Socio-Economics History Blog

Socio-Economics History Blog

EU Fiscal Union = EU Debt Serfdom!!

by mosesman

[youtube=http://www.youtube.com/watch?v=rC720Cl3N-0]

  • There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. – John Adams, 1826
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  • Do not buy into all the MSM talk about rescuing the Eurozone via fiscal union. This is false and an implanted Illuminist idea/meme! It is the path to total feudal rule by an Illuminist ruling class. It is serfdom!
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    EU Fiscal Union = EU Debt Serfdom!! 
    by Charles Hugh Smith, http://www.oftwominds.com
    “Fiscal union” is a code-phrase for a highly profitable debt-serfdom: the banks profit, the EU bureaucracy flourishes and the people of the EU are imprisoned in a modern serfdom.
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    The stock and bond markets are gearing up to celebrate the EU’s approval this Friday of “fiscal union,” the necessary surrender of sovereignty that’s needed to seal the  bondage of the EU’s hapless citizenry to the banks and the lapdog bureaucrats slavishly devoted to their dominance.
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    “Fiscal union” is the code-phrase for the EU nation agreeing to automatic sanctions (penalties) should their borrowing exceed what is deemed prudent. In this sense, it’s little different from the 3% deficit limit that the member states agreed to via the initial treaty but conveniently ignored.
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    The “teeth” of automatic sanctions is supposed to force nations to “tighten up” their fiscal and tax policies (including collection)–“austerity” at the fundamental economic and governmental levels.
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    In other words, “Oops, we borrowed too much, default looms, let’s paper over the insolvency by really really really promising to borrow less from now on.”
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    The mechanisms of the overborrowing–overleveraged, politically dominant banks and the euro–are left untouched.  Why? For the “obvious” reasons the mechanisms of EU governance has been captured by the banks and their apparatchiks, and as a result of the quasi-religious devotion of the Eurocrats to the single currency, a catastrophically wrong-headed fantasy that they cannot give up without losing face.
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    I described the systemic problem with “austerity and higher taxes” as a “solution” to crushing debts in It’s Your Choice, Europe: Rebel Against the Banks or Accept Debt-Serfdom(December 5, 2011): it sets up a positive (mutually-reinforcing) feedback loop where diverting more of the national surplus to pay interest on old debt leaves less for productive investment, a cycle of indenturement to debt that ratchets the risk of default ever higher, which drives interest rates up which then increases the cost of servicing all that crushing debt which then diverts more of the national surplus (via austerity and higher taxes) to paying the higher interest.
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    Every euro shipped off to the banks and bondholders is a euro that isn’t going to be spent in the national economy, which means the economy contracts from a dearth of investment, income and spending.  “Growing our way out of debt” is impossible in this indentured-to-debt positive feedback loop.
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    … for more click here!

[youtube=http://www.youtube.com/watch?v=nUChuUo0ZhY]

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