"If it looks like a duck, quacks like a duck, it just might be a
duck. When we are talking about the euro, it now looks like a currency, acts
like a currency, it might as well be yet another currency," wrote Axel
Merk of Merk Investment shortly after the European Central Bank's announcement
of an unlimited bond buying programme.
"The new framework of the
European Central Bank (ECB) morphs the euro from a currency of nations to a
currency of the 'United States of Europe'.…Going forward, as weak nations in the
euro zone ask for help, they cede sovereign control over their budgets."
The "United States of
Europe" or the "Federation of Europe", whatever you might want
to call it, is emerging as part of a grand design to tear down the nation
states. Only a financial crisis of this galactic scale can alter the entire
landscape of Europe.
European Commission President
Jose Manuel Barroso on Wednesday called for more European integration to help
tackle the euro-zone debt crisis, through the creation of a "federation of
nation states".
"I call for a federation of
nation states. Not a super state. A democratic federation of nation states that
can tackle our common problems, through the sharing of sovereignty in a way
that each country and its citizens are better equipped to control their own
destiny," Barroso said. He added that the creation of such a federation
would ultimately require a new treaty, to be ratified before 2014.
Barroso's statement was buried by
the German Constitution Court's ruling, which cleared the way for Germany to
participate in the European Stability Mechanism and fiscal pact with the EU,
though both measures need further approval from the Bundestag. For the moment,
Germany seems to play along the "Federation of Europe" game plan.
The bankrupt EU states are now at
the mercy of the ECB and the bureaucrats in Brussels. If they don't sign away
their sovereignty, they will be left in the cold to fend for themselves. But
Greece, Spain or even Italy won't survive for very long as the euro takes
flight from their banking systems for safe havens. Unemployment is rising.
Economic growth is grinding to a halt. Social unrest is about to explode.
To qualify for the bailouts, they
will have to cede their sovereignty - fiscal, banking and eventually
nationhood. In return, the weak EU states will get bailouts from the European
Stability Mechanism (about 500 billion euro) and the European Financial
Stability Fund (about 440 billion euros). At the same time, the ECB will be
committed to an unlimited - if unlimited does exist - bond purchase programme
to drive down the bond yields.
The "United States of
Europe" will make it possible to transfer wealth from the northern
European states to the southern European states. It will also end the disparity
in the competitiveness levels among the EU states. In this new political
landscape, Germany would become the California, while Greece would become the
Vermont of the United States of Europe.
A process is underway not only to
save the euro and the European Union experiment but also to force the EU states
into the grand federation. The ECB is working on a Europe-wide banking union,
at the heart of which lies a Single Supervisory Mechanism for banks in the euro
area. The plan will go into effect by the end of 2012. There are three
components of an integrated banking union: a single rulebook in the form of
capital requirements, harmonised deposit protection schemes and a single
European recovery and resolution framework.
The question is, will the
Europeans go along with the bureaucrats' game plan to cede their sovereignty
and become part of the United States of Europe? A political minefield lies
ahead for Europe. The Germans are likely to jump ship eventually, while France,
Spain and Italy are attempting to contain their northern neighbours in a subtle
geopolitical design that will make or break Europe.
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