Showing posts with label SECS. Show all posts
Showing posts with label SECS. Show all posts

09 January, 2013

SECS2: Citizens, demand your Euro rights! Top Citizens declare 2013 the Year of the Citizen!


Celebrate! Rejoice! This year 2013 is the Year of European citizens! Europe’s Politburo, its Top Citizens, has declared it to be so, without asking anyone. Did you agree to it or even know about its multimillion euro budget?

Yet hypocritically the politicians have not allowed citizens their rights for more than 60 years. Take the Euro as an example. It is a system devised by incompetent politicians (or ignorant of Community democracy), run by incompetent politicians to the advantage of politicians. Surely citizenship means more than European passports — that is changing the colour and size of national passports.

Europe’s citizens have still no means to control the politicians, nor how they raise taxes and spend them. Most citizens therefore refuse to vote. The citizens have no say in the extraordinary number of treaties, compacts, Stability Funds and Tax Haven companies cooked up by and for politicians in the margins of the Community and too often totally outside it and in flagrant contradiction with Community and democratic principles.

If anyone should consider the word ‘hypocritical’ too strong, remember the Year of the Citizen celebrates the twenty years of the Maastricht Treaty. That ‘EU’ system precipitated a major rejection of Community principles. Democracy.

In its 1992 referendum Denmark with a turnout of 83 % said No to Maastricht. Again the Top Citizens moved in and told them that this was not acceptable. The Danes were told to vote again in 1993. Robert Schuman himself warned about such political counterfeiters. These political counterfeiters are now involved in counterfeit currency. The Gaullists declared names of recipients of the CAP ‘top secret’. Now all currency deals are done in the dead of night behind closed doors. We have secret companies in Luxembourg, declaring themselves above the law.

The Politburo who decided to celebrate this year of citizens for Europe’s 500 million citizens also decided in 2012 that they would not celebrate the sixty years of the Community institutions, Commission, Council, Parliament.  The year 2012 was a NON Year. It took the Nobel Prize Committee to remind the Presidents of these institutions who eagerly took the prize in Oslo that 2012 should have been a major anniversary.

The European Founding Fathers set out the preconditions for a Community currency. This requires democratic legitimacy, not technocratic centralism. It should not be run by politicians. It requires a democratic means to root out political and statistical corruption.

Warnings were studiously ignored in the 1990s when the Euro was created.
Firstly, the political leaders — encouraged by de Gaulle’s ideas — have blocked the articles of the treaties and the Great Charter of 1951 (see http://www.schuman.info ). The Gaullist system ignored European citizens. Instead it made them pay for the Wine Lakes and the Meat Mountain scandals to buy farmer votes in France and elsewhere.

Secondly the post-Gaullist politicians decided to retain closed door Councils and the package deal system. It shut out all citizens from seeing or hearing about how European tax was being shared out among national politicians for their own pet projects. It rejected any elections to Community bodies — until the Court of Justice ruled they were acting illegally. The European parliamentary elections have NEVER been conducted according to Treaty specifications. The EP holds 27 national elections. They always favour of the national government politicians. That is a cheat.

Thirdly we now have the monetary equivalent of the Gaullist Wine Lake system. This time it is currency liquidity. The European Politburo is using THEIR Euro to paper over the cracks of the national currency abuses. This Euro was not originally designed for the corruptions of Greece, Spain and Portugal but for the corrupt practice in Italy, France and Germany.

The Gaullist Franco-German Axis powers were among the first to thumb their noses at the Growth and Stability Pact and ignore the judgements of the European Court of Justice when exposed.

How should a European Supranational Economic and Currency System be structured? The Founding Fathers insisted on democratic control for any currency — because it had to have:
  • the people’s support in its creation;
  • the democratic means to correct any systemic imperfections for countries, regions, businesses, workers and consumers, for tax systems and for migration policies;
  • the powers to innovate fully across the Community and to consider global responsibilities;
  • the powers to supervise what politicians might do;
  • the means to root out corrupt practice.
The Founding Fathers insisted that democratic institutions must be developed BEFORE the supranational currency was launched. These included a single Europe-wide election for the Parliament and elections for organized civil society in the three consultative committees.

For example the Economic and Social Committee should have elected representatives from European Business, Workers and Consumers associations. They should not be chosen from national groups at the whim of politicians for political favours back home. A really European Consultative Committee would supervise any plans for a currency. They would use their powers given them in the legislative process.

A properly elected Committee of Regions would supervise and actively be part of legislation about regional and national disparities and unemployment, as well as migrations issues. These bodies are still the play things of politicians, whether national or European. They are not independent bodies.

Instead the euro has been foisted on the public without the necessary democratic development repeated in all the treaties from that of Paris to Lisbon. Who created the euro? Politicians! But as any student of monetary economics knows the management of the money system should be run by an independent institution, supervised by another independent body, and should NEVER be put in the hands of politicians especially those who have shown themselves unable to balance their own budget or run the economy according to the rules.

06 June, 2012

SECS1: The 'New Hedonist' school throws Europe's currency rules out the window

The present euro system is on its last legs. A new European Currency will have to be built. How should Europeans create a Supranational Economic and Currency System? It should be fairly obvious that countries and nations that have fought each other for more than two thousand years need a system tailor-made for them. It is no use going to theorists living on other continents who are ignorant of Robert Schuman, one of France's most successful Finance Ministers initiating thirty glorious years of postwar growth, and how he brought about a system that ended war -- including Europe's expected Third World War.

The euro's fatal flaws arose because the politicians decided in the 1960s, 1970s and 1980s to abandon supranational democracy and the supranational philosophy that built the Community. Under the arrogant impulse of Charles de Gaulle who wanted to destroy the Community, the other European politicians succumbed to his closed door Council. They acquiesced to the non-democratic easy route of 'package deals'. Vote-getting Wine Lakes and Meat Mountains for farmers were paid for by European taxes and tariffs. This has led to our present Politburo Council system, where a cartel of political parties has replaced de Gaulle and his spineless European cronies. They FEAR openness in the Council as it will unfreeze moves to further democratic progress.

The European Community system must have a currency based on supranational currency principles. North American federal ideas won't cut the mustard. For decades economists have said that a European Currency must be based on a Optimal Currency Area. This idea is based on two fallacies:
  • (a) it assumes that the European Community will act like a federal system such as either economic theorist Robert Mundell's native Canadian federation or the USA.
  • (b) it relies on the Neo-Hedonist presumptions about the economy and currency.
For example, the US currency is minted by the Fed (the privately owned US Federal Reserve -- which is neither federal nor a reserve). Their mission is to print money only on the basis of encouraging growth and employment for Americans. Further dollars are created by the banking and speculative institutions which try to multiply loans for all. The massive avalanche of dollars that is being churned out by the Fed has had in practice little effect on either growth or employment. It has seen a massive flight of jobs abroad to places like China and other parts of Asia. Its own growth has only been kept above zero by massive borrowing. This is hardly healthy and will lead to 'an adjustment'.

The USA, now shackled by huge debts and overdraft from the other world economies, has become a dangerous and explosive debt overhang for the rest of the world. China, Japan, Russia and other major economies are avoiding US Treasury Bonds and divesting. Why? because of the coming massive inflation. The USA is likely to go through even worse crises than it has so far. This was clear several years ago. The world will also suffer. About 70 per cent of dollars circulate OUTSIDE the USA.

The European Community system is different from the North American experience. It is based on remedying the flaws that Robert Schuman and others saw in those systems and creating a better one. The Canadian and US federations are distinguished in the sense that because of their respective constitutions the first tends to stimulate the growth of governance powers to the provinces away from the centre, while the second has a tendency to centralize and grab powers from the constituent States, both where the constitution allows it and too often where it would seems to forbid it. The European Community system is designed -- when it works democratically -- to reinforce the nation State and build a higher supranational level, based on law and economics, above it.

America is suffering from toxic assets from the sub-prime property bubble scam, junk bonds and complicit credit rating agencies and a central banker with little democratic control. Europeans have most of the same plus a wide variety of political and statistical corruption in a 'European Union' -- not a democratic Community. It is led by the nose by the secretive EuroGroup (that meets in the dead of night) and the closed door European Council which decides policy in a democratic vacuum for the public.

Both sides of the Atlantic are now crying: 'Growth, Growth, Growth. That will change all our fortunes and the people will forget our mischief.'

The Neo Hedonists make no distinction between toxic (or crooked) deals and a healthy economy based on what should be obvious to all: The economy is not a separate or independent creature but it is connected to the real world, real people and goods and has to obey universal and supranational values. Any operation that is based on Ponzi schemes, pyramid selling and ignores morality will end in collapse, trauma and catastrophe.

The European Community is not based on Neo Hedonism as far as its founding philosophy is concerned, nor is it a model that can be shaped by either American, Canadian, Mexican or other federal systems. Whatever politicians try to do against those founding principles and philosophy will end unhappily. At the moment they are trying out all the wrong alternatives (mostly against supranational democracy and in line with a Politburo or political cartel approach).

Their failures are apparent to all but themselves. Thirty years of political corruption, behind closed doors, is now being exposed. Unfortunately all Europeans will have to pay for this mess.

The Community is not designed to be a centralizing governance system, but a purifying system for national democracies that willingly participate in it. Schuman said it was designed to de-toxify European relations.

That must include money, detoxifying it from private and governmental fraud and corruption. But in the 1990s the politicians threw the supranational rule book for a successful currency out of the window. They decided to base the euro on other fanciful ideas. They belittled and sidelined the Werner Report that in 1970 traced the steps needed for Monetary Union. This was written by a Luxembourg Prime Minister who knew Schuman, and among others, the governor of the Bank of France, Bernard Clappier, Schuman's former directeur de Cabinet. He acted as Chairman of the key Monetary Committee.

The politicians based the euro on the Delors Report of 1989. That did not even recognize the five key institutions of the European Community and understand how they should develop to take on the responsibility of a European Currency. It spent a good deal of ink explaining why the supranational criteria and conditions should not be applied, and ignoring others.

The Community made its first major contribution in a way that no federal system has succeeded in doing: it made war impossible between its Member States. But this is only the first step in the process of a supranational Community.

The politicians of the Delors era looked into the Treaty of Rome with its Economic Community Treaty to find out how to create a European Currency. In vain. It is not there. The principles are set out well before the Treaty of Rome in the founding documents and treaties. They set out the principles of the Single Market of 1953 and the way to currency union. They apparently did not even seem to analyse the first Community -- which defined both the Economic Community and Euratom.

The founding principles are well outlined in the Schuman Declaration, its democracy in the great Charter declaration, that the politicians still refuse to publish. It provides a clear outline of future developments including a Single Market, single economy and Single Currency based on enhanced democracy and justice.

The aims spelt out in the Schuman Declaration are to serve all Europeans and the world. They include raising employment, increasing innovation and building a stable European currency. Check it out!