The death of the Euro

David Davis

I can’t find it in my heart to crow about this forthcoming event. Whether it occurs in an orderly way in early November, or later and bringing much worse trouble, it is sad. Sad because neo-Nazis were still allowed to get their hands on the levers of political power and patronage in Europe, and their eager supporters and brown-nosers here too, while our backs were turned. Why nobody handed Monnet, Schumann and Spinelli to Stalin’s resettlement-gooks in 1845, escapes me.

At least the fallout that reaches Britain (and this is a British blog, the main writers are English, and some of us libertarians think nationalism is an important and useful force) will be limited only to several hundreds of billions…

…hundreds of billions of Euros? of Dollars? of Sterling? Kilograms of gold? What difference does it make? It’s rounding errors by that time. When you hear phrases like a “2.6-trillion-Euro bailout fund to ringfence Greece, Ireland and Portugal” so as “not to have to bail out Spain and Italy which are too big to bail out”, you wonder what sort of drunken auction is going on where we can’t see it, and what the buggers are smoking.

And when you hear that “the Footsie has jumped 10 points upon the announcement of the bailout fund, and regained the psychologically important 5,000 level”, you wonder how shallow, uncurious and uncritical your Banks’ analysts actually are, and may always have been.

Look, we did all say that when people said, in all seriousness, things like “THE EURO IS THE ROOF OF THE HOUSE OF EUROPE: THE TASK NOW IS TO BUILD THE FOUNDATIONS” … then either nobody has thought this Reich through as to how to do it without creating international Terror-Police (I think some guys had thought of that but pretended to keep schtumm), or – worse – HAD thought it through, and knew what the outcome would be…but thought the terror-police would be in place, in time.

We are living in “interesting times”. I’m not sure I’m pleased about this at all.

9 responses to “The death of the Euro

  1. The numbers lose all meaing, don’t they David? Billions and hundreds of billions and trillions. I’ve had about $1600 adrift in the banking system this week and it’s been finanically crippling for me at a crucial time, and then I look at a news website and they’re into the trillions, and the ocean is so big that my problems aren’t even a drop. For a trillion, you could give every man woman and child in Britian nearly £17,000. That would fix the money worries of virtually every person who has money worries in the country. But in the banking system…

    Of course that’s the thing isn’t it? None of it is real money. That’s why the crash happened; once you try to actually monetise all the fractional reserve debt, it starts collapsing down to its real value, which is far less. So now they’re trying to print enough “real” M0 money to make up the difference. It’s total madness. They will destroy every one of us to save themselves.

    I’ve said this in a few comment places on the web, like the Torygraph. This is the collapse of natiaonlised money, just as the nationalised industries colllapsed. But, the workers in those industries were poor unimportant people so they were told to chin up and face economic reality. Now it’s the people at the top facing the same thing, they are not going to let go, because there is nobody to tell them to.

    It is hard to imagine where this is going to lead, but it seems reasonable to suspect it will be ultimately even worse than we can possibly imagine. Banks are not “institutions”. They are businesses, and they have failed. I am increasingly of the view that in a real free market, there would be far less call for them than we think, and most economic expansion would be funded by private capital formation. This thing is just a Ponzi Scheme. It needs to go. But nobody will let it go.

  2. “2.6-trillion-Euro bailout fund to ringfence Greece, Ireland and Portugal” equals approximately 8700 Euros per man, woman and child in the Eurozone.

    That is about 13000 Euros per every person of working age.

    That is about 18000 Euros per every person who actually has a job.

    So – ”when you hear that “the Footsie has jumped 10 points upon the announcement of the bailout fund, and regained the psychologically important 5,000 level”, you wonder how shallow, uncurious and uncritical your Banks’ analysts actually are, and may always have been”

    The sell off in gold and silver is clearly a case of people desperate for cash, not, as claimed by ‘analysts’, any change in the fundamentals. Gold and silver are looking better investments than ever as the financial world goes mad with its huge bluffs and bailouts of the politically connected..

  3. APOLOGIES…line 6: I meant “1945”. It didn’t get caught in my spellchecker of course….why would it?
    Ian, I can’t think what’s to happen, can you?

  4. David, in all seriousness, my every speculation is just apocalyptic. If our (Austrian/free market) economic views and understandings are correct, the strategies being deployed currently can only lead to global economic ruin. It is quite clear that the whole situation is out of control and, people following a Keynesian style analysis still don’t understand how bad it really is. I am quite generally very scared indeed.

  5. *quite genuinely very scared indeed*

  6. Not being as clued up on all this financial hullabaloo as some posters here clearly are I won’t even try to discuss all the finer details. It certainly does sound scary though when listening to all the so called experts, politicians, economists and the like. However, when I stop to consider the reality away from ‘crisis talks’ last minute meetings e.t.c. It doesn’t appear that bad. I’ve moved from unemployed to a job, and although redundancies are happening there are still more people in than out of work-70% I believe. Mostly life goes on as usual. You certainly would think the sky was about to fall in though to listen to it all.Can we, they, us, (meaning them) save the world, from whatever horrible fate awaits It. I’m sure things are not good, but I do have to wonder whether we are being a wee bit duped by our ‘leaders’. All those statists, globalists, and trans-national bankers or whatever, telling us day after day they are the only option for saving the world and us from ourselves. What angers me is that they are the same bunch of gangsters (deliberate choice as that’s how they all come across) that caused this problem. And now the message coming loud and clear from them seems to be that- Without even more regulation and rule from afar we’re sunk. It’s just more justification to tighten their grip on us all.

  7. Read Doug Casey–he was right all along

  8. Well I’ve read some of Mr Casey and studied some of his graphs. Yes it’s a bit scary. But even scarier, as I mentioned before is the opportunity for politicians to tighten their grip on us. This mess we’re in as far as I can understand it is the result of states getting into bed with bankers and trying to control and organise and direct and shape the world’s economies into one. One consequence, and an important one is that there is so much more distance between understanding wealth creation activity i.e. ‘if I make this thing will someone buy it’, and simply creating an idea of being wealthy ,’if I put money A to money B which might make a return if money C is recouped with a profit, even though I have no idea what will generate income from C or B, I might be alright. In the meantime on the strength of this I’ll get another bank loan, money D, so I can put it into something else, not realising or not caring maybe, that money D is actually money A. loaned out to make money E.F.G. The only thing this will make will be what we seem to have made-A bloody big pie in the sky-
    All of this helped along by decisions shifting from national to international organisations who do not have to think about the reality for ordinary people when it goes wrong as they are too far away to be accountable. But they do not talk about that. Politicians have to keep justifying themselves and the enormous power they hold, so of course as we keep hearing, only they can help us.
    Maybe it won’t be such a bad idea if there is a big crash or even a minor one. maybe people will get back to attaching real money to real goods that someone wants and can afford to buy.

    I’m sure it’s a lot more complex than this but the basics of creating wealth has been the same since we learned to negotiate a deal on surplus mud for a bag of straw to finish the old house.

  9. I do accept as true with all the ideas you’ve introduced to your post. They are very convincing and can certainly work. Nonetheless, the posts are too quick for beginners. May you please prolong them a bit from subsequent time? Thanks for the post.