The Most Important Thing I Have Ever Written

The Beginning Of The End - The New Novel About The Future Of America By Michael T. Snyder
Kindle Version Of The Beginning Of The End
Survive After Collapse
Blood Moons Mark Biltz
Soul Deceiver
Power Companies HATE This Man...
Power companies are scared that people will learn how to slash their bill and beat Obama's electricity monopoly using this 47-year-old patriot's "weird" trick. See how before they shut it down.
The End of Obama? Approaching Obama scandal could change the White House Administration and our country overnight... Click Here
Gold Buying Guide: Golden Eagle Coins

Archives

All Hail The United States Of Germany? The Rest Of Europe Is Facing Either German Domination Or Financial Collapse

It has now become very clear who dominates Europe.  As European officials prepare to gather for one of the most important summits in EU history, it has become apparent that either the German plan for a new EU treaty is going to be adopted or there is not going to be a deal at all.  Germany wants to impose strict new fiscal restraints on all of the eurozone nations.  This would include a new 3 percent budget deficit rule with automatic sanctions on any violators.  The European Court of Justice would be given power to decide whether or not an individual nation was complying with the 3 percent rule or not.  A highly controversial new tax on all financial transactions is also being proposed, along with a number of other repressive new regulations that are designed to more tightly integrate Europe.  Germany says that if all 27 EU nations are not willing to go along with a new treaty then it is prepared to strike an agreement with just the 17 nations that make up the eurozone.  But not everyone is thrilled with what Germany is trying to do.  Critics are saying that the German proposals (which are also being backed by the French) would mean a massive loss of sovereignty for most of the nations that make up the eurozone, and they would essentially turn the eurozone into “the United States of Germany”.

The funny thing is that the German proposals to “fix” Europe involve very little sacrifice from Germany itself.  Germany would not be contributing any additional money to bail out the rest of Europe and Germany continues to completely rule out the creation of “eurobonds” which would help spread the risk of default across the entire eurozone.

Sadly, even if the German plan is adopted and all the nations in the eurozone agree to it, the financial crisis in Europe will still not be fixed.

There is still way too much government debt in Europe, and the new treaty would not reduce those debt levels.  Instead, it would only slow the growth of future debt.

In addition, there are dozens of major banks in Europe that are already failing.  The new treaty would do next to nothing to restore the European banking system to health.

Also, brutal austerity programs have already pushed several countries in Europe into recession, and more austerity measures are being introduced all over Europe right now.  But this new treaty would not do anything to reverse that trend.  In fact, this new treaty would actually force even more austerity on to the nations of Europe.

This is the approach that Germany has prescribed for Europe.  The Germans believe that those that have gotten into too much debt must pay.

In fact, a newspaper in Germany recently ran an article with this startling headline: “Merkel and Sarkozy want automatic Punishment for Debtsinners“.

Germany has become the dominant force in Europe, and Angela Merkel has emerged as the de facto leader of Europe.  This reality was noted in a recent New York Times article….

The treaty changes she and President Nicolas Sarkozy of France proposed in Paris on Monday would have been inconceivable at the beginning of the crisis, since it requires states to cede a significant degree of economic sovereignty. It is a process that many observers, in particular the populist British press, say is well underway. German dominance of the euro zone, they say — with Mrs. Merkel as the unofficial but unchallenged leader of Europe — has in fact already arrived.

Germany wants a new treaty, so that is what this upcoming summit is going to be about.  As a recent USA Today article detailed, this upcoming summit is considered to be “do or die” for the eurozone….

Instead of a new treaty among the 27 members of the European Union, a French official suggested a more likely outcome will be an accord by the 17 nations that use the euro. And a German official said reaching a deal might take until Christmas.

The summit, which begins Thursday night, has been described as do-or-die for the eurozone countries, whose economies are being dragged down by crippling debts among some of the countries.

A whole lot is riding on this summit.  Standard & Poor’s has announced that it has placed 15 members of the eurozone on review for a possible credit downgrade.

The pressure is on.  If a new agreement is not reached soon, everyone in the eurozone could soon be hit with a downgrade and bond yields could start spiking again.

The reasons why Standard & Poor’s is considering downgrading all the members of the eurozone were detailed in a recent CNN article….

The agency sees five factors behind the current debt crisis: Tightening credit conditions, rising yields on bonds issued by top rated sovereigns, ongoing political deadlock over how to deal with the crisis, high levels of government and household debt, and the rising risk that Europe will suffer an economic recession next year.

It is imperative that the Europeans come up with something by the end of the weekend.  Nick Kounis, the head of macro research at ABN AMRO, was quoted as saying the following in a recent CNBC article about what would happen if there is no agreement….

“Because without one, we’ll be left with a complete and utter economic catastrophe”

David Murrin, the chief investment officer at Emergent Asset Management, is even less optimistic.  He recently told CNBC the following….

“Europe is in a terminal phase of its life. There is no way I can see a glomeration being a successful way of smaller entities into bigger entities without growth. There will be fractures. (There is) no way Europe is ever going to hold it together”

There is a big difference between Europe and the United States.  In the U.S., when the federal government decides to do something that is pretty much the end of the matter.

In Europe, getting all 27 members of the EU (or even all 17 members of the eurozone) to agree on something can be really messy.  There are a whole host of national laws, national legislatures and national courts that have to be satisfied.  A single vote or a single court case can hold the process up for months or even years.

The truth is that a treaty change will likely take years to get fully implemented as an article in the Daily Mail by Andrew Alexander recently noted….

We have been here before. German sources talk of a new EU or eurozone treaty being worked out by Easter. This is a joke, rather heavy, too, like most Teutonic humour.

Getting 27 governments to agree on the time of day is hard enough.

Getting them to agree a treaty that would undermine the right of governments to decide their own taxing and spending powers, if it is even possible, will take a very long time and unusually pliant politicians.

In the course of that, moreover, some governments will need to go through the tediously democratic process of public consultations and referendums, perhaps obliged to by their own laws — tiresome leftovers from the time when the EU was thought to need popular consent.

So, we are not talking here of months but years.

The president of the European Council, Herman Van Rompuy, has proposed a more limited agreement that would not involve a new treaty.  Instead, existing rules would be altered in such a way as to encourage members of the eurozone to be more fiscally responsible.

But German officials are dismissing this proposal as a “typical Brussels box of tricks” and they do not plan to even consider it.

At this point in the game, it is either going to be the “German way” or the highway for the eurozone.

So will we actually see a new treaty?

Well, that is a very good question.  The reality is that “euroskepticism” is growing all across the eurozone.  In fact, according to one new poll 60 percent of Germans do not even think that the euro is a good idea.  If a new treaty tries to get pushed through, there is going to be opposition to it in many parts of Europe.

Meanwhile, brutal government austerity programs are being implemented all over Europe.  Where they have been in effect for a couple of years already, these austerity programs are having devastating effects.  For example, we have already seen what government austerity has done to Greece. 100,000 businesses have closed and a third of the population is now living in poverty.

Right now, Greece is experiencing a full-blown depression and the financial system of that nation is utterly collapsing.  According to a recent Der Spiegel article, the run on Greek banks is rapidly accelerating….

He means that the outflow of funds from Greek bank accounts has been accelerating rapidly. At the start of 2010, savings and time deposits held by private households in Greece totalled €237.7 billion — by the end of 2011, they had fallen by €49 billion. Since then, the decline has been gaining momentum. Savings fell by a further €5.4 billion in September and by an estimated €8.5 billion in October — the biggest monthly outflow of funds since the start of the debt crisis in late 2009.

Other European nations are implementing some really draconian measures in an attempt to raise more taxes.  For example, in Italy all cash transactions over 1000 euros have been permanently banned.

Hearing that should alarm all of us, because it is yet another move toward a cashless society.

Europe is falling apart, and whether there is a new treaty or not the financial carnage is going to continue.  But every time things get worse, the European elite use it as an opportunity to push a “United States of Europe” as the grand solution.  If you want to really understand what is happening in Europe right now, just check out this video of a recent speech by Nigel Farage on the floor of the European Parliament.  Trust me, it is a video that you will want to watch a couple of times.

Europe has become a very undemocratic place, and it is increasingly being dominated by Germany.  A Daily Mail article entitled “Rise of the Fourth Reich, how Germany is using the financial crisis to conquer Europe” contained the following sobering assessment of what deeper economic integration for Europe would really mean….

This would entail a loss of sovereignty not seen in those countries since many were under the jackboot of the Third Reich 70 years ago.

For be in no doubt what fiscal union means: it is one economic policy, one taxation system, one social security system, one debt, one economy, one finance minister. And all of the above would be German.

Sadly, the rest of the eurozone is probably facing German domination one way or the other.  Either they will agree to German domination now, or there will be a massive financial collapse first and then they will be forced to accept German domination later.

Of course the best course of action for any member of the eurozone would be to abandon the eurozone, shut down the national central bank and start printing up debt-free national currency, but it is extremely unlikely that any member of the eurozone will be bold enough to do that.

Dark days are ahead for Europe, and the coming financial problems are going to affect the entire globe.

Let us hope for the best, but let us also prepare for the worst.

The Beginning Of The End - The New Novel About The Future Of America By Michael T. Snyder
  • http://www.catholicthinker.net/ PaulF

    Comments:

    1) Germans are right to reject Eurobonds – this is just one more way of putting what ought to be bank losses on the backs of taxpayers. It’s even more undemocratic than states doing this individually. It is the BANKS that made these stupid loans that should take the haircuts!

    2) The new treaty is DOA. It will require voter approval in several nations at least which will never occur. This is yet another kick-the-can extend-and-pretend to quiet the market. I do think eventually Europe will “pull together” into a fiscal union but this won’t be the form.

    And when it does, well, its new leader will be the new Ceasar. Perhaps one like Nero will come along before too long…

  • A Dodgy Bloke

    As I have said in a prior post it’s the math stupid, there is simply too much debt this Treaty will simply kick the can down the road a little wile longer until somebody either revolts and or leaves. Germany simply doesn’t have the fiscal firepower to save the Eurozone. The Greeks are pulling money out of their banks, by the bushel loads, Italy has just passed an austerity plan, PM of Ireland has presented one. In Greece austerity just hasn’t started to bite people are bleeding, things will start to bite in Ireland, Italy, and Spain, and eventuality here.
    If you’re not in shape get there, get off any medication you can, with austerity medication will get pricey and hard to get (Ask any middle class Greek). Get out of debt look at your life and say how can I simplify. Look at your house think how bugler would, ask yourself how can I harden my home. Home Invasions are on the rise, how are you going to defend you and your love ones? If you can’t get gas how are you going to get to work? Do you know what bus lines run where you work? If you lost your house is there somewhere you can live? People are living though this now in Greece, and soon in Italy, Spain, and Ireland, and Portugal. There are plenty of English news sights learn about how these people are surviving. You need to start thinking about this stuff NOW and not when the monster is kicking down the door wanting to eat you by that time everybody has seen it.

  • Highspeedloafer

    If I am Germany and I have 25 brothers and sisters who can’t manage their budgets, who waste every penny I have loaned them and are unable to discipline themselves, would I continue to trrow my good money after their bad habits? Heck no!
    It would be my way or the highway. I don’t blame Germany for the demands they are making.

  • Mainuh1

    Think about it:

    First they came for the Jews
    and I did not speak out
    because I was not a Jew.

    Then they came for the Communists
    and I did not speak out
    because I was not a Communist.

    Then they came for the trade unionists
    and I did not speak out
    because I was not a trade unionist.

    Then they came for me
    and there was no one left to speak out for me.

  • William

    Do not pick on the Germans. They are industrious, educated and productive; and heavily taxed. The best thing that can happen is Merkel and her party being put out of power, along with the dissolution of the EU/EZ/Euro. That should set back the Illuminati/FreeMason/Bilderberger crowd for at least 50 years in their drive to rule Europe, and eventually the world, including YOU. A prime example is the installation of the new leaders in Greece and Italy, both part of this crowd.

    • Neanderthal

      All “further integration” can do is to drag Germany down. Austerity, probably more severe than any of the “weak sisters” imagine, will come either way. Their economies do not produce enough to sustain their lifestyles. The party is over. Say bye-bye to your month of vacation in even the most menial jobs, a year of maternity leave, and most other goodies. I only somewhat feel badly for the retirees. Anyone awake could see that the party could not last. Just like in USA, you voted for people who told you what you wanted to hear and voted out anyone who dared to mention paying for your hammock.

      Germany cannot and will not carry them forever.

    • http://scribd.com/plishman plishman

      > Do not pick on the Germans

      …mmm…so…tempting…must…resist!

      • http://scribd.com/plishman plishman

        > Your comment is awaiting moderation.

        I’ll bet it is.

  • http://realcurrencies.wordpress.com Anthony Migchels

    I don’t think this take is very relevant.

    It is clear that Germany is Europe’s powerhouse.
    It has been just that ever since 1871.

    But Germany is led by the same bunch as the rest of Europe and the US.

    It’s muscle is just being used by the Goldman Sachs dudes, who are, as has been well documented, being parachuted in places of power in every ‘insolvent’ state in Europe.

    The goal is not a fourth reich, it is an EU, consolidating it’s power in a fiscal union.

    Germany is just a tool and set up not only for the dirty work, but also as the stooge to blame.

    It is surprising to me, that this commentator uses MSM sources to write an MSM take on the story in ‘the American Free Press’.

    The boys at infowars.com have been more realistic lately about what is really happening in Europe.

    And here’s another article with the basics:
    http://www.henrymakow.com/will_the_people_or_the_euro_su.html

  • REED RICHARDS

    Michael,

    I think this particular article is a complete waste because the core issue, wild speculative betting and fraud by banks, is not addressed here. Just reading this article alone people are being misguided into thinking that the overall problem here is simply budget deficits run out of control. Well, that is not the case at all. Banks, (with their government enablers) have run up huge gambling debts, sold worthless securities, and committed downright fraud. As Chris Hedges has pointed out many times before, these people, speculators and fraudsters were hung in the 17th century. With the advent of Clinton, Bush, Obama, and the modern day war party of democrats and republicans, prosecuting bankers who commit financial crimes, well, not so much.

    As Bob chapman has pointed out, the only real way out of this mess is for the whole house of cards (rigged financial system) to completely collapse and come tumbling down. Only in this way can the fraudsters be brought to justice and a new world (based on republics with representative demoracy) be built in its place. A lot of people will lose everything and there will be a lot of pain, but it is the only way to put the crooks and their current crop of government enablers out of business permanently…………

  • mondobeyondo

    “Deutschland uber Alles”….

    These guys never give up, do they?!

  • MountainHome

    It would be interesting what the average man and woman truly feel about their role in the EU. Great article again!!

  • Aurelius 7

    Another good piece. I’ve been following this on my blog and other forums for some time now, and I have this linked up. Thanks for the contribution.

    http://glblgeopolitics.wordpress.com/2011/12/08/all-hail-the-united-states-of-germany-the-rest-of-europe-is-facing-either-german-domination-or-financial-collapse/

  • Randome-11

    Yes, power belong to the most industrious, to the most productive and to the most competent. Why shouldn´t it?

    Austerity? There should never have been any deficie spendings in the first place!

    I detest those scumbags that wasted the previous generations pensions and now demands that even more bills should be given to the next generations, all to subsidize their lifestyles.

  • View from Abroad

    1) The Euro was NOT Germany’s invention – it was the price the rest of Europe, notably France, imposed on Germany for Re-unification.

    The german people was VERY reluctant to give up the D-Mark, believe me.

    2) “In the U.S., when the federal government decides to do something that is pretty much the end of the matter.” – oh, yes…like raising the debt ceiling, that’s you mean?

    Yes, we in Europe are often at odds with each other, and haggle with each other…but there is still a great lot of bipartisanship and common sense. Even the most die-hard right wingers and left-wingers are still able to be civil and reach compromise…of course, we have no FOX News, just the BILD.

    3)”Standard & Poor’s has announced that it has placed 15 members of the eurozone on review for a possible credit downgrade. The pressure is on. If a new agreement is not reached soon, everyone in the eurozone could soon be hit with a downgrade and bond yields could start spiking again.”

    You and a very lot of people seem not to understand the problem: we are under pressure because we in Europe are trying to AVOID to do, what the US and UK are DOING: enabling the European Central Bank to PRINT (i.e. credit) money to buy the sovereign debt!

    It would be just a push of some buttons and presto! here are 2.000.000.000.000€ – not enough? 3.000.000.000.000…yeah, the banksters would LOVE it!

    Why?

    Because for them money must multiply – it MUST!

    Because they can only get their bonuses at the end of the year if they multiplied the NUMBERS…if 1 Billion has “grown” to, say, 1.2 Billion.

    Then they can reap a fat bonus – and ignore, that with inflation induced by money-printing the 1.2 Billion are buying today what 0.9 billion would hav bought one year ago!

    THEY do not care, because THEY are cared for – their Bonus will always rise faster than inflation.

    Ever thought of that? Think it over again, and then you will understand why “the markets” hate the European steadfastiness concerning money printing.

    @Michael – Well, sure, we have problems in Europe…but, sorry: I am following this blog and the economic collapse blog for one year now, and if just 10% of what you describe about the US is true, the greatest part of Europe is still in TERRIFIC shape. “Urban Hellholes”, hmm? You will be hard put to find them in Germany, France, even Italy. (UK is another story, but, sorry: UK belongs NOT to Europe. Geographically, yes, maybe – cultural, no. Never has, never will.)

    And we have still a lot of manufacturing here; high qualified, too, and, very important: there are still a lot of people around with a social conscience, who are willing to pay a high price (and thus the high wage of their fellow citizens!) for them, instead of buying some cheap chinese-made sh*t just to have more money available to buy MORE cheap chinese-made sh*t…that is what is ruining the US: You are beggaring EACH OTHER, PREYING on each other.

    We got unions, too, who care for the rights of the workers. Oh, heck, I forgot – Unions are bad, because they induce sluggishness, and overpay, and bad quality, isn’t this gospel truth in the US view?

    (Irony on)
    Yeah, you are surely right – the biggest german trade union is the “IG Metall”, or metalworkers union…one of the biggest and best organized unions in the world, especially in the automotive sector – and who in his right mind in all the world would ever even THINK about buying one of these sloppy mady BMW’s, ugly Daimlers, gas guzzling VWs or totally overpriced Porsches? Ridiculous thought, that! (Irony off)

    So, instead of worrying about Europe, you should just focus on one fact: in the last fiscal year alone the US federal government has racked up about 900.000.000.000€ in NEW debt…that is nearly half of the ENTIRE GERMAN sovereign debt (2.2 trillion€)!

    Just in ONE YEAR!

    And the US will repeat this most likely NEXT year, and the year after…that is, if Obama is reelected – if a republican comes in, just DOUBLE that number.

    I like your blogs, but this had to be said.

    Greetings
    K

    • Jeremy

      Even if the EU wanted to print money, it could not, because the dollar is the world’s reserve currency.

      But by all means, go back to the “everything in Europe is great” rant. Puff pass give.

      • View from Abroad

        “Even if the EU wanted to print money, it could not, because the dollar is the world’s reserve currency.”

        Sorry, but: your statment makes no sense. Of course the ECB could print money – if the member states, notably Germany, would agree. They had just to change § 123 of the treaty of Lisbon. That has nothing to do with the Dollar.

        Could it be that you are from the deepest – what do your US coastal Elites call it…”Flyoverville”? Are you able to find Germany, France oder even Afghanistan on a map?

        Be assured: not EVERYTHING in Europe is perfect…but, as I said: when I read this blog, or The Economic Collapse blog, or crooksandliars.com…for heavens sake, in Germany lunatics like Michelle Bachmann or dimwits like Rick Perry MIGHT have a slight chance to make it into a city council, but everything above that level would be an absolute no-go.

        And anyone in the media who would put a slur on our president or chancellor comparable to “the hobbits have returned from middle-earth and nailed the COONskin to the barndoor” (Pat Buchanan) would have his/her career definitively ended! And very quickly, too.

  • Комитет государственной безопасности

    I don’t understand why people are against the United States of Europe. Germany has worked hard to get at the position it is at presently. Whereas the other cowardly european nations have gotten enslaved in debt and has managed their finance poorly.

    So, is it not fair that Germany be able to dictate its terms on those countries who have been failures?

  • Pingback: Die Wahl zwischen Euro-Kollaps und deutscher Dominanz! « Besseres Europa

  • Groener

    What’s wrong with Germany getting what it had won on 1918 and was cheated by Woodrow Wilson?

    Americans should get the h*ll out of Germany. There is no USSR to fight, and the Americans have been lurking around there for too long.

  • Nam Marine

    Directly from the book of Revelation!

  • http://dans-atlantic.blogspot.com/ Dan

    This is necessary for the EU’s survival, plain and simple. On one hand, you have (as others have said) industrious and thrifty Germans, Nordics, etc. (basically northern Europe) and on the other hand, you have profligate, lazy Mediterranean countries. Who should be setting the bar here? The answer is clear.

  • Pingback: Mega Fail: 17 Signs That The European Financial System Is Heading For An Implosion Of Historic Proportions | Sovereign Independent

  • Chris

    Why don’t the Greeks, Italians, Irish etc all just use their right to just move to Germany and demand to be looked after by the German gov? Remember, there are open borders right across Europe and it is just as much a right for a Greek to find work and live in Germany as it is the other way around.

    Oh and as for language barriers…discrimination is not allowed.

    Vote with your feet people!!

  • Pingback: 17 Signs That The European Financial System Is Heading For An Implosion Of Historic Proportions | Independent News Hub

  • Pingback: cow man90

  • Pingback: Trackback

  • Pingback: urlman cow

  • Pingback: Trackback