Submitted by Tyler Durden on 05/09/2012 - 02:44 BelgiumBudget DeficitCentral BanksEuropean UnionFranceGamblingGermanyGreeceGross Domestic ProductItaly In response to a request by Germany's SPIEGEL, the German government has, for the first time, released hundreds of pages of documents from 1994 to 1998 on the introduction of the euro and the inclusion of Italy in the euro zone. They include reports from the German embassy in Rome, internal government memos and letters, and hand-written minutes of the chancellor's meetings. The documents prove what was only assumed until now: Italy should never have been accepted into the common currency zone. The decision to invite Rome to join was based almost exclusively on political considerations at the expense of economic criteria. It also created a precedent for a much bigger mistake two years later, namely Greece's acceptance into the euro zone. Many of the euro's problems can be traced to its birth defects. For political reasons, countries were included that weren't ready at the time. Operation "self-deception" began in December 1991, and culminated with a plausibly deniable comment of 'not without the Italians' by Kohl who needed them to bring the French along to the Euro party to ensure his successful re-election. A few weeks before the launch of the common European currency, Stenglin's assessment of the situation took on a dramatic undertone, when he wrote: "The question arises as to whether a country with an extremely high debt ratio doesn't risk gambling away the success of its consolidation efforts to date, thereby harming not only itself, but also the monetary union." It was a prophetic remark. Of course, financial data doesn't play much of a role when it comes to war and peace. Italy became a perfect example of the steadfast belief of politicians that economic development would eventually conform to the visions of national leaders.
Last edited by soul controller; 05-09-2012 at 07:02 AM.
June is shaping up to be the very month on which the future of Europe, and the world, will turn...
With Greek elections looming this week, global markets mark time awaiting the outcome—an outcome which should indicate whether Greece will remain within the eurozone or opt out and chart its own course, dropping the euro in favor of the drachma.
Then there’s the case of Spain, wracked by debt, its financial status downgraded, yet rated as too big to fail. So, over the weekend European Union finance ministers agreed to bail out its banks to the tune of €100 billion. http://www.dw.de/dw/article/0,,16012629,00.html
This sets a powerful precedent.
Simply put, the economies of the leading Roman Catholic nations in Europe will not be allowed to fail. They are just too crucial to European elites’ imperial plans. By contrast, Greece, a Greek Orthodox nation, is being hung out to dry. Watch for Cyprus, another Greek Orthodox nation now on the brink of seeking a bailout from Berlin/Brussels/Frankfurt, to receive similar treatment to Greece.
Events in Europe will play out hugely on the world stage this week and through the rest of the month of June. Crucial financial decisions at both government and boardroom level around the globe await their outcome.
In the middle of the melee stands Germany, especially its chancellor, Angela Merkel. This whole scenario is just demonstrating the power of Germany, a power that our editor in chief highlights in this week’s Key of David program. https://www.thetrumpet.com/?page=kod&l=EN&p=904
To think that less than a lifetime on from the abject defeat of Nazi Germany at the hands of the Anglo-Saxon Allies a reunited Germany would be holding the whole world to ransom economically, is mind blowing indeed. Yet that is the current reality.
The German newspaper Welt put it this way: “It’s all happening in June: The calendar is chock full for Chancellor Merkel—and each event in which she is involved can decide whether Europe is rescued by Germany or damaged by it” (June 10).
A week ago, billionaire investor George Soros declared: “But the likelihood is that the euro will survive because a breakup would be devastating not only for the periphery but also for Germany. … So Germany is likely to do what is necessary to preserve the euro—but nothing more. That would result in a eurozone dominated by Germany in which the divergence between the creditor and debtor countries would continue to widen and the periphery would turn into permanently depressed areas in need of constant transfer of payments. That would turn the European Union into something very different …. It would be a German empire with the periphery as the hinterland” (GeorgeSoros.com, June 2). http://www.georgesoros.com/interviews-s ... nto_italy/
The following week, Chancellor Merkel strengthened her implacable stand for stronger centralized control of the EU. EUobserver.com reported: “German Chancellor Angela Merkel has said she will use the gathering of EU leaders at the end of the month to push ahead with plans for a political union, including more sweeping powers to Brussels. http://euobserver.com/843/116529
“‘We do not just need a currency union but also a so-called fiscal union—more common budget policy,’ she told Germany’s ard television early Thursday (June 7).
“She emphasized that a political union was also necessary: ‘That means that step by step in the future we have to give up more powers to Europe and grant Europe more oversight possibilities’” (June 7).
The trouble is that the most astute observers know that “more sweeping powers to Brussels” really translates to “more power to Berlin,” the real mover and shaker in European affairs today. As EUobserver.com further comments, “While Berlin has been leading the eurozone’s aid response to troubled eurozone countries such as Greece, Ireland and Portugal, it is now also leading the debate on further political integration.”
The degree to which Germany is dominating events during the month of June is highlighted by the fact that every week this month, Angela Merkel is engaged in crucial negotiations that have ultimate bearing on the future direction of the global economy.
Whether it be vital meetings within her own country—where she has a full calendar till mid-month—or negotiations with other EU heads of government—which are ongoing and will step up apace following the Greek election on June 17—or in the wider arena of the crucial G-20 summit to take place in Mexico June 18-19, or the most crucial EU summit at the end of the month, Chancellor Merkel will be in the spotlight without a break.
By the end of June, the full impact of Germany’s stance on the most crucial issues relating to the global economic crisis should be apparent. There really will be no question that Germany will by then emerge from the events of June far stronger economically, financially and politically, the agenda of its imperialist elites further advanced toward its Holy Roman goal.
If you doubt our take on this, then you only have to wait three weeks to find out.
The point is, Germany simply holds too many aces up its sleeve to not come out the winner in the current global scenario, and Merkel knows it. This knowledge certainly influences her political performance. It led Welt to comment in respect of Angela Merkel, “She thinks and acts like prime minister of Europe” (op. cit.).
Whatever the outcome in Greece, or the fallout from the Spanish banks’ bailout and Cyprus preparing to go cap in hand to its EU masters for its own bailout, these events will heavily influence the debate at the upcoming G-20 summit in Mexico. The outcome of that debate will ripple on to impact the EU summit due to take place at the end of June, which will debate the question of Europe’s future economic and political direction.
Each step of the way, all will be eyeing Germany for an indication of its direction on each issue, for it is truly Germany that will steer the near future course of the global economy to enhance its own return to power.