Eurozone Moochers Pressuring Germany for Bailouts
We learn from London's The Guardian that Christine Lagarde, who runs the International Monetary Fund, is turning the screws on German Chancellor Angela Merkel to bailout Europe's failing banks.
How else to describe Western Europe's elite other than as parasites?
Like some variation of ambulance-chasing trial attorneys, Lagarde and Europe's leaders are going for Germans' deep pockets. The Germans would be fools to let their Western European neighbors pilfer their pockets.
The Guardian reported:
...Lagarde warned that the euro is under "acute stress" and urged eurozone leaders to channel aid directly to struggling banks rather than via governments. She also called on the European Central Bank (ECB) to cut interest rates.
And this from The Guardian:
The stark message from Lagarde, delivered to eurozone finance ministers who were meeting in Luxembourg, will increase pressure to come up with a unified approach to tackle problems including Spain's struggling banks. She urged the 17 eurozone countries to consider jointly issuing debt and helping troubled banks directly. She also suggested relaxing the strict austerity conditions imposed on countries that have received bailouts. [Italics added]
So, for Lagarde, the approach is simple: Germany is to write checks, principally, while other Western European nations pile more debt upon existing debt. Meantime, Spain and Italy -- notably -- can throw out fiscal constraints (or much of them) and spend, spend, spend.
Lagarde's approach is more than just kicking the can down the road; it's bear-hugging folly and ruin.
Part of Lagrade's folly is indulging in fantasy. Lagarde is quoted in The Guardian as saying:
"A determined and forceful move towards complete European monetary union should be reaffirmed in order to restore faith," she said. "At the moment, the viability of the European monetary system is questioned." [Italics added]
Questioned? More than that, Madame.
Doing as Lagarde recommends (complete European monetary union) means overriding -- in fact, running roughshod -- over the national sovereignty of Euro members. It's a recipe for highly centralized bureaucratic government out of Brussels -- or, indirectly, out of Berlin, if the Germans pony up the sort of money that EU elites are seeking. Not incidentally, it guts democracy.
But the idea that Spaniards or Italians or most other nationalities will long cede control of their nations' welfare -- and their personal welfares -- to unelected bureaucrats in Brussels (or German puppet masters) is an elitist illusion - unless elites are willing to resort to force.
The notion that elites will succeed in ending thousands of years of social, cultural, historical, and political differences among EU nations smacks of the communist utopian nonsense that caused untold harm to the peoples of the old U.S.S.R. and in the communist nations in Asia.
Spaniards aren't Italians anymore than Italians are Germans. Germans certainly aren't the French, and visa versa. This ongoing effort by Europe's elite to blend and homogenize Europe's peoples is bound for history's ash heap, but what the damage will be to Western Europeans, their cultures, and societies along the way is anyone's guess.
But there's hope the Germans won't be sucked into the strengthening EU vortex. Said Michael Hewson, senior market analyst at CMC Markets UK, per The Guardian:
"In any case, the German chancellor's room for manoeuvre is limited, given the questionable legality of any form of debt mutualisation under German law, and voter discontent at home."
Finally, this quote from Lagarde:
Asked what Germany would think of her suggestions, she smiled and said: "We hope wisdom will prevail."
Actually, Madame Lagarde, a candid disclosure about what you want from the Germans for your ill-advised schemes would go like this: "We hope the lack of wisdom will prevail."