The Next Steps in the Eurozone Crisis Will Lead into the ESM Dictatorship

Friday, December 02, 2011

A downward spiral of short-lived political announcements that have declined from the superficious to the meaningless may fill the headlines of dutiful 24/7 news outlets.
But while attention is wasted on political gobbledygook, leading Eurocrats manage to steer the train wreck aka Eurozone towards greater centralization in Brussels that will ultimately lead to a political ambush in order to push through the true monster in the backyard, the European Stability Mechanism ESM.
Published in English only, depriving 85% of Europeans of their possibility to inform themselves, it is no exaggeration to say that the ESM will lead the Eurozone into a technocrat dictatorship without any democratic oversight at all.

The ESM was signed by the 17 Eurozone finance ministers on July 11, 2011, and has yet to be ratified by national parliaments.
The treaty text mandates unconditional and irrevocable membership while ensuring complete immunity to the institution and its staff. One does not fill a good part of the treaty with such get-out-of-jail cards if there were no future need of such.
Watch this video that has gone viral in German and is playing with English subtitles here to get a first taste of the totalitarian ESM structure.

Make no mistake, when German chancellor Angela Merkel and French president Nicolas Sarkozy envision a more centralized Eurozone, they ultimately mean the ESM that can draw funds from member states within 7 days without giving a reason and without the possibility of legal recourse.
Checking the latest status of the Eurozone crisis talks, Merkel has just slammed hopes that the EU summit on December 8 and 9 will deliver any meaningful results, the Independent informs:
German chancellor Angela Merkel has said there is no easy fix to the European financial crisis, and that a solution will "take years".
Mrs Merkel told her country's parliament that "the German government has made it clear that the European crisis will not be solved in one fell swoop".
She added: "It's a process, and that process will take years."
This should give you enough time in between to read the ESM treaty down below in full. If not, make at least sure to read from page 35 onwards for the spicy details about self-oversight and immunity, which begins on page 37.

Merkel announced unspecified future amendments to the ESM treaty on Friday in a press conference with Austrian chancellor Werner Faymann as Eurozone leaders are going the extra mile in order to avoid a referendum on such fundamental issues like the transfer of budget sovereignty to a yet to be created EU Treasury in Brussels.

Bernanke Will Keep the Roulette Wheel Spinning
In the meantime central banking comrade Ben Bernanke from the Federal Reserve stands ready for a dollarization of the rest of the world with basically unlimited dollar swap lines with the world's major central banks.
While European leaders can continue to haggle about concepts that will just add another layer of ESM debt on top of all other debts the Fed will exchange worthless Federal Reserve Notes (FRN) for worthless European collateral, aiding the European Central Bank (ECB) in hiding the true damage to the Eurosystem where the ECB can no longer 'sterilize' monetization as banks prefer to park their assets with the ECB.
And the Fed has unaudited firepower galore. According to former US Congressman Alan Grayson the Fed lent a whopping $26 Trillion or roughly double the annual US GDP to banks in 2008 at the onset of the current permacrisis. Bernanke's helicopters are ready to rain dollars on the Eurozone again.

Banks Were Helped with $26 Trillion Under the Table

VIDEO: Jump to 2:20 minutes where Alan Grayson says, "Ron Paul's ... audit of the Federal Reserve, which has now shown 16 Trillion dollars in money directly lent out from the Federal Reserve to ... various institutions including many foreign institutions. ... about a third of the money went to foreign institutions and on top of that another 10 Trillion dollars in currency swaps between the Federal Reserve and foreign central banks..."
As the Fed's announcement from last Wednesday to keep the monetary spigots wide open and intervene in any and all falling markets should ensure more phantom liquidity for a comatose Eurozone, this dollarization may become a competitor to the Eurozone's own (lack of) ideas and lead to a EU colonization by US investment bank Goldman Sachs.
With the recent installation of former Goldman Sachs employees/consultants as heads of the ECB (Mario Draghi), Greece (Lucas Papademos) and Italy (Mario Monti) the Wall Street dominator is well positioned to influence European politics far and wide. The tentacles reach elsewhere too: It does nut hurt that the current US ambassador to Germany earned 23 years of paychecks at Goldman too.
As the leading primary dealer in Austrian government bonds Goldman reaches deep into the decision-making circles in that Alpine nation too.
But back to the ESM.
Like the Federal Reserve Act in 1913, the ESM treaty found absolutely no media attention when it was signed last July despite its far-reaching implications for more than 300 million Europeans.
Dutch-based website has investigated the matter further and discovered a swift path towards Brussels monetary totalitarianism.
The website arrives at a startling - and frightening - pattern:

On 17 December 2010 the European Council decided there was a need for a permanent stability mechanism to take over the tasks of the Financial Stabilization Mechanism (EFSM) and the European Financial Stability Facility (EFSF). These are two rapidly erected organizations, respectively in May and June 2010, to supply loans to countries with too many debts. However, these organizations lack a legal basis.
Let us already note here that these organizations were explicitly conceived for financial interventions, while the amendment in the treaty that allows the establishment of the ESM, also allows setting up organizations for quite other fields of action.
This amendment arrived on March 25 2011. To avoid having to organize referendums in Europe once more, they used article 48.6 of the Treaty of the European Union, which allows the European Council to decide changes in the articles of the treaty, under condition they don’t constitute an extension of the competences of the EU. The amendment consisted of an innocent looking addition to a paragraph of article 136 (TFEU). In short, this addition stipulated that “the countries using the euro were allowed to establish a stability mechanism to safeguard the stability of the euro zone as a whole”. Expressed this way, it does not deal exclusively with financial stability. Surveillance of vigilant citizens, oppression of protests or the fight against any other destabilizing element in the euro-zone, can, via this amendment, be conferred to new organizations under EU-flag.
In other words, this amendment surely constitutes an extension of the competences of the EU. Thus, it violates Article 48.6 of the Treaty of the European Union. Nevertheless, no Minister and no national Parliament were bothered by this and in Brussels they happily and promptly continued to draw up the ESM treaty.
On 20 June 2011 the national Parliaments authorized that the tasks of the ESM treaty would be executed by the EU and the European Central Bank.
On 11 July 2011 the treaty was signed. Although the signature was made public later that day, directly at the opening of a press conference with dozens of journalists (photo above), the next day there was not a single headline in the newspapers (not nationally, nor internationally) about the signature of this new European Treaty. Could it be caused Juncker announced it in French... before continuing the conference in English?

The facts are on the table now but do not expect Europe's political representatives to know anything about it. According to this Wall Street Journal blog entry, only 35 of Europe's 736 MEPs (Members of the European Parliament) attended a Draghi speech on December 1 where Draghi proposed more centralization via a 'fiscal compact' - meaning an EU finance ministry.

"We have already started preparing the ESM internally."
All current political haggling about the EFSF (European Financial Stability Fund) or Eurobonds - now dubbed 'stability bonds' by Germany - appears to be superfluous shadow boxing when one listens to the EFSF insiders.
EFSF CFO Christophe Frankel told Reuters already mid-November that the EFSF could change its nameplate to EMS without problems:
Frankel said preparation for the new permanent euro zone support scheme, the European Stability Mechanism (ESM), was under way and that technically, the EFSF could already carry out its mission.
"ESM will have the same mission as the EFSF so in practical terms, we are already ready," he said. "We have already started preparing the ESM internally."
This again proves the haughtiness of Brussels nasty procedures: While politicians keep the public busy with smoke and mirrors, the Eurocrats are working behind the curtains to establish totalitarian control over more than 300 million Europeans and loot them in order to save the banks at truly all costs.
One needs not much fantasy how the Eurozone crisis will develop once the ESM is pushed into place: In the end Europe will be relegated to third world status, laden with ESM and probably IMF debt too.
This would be the end of democracy. It must not happen.

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Wow, $26 million, I had no idea! If the ESM needs to be ratified by national legislatures, than the question will be how many will actually approve this? For example, France has always jealously guarded its sovereignty, will their Parliament really go along with this? Le Pen is at 20% in the polls already, which means a substantial number of French want to withdraw from EMU if not the EU entirely. Club Med may buckle under pressure and approve ESM, but let's hope France will be the firewall!

05 December, 2011 20:52

I'm afraid France won't be the firewall anymore, now that Fran├žois Hollande (socialist) is the new French President and promised a lot of things he won't for sure be able to keep.

Anyway, the main issue for Europe nowadays is that european people are very angry and consider most of their problems are directly due to the EU. If the EU thinks it will be possible to force european people to act as the UE want, there will be a disaster.

14 May, 2012 20:10

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