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Update (2010/05/17): Dominque Strauss-Khan is calling for a global currency issued by a global central bank again.
Steve Watson, PrisonPlanet.com
May 14, 2010
Renowned financial commentator denounces “fiscal fascism” in Telegraph
Several more autocratic international voices have added their weight behind proposals to vastly empower the EU with greater authority to govern over nation states in Europe, in the wake of the sovereign debt crisis. Meanwhile, one leading commentator has described the move as “fiscal fascism”.
Proposals tabled yesterday by the European Commission, the legislative arm of the EU, would greatly diminish the ability of nation states to set their own fiscal policies, in favour of a move toward a centralized european treasury.
“There is still a long way to go. We have opened the gate. Now we have yet to go through it,” said Ulrike Guerot, an analyst at the European Council on Foreign Relations think-tank.
“The crisis has shown us we need to animate moves toward closer political union as well as monetary union and we need a quantitative jump.” Guerot added in comments to Reuters.
“The EU has used crises in the past to make that kind of jump and this is what is needed now.” the German researcher concluded.
“This could be the fuel injection needed to put Europe on course toward closer political and economic union, the goal that drove its founding fathers and leaders a generation ago such as Germany’s Helmut Kohl, France’s Francois Mitterrand and former European Commission President Jacques Delors.” notes Reuters writer Timothy Heritage.
The European CFR is a vehemently pro-EU outfit made up of hundreds of influential corporate and political figures, perhaps most notably including George Soros. It was initiated three years ago primarily to push for an expanded role for the EU as a global superpower. Inevitably, the group is consistently vocal when it comes to the question of greater political integration in Europe.
The European CFR is not related to the U.S. CFR, however support for mass centralization in Europe is shared. On the prospect of a central European treasury, CFR Senior Fellow Marc Levinson notes:
“Countries cannot have it both ways. Either they’re in the eurozone or they’re out. If they’re in, they have no control over their monetary policies, period. If they want to leave, fine, but then they will probably have to leave the EU as well, and to remain out of the EU and the eurozone for a very long time. And leaving the eurozone, by itself, will solve none of their economic problems.”
Other voices echoing support for sweeping integration measures include Hans Martens, chief executive of the European Policy Center think-tank in Brussels, who notes “This is the last chance to still be relevant in the world… It’s clear to everyone that Europe is becoming marginalized.”
“Europe faces a critical choice between greater integration and disintegration,” Simon Tilford, chief economist at the Center for European Reform think-tank, also wrote this week.
Former Federal Reserve Chairman Paul Volcker and Former U.S. Treasury Secretary John Snow have also advocated the move toward a fiscal union.
“Will economic and financial distress finally be resolved by looking toward more integration in a closely integrated Europe, politically as well as economically?” said Volcker. “I do have my hopes, as a believer in the euro.”
“For the euro to be able to survive long term, fiscal consolidation of some kind – tax policy consolidation, fiscal policy consolidation – is probably necessary,” Snow said.
As we outlined in our report yesterday, in addition to opening up supervision of countries’ national budgets to the EU, the proposals also call for the creation of a European Monetary Fund or EMF — a permanent bailout mechanism.
The new rules will apply to Britain and Denmark, even though those countries are not part of the existing European Monetary Union and have retained their own national currencies.
London Telegraph international business editor, Ambrose Evans-Pritchard has penned an empassioned piece in today’s newspaper in which he describes the move toward a federalized union in Europe as “fiscal fascism”, comparing it to “the Gold Bloc fallacy of Continental Europe from 1931 to 1936, the policy that led to Bruning’s destruction of Weimar.”
“Just when you thought the EU could not go any further down the road towards authoritarian excess, it gets worse.” Evans-Pritchard writes.
“Fonctionnaires and EU finance ministers will pass judgement on the British (or Dutch, or Danish, or French) budgets before the elected bodies of these ancient and sovereign nations have seen the proposals. Did we not we not fight the English Civil War and kill a king over such a prerogative?” he continues.
“Yet again we are discovering the trick played on our democracies by Europe’s insiders when they charged ahead with EMU, brushing aside warnings by their own staff economists that monetary union was unworkable without fiscal union.” Evans-Pritchard notes, adding that the European elites behind the EU single currency knew that it would eventually lead to a crisis they could use to “force sovereign parliaments to submit to demands that they would never otherwise accept.”
“The enterprise has become illegitimate — it is starting to exhibit the reflexes of tyranny.” Evans-Pritchard concludes.
Source | See also under Economics: Sarkozy threatened to quit euro in showdown with Germany: Report | Hedge funds vote threatens EU-US rift | Global markets slide on debt fears | Loonie, TSX slip on euro woes | European Powerbrokers Present Proposal For New Economic And Political Order | Multiple Wall Street banks investigated over links to ratings agencies | Manitoba looks at debit cards for welfare recipients | Power Financial wary of Toronto-based securities regulation push | British face big spending cuts as coalition shows unity on austerity | Europe and America Morally and Financially Bankrupt | Paul bill to audit Federal Reserve passes as one-shot deal | SEC widens probe of Wall Street to include Morgan Stanley | UK Unemployment up to highest level in 15 years | EU wants member countries to co-ordinate budgets | Bid To ‘Storm’ Irish Parliament During Bailout Protest Foiled | Toronto labour, native protesters ready for G20 demonstrations | Gold vaults nearly 3% to record high $1234, BMO sees $1600 horizon | EU deal euphoria fizzles out | Ron Paul: Euro Bailout Will Lead To Currency Collapse | ‘Shock and awe’ euro rescue lifts global markets | Lewenza: Canada-EU deal will affect more than trade | Industry Minister Clement invites input on Canadian digital economy | Western Central Banks back Trillion Dollar European rescue plan, ECB to manage markets | MPs divided on Canada-Colombia trade agreement | Euro zone to regulate hedge funds, vows to fend off ‘wolf pack’ traders at all costs | Free trade with Europe? | Euro crisis goes global as leaders fail to stop the rot | Debt crisis: Panic on Wall Street, stonewalling in Europe | Audit The Fed Push Strengthened By Second Front In Senate | Gold nears record high as stocks plunge | Canada, EU at loggerheads over bank tax | Quebec public-private wind power project generates turbulence | Greek rescue fears hit global stock markets | Goldman Sachs concedes case for restraining the big banks | Shaw buying up CanWest TV assets from Goldman-Sachs | Greece swallows tough medicine in $150B bailout, more spending cuts announced | Greece erupts as men from IMF prepare to wield axe | European Central Bank chief: Bank of International Settlements to Rule the Global Economy | Greece’s near bankruptcy won’t scuttle Canada-EU trade talks: minister | New austerity measures essential, says Greek PM | Harper calls for global economic governance, lauds G20 as ruling forum | HST begins taxing Ontario on Saturday | Canada offers Michigan $550M loan for NASCO link bridge | Goldman execs squirm in face of angry U.S. Senators | Greek debt crisis: Europe feels shockwaves as bailout falters | Standard & Poor’s downgrade Greek credit rating to junk status | Canadian housing market downturn a possibility, says report | Goldman’s Fabrice Tourre: Emails reveal he thought borrowers ‘won’t last long’ | Police State Canada 2010 and the G20 Summit | Big stakes in Canada-Europe trade talks, but little attention | Protesters and police get ready to square off at G20 summit | US prepares to push for global capital rules | World Bank gets $3.5-billion boost, revamps voting structure to make China number 3 | Greek bailout not limited to ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬45bn, Flaherty warns | In revealed e-mails, Goldman chief says we ‘made more than we lost’ by betting against market | Flaherty wins delay in decision on global bank tax at interim G20 meeting | IMF to move quickly on Greek request for loan | Greek PM calls for EU bailout loans | Unconstitutional? 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| G7 brings competing visions to the Arctic | The Federal Reserve as Giant Counterfeiter | The US budget: Barack Obama’s $3.8 trillion red ink blueprint | EU cautions Greece about its deficit | Global Bank Insurance Levy Wins Support over Transaction Tax at Davos | Consumer debt loads are the new concern | No solution in dispute over Iceland deposits | Bloomberg: Secret Banking Cabal Emerges From AIG Shadows | Davos 2010: George Soros warns gold is now the ‘ultimate bubble’, calls for IMF to handle climate fund | Harper urges G20 to follow economic accords | Davos: Global climate fund threatens aid to developing world, campaigner warns | Obama Likely to Rebrand Climate Bill as Jobs Bill | Bankers unite against Barack Obama and Gordon Brown in call for world regulation | Geithner Told To Quit After E Mails Reveal Involvement In AIG Cover-up | IMF warns against retreat from stimulus spending | Why Did the ‘Stimulus’ Fail to Help the US Economy? | One quarter of US grain crops fed to cars — not people, new figures show | Terence Corcoran: Ontario puts $10B in the wind | Banks find gaping loophole in Obama financial reforms | Ontario Premiere McGuinty heralds Samsung ‘green energy’ deal | Obama talking tough with banks | High dollar to slow recovery, central bank says | EU Embargoes Canada’s GMO-sabotaged Flax Industry | Could Greece drag down Europe | EU urged to adopt bank supertax | Record surge in UK inflation | Iceland sets date for Icesave vote | ‘Green jobs’ are key to U.S., Canadian recovery: US Ambassador | Flaherty to use February G7 in Iqaluit (or Ottawa?) to push for global changes to financial system | ‘Significant chance’ of second financial crisis, warns World Economic Forum | Iceland says IMF aid likely delayed | Wall Street’s leading bankers admit: we made mistakes | The next big scam: Fraud endemic to carbon market | Flaherty’s economic plan blasted as leading to taxation or cuts | Idle job market hurting recovery, Flaherty warns | No new stimulus, economy ’stabilized’: Harper | Obama ponders bank transaction levy to recoup bailout shortfalls |TSX trades above 12,000 before retreating | Explosive Leaked Emails Expose Treasury Secretary Geithner’s Deception in ‘Backdoor Bailout’ | America slides deeper into depression as Wall Street revels | Tipping point at CanWest | Sarkozy says world currency disorder unacceptable | UK: Interest rates and quantitative easing on hold | Iceland blocks central bank debt repayment deal | Bernanke defends Fed’s actions, forecasts interest hikes | For more see The Memory Hole — Economics