Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast - Video - 28th Mar 20
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do - 28th Mar 20
One of the Biggest Stock Market Short Covering Rallies in History May Be Imminent - 28th Mar 20
The Fed, the Coronavirus and Investing - 28th Mar 20
Women’s Fashion Trends in the UK this 2020 - 28th Mar 20
The Last Minsky Financial Snowflake Has Fallen – What Now? - 28th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

Why The Nobel Peace Prize For The EU Is Flawed

Politics / Euro-Zone Oct 17, 2012 - 03:51 AM GMT

By: Raul_I_Meijer

Politics Best Financial Markets Analysis Article

While everybody was asleep in a grandiose globalization and unification dream, a dream whose benefits and desirability were - and still are - hardly ever questioned if at all, separate languages and cultures simply remained what they were: separate. Now that globalization starts to show its dark and ugly flipside of economic depression, a repeal of many unifications and a split-up of larger entities, created for economic and political reasons only, into their smaller components, is inevitable.


Unfortunately, the architects who designed and built the larger entities are still in power. And they - which is probably also inevitable - go for double or nothing. That is a real and present danger for Europe, where Europeanization or even Germanification are the prescription du jour for the poor southern Club Med countries and everyone else, but the ultimate diagnosis will be the Club-medification (or Club-medication?!) of the people in the richer north. And that will lead to trouble. Lots of it.

The idea behind the EU, which can be summarized as peace and cooperation in Europe, was good in essence, and it worked for a pretty long time too, though how much of that was due to strong economic growth all over deserves more attention than it gets. The problem with the EU is the ever stronger centralization push that has developed from the much simpler roots that got the project started in the 1950s. The eurocrisis reinforces this push, which at the same time clashes with its direct opposite: a desire for decentralization on the ground.

And there lies the key to why the Nobel Peace Prize for the EU is so cynically wrong. If the EU keeps on pushing for more centralized powers to be put in its own hands, powers that will need to be taken away from member countries, it will not be a force for peace, but for fighting in the streets and other kinds of conflict and dissension. Not exactly Alfred Nobel's intention for his Peace Prize.

Then again, I think it's fair to say that the EU itself, the original idea, is not the main issue; it's with the introduction of the euro that things went really awry, and especially with the lack of preparation that was put in. We can safely say that was the moment megalomania took over.

Also, the eurozone is not some inevitable development flowing out of the EU ideal of cooperation. The EU could, and still can, exist either without a currency union or with a - much - smaller one. Countries like Britain, Sweden and the Czech Republic are appreciated and appreciative members of the EU who have their own currencies. And there is no reason why for instance Greece and Spain could not be in the same position. They would have to make the move back to their own currencies, but if that would help solve both their problems and those of the other eurozone countries, it warrants at least a thorough discussion.

Still, the EU wants no part of such discussions. The first reason for this may still come from the financial world. A move from the euro to a drachma or peseta would be doable only through some sort of sovereign default. And that would trigger credit events and force the pay out of derivative contracts, potentially to the tune of trillions of dollars. These contracts, however, are primarily held by financial institutions, so why should the people pay? These debts too can be restructured, and will, there's no other solution.

What's happening now is that the EU risks scaring away Britain, Sweden, Denmark, none of whom have any desire to lose their political powers to Brussels, even less than the rest. In other words, Brussels is not a unifying force anymore, but a divisive one. If it is allowed to stay on the current track, it will blow up the eurozone first and the EU itself shortly after.

The second reason for the EUs stubborn refusal to even discuss letting member countries leave the eurozone lies squarely in the bureaucracy. The centralization meme is so strong in Brussels any contradictory voices are ostracized. That is true too for politicians in power in membership states.

If anything exemplifies this, it must be that a "new" European Master Plan, an obviously purely political design, was introduced by German Finance Minister Wolfgang Schäuble (Schaeuble) this week. The boundaries between powers and responsibilities have faded to the point where measures that will have far-reaching consequences for the level of democratic decision making in 17, if not 27, very different countries are pushed by a finance minister. Certainly something to ponder.

The EU is controlled by a large and opaque bureaucratic class, not unlike those in China and the USSR. A difference is that it’s democratically elected in name, but that doesn't mean much: nobody votes (in a lovely ironic twist, the only time voters do turn up is for saying no to for instance a European constitution). Besides, most of the important posts in Brussels, Strasbourg, Frankfurt, are held by non-elected people. So much for promoting democracy.

Another difference with other bureaucracies is that nobody seems to know who exactly leads the EU, so accountability is impossible to assign. Who knows what exactly are the differences in responsibilities between Mario Barroso and Herman van Rompuy, just to name an example? Do they themselves even know? The real power lies with the European Commission (EC), but who truly knows what that even is, or who's part of it? Politburo, anyone? And we're not even talking yet about what and where the ECB is in all this, which has all but openly admitted it has political goals.

If the bureaucracy gets it way, people all over Europe will one day soon wake up to find themselves substantially impoverished AND with much of the political and economic powers over their destinies transferred to Brussels. How do you think that will play out?

What's certain is that we will see a lot more of things like the Spanish army threatening to crush the "vultures" of the Catalan independence movement. That's something the EU could play a positive role in, making sure it's understood those kinds of threats are not acceptable. But that's not happening. They have a Spanish government in place that's on their side, and that's all they're interested in.

It’s not a bad thing for a people to want their own country with its own frontiers, and with the final say in their own affairs, economically, politically, culturally. This right to self-determination is embedded in international law through the UN for good reasons. Why, then, the resistance to let even Greece become "independent", let alone Catalunya, Scotland, Flanders?

The opaque and - to put it mildly - not so democratic leadership follows two one-dimensional dreams, and anyone who gets in the way is swept aside.

They hope that they can keep the eurozone together, with every European's money, credit events can be prevented, and their grand dreams of one Europe can be fulfilled. This by now resembles a giant everything-on-red gamble far more than it does a mere dream. And gambling does not policy make.

There are millions of people in Europe who don't want to be governed by other countries, other cultures, other languages than their own. These sentiments will be strengthened going forward by deteriorating economic conditions, a deterioration guaranteed to evolve precisely because trillions of euros are spent to keep the eurozone together at all costs.

People are certain to rise up against these developments, and violently too, which makes the EU, and those who represent it these days, resemble war-mongers instead of peace-makers. Someone better stop this soon, or the genie will be out of the bottle and not be put back in for decades. The EU leadership in its blind race for increasing power will help all sorts of extreme politicians into their respective saddles, and they won't be able to bully all of them, let alone the people who vote for them, into submission.

Peace prize my ... The EU could have been, and probably was for a while, a beneficial institution. Unfortunately it has grown into a bloated, blind, colossal and very dangerous failure. Unless there's a mass wake-up call, and soon, dark days are ahead.

By Raul Ilargi Meijer
Website: http://theautomaticearth.com (provides unique analysis of economics, finance, politics and social dynamics in the context of Complexity Theory)

© 2012 Copyright Raul I Meijer - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules