Germany’s Chancellor Merkel Pushes for a Eurozone Banktatorship – Published on Global Research.ca, by Mike Whitney, September 5, 2011.
… What Merkel and Co. want to do is turn the system on its head and transform the EFSF into a permanent off-balance sheet SPV (Special Purpose Vehicle) authorised to distribute public money to failing banks. And it’s all being done to keep their sketchy banker friends from losing money. So, behind all the baloney about “fiscal unity” and “consolidation of state finances”, lurks the ugly truth that the eurozone is a two-tiered system whose financial architecture is identical to Enron. There’s nothing democratic about a system that rewards profligate elites while shunting the losses off onto workers. That’s just plain old kleptocracy.
The German Chancellor is joined in her struggle by colleagues at the ECB and the IMF. In fact, newly-appointed IMF chief, Christine Lagarde, is leading the charge for Euro-TARP, which may explain why she was rushed through the nomination process after Dominique Strauss Kahn stepped down pending his investigation on rape charges in New York.
In any event, Madame Lagarde has already shown that she’s more than willing to do whatever heavy-lifting is required to achieve her objectives and to accommodate her wealthy constituents. Here’s how The Guardian summed up Lagarde’s impressive resume:
“Christine Lagarde stands for protecting big banks…..she’s the most pro-bank bailout of the lot.” (”IMF under growing pressure to appoint non-European head”, The Guardian)
Indeed. So, Lagarde has thrown her weight behind the bank bailouts, er, “bank recapitalization”. Also she is a staunch advocate of “institutionalizing a European economic government”, which means that she wants to establish a regime that is controlled by bankers and bondholders; Banktopia. At the same time, she insists that this new governing body have the power to intervene in the budgetary process of the eurozone sovereigns to “maintain our efforts to expand the scope of economic surveillance to include government deficits and public as well as private-sector debt, if necessary by imposing “political penalties”.
Right. So, this new trans-EU government will be able to “crack the whip” on errant states that pass budgets that serve the interests of their people rather than those big capital. Meanwhile, Lagarde’s EU Superstate will continue to impose the same policies it has since the onset of the financial crisis; large-scale privatization of state assets and services, and belt-tightening programs that keep the economy in a permanent state of Depression. Is this what’s in store for the Eurozone?
Keep in mind, the banks are already getting bailed out through the ECB’s bond purchasing program that keeps bond prices artificially high and averts a sovereign default. The fact that Lagarde is aggressively pushing for direct injections of capital, suggests that the condition of the banks is far worse than anyone had figured, which is why–according to the Wall Street Journal–”She suggested that the EU’s existing sovereign bailout fund (ESFS) could be used for this purpose.” It’s a classic case of “bait and switch”.
German parliamentarians have a chance to put an end to this nonsense once and for all. By blocking Merkel, the Bundestag can ensure that the eurozone’s working people will not be ripped off for hundreds of billions of dollars or subjected to the autocratic rule of parasidic banksters . Let the banks pay their own bills.