By Michael Skywood Clifford.
Is federal Europe being born? Or is the child going to miscarry? This is the point in history when the Euro child lives or dies.
If the adherents and advocates of European Union fail at this critical moment, having got so tantalisingly close to success, it will be written on history's wall that they screwed up BIG time. This project to turn Europe into a massive political union has succeeded on reaching the last few squares of the board; will it now slide down the massive snake of death because of the poor design of their currency? Enemies of this project say this is because of much delay and shilly-shallying in decision making. Napoleon – another pan European – made decisions fast and acted them out immediately and boldly, catching out the opposition by his speed of execution. You cannot say the same of Merkel.
There will be thousands of people in Europe who cannot not bear to let this project fail after all their life's work to make Europe the United States of Europe. In the UK we hear all the bad stuff about the EU and the Euro. Yet the Euro has many many countries and millions of people who thoroughly support it.
The British right say Europe's finances are opaque and a waste of taxpayers money and the British left think the EU is a gravy train of corruption. Remember the straight bananas? Remember the wine and butter mountains? Remember the UK shouting its complaints against the European Agricultural policy? Of course everything we hear is a part of some propaganda machine, usually Europe hating Murdoch's, so take due note. Perhaps these criticisms were justified but conversely people who live in Turkey and Ireland inform me of the big public projects that European money provided before the financial crash of 2008.
The advocates of Europe have only one defence to save their troubled unborn child. Their defence against rating agencies, market speculators and political enemies is that the Euro is, 'Too big to fail'. The Euro advocates are prepared to keep borrowing hundreds of billions to make sure that if it fails it will take the rest of the world's banks with it. This is insurance. Their strategy can also be seen as a defiant car-crash strategy without any map of the unchartered dangers of the road they are driving us all down. To save the Euro and political union, its engineers are playing the biggest poker game in the history of the world by gambling with the safety of the world.
The Germans spent over 1 Trillion Euros on the reunification of Germany – and money was worth more then – so why the delay? France and Germany were the great exponents and advocates of the Euro concept so why are those who started this now backing down when they see the restaurant bill? Or are they just playing a waiting game, preparing to enter melodramatically again at one minute to midnight.
By then, it may be too late, people may have lost confidence, and no matter how much money is thrown at backing the project, the speculators may not believe in the genuine credibility of the financial backing offered. This will lead to the rapid unpicking of more financial stitches.
Imagine what would happen if Greece dropped out of the Euro. There will be massive runs on banks throughout Europe. Many French banks will topple – and many other banks will crash all over the world. Lehman brothers, a mere company, caused horrific ripples around the financial world – but that event, in comparison, would be a flea compared with the failure of a country like Greece. And for Spain to go down unimaginable. I don't believe they will allow Greece to fail. If they do, then Europe is over. The child will die in the womb. If Greece drops out of the Euro the world would fall into catastrophe. The Great Depression of the Thirties will look like a tea party in comparison to what would take place.
If Greece dropped out of the Euro, then suddenly the real value of paper money will be thrown under the magnifying glass. We will suddenly see that at the heart of modern finance, the real problem is paper currency and Fractional Reserve Banking. The latter has been a recipe for making up money; it is corrupt and inflationary. There is no way these financial organisations could be trading in billions of Euros if it was all backed by a gold standard (not that I am suggesting a return to that). There isn't enough gold in the world! In fact, Gold doesn't mean very much to ordinary people when you consider it – you can't eat it, you can't live in it, you can't sleep in it, you can't drive it. It is a load of hooey (a American expression I like) to believe that gold will solve the currency crisis. It won't. If Europe crashes we will be in financial outer space in every respect.
But could the expectant womb offer something we don't expect? Could we get uneven twins?
Could Europe become a two tier economic system?