The European Stability Fund (ESM) was due to take effect in July and proposed as a backstop to protect the debt crisis from spreading by providing loans to troubled euro zone members. It was designed to replace the European Financial Stability Facility (EFSF), which was a established as an emergency fund in May 2010. Euro zone countries (including those in dire financial shape like Italy and Spain) pledged 440 billion euros in loan guarantees, which the E.F.S.F. used to supply 192 billion euros in bailouts for Ireland, Portugal and Greece. The EFSF now has little of the initial funds left to deploy.
The (ESM) was designed as a longer term fund and was drafted as impenetrable to judicial scrutiny and normal legal and democratic process. It is a very dangerous structure and precedent that seeks to literally enslave the citizens of Europe to endless servitude in order to fund and maintain the financial complex with “unlimited” funds.
The wrinkle in all of this is the German constitutional court ruling today that the German government is free to back the ESM fund but with limits on that participation. The court said that the government has to get approval of the German parliament if Germany’s exposure to the ESM exceeds 190 billion euros. The government also has to keep both houses of parliament informed about the bailout fund, stating that the Bundestag “must individually approve every large-scale federal aid measure on the international or European Union level.” These two provisions appear prima facie in opposition to the iron clad provisions drafted in the ESM constitution itself as explained in this video.
Thinking people have to care about how the ESM as proposed is designed to thwart and negate basic tenants of fairness, disclosure, democracy and the rule of law. This is a shockingly oppressive regime. Time to wake up. Read more here: Draghi reinvents the divine right of kings.
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Draghi’s mumbo jumbo about sterilization is just a further advancement of the various monetary memes that the power elites have spread around like manure in the past century.
In this case, of course, the idea is that money is not inflationary. But if money is not inflationary, why does Draghi need to sterilize it? They can’t even keep their own stories straight!
Not that it matters. Draghi cannot sterilize money. Nobody can. Currency has piled up in bank vaults and it will circulate when it can. Sterilization is just another nonsense Keynesian term. The idea is always to impress on people that central banking “technocrats” can manage money better than the competitive forces of the market itself.
Debt in the Netherlands
http://www.theautomaticearth.com/Finance/those-dutch-tulips-aint-looking-all-that-rosy.html
Isn’t that precisely what the bureaucrats want in Brussels ? More control is needed to get to a fiscal European Union. In this way the richer northern countries would help the poorer southern european countries.