THE EU: this sort of thing is what should be at the centre of every campaign for a New Europe

draghis

Hurrah for Frances Coppola, who has once again today told me something I didn’t know:

‘The issuer of the Euro is, of course, the ECB. It decides how much money each of the member states can have. This is not unique to Greece: money creation in all the member states is limited by the ECB. So we have supposedly sovereign states allowing their money supply to be determined by an unelected supranational body that is above the law and accountable to nobody… No other currency union central bank on earth does this.’

To be sung to the refrain of The British Grenadier.

Some talk of Geli Merkel/ and some of Dijesslbleom/of Wolfie Schäuble’s wheelchair/and some of Juncker’s plume/ but of all the world’s dictators/there’s one we can foresee/ he’s the Goldman mole with a debt Black Hole/it’s Mario Draghi.

I think Frances should lead the chorus on this one.

Goodnight Greeks. Tomorrow, vote OXI early and often.

;-)) x

25 thoughts on “THE EU: this sort of thing is what should be at the centre of every campaign for a New Europe

  1. Could someone please explain if the United States’ operates differently towards its members?
    Is the monetary relationship between Greece and the Eurozone different than that of the Fed’ and say, Michigan or Louisiana with their economic problems?
    Not saying it should or shouldn’t be. Just asking.

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  2. We find the same situation in Greece that we saw in Scotland. The vote is divided by generation. The youth hate the Troika and wants to leave Europe for they see no future. The elderly listen to radio all day long and will vote YES to preserve their pensions. The youth are forced to leave or are living with their parents. There is no middle ground. This is a generational battle exactly as we saw in Scotland. The elderly will screw the future of the youth – socialism at its best.
    MA

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  3. Well this gets into how money is created and it isn’t by central banks “issuing” money. Most money is bank deposits. Of course it goes from your account to another account and then another so how is it created? It is created when a bank makes a loan. The bank doesn’t actually use money it has sitting around to make a loan. It simply says “look”, there is $10,000 in your checking account. and so money is created.

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  4. Spot on prof.
    The youngsters are being screwed, they have no future, they are the LOST GENERATION.
    No-one gives a damn either.
    Am I right or am I wrong?

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  5. Divorce,Student debt, Internships, Housing, Jobs, Immigration…..
    That means come out of college, one parent family, owing £30,000, cannot get apprenticeship or job, cannot borrow more money to start business, cannot get married, cannot save deposit for mortgage, cannot get mortgage, can only compete with tidal wave of foreign workers from eastern europe and runaway cowards from the rest of the world. Anybody who says what I think is branded rascist, politically incorrect etc. Needs saying again and again. No fear.
    Imagine if our forefathers had run away to Spain from Hitler. Pathetic.
    How long will the wiser of our elders ( distinct minority) allow this destruction of OUR country?
    Where’s the Prime Minister dickhead on this?

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  6. Illegal immigration is THEFT.
    HELPING THEMSELVES to OUR way of life in OUR country.
    Am I right or am I wrong?

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  7. It’s the same setup, with the main difference being that the states of the U.S. are not nation states but federal states. If memory serves, California issued scrip when it ran out of money a few years ago.

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  8. Our money system is called fractional reserve banking (FRB) and it is global: a fraction of “high powered money” (which in FRB systemically mimics gold reserves) is held in ‘reserve’ to act as a kind of security for the creation of ‘bank money’.

    In this money system, money is lent into existence at interest. All money is therefore debt at the creation level. There are two kinds of base money, that borrowed into existence by governments via central banks (some call it “high powered money”) and that borrowed into existence by non-governments via commercial banks (called “bank money” or “credit money”). That said, the distinction between central and commercial banks is blurred to say the least. Bank money accounts for around 97% of money in existence.

    When loans are repaid, the principle disappears into the void from whence it came, the interest stays with the banks to become wages and profits, etc. (though of course banks also speculate to make profits too). This money destruction takes us to the next paragraph.

    There are many interesting economic consequences of this system, but for me the most important is that it forces growth. Because of FRB, we are as a species systemically addicted to perpetual economic growth, impossible of course on a finite planet, but the bankers seem to like it this way. Growth is an imperative — as Obama put it — not because it’s a Universal Law, but because more money is always owed outright (due to interest) than is created outright: only the principle is created, not the compound interest owed. There’s never enough money to go around (which forces competition in a musical chairs kind of way), and on top of this, the money system shrinks when debts are repaid. Thus, more debts than previously issued must be taken on by whomever to pay off the old debts plus interest, or things go bad (recessions and depressions — get the banks lending again!). As growth slows, indebtedness increases.

    FRB is in fact, in its core dynamic, a huge, long-running Ponzi scheme: if it’s not growing, it’s collapsing. One of the reasons this is not apparent to everyone (aside from the propaganda of the media) is because of desperate measures like QE. Ponzi schemes are illegal, while FRB is backed by the powerful. They will try to rescue it at all costs, and this is exactly what we are seeing. Greece is only one of the countries paying the price.

    The good news is that FRB is just a system and can therefore be changed to suit the situation. The bad news is that the banksters have lots of power, including police and army.

    The major surprise to me in this vital Greek drama is that Varoufakis & Co. want to stay in the Euro, want to keep FRB. Growth as a primary engine of economic ‘health’ is over. All living systems on the planet are in decline and global warming is just getting started. Humanity should now be about the business of economic development, not just more and more buying and selling via conspicuous consumption in the guise of GDP growth. And on that note I urge everyone who has not yet seen it to watch the BBC’s Century of the Self by Adam Curtis. Very eye opening indeed. And check out the UK outfit Positive Money. And learn about exponential growth and doubling time.

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  9. Meanwhile, we in the U.S. have bigger problems right now — gay marriage backlash, what to do with Confederate flags, Donald Trump’s hatred of Mexicans, and how much money Queen Hillary and King Jeb have raised in the past week. And what Kim Kardashian has tweeted over the weekend.

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  10. @KJH

    Detroit went bust and look how the federal dollar monetary union responded. Compare that to the eurozone and Greece where in effect Greece given any bailout the money trickled straight back to the western banks. Other than that there is a 200+ billion pile of euros layign around in Greece seeing as with all the cuts so far they have NOT SPENT THAt! If so what on?

    This was an ECB mechanism to indirectly bailout the EU banks and Greece to its cost became the patsy. Should have defaulted on Day 1 it could never repay the existing debt and let all those EU banks fall under their greed.

    To determine innocence a bit like Iraq and WMD’s lets tear Greece apart for all those euros they had these last 5 years … They have got to be there somewhere right? Under old granpa Greek’s mattress or stuffed behind grandma Greeks bra.

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  11. Not sure if anyone has picked this up from the the Daily Mail yesterday? But the Bank of England announced yesterday that cover for individual saving accounts in the event of a bank going bust would be cut from £85,000 to £75,000 from January 1st. The BoE must review the exchange rate every five years, and due to the fact that the euro has plunged against the pound since the last review in 2010, plus the escalating crisis in Greece and the eurozone the BoE has cut the so called protection per person per bank to £75,000.

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  12. What a shame you describe the obvious to then blame socialism,neoliberal flat earth economics is solely to blame! you know that but you also know it dead once it collapses & this rubbish is a attempt at keeping it alive!

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  13. @Uncle Rob. That’s it Sir – keep blaming the puppets and pawns of the schemes of the puppet masters… Whilst I agree wholeheartedly with your objections to P.C. and the restrictions to free speech, I wish you would see the bigger picture. The immigrants themselves are just as much victims of the neoliberal/neocon/banker/corporate criminals as you and the ordinary U.K. subject are. Blaming immigrants and ‘socialist’ policies is simply lazy thinking. When a huge proportion of the Earth’s wealth is ensconced in tax havens, billions is squandered destroying the social fabric of developing nations and a handful of connected families own most of the globe, crony capitalism, psychopathic greed and F.R.B. at interest would be my favoured suspects. I find it hard to believe that it is the ‘socialism’ of the post-war era that produced such egregious offences as universal health provision care and free university education that should carry the can for the chaos we are witnessing today.

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  14. Exactly,. the migrants like water or capital flow according to natural laws. If a building society opened up that paid 10% interest on deposits there would be queues of middle aged people outside trying to get their money in. We wouldn’t start labeling those people as parasites.

    In the same way the migrants flow according to the same rational self interest, we need to look to the root causes of the migratory flow and concentrate on them. You might as well hate water because you got caught in a rainstorm because you didn’t check the forecast before going out.

    The one worrying fact is why Scameron is doing sweet FA to beef up border controls.

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  15. +1 ask yourself why Greece or any other have to sell so many assets,yet when the banks failed very few assets were sold or transferred in lew to pay off their debt problem?

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  16. Probably because most leaders who questioned the FRB paradigm and went on to propose a fairer, more equitable monetary system ended up dead.

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  17. Another super piece:

    Do these things, they said, for all our sakes and you will return to prosperity with our help. They lied.

    “They have decided to strangle us, whether we say yes or no”, said a Greek woman to me yesterday. “The only choice we have is to make it quick or slow. I will vote “oxi” (no). We are economically dead anyway. I might as well have my conscience clear and my pride intact.”
    Her view is not atypical among friends and relations I have canvassed in the last few days. Trust has evaporated. Faith in European Institutions is thin on the ground. Lines have been crossed. At times of financial strain, a country’s currency issuer, its central bank, should act as lender of last resort and prime technocratic negotiator. In Greece’s case, the European Central Bank, sits on the same side as the creditors; acts as their enforcer.

    cont’d at https://www.byline.com/column/11/article/135

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  18. Prof…

    Stalin said,,,its not who votes, it’s who counts the vote.

    Mark Twain…if the vote meant anything, they would not let us vote.

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