Strong Opinion from our Stable of Star Turns
The EU Banking Union Plan Lacks Detail or Forethought
The last EU Summit of 2012 – I have lost count of how many there were, but not of how many achieved anything positive – decided to create an EU banking union.
Great fanfares were sounded, but the British Press hardly reported it, as there wasn’t anything to report, beyond the headline. That’s the trouble with the EU, in their stampede to create a federal supra-state, they don’t think through any of the consequences in their headlong rush to create Super-Europe.
The number of questions posed by this great [stupid] decision are legion, but are hard to answer, which is presumably why they weren’t: how will the ECB regulate 200 mega-banks across 17 countries? What role in this supervision will be played by the 17 national central banks of each state? And how will the foreign, non euro-zone subsidiaries be regulated, and by whom?
More particularly, how will the Bundesbank, with its formidable record and reputation, relate on these and other matters to the ECB, with its zero experience in regulation, and with its tattered reputation? [They are both based in Frankfurt, but there the similarity ends, as the former says everything the latter is doing these days is a looming disaster].
To which state and parliament will the ECB be responsible to? To the Euro-parliament, comprising a bunch of sailors on a three-day pass? Or to a new Parliament in Brussels? Elected by whom?
No, of course not: it will be to the Bundestag, if not all but in name! And does that mean endless bail-outs for the Greek, Spanish and Irish banking systems?
And how will the massive unpaid T3 imbalances be settled? And who will the [already bankrupt] ESFS report to? And who is underwriting all these debts, a new Euro-Treasury? Filled by whose taxes – state or federal? Etc, etc.
The Germanification of Europe is the new Euro-juggernaut, driven by a strong woman, known in her own country as The Dog as she bites everyone who gets in the way of her Euro dream.
Yes, it’s a German takeover of Europe all right, but without firing a shot! Instead of 25 million dead bodies, there are 25 million unemployed economic deadbeats.
It wasn’t meant to be like this, of course it wasn’t. The French thought the Eurozone was so that West Germany could be brought into an anti-communist alliance with Italy and Great Britain, as each of these four countries had, at the time, the same population – 57 million – and that West Germany would be de-germanified and no longer exist.
Then the wind blew the wrong way through the Brandenberg Gates in 1989, and the French dream went up in smoke, quicker than any of them could say 'Zut alors!'
But President Mitterand, aware that he couldn’t stop the new nationalism rising from the rubble of the Berlin Wall, at least wrung from Chancellor Kohl a concession: he would not object to reunification, provided Kohl committed to the euro.
Whether Mitterand knew he had just made the biggest hospital pass in history, or not, will forever remain a mystery, but the result will be the fresh destruction of Germany and much of Europe ... in about five to eight years time.
Some mothers do ’av’ ’em! Happy Christmas and a euro-smashing New Year!
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