Babylon's Bankers

THE LATEST CRACK IN THE EU EDIFICE: DUTCH PRIME MINISTER RUTTE

As regular readers here know, I have a high regard for the research and reporting of Mr. F. William Engdahl, whose book, Seeds of Destruction, helped expose the "wonderful" worldview of I.G. Farbensanto. In that book, Mr. Engdahl exposed the doctrine of "substantial equivalence" that allowed Farbensanto to skirt long-term scientific requirements of testing of their products because they were "substantially equivalent" to natural crops, while at the same time allowing it to patent the very same products.  It was a case of having one's glyphosate cake, and making everyone else eat it. (More recently, Mr. Engdahl has completed a new book, Manifest Destiny: Democracy as Cognitive Dissonance.) But he has also weighed in on international and European politics from time to time, and Mr. K.L. spotted this article and passed it along:

Opposition Grows to Merkel Macron EU Superstate

When I had read this article, I experienced a bit of deja vu, for I was reminded of Napoleon Bonaparte's "come back" when he escaped his exile on the island of Elbe, landed in southern France, and marched on Paris, with the troops of the French army deserting their allegiance to the restored Bourbon monarchy, and going over to Napoleon who had ensconced himself once again in the Fontainbleau palace, only to discover that the Allied Coalition of Britain, Prussia, Austria, and Russia - in a diplomatic first - had declared war, not against France, but against him personally. We'll get back to that bit of deja vu momentarily. I had another bit of deja vu as well, for I was reminded of the War of the League of Cambrai, when the rest of Europe had had enough, and decided to go to war with the Republic of Venice, and put an end to its international financial manipulations.

As Mr. Engdahl points out in the article, recent election results in Europe, from the Netherlands to Austria, Hungary, Germany, and most recently and spectacularly, Italy, have begun to exhibit the profound fissures and cracks in the European Union edifice that were always there, for whether or not Geert Wilders' efforts in the Netherlands or Frauke Petry's efforts in Germany did not put them in their respective executive mansions, the results were earth-shaking enough to pull the mainstream parties to the right. Already German's Interior Minister is calling for an end to the Merkel-Brussels-Paris-Berlin open borders policy. In Italy, moves are being made for a back-up plan to leave the EU and the euro and to restore a national currency in case negotiations with Brussels fail. These plans include actual amendment to the Italian constitution allowing popular referenda on treaties.

But Mr. Engdahl highlights other cracks and fissures emerging:

During a visit to Berlin March 3, Dutch Prime Minister Mark Rutte bluntly came out against the recent trend led by Germany, France and other EU states to create a top-down central supranational state along the lines of a United States of Europe. He told press, “There has been this narrative that there is this inevitability of closer cooperation in a European federal state.” He became blunt: “This horrible language about ‘ever closer Union’ I don’t like. In the past 20 or 30 years this has moved from ever closer union of the peoples of the EU working together on collective issues, where member states weren’t able to deal with it themselves, to become an inevitable goal in itself.” Then Rutte declared the unspeakable “S” word: “We can never forget that these are sovereign nations. This is not a movement in itself, just when needed in special occasions. It has moved from a collective effort of nations to a goal in itself. It’s totally wrong!”

North-south divide opens

Now in addition to the growing East-West divide within the EU between Poland, Hungary and others versus Berlin and Paris, there is a clear North-South divide opening. Rutte’s throwing down the gauntlet in Berlin was followed three days later by a meeting of eight northern EU finance ministers including Netherland on 6 March where they issued a common statement that was directed against the French-German Macron Plan that seeks to create more centralized Brussels control beginning with a single EU finance minister. The finance ministers of Holland, Denmark, Estonia, Finland, Latvia, Lithuania and Sweden issued their declaration from Den Haag where the meeting took place.

Macron, with apparent backing of the new German coalition, joined with EU Commission President Jean-Claude Juncker to call for a common Eurozone budget and a European finance minister as the first step to a central fiscal union that would be even more controlled top down from Brussels. Macron proposes in effect an ultimate EU fiscal union, with Europe-wide taxes and spending, even more top down than at present as sovereign nations would largely lose the taxation sovereignty. Macron’s plan is a thinly-disguised attempt to create an EU fiscal union in which German taxpayers as well as Dutch and other conservative EU members will in essence bail out Southern European countries, including Greece and Italy where French banks hold the largest exposure. Macron unveiled his plan in September 2017 just as German elections were taking place. He promoted it as a way to a “sovereign (sic), united and democratic Europe,” something it definitely is not. (Emphasis added)

What's at stake is making Germany and the relatively prosperous economies of the northern European Germanic states liable for the weaker economies of southern Europe, which would happen in the EU as Merkel and Macron want to fashion it: a top-down bureaucratic state with no wiggle room for sovereign nations or, for that matter, any real popular representation:

The surprise decision of Chancellor Angela Merkel late last year to “kick upstairs” long-standing and respected fiscal conservative CDU Finance Minister Wolfgang Schauble, the way was cleared to name a new German finance minister more open to the Macron ideas, something Schauble bitterly opposed. With Schauble gone, the resistance is greatly weakened to creation of a de facto Eurozone “transfer union” in which northern EU states, including above all Germany, accept large fiscal or tax transfers to the heavily indebted Eurozone states of the south. The ultimate winners in such a scheme would be French banks.

And how is this to be accomplished? Why, through the bundling of securities, that's how, rather like all those credit-default swaps and derivatives bundling that led to the 2008 meltdown, and which left quadrillions of dollars of derivatives on the books (the biggest exposure to which held by any one bank is, incidentally, Deutschebank):

According to a report in the online US news site Politico, EU Commission Vice President, Valdis Dombrovskis, revealed plans to propose creation of so-called “European Safe Bonds“ (ESB) or “Sovereign Bonds Backed Securtities“ (SBBS) at the May EU summit. The state bond debt of different EU states would be “bundled” into new securities and sold. As the US rating agency Standard and Poors noted, “European safe bonds (ESBies) have been proposed as a tool to increase the supply of ‘AAA’ rated euro-denominated assets and reduce systemic risks from banks’ large holdings of bonds issued by their respective sovereign governments.” The reality they point out is likely to be the opposite. German AAA bonds will have to be “bundled” with higher risk bonds from countries such as Italy or Greece in an effort to sell the risky Greek debt.

Enter Dutch Prime Minister Mark Rutte, who is issuing a peculiar warning:

As the 2007-2008 US asset-backed securities crisis revealed, these schemes to bundle risky debt with safer debt such as Germany backfire badly once a real systemic crisis erupts. As Dutch Prime Minister Rutte warned, beware of US hedge fund operators bearing large gifts and beware of sly attempts to further erode EU national fiscal and other sovereignty to stabilize de facto bankrupt Eurozone French and other banks. (Emphasis added)

And there it is: Prime Minister Rutte has exposed the fact that the Emperor Charlemagne's new clothes really aren't any clothes at all, and the weakness of French (and German banks, read Deutschebank) is the real factor driving this move toward "integration", making northern Europe liable for the socialist sins of the southern part. Mr. Rutte has, in effect, said that the EU is unmasked, and stands naked for all to see what it really is: it's a scheme to bail out the finance capitalists. Rutte is saying, in his own way, what dismissed German Finance Minister Wolfgang Schauble said some years ago: the debt finance model is over. There is no way forward that is not a massive reform. And in case there's any doubt who the unnamed "hedge fund managers" might be, Mr. Engdahl spells it out:

The push for a Brussels-run EU, ultimately with the central power to issue “Eurobonds” for the entire Eurozone, has been a top issue for billionaire US hedge fund speculator, George Soros. Were this to happen, it would turn the EU into a huge financial target for currency speculators and make Germany and other fiscally prudent states the paymaster for weaker states such as Greece or Italy or Spain in the next financial crisis, and make no mistake there will come a next, as nothing fundamental has been done by EU governments since the 2008 crisis to fundamentally reduce systemic risk. The zero interest rate policy of the ECB has kept the debt bubble inflated across the Eurozone. Since the ECB introduced its unprecedented program of buying Eurozone state debt in 2015, the ECB has bought an eye-popping €2.3 trillion of euro securities to end of 2017. All agree this is unsustainable. The question is what to do.

What, indeed, to do, for nothing else highlights the difference between "finance capitalism" (or as I like to call it, "crony crapitalism") and "equity capitalism" like Soros, who produces absolutely nothing, except chaos and discord wherever he decides to meddle. And Italians (and Hungarians, and Austrians, and Germans, and Poles) know all too well Soros' role in aiding "immigrants" come to Europe.

What, indeed, to do? Perhaps, just perhaps, it's time to start thinking in terms of the example of M. Bonaparte, his "return", and how the rest of Europe dealt with it. Perhaps it is time for another War of the League of Cambrai. Russia and Hungary have already declared that individual and his various entities persona non grata; Britain certainly has cause to do so, and Mr. Rutte appears to be willing to say that the Emperor has no clothes at all.

See you on the flip side...

 

15 thoughts on “THE LATEST CRACK IN THE EU EDIFICE: DUTCH PRIME MINISTER RUTTE”

  1. I’ll bet those guys who wrote the Madrid Circular didn’t see this coming. The train wreck that is the EU is doomed, and it’s the people who have suffered, so it isn’t the fact that the EU doesn’t work, it’s the fact that it is……..drum roll……..FASCIST !!!!!!

  2. musical chairs. it just goes on and on. with imaginary chairs. and real ones. and some get bought, some stolen, some dissappeared, some materialized,…

    what’s to stop this game continuing indefinitely?

  3. The Emperor has no clothes European tribalism rears its ugly face for the whole World to see.

    1. anakephalaiosis

      Political tribalism is most likely controlled opposition. Today, instrument to verify quality is apparently missing.

      Topological metaphor, contained within the Rune system, does explain origin of Europe, by trias politica in Druid circles.

      Circumscribed sanctuary is originally truce between tribes in natural state, entering into civilization.

  4. It all comes back to debt, and – more importantly – who controls the debt. “Permit me to issue and control the money of a nation, and I care not who makes its laws!” Remember that one? Guess who will ‘appoint’ the new European finance minister?

    Also, since VVP just got overwhelmingly re-elected: “If my sons did not want wars, there would be none.” Remember that one? Guess who will ‘beat the drums’ for the next war? And the debt involved… (In my opinion, Kiev-based Ukraine will be pushed to take another shot at the Donbass this spring or early summer. And Syria, of course.)

    Talk about déjà vu: “The state bond debt of different EU states would be ‘bundled’ into new securities and sold.” Gee, what could go wrong there? I guess they really think investment managers are that stupid (or bought)…

    In The Two Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash (2009), Charles R. Morris wrote [p.146]:

    “Consider: Financial markets built an investment paradigm that applied high leverage to long-term illiquid instruments. Then compounded the danger by funding those instruments in the short-term debt markets. Then doubled the bet again by building the base portfolios from unusually risky securities, like subprime mortgages and leveraged loans. Then, finally, embraced a class of credit derivatives that ensured the swift propagation of any local collapse through the whole system. If a band of brainy terrorists had been hired to destroy Western finance, they could hardly have designed a more efficient assault.”

    Hmmm…

  5. Robert Barricklow

    Are the EU finance ministers and the EU executive bureaucracies run by X Goldman Sachs alumni?

    If not in name,
    than in actuality?

      1. Robert Barricklow

        Unelected, unaccountable & seemingly untouchable.
        Private governance run by private money.
        In there book; Public is Enemy #1.
        Because the public makes those in power:
        elected, accountable, & punishable.

  6. The Dutch have a strong economy and largely solvent corporations and massive wealth and extensive foreign investment. Always have, as well. They’ve been rich since the Bank of Amsterdam took off in the 17th century, and they’re essentially behind the Crown corporation and the City of London, who actually own the UK and the old empire. That’s how the House of Nassau got plopped on the throne after Cromwell, when they got Britain out of hock. The Dutch bankers owned the place, or at least paid off the debts; the City is their heritage.

    The entire policy of France early in the reign of Louis XIV under Colbert was to harness the dormant French nation and put it to rights, build an actual navy and invade the Netherlands to crush it to stop its spectacular trading and financial success. The Dutch were invaded twice but survived and continued to flourish.

    So don’t mess with the Dutch. They have an outsize say in all this. When the Queen made it clear she’d had it with the EU it was one thing. Now her owners have said they’ve had it too. That’s a whole other level of game.

  7. anakephalaiosis

    PYRAMID HAIKU 10
    Supra-vampire squid.
    Giza gas chamber Bitcoin.
    Rune sword cast in fire.

    1. Hmm. I think I remember nightmaring about a Lovecraftian vampire squid. Must be the Equinox.

  8. I read Engdahl’s book “Manifest Destiny: Democracy as Cognitive Dissonance”.
    I am still vomiting over the toilet due to unending nausea. This took place during my lifetime and parts I knew some I didn’t but most people are oblivious to any facts so the rinse and repeat is an atrocious fact today and still going on. The target is more and more “us Europeans” and still so little people see it. Young Ones come almost weekly asking for monetary contributions for this or that NGO beaming with pride explaining what an NGO is an what GOOD it does for the world.
    Those sick people will keep plundering till there is no world left not even to sustain themselves.

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