The Real Story of The European Union
Executive Summary
- The EU is not what it appears to be.
- Private banking interests drive the EU to operate as it does.
Introduction
The EU was marketed as one thing that was supposed to improve the prosperity of a common market. However, in reality, it is a way for private banking interests of the large and more powerful countries to apply the British system to smaller countries.
The Strategy of the EU as Controlled by Private Banking Interests
The ECB is the central bank of the EU, and it is entirely controlled by the private central banks of European countries. Like the IMF and World Bank, the strategy is to entice countries into joining the EU, cut off their options (by taking over their money and their monetary policy and many other policy areas), and leave them only the option to borrow money.) This is a massive reduction in the sovereignty of the smaller EU member countries. This is explained in the following quotation.
“The European Union is made up of 28 countries. Nineteen of those countries have given up their currencies for the Euro. In essence, these nineteen countries have turned into states. This was the point, after all…to create “The United States of Europe.” However, in doing so, the countries gave up something important…they gave up their domestic fiscal policy independence. In 2012, the EU countries adopted a conservative fiscal spending treaty which put government budgets under the careful eye of the central government in Brussels. Even though the EU countries have a vote in the European Union Parliament and still control their own central banks, for all intents and purposes, these become subservient to the fiscal demands of several large countries in the EU. All countries in the EU admired the Deutsche Mark for its stability. In fact, before the Euro, the continent created the European Exchange Rate Mechanism (ERM) in which numerous currencies were essentially pegged to the value of the Deutsche Mark. So with the introduction of the Euro, Europe essentially adopted the Deutsche Mark as its currency. And with it, they adopted the fiscal policies of Germany. German policymakers have therefore written these conservative spending rules into the EU treaties by imploring each country to run a balanced budget.
Second, Germany also exports a significant percentage of its industrial output, so it wants the value of the Euro to remain relatively low. To keep the Euro low, Germany has to keep inflation low. And to keep inflation low, the government has to limit consumer demand. So even though German citizens earn higher than average salaries, the government subjects citizens to higher than average taxes and social security payments. This limits consumption and decreases the demand for imports. Germans, by their upbringing, view themselves as a rather frugal tribe. But this is not an accident. The German government imposes frugality on its citizens through its tax policies to limit consumer demand, keep inflation low, and exports high. Countries that rely on other industries besides manufacturing, like Italy and Greece, hate the Euro because they need more domestic spending to improve their economies. The fiscal spending restraints are suffocating them. The solution would be to allow the EU countries greater flexibility in budgeting. Rather than running balanced budgets, the EU could allow individual countries to run budget deficits of 5%-10% if they prove that inflation hasn’t increased materially.” – Contrahour
Source: Contrahour
Once the money is borrowed through the ECB, then the EU applies neoliberal austerity measures against that country. Steve Keen has stated that he believes the EU will eventually fall apart and that the earlier each country can get out of the EU, the better for those countries. The EU is completely undemocratic, as is covered in this video.
A major objective of the EU is to drive down labor wages by using workers from low-cost countries (hence the “free trade” model), as is explained in this video.
As is explained in this interview with a Spanish woman, the villages in Spain are just “emptying out,” Europe (by which she means the EU) is a ‘mafia” or loosely translated “big scam.” Alignment of the major media entities ensures that criticism of the EU is muted. A video like this is uncommon, particularly from an establishment media entity.