GREEK DEBT: IEO slams IMF/EU, paves way for debt repudiation & relief

AEPIMFsnip

mesnipYesterday’s mind-blowing piece from Ambrose Evans-Pritchard at the Daily Telegraph may not have reverberated around the world just yet, but it should. The article not only features a coruscating condemnation (by its watchdog the Independent Evaluation Office – IEO) of the IMF’s actions in relation to ClubMed austerity, but also an apology from the IMF board and Lagarde herself for the appalling suffering inflicted upon Greece, and the level of mindless collaboration with mad EC debt policy involved.

The News

The IEO report finds that the whole approach to the eurozone was characterised by “groupthink” and going native with Brussels. They had no fall-back plans on how to deal with a multinational currency crisis, because they had “ruled out any possibility that it could happen”.

In Greece, the IMF signed off a “bail-out” in 2010 – even though it made the sovereign debt impossible to sustain, and many commentators (this one included) insisted from the start that it was mathematically doomed. To go along with the imposition of austerity on top of this was, quite simply, economic illiteracy.

The killer punch – delivered by Evans-Pritchard, a globally respected writer on fiscal economics – is staggering in the clarity of its accusation:

AEPIMF2

The ramifications of these findings should have colossal ramifications on literally dozens of dimensions.

What the IEO Report means

  • For Greece, a clear and documented case for repudiation of the debt in an International Court
  • For Brexiteers, a vindication of the moral case for leaving an EU that behaved with selfish and almost unthinkable cruelty from Day One
  • For Christine Lagarde, a humiliating admission that she simply did not do her fiduciary duty at the IMF. Her position as head of the IMF must now be in doubt
  • For British MPs and the Whiteminster establishment, a sense of shame that – in the light of this obvious international crime – they sat on their hands and whistled a happy tune
  • For the Obama Administration’s Tim Geithner, a confirmation of the charge levelled against him at the time: that he used Lagarde’s Amerophilia and French nationality to advantage in pushing through her appointment to a job for which she had no qualifications
  • For emerging nations, rage at the highhanded and devious manner in which stimulus that should’ve gone to their economies was blown in a fruitless excercise in debt management designed to keep over-leveraged Western banks upright
  • For the Berlin austerity school, a slap across the face and a recognition of its bigoted approach to the problem.
  • For the European Commission, charges of collaboration in a hare-brained attempt to save an idiotic currency union
  • For the key members of the Eurogroupe and the infamous Troika, possible prosecution for the way they bullied Greece to set an example to others
  • For Mario Draghi at the European Central Bank, possible prosecution for the illegal use of EU funds to destabilise the Greek banking system…the same charge applying to his toady in Athens, Yannis Stournaras

How to stop this happening again

In the short term, we probably can’t: there are bigger clouds boiling on the horizon that will rain on the globalist SuperState parade, come what may.

But beyond the Crash2 that creeps ever nearer, the world of States, fiscal policy, multinational banks and global trade alliances needs to given a serious reality check:

  • The neoliberal ‘light touch’ regulation of lending at all levels should be abandoned in favour of highly-paid forensic watchdogs with the talent and power to stop limits being exceeded
  • The role of Goldman Sachs in this venture should be revisited vigorously by the forces of law and order on every continent: “setting aside fines” will no longer cut it…miscreants must go to jail and serve real sentences, not token knucke-raps
  • The euro needs to be radically restructured or abandoned if disasters to make this one look like a minor event are  to be avoided
  • Above all, widescale debt relief should now be brought in and enforced throughout Club Med
  • The European Commission and its power structures need to be investigated by the top brains available in forensic auditing and the Law
  • The Eurogroupe and the ECB in particular must be made accountable to a directly elected European Parliament, and forced to act within the spirit and letter of the Treaty of Lisbon
  • The manic, blind drive towards federalism should be abandoned: it has been a classic case of trying to sprint while still a toddler. The EU should go back to being the EC.

 

The situation in Greece today is that of an unelected group of userers telling the democratically elected Governnment of Greece what to do. In the light of the IEO revelations, no ethical group of civilised nations can stand by and offer no restitution for what the largely innocent Greek people have suffered.

International relief without strings but with very heavy regulatory control should be forthcoming for all of ClubMed, and Greek poverty made a priority.

Everyone is vvery keen thse days on War Crimes tribunals. I think we need to instigate some Peace Crime investigations.

But I’m not holding my breath.

The Slog archive on Greek debt & the IMF

The IMF and the Eurogroupe, 2015

The IMF and the ECB, 2013

The IMF and Greek democracy, 2012

Greek debt insanity, 2012

Greek debt and EU politics, 2011

Greek debt and Eurobank lies, 2011

Debt forgiveness, 2011

The butterfly bias of Christine Lagarde, 2011

Greece leaving the eurozone, 2010

36 thoughts on “GREEK DEBT: IEO slams IMF/EU, paves way for debt repudiation & relief

  1. Two people who have been criticised and ridiculed for their opinions throughout the entire Greek fiasco, two people who spoke the truth, called out the EU and the Troika, exposed what they were trying to do to Greece, but were slated and ignored by the majority: Yannis Varoufakis and our own Nigel Farage.

    Like

  2. Greek people pay the price- Goldman Sachs walks .HTF does that work.Rhetorical,it doesn’t.
    Fair play JW , you’ve done all you could to highlight this abomination .

    Liked by 3 people

  3. @Avocado got to be honest , personally I didn’t hear much from Nig, but as Tesco s say , every Lidl helps.

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  4. I don’t question any of John’s sentiments concerning EU policy. All I would question is the expectation that this report will lead to debt forgiveness for Greece and others. North European banks are no stronger than they were in 2011. The politicians will decide once again that they need to save the banks and hush up the report.

    Credit to AEP again for understanding the significance of the report and for bringing it to our attention. The report is not being covered elsewhere.

    Liked by 2 people

  5. An excellent article – but why this report now . I feel that it is in preparation for an Italy bale-out. The road has been cleared for a ‘ we have made changes after the etc etc – the usual cover up ‘ . These people never admit being wrong so cover up in place and nobody swings.

    I
    In so far as Groupthink is concerned its a National epidemic.

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  6. Having done so much damage to Greece ,i now i see another experiment in the form of helicopter money in Greece!

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  7. Mmmm, suddenly AEP is ‘a globally respected writer on fiscal economics’ was that when he was waxing lyrically about the US recovery? And there have been many other occasions when he has been slated on here for writing rubbish so, whilst his ability is not in doubt, his integrity is.
    And, as for the rest, what did people think was going on whilst these absurd policies were being implemented? The law, contracts, treaties mean nothing to these people, I thought we had established that, perhaps I was wrong.
    As for anything coming of these ‘revelations’ well, that’ll be like Tory election fraud, the Elm House inquiry, politicians lying to Parliament, the Chilcot report etc.etc. I could go on but the list is endless and I’d just be wasting my time.
    This is how things are, why folk are shocked anymore is beyond me, perhaps there are those who think that there are honest folk amongst those who rule us.
    And the biggest insult? If I dare voice a complaint about this blatant illegal behaviour, I’m the bad guy. FFS.

    Liked by 7 people

  8. Well now! “For Christine Lagarde, a humiliating admission that she simply did not do her fiduciary duty at the IMF. Her position as head of the IMF must now be in doubt”

    And there was me thinking that was what she was put in place to achieve!! After all, at the time, a DSK would have let the banks be trashed, and that would never do.

    One other aspect here is the Mainstream Media’s continual blathering on about Germany’s hardline stance. Well, of course, the Germans are pretty strict – and it is this that gets the goat of every corporation from New York to San Diego.

    When you control the media, it’s easy enough to have your own misdeeds erased and a punchbag installed in its place. That’s when people start to believe it as the truth…

    The whole point about AEP’s article is that it was allowed to be published at all! Who is wanting what to be believed? Lagarde has as much tenure in her job as DSK ever had, and she knows it. This might be the point where she is replaced by another useful idiot. Perhaps AEP will be the fall guy this time? He’s got the public behind him.

    KFC

    “And the biggest insult? If I dare voice a complaint about this blatant illegal behaviour, I’m the bad guy. FFS.”

    Act against those powers and expect to be trashed in the media or by trolls or in some way or other. Now look at Germany’s government, standing up to the corporations… and place that government in your own shoes and see how you both stand in the same place. Germany’s the bad guy, just like you, because you’re not reading the right newspapers and believing that the corporations are the good guys.

    Liked by 5 people

  9. Embarrassment for Christine Lagarde and IMF as Fund’s own watchdog slams its eurozone record

    http://www.independent.co.uk/news/business/news/embarrassment-for-christine-lagarde-and-imf-as-funds-own-watchdog-slams-its-eurozone-record-a7160031.html

    “Ms Lagarde, who this year was appointed to a second term as IMF managing director, said she welcomed the IEO report but maintained she still saw the Fund’s performance in the eurozone crisis as “a qualified success”.

    Well she would, would’nt she?

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  10. @Lampitt
    Farage made many speeches in the EU parliament criticising the troika and their policies with Greece.
    There are many youtube videos of him in action.

    Liked by 3 people

  11. The report is a statement of the bleedin’ obvious and any half baked economist (ie me) could have and indeed did point out the probable failure of the “bail out” plans when they occurred. This is what happens when you give up your own currency and borrow in what amounts to a foreign currency in a gold standard fixed exchange rate environment led by a nation with a fetish for running a trade surplus and low inflation. The Euro was never about sound economics, always about politics and it was designed to fail in this manner to engineer the crisis which now threatens to overwhelm it.

    The real issue is that if this was so obvious (and AEP has for one been writing about it for years) – how come the IMF has only just realised it? “Captured by groupthink?” This is very disappointing but typical of the standard of establishment governance that we have come to expect. It is so incompetent that you are left thinking it has to be a deliberate plot!

    I guess the IMF report warning that the sky would fall in on the UK post Brexit can now be taken with a pinch of salt?

    Liked by 7 people

  12. From the Executive Summary of the IEO Report (found at http://www.ieo-imf.org ):

    Recommendations

    Recommendation 1: The Executive Board and management should develop procedures to minimize the room for political intervention in the IMF’s technical analysis.

    Translation: the IMF was bought off by certain Eurozone actors to do things which their technical analysis said they shouldn’t. Goldman Sachs, anyone? EDITOR: STRIKE THAT RIGHT NOW!!

    Recommendation 2: The Executive Board and management should strengthen the existing processes to ensure that agreed policies are followed and that they are not changed without careful deliberation.

    Translation: Goldman Sachs sweet-talked the IMF into lending money to Greece, just as it had sweet-talked the EU into letting Greece join in the first place. But we mustn’t mention Goldman Sachs, as they own the IMF, the EU and everywhere else for that matter. EDITOR: STRIKE THAT RIGHT NOW!!

    Recommendation 3: The IMF should clarify how guidelines on program design apply to currency union members.

    Translation: guidelines are there for a reason, which is to prevent idiots making investments which are clearly flushing money straight down the toilet…..EDITOR: THAT’S MORE LIKE IT – SHAFT THAT FRENCHWOMAN RIGHT NOW!

    Recommendation 4: The IMF should establish a policy on cooperation with regional financing arrangements.

    Translation: the IMF should be able to tell Goldman Sachs and any other European bank to F**K OFF if they try to play silly buggers to stop themselves having to take a haircut. EDITOR: STRIKE THAT RIGHT NOW WHERE GOLDMANS IS CONCERNED!! FOCUS ON THOSE USELESS EUROPEAN BANKS INSTEAD!!

    Recommendation 5: The Executive Board and management should reaffirm their commitment to accountability and transparency and the role of independent evaluation in fostering good governance.

    Translation: The IMF have spent the past 5 years trying to pull the wool over the eyes of the financial world instead of sorting out the messes that they were responsible for creating. EDITOR: THAT’S MORE LIKE IT – SHAFT THAT FRENCHWOMAN RIGHT NOW!

    The Independent Evaluation of the IEO’s independence:

    Recommendation 1: Goldman Sachs should face a 25 year ban from being allowed to sell European bonds on behalf of any Sovereign Actor on the continent of Europe, upon pain of seizure of 100% of all assets of every Goldman Sachs Director and relevant Employee in Europe. This is due to the wilfully dishonest method of presenting financial risk, the fraudulent way in which the bonds were packaged and the utterly shameless disinterest of Goldman Sachs in the lives of the vast majority of people living in the regions concerned.

    Recommendation 2: a minimum fo 20 Goldman Sachs Directors and Managers should face jail sentences for a minimum of 10 years each and all should face lifetime bans from working in any form of financial services again.

    Recommendation 3: Goldman Sachs should have its license to practice banking in Europe withdrawn with no possibility of applying for a future license before 2030. It is extremely unlikely that any such application will be viewed favourably before 2100.

    Recommendation 4: any attempts by the CIA to challenge such rulings should be met with extreme measures normally meted out by East European yobboes in camps set up by the CIA to avoid the US Government being accused of torture.

    Recommendation 5: the US Ratings Agencies should be closed down in Europe for wilful support of junk bonds being portrayed as AAA over the period 2000 – 2015. The scurrilous use of such agencies in pursuit of US global hegemony stands as a testament to the organised criminality of the US financial services sector in general and US banking practices in particular.

    None of these recommendations render immune the malodorous European Institutions from future withering criticism, being placed in ‘special measures’ or having licenses to practice banking withdrawn.

    But until the US banking system is blown out of the water, nothing decent can happen.

    Liked by 2 people

  13. ‘The whole point about AEP’s article is that it was allowed to be published at all! Who is wanting what to be believed? Lagarde has as much tenure in her job as DSK ever had, and she knows it. This might be the point where she is replaced by another useful idiot. Perhaps AEP will be the fall guy this time?’

    Excellent point Gemma, there are ulterior motives by TPTB as usual.
    Nothing is as it seems in the Matrix. Another bait and switch operation is likely.

    Like

  14. RTJ 1211

    You mention in your comment the following: “But until the US banking system is blown out of the water, nothing decent can happen.”

    Perhaps you now know why Germany and the European banks are always in the headlines of the Mainstream Media.

    But there’s a problem… and it’s not Deutsche Bank this time. It’s Goldman Sachs themselves, and their stack of derivatives that makes Deutsche’s look like a molehill. Which, on the face of it isn’t a problem: every derivative has a counterparty.

    Well, that’s just fine. So let’s deal with this kind of problem before it actually becomes a problem in the way Fukushima has. Given the toxicity of the products Goldman Sachs sells in the form of derivatives, is it not time to de-fuse a few of them before the entire pile overheats and then explodes? Because my point is this: derivatives do have counterparties.

    That’s not the problem.

    The problem is finding 32 billion counterparties before the bomb goes off.

    Salford Lad Thankyou.

    Liked by 3 people

  15. Jaywit, thanks for that link. As Marisa Matias says: ” This appointment is completely shameful. Barroso waited for the end of his 18 months to immediately collect his reward for the good job he did for Goldman Sachs and the financial markets, by devastating the lives of millions of European citizens with austerity in Portugal, Greece, Ireland, Spain, Italy, among others.”

    “This shows what interests European leaders follow, and a good example of why the European Union got to this appalling state,” she added.is appointment is completely shameful. Barroso waited for the end of his 18 months to immediately collect his reward for the good job he did for Goldman Sachs and the financial markets, by devastating the lives of millions of European citizens with austerity in Portugal, Greece, Ireland, Spain, Italy, among others.”

    “This shows what interests European leaders follow, and a good example of why the European Union got to this appalling state,” she added.
    “Shameful” doesn’t even come close!!

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  16. What is never mentioned about Greece is that it had a housing bubble too.

    The Greek housing bubble was larger than the Spanish housing bubble.

    Collapsing debt inflated asset bubble + austerity = 1929 style depression

    The IMF and many other Western organisations and individuals are experts, but they are experts in Neo-Liberal thinking and neoclassical economics which does not always come up with the right answers.

    Their expertise tells them that Government spending is bad and austerity is good, cutting Government spending will allow the private sector to fill the gap.

    David Cameron voiced the same opinion about the UK, it is the mainstream thinking of the West, unfortunately it is wrong.

    Richard Koo observed Japan’s progress after its massive real estate bubble burst in 1989, the private sector was in a balance sheet recession and would not borrow whatever the interest rate.

    The only thing that worked was fiscal policy to stop the money supply contracting.

    Every now and then Western experts (in wrong thinking) came along and told Japan that Government spending was too high and they must change their ways. They dutifully followed the advice, cut Government spending, and the economy took a turn for the worse until they increased Government borrowing again.

    Neo-Liberal thinking and neoclassical economics does not understand money and how it is created and destroyed and how this affects the money supply. This is why it comes up with the wrong answers like austerity which is the worst thing you can do when the private sector is not borrowing.

    Money and debt are opposite sides of the same coin.

    If there is no debt there is no money.

    Money is created by loans and destroyed by repayments of those loans.

    Before 1989 in Japan, tons of new debt was coming into existence and the money supply increased and fed into the general economy. It felt like there was lots of money about because there was.

    After 1989, hardly anyone is taking on new debt and everyone is making repayments, the money supply shrinks and gets sucked out of the general economy. It feels like there isn’t much money about because there isn’t.

    In the balance sheet recession when the private sector isn’t borrowing, there is little new debt and lots of repayments causing the money supply to contract.

    Government borrowing is the only way to stop the money supply contracting.

    QE doesn’t work because the money never enters the real economy as no one is borrowing as can be seen from the low inflation rates around the world.

    Richard Koo explains all with two fixes for the Euro on YouTube.
    “ACATIS Konferenz 2016, Mr. Koo, Surviving in the Intellectually Bankrupt Monetary Policy Environment”

    What the BoJ and ECB are doing is just silly.

    Before someone puts the standard comment about Japanese Government debt.

    If Japan had not engaged in fiscal stimulus it would have spiralled into a 1929 type depression, these were the only two choices. (Greece was forced to take the other option.)

    Richard Koo has done the maths and says that Japan has done the right thing financially as well as avoiding all the pain and hardship of a 1929 style depression.

    The real lesson is not to blow debt inflated asset bubbles as they collapse with catastrophic consequences, this advice comes a bit too late as most nations have inflated massive real estate bubbles that will burst with terrible consequences.

    2008 wasn’t a one off “black swan event”

    “Minsky Moments”

    1929 – US (margin lending into US stocks)
    1989 – Japan, UK (real estate)
    1999 – US (margin lending into US stocks, not so much debt in this one)
    2008 – US (real estate bubble leveraged up with derivatives for global contagion)
    2010 – Ireland (real estate)
    2012 – Spain (real estate)

    Irving Fisher looked at the debt inflated asset bubble after the 1929 crash when ideas that markets reached stable equilibriums were beyond a joke.

    Fisher developed a theory of economic crises called debt-deflation, which attributed the crises to the bursting of a credit bubble.

    Hyman Minsky came up with “financial instability hypothesis” in 1974 and Steve Keen carries on with this work today.

    Steve Keen saw the debt bubble inflating in 2005, three years before 2008.

    Some more stuff missing from today’s economics meaning no one sees the danger ahead.

    Liked by 2 people

  17. the more they talk about transparency the more opaque it all gets. they are not incompetent.. they are just shafting us all to line their pockets and if you point it out they say you are jealous… they make al capone look an amateur.

    Like

  18. @SOS. Good taste in pop music, the Members! So, Minsky moments in ‘real estate’.i think we can add Central London resi 2017 to your list. Falling market prices in sterling, amplified in dollar terms by a weak currency. The coming fiasco of Nine Elms. The absurd prices for crap properties in Fulham ,currently 10 times the earnings of the domestic purchasers (eg. my son in law). The cranes in Putney. Anyone remember 1974? I thought not. When Carney goes, and his equilibrium interest rates, the new boy will have to defend the currency and restore the balance between savers (the majority) and borrowers ( my son in law, his friends, their credit cards, foreign breaks, new cars, roof extensions, £20k/ pa for Isabella and her brother, Joey, in a private ‘school’ at aged 5 ). I can’t wait. Serves them right. The biggest bath is going to be taken by the Chinese!

    Liked by 1 person

  19. Then there’s Facebook, Twitter and Tatoos.
    China and Russia will threaten the West who have nothing left to lose. War is coming.

    Like

  20. william

    You are not alone in your sentiments, heat must eventually give way to incandescence. Some Chinese and other nationals who have bought off plan on a deposit basis are already walking away; it’ll take a while longer, but there’s steam coming off it.

    Liked by 4 people

  21. Glad the IMF has finally said it, it does not solve the Greek tragedy though. The IMF way back said Greek debt by around 2020 would only be 120% GDP and it is at a storming 170% or so and I can’t see how you can get it down except by a large haircut. I wonder how Germany feels about that? Or will it be more “no change like on immigration” from Merkel the Geman spokeswoman.

    OT I know but cast your mind on this for an unusual read, answered a couple of questions at the time for me and even if part true Greece can join Turkey in the BRICS real soon.

    http://themillenniumreport.com/2016/07/bombshell-expose-the-u-s-military-used-incilirk-air-base-to-stage-failed-coup-in-turkey/

    Liked by 1 person

  22. A great list of “need to do’s” none of which will ever be implemented by the entrenched Eurocracy.
    One that I think you missed is re-ntroducing the seemingly old fashioned practice of letting banks like Deutsche, JPM et al go bust instead of bailing them out using either taxpayers or depositors funds.

    Like

  23. GEMMA

    ‘After all, at the time, a DSK would have let the banks be trashed, and that would never do.’ And your evidence for this claim is what exactly?

    The evidence provided in the Carlton trial suggested that DSK was just another elitist scumbag, whose only concern was his own sexual gratification. I make no claim to know him as well as you claim to do. However, I suspect that like most French politicians he would have done whatever was necessary to keep the party going – and that would have included using taxpayers’ funds to keep the French banks from going under. Nor do I record him ever saying anything that suggested he was prepared to bring the EU down.

    If DSK was framed, it probably had nothing to do with IMF policy or politics. the stitch-up was probably intended to damage DSK’s hopes of winning the 2012 Presidential election. This would have obviously suited Sarkozy. It would also have suited others who had no liking for Sarkozy, but who did not want their next President to sully his office by using it as an excuse for evading justice. For the framing to be successful, it also needed to be credible to those people who knew DSK well. No one suggested it was out of character for DSK to have expected a chambermaid to satisfy his sexual desires.

    Like

  24. chris b

    Yes, DSK was a man who couldn’t keep it in his trousers. Every female he came across was another opportunity – in this, he is like my troll, who gets sexual gratification every time he posts something even remotely lewd on this site.

    It’s how certain kinds of men work.

    And there’s nothing you or I can do about it.

    Now as to your suggestion that he would have kept hte party going shows that you have done what the Mainstream Media want you to do, and that is to believe them. Remember this: the mainstream media sell what people want. When people don’t want the ugly truth, they’re sold pretty – or sexy – looking stuff instead. That it speaks of the lewdness of a groper and not the good things he did is a case in point.

    When you suggest “If DSK was framed, it probably had nothing to do with IMF policy or politics” If you had been reading the Slog back in 2011, you’d have had a little more insight into the affair.

    Because as it turned out, DSK was on his way to Dublin.

    Why?

    To organize an Iceland style demoliiton of the Irish banks.

    This flies in the face of media reports that suggest he was on the side of the banks. Were he, there would have been no need to get rid of him. After all, those who chose him for his post knew of his proclivities, allowed thm to continue – but knew they had a lever on him should he not do as he was told*.

    The framing didn’t need to be credible to those who knew DSK well… it stood as a warning that their own [rivate pecadilloes were there and waiting, should they need to be crucified on the Nine O’Clock News.

    Just remember that Gunnlaugsson, the Icelandic minister responsible for the demise of the Icelandic Banks, was the first casualty of the Panama Papers. Well now you know why they were published… it was retribution! When a post from AEP flags the Telegraph, one has to ask “why do they want us to know this now?”

    (*It was this reasoning that taught me what the British MPs are controlled in Westminster, through their willingness to defraud the taxpayer by fiddling their expenses. This was known about, tolerated… and kept until it was necessary to bring one stray goat back into the herd it had strayed from).

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  25. Lets hope there is an Independent Evaluation Office for Draghi as well.

    Can we charge Fifi Lagarde back taxes if she is going to be publicly humiliated -long overdue. Losing her tax-free status and pension would be the ultimate shames for these people.
    The IEO is actually crucifying the IMF Executive Board, which has either airbrushed the banking history of their key personnel (one shows Citi on his resume) or the whole lot of them have been brought up through the rarified atmosphere of the World Bank, the IMF, or Academia.
    Dix points for Senor Schwartz for being so blunt -and letting this get out.

    AEP seems to write in two different styles. As others have said, is he fed stuff at appropriate times?

    Like

  26. Johnson,

    I knew someone like you, once upon a time. He had your intelligence, too. He told me that when he grew up he wanted to be a bus driver.

    I don’t know if he ever made the grade…

    Liked by 2 people

  27. Great blog. Two points:
    a) A directly elected EU parliament will not cure anything since there is no European demos but would lend legitimacy, false but sufficient for propaganda purposes, to a federal EU government and super-state.
    b) Who watches the watchers? The fundamental problem is over-bearing state apparatus. The organs of both supra-national and national governments are far too powerful and in common parlance need to told to sod off and leave people alone to run their lives as they see fit. Since we all have different ideas on that, we have nations. Only at that smaller level can democracy thrive.

    Liked by 2 people

  28. The Wall Street Journal covered the IEO report but I can’t find any evidence that the NY Times did. I mention this because NY Times coverage of any story is what drives what stories get told in all the US mainstream media and that includes major web sites. In addition the NY Times narrative always becomes the dominant narrative.

    You cannot possibly go wrong if you assume that what and how the NY Times covers any topic related to global political and economic affairs and all US financial affairs amounts to the official position of the US. Not so much the government itself or only the government but of the elites, who of course populate all high government positions. Or in other words on all these big matters the NY Times serves the exact same purpose as Pravda or even Izvestia in the USSR. That is the official so called ‘mouthpiece’ of the government.

    I am not proposing a conspiracy or an official relationship. I am just saying in line with so much of our neoliberal world group think permeates everything. i said you can’t go wrong thinking what and how the Times says is the official word, I am just saying for all practical purposes it is. No secret cabal needed. Just people thinking alike.

    So anyway eventually the Times will say something, deep in the online edition on the matter, end of story. It will be bland, matter of fact and totally ignore-able, which is the point. At which point it will be old news not worth anyone else in our chattering class taking it up.

    Like

  29. Pingback: Hell to Pay | EU: Ramshackle Empire

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