatal flaw.

It has more such flaws, for sure. The inequality of its members, which allows for the richer to feed on the poorer, is a big one. The US founders were smart enough to provide for transfer payments from rich to poorer, the EU founders couldn’t be bothered with that lesson. They must have studied it, though, and rejected it.

Credit were credit’s due: Yanis Varoufakis said it best when he compared the EU to the Eagles’ Hotel California. A few lines:

Mirrors on the ceiling
The pink champagne on ice
And she said “We are all just prisoners here, of our own device”
And in the master’s chambers
They gathered for the feast
They stab it with their steely knives
But they just can’t kill the beast

Last thing I remember
I was running for the door
I had to find the passage back to the place I was before
“Relax,” said the night man
“We are programmed to receive
You can check-out any time you like
But you can never leave!”

The EU was set up as some kind of eternal prison, a concept most familiar to us in the way Christian churches depict Hell, or the ancient Greek mythological story of Prometheus, who, as punishment for providing man with fire, was condemned by Zeus to being tied to a rock, with an eagle feeding on his liver every day, for eternity.

Rule number 1 for any organization: there must always be an escape, a way out. If there isn’t, that’s what will break the whole thing in the end. Think Leonard Cohen’s “There a crack in everything; that’s where the light comes in.” Every system must always be designed with inbuilt redundancy.

Paolo Savona understands that, and he said there must be a way to leave the euro. For Brussels and Rome, that means he’s not acceptable as a finance minister, no matter his competence, experience or credentials. It reeks of desperation on the ‘establishment’ side more than anything.

And now the entire financial world is in panic and turmoil. It’s ironic to see people decrying the sudden weakness in Italian “sovereign debt” at the same time they see pointed out, as if that were still necessary, that Italy is no longer a sovereign country. Think maybe there’s a clue to be found somewhere in there?

Italian bonds are falling so fast traders get vertigo. At what point will Mario Draghi be held accountable for the enormous losses this causes on the ECB’s books?

But fear not: the elites simply blame the whole thing on the people elected in Italy. Yes, that means they blame democracy. For daring to provide an election result that threatens their powers. And no, there is no other way to define what is happening than as a coup.

Italy will soon have all the characteristics of an emerging market. Which is a market from which no one can emerge in an emergency, according to one Don Cowe. I read that the six largest Italian banks together have €143 billion in Italian debt securities on their balance sheet. Systemic banks in the rest of Europe, mainly France, Spain and Germany, have €137 billion of Italian debt on their balance sheet. God only knows how much Mario Draghi holds:

That is one scary chart. And no, that is not the fault of 5-Star/Lega. It’s the fault of the European Union founders, and of its present ‘leadership’. What 5-Star/Lega have done is expose the stark-naked emperor. And the little boy who called out that sovereign didn’t undress him; he went out without any clothes on all by himself.

Varoufakis called out the naked emperor Brussels in 2015. Paolo Savona did so multiple times as well. The emperor’s reaction? Shut up the little boy, not get dressed. But the lesson contained in The Naked Emperor story is that there will always be another little boy to call him out. Shutting up the boy doesn’t solve the problem.

Greece and Italy are where western civilization was born. It appears wonderfully fitting to picture the EU at present as the German eagle picking at the southern European Prometheus’s liver for eternity. All the more so because Prometheus in Greek mythology was the champion of man: he first made man from clay, stood against the gods in favor of mankind, stole fire to provide it to man, and got punished for eternity for it.

The EU and euro cannot survive in their present state. But those who benefit most from both are also the ones who can stop either from undergoing desperately needed changes. That’s Hotel Europa.

Comments

ACP Wed, 05/30/2018 - 05:08 Permalink

Interesting how the worst dictatorship on earth, North Korea, just released political prisoners, and only days later, the "civilized" British just took a political prisoner.

Al Gophilia Rubicon Wed, 05/30/2018 - 07:17 Permalink

Fuck democracy. It's the bane of a republic based on liberty; merely gangs jostling for political power over each other and bribing voters to place them there.

As for this article about the Euro enslaving the peoples of Europe..... why so selective on the choice of currency. Why not address the malady on a global stage. They're all enslavement tools, aren't they? (Rhetorical question there, folks.)

In reply to by Rubicon

2Blondboys TahoeBilly2012 Wed, 05/30/2018 - 07:06 Permalink

US debt keeps rising and will unabated.  That is what happens with big government.  The people demand governments pay for more and more stuff.  Payments for every demand by every imaginable group.  There is no stopping the demands.  Politicians in both parties are to blame.  They promise the moon.  Next year they promise more.  Voters demand more.  

I asked our employees one day how do they think raises each year are paid for?  So where did the money come from?  These are college grads.  They really had no answer.  They just demand and do not care about the math.  Do to a failed experiment, last year was not a good one for us.  We explained the math.  A risk was taken, but it failed.  The cost was considerable.  They simply do not care to hear about the workings of a business.  It is like the head tax in Seattle.  The voters want the homeless issue to go away.  So just tax business.  They can afford it.  Billions is being diverted for this issue and the issue is worsening.  

In reply to by TahoeBilly2012

Al Gophilia 2Blondboys Wed, 05/30/2018 - 07:22 Permalink

Government borrowing keeps rising. Where do the folks who have loaned them trillions, get their money to lend to them in the first place? C'mon man! You can't be that unaware of the scam called government borrowing, can you? Govt+Fed = debt machine, which demands interest on absolutely no money being lent. Wrap you mind around that. 

In reply to by 2Blondboys

2Blondboys TahoeBilly2012 Wed, 05/30/2018 - 07:06 Permalink

US debt keeps rising and will unabated.  That is what happens with big government.  The people demand governments pay for more and more stuff.  Payments for every demand by every imaginable group.  There is no stopping the demands.  Politicians in both parties are to blame.  They promise the moon.  Next year they promise more.  Voters demand more.  

I asked our employees one day how do they think raises each year are paid for?  So where did the money come from?  These are college grads.  They really had no answer.  They just demand and do not care about the math.  Do to a failed experiment, last year was not a good one for us.  We explained the math.  A risk was taken, but it failed.  The cost was considerable.  They simply do not care to hear about the workings of a business.  It is like the head tax in Seattle.  The voters want the homeless issue to go away.  So just tax business.  They can afford it.  Billions is being diverted for this issue and the issue is worsening.  

In reply to by TahoeBilly2012

Antifaschistische TahoeBilly2012 Wed, 05/30/2018 - 09:04 Permalink

it's painful...there's nothing wrong with a currency that gets used across borders.   Companies within the "EU" are allowed to go bankrupt.   The cycle of debt is the lifecycle of risk and entrepreneurship.   The problem is that you MUST let countries bear their own burden of debt through the investors demand for risk premiums (i.e. interest rates).  The divergence of risk and risk premium only leads to more debt.

But the EU boy's club is SO darn worried about someone deciding to leave the fraternity that they are willing to sacrifice everything to pacify the rogue members.   Like the mom&dad that keep giving their kid $40 every night for his 'habit' because he threatened to leave home if they didn't.

They blew it now.  Italy wasn't going to leave the EU, they were just bankrupt.  Now, they're super bankrupt...soon to be super duper bankrupt.  The market was pricing their debt at 4.5% 5 years ago, the EU thought 1% was better.  They only way to get there is to outbid every debt buyer.

so...have fun.  no old debt left.  Now, it's just a direct funding mechanism for the Italy.gov

In reply to by TahoeBilly2012

new game ACP Wed, 05/30/2018 - 05:33 Permalink

Guns. simple shit maynard...

force of the barrel in their face, or threat thereof.

practice pulling the trigger and condition the brain that better to die for freedom

than to live under the boots of tyranny.

moar simple shit maynard.

either you are a pussie or a trigger puller.

cause 

it is coming to neighborhood near you

very soon...

probably illinois first.

 

In reply to by ACP

chubbar ACP Wed, 05/30/2018 - 06:47 Permalink

The reason it's set up to be a permanent prison is because the monetary system itself is not sustainable with a large, non income producing structure sitting on top of it taking the productive gains, paying themselves and spreading around the remaining currency to favored corporations/individuals.

It's not a secret, the powerful know that in order to keep this evil system going they need to put in place a tyrannical system that keeps people in line while the system fleeces them and moves their income up to themselves. They are doing it by polluting the culture with dumb north African muslims who can't assimilate and allowing them to dilute any effort to overturn these policies democratically. Eventually the masses won't be allowed to vote, but in the meanwhile, just steal the vote of the culture you are assassinating by bringing in others who are being paid off with welfare.

 

In reply to by ACP

the_river_fish ACP Wed, 05/30/2018 - 07:49 Permalink

Economic lost economic decade

  • GDP growth for the European Union between 2007 and 2017 adjusted for inflation was negative
  • Banks in Greece, Cyprus, Portugal and Italy have a non-performing loan ratio of over 10% a decade on from the financial crisis and have only provisioned around 50% of the losses
  • The European Central Bank (ECB) is by far the biggest holder of European bonds and has a balance sheet of €4.5 trillion or some 45% of the GDP of the Eurozone
  • 18 of the 28 countries that are part of the European Union have seen house prices fall between 2008 and 2017
  • Greece has been the worst affected country, with its stock market down 85% since 2007, GDP per capita down 22% since 2007, house prices down 43% since 2008 and banks in Greece currently have a non-performing loan ratio of 42%

https://thistimeitisdifferent.com/europe-lost-decade-charts

In reply to by ACP

BritBob Wed, 05/30/2018 - 05:08 Permalink

THE euro has been very, very good for Germany. Other members of the zone have not fared as well.

Since the introduction of the Euro at the beginning of 1999, the European Central Bank calculates that Germany has gained competitiveness, not only against other major industrial nations but against all other members of the euro zone.

Over the same period, Germany’s balance of payments has gone from a small deficit to a strong surplus, but in the euro zone as a whole the balance of payments position has deteriorated slightly. Trade balances are the largest part of the balance of payments, but other transfers — not including international investments and profits from those investments — are also included.

The loss of competitiveness has been a major problem for some other members of the euro zone, most notably Greece and Ireland, each of which has been bailed out by Europe. Portugal, the other country to seek help, has suffered a smaller loss of competitiveness.

Last of the Mi… GreatUncle Wed, 05/30/2018 - 06:19 Permalink

Of course the EURO is a prison. You don't need the brains of a wombat to understand that. The whole shell game exists to further enrich the elite and enslave everyone else with massive debt. The final result is that any asset of any value public or private is transferred to the debt managers for an eternal income stream at a cost to everyone else. . . FOREVER!

As the game of printing money grows a bit longer in the tooth, the real plan begins to form and it has nothing to do with any sort of trade that is free in any form. It is about a "managed" economy where a special financial government in Brussels makes all financial decisions that are final and irreversible. Your job is to shut the hell up and pay for your entire life as well as the lives of your children.

In reply to by GreatUncle

zob2020 Wed, 05/30/2018 - 05:10 Permalink

south? As if the north isn't just as badly off.
Only germany really prospers. Some get a bunch of project money and do reasonably well.... others only pay despite being already broke on their own.

Vegetius Wed, 05/30/2018 - 05:37 Permalink

The EU and the Euro are the attempt by the  Eurotrash at creating a USA in Europe and it has all gone horribly wrong. From its very successful building of an economic market the EEC it has morphed into a power hungry bureaucratic Soviet style monstrosity.

Ireland did not have a debt problem until the banks blew up in Ireland, one of the reasons for this was massive flows of cash from Germany and the Netherlands in search of returns. So when the banks melted down in Ireland the Germans made sure the Irish state would backstop the private losses of these banks. Good for the Krauts, not so good for the Irish.

It is this event that bankrupted the Irish and is why they are still bankrupt. Unlike the Icelandic State that rightly pointed out that Private debt is Private debt. 

Lets be honest if you want to gamble its on you and when you lose the State does not have to bail you out. Privatizing profits and socializing losses does not just happen in the USA.

Heros Vegetius Wed, 05/30/2018 - 05:46 Permalink

"The EU and the Euro are the attempt by ZOG at creating a European slave state like they have in the USA".  FIFY.

Without the Euro, there never would have been the power and corruption for the Cabal to buy off enough local politicians and police forces to simultaneoulsy shove this mass invasion down the throats of all of Western Europe, while also forcing Holocaust denial and anti-semitism laws on them.

The Euro, like the EU, is merely a symptom of the real problem:  ZOG.

In reply to by Vegetius

OverTheHedge Vegetius Wed, 05/30/2018 - 07:31 Permalink

The Irish bailout actually bailed out German and French banks.

The Greek bailout actually bailed out German and French banks

The Portuguese bailout actually bailed out German and French banks

The Spanish bailout actually bailed out German and French banks

I could go on, but you get the point. Did your know Hungary, Cyprus, Latvia and Romania are also on the bailout list? It's quite a big club, and for once I am in it!

https://en.m.wikipedia.org/wiki/Template:Bailout_programs_for_EU_member…

In reply to by Vegetius

gwar5 Wed, 05/30/2018 - 05:37 Permalink

Sick of the EU. Run away. Just start running. At least the 1917 Russian Revolution was sudden and caught many by surprise. With this one you can see what's come from a long way off yet the normalcy bias is keeping people from reacting.

666D Chess Wed, 05/30/2018 - 05:38 Permalink

The real cancer is the central banks. The device used to enslave the human kind is fiat currencies. Italians, vote all you want, as long as you use the euro you will remain slaves. The same goes for the Britons, vote to leave the EU all you want, as long as your central bank is controlled by the Rothschilds, you will remain enslaved. 

new game Wed, 05/30/2018 - 05:41 Permalink

i used to dream of visiting the homeland of my ancestors. now i don't- fuk euro land.

i'd rather visit alaska. in fact i really don't want to go anywhere anymore cept a road trip away from the 

bullseyes of bullshit- big cities, libtard bastions...

Arnold BGO Wed, 05/30/2018 - 05:59 Permalink

It's a mixed blessing.

Alternative blog opinion, verses our grammar nazi impulses.

When we write new founding documents, it will be by hand and small committee.
And it will be for the ages, not for the publish or perish daily, soon to be forgotten interwebz grinder.

Until that time, I don't want to discourage information and opinion just bkause someone can't spel.

In reply to by BGO

NoWayJose BGO Wed, 05/30/2018 - 06:07 Permalink

Many stories, such as this one, come from other sources - check the byline.

Those authors must be excoosed for their inebileety to right good as they nevir got to reed many Famiss authers because those books was riten with insensitive werds and got banned.  Plus, they gots to take Gendir studies, African histery, and Gay Sex classes instead of Ingkish klass.

In reply to by BGO

Dilluminati Wed, 05/30/2018 - 05:44 Permalink

It is called a plantation politics for a reason, now get back on the plantation.

Either get off the plantation, leave.. or stfu and just shuffle along

overmedicatedu… Wed, 05/30/2018 - 05:56 Permalink

non elected Brussels bureaucrats given all power..see what happens Larry?

how do these elite get into power in EU..ask  mr Soros. aka  g schwartz..he along with other reptiles appoint them. 

ain't EU democracy just dandy.