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The Alliance for Democracy Demands an Alternative to the Euro

A certain head of government once said: “If the euro fails, so does Europe.” Chancellor Angela Merkel repeated this slogan in a speech before the Bundestag on 19 May 2010. Experts examined this claim and found it was true to an extent. Even critics of the chancellor’s euro policy share this view. And it is not surprising, because the “euro” is a political as wells as historical and social experiment. What is left out of the official reports is the economic part, because the euro has helped to catapult the debt of all Eurozone countries to unprecedented levels.
So, when Mrs. Merkel says Europe’s wellbeing depends on the euro, that is so because she made it so, although she must have been aware that it could not be so.
After the failed bailout, Merkel’s slogan is an empty phrase and is all that is left of the political idea of a single currency. Angela Merkel and her eurocrats would not be who they are if they had not clung to the euro without alternatives until it was on the brink of collapse.
The idea of the euro as the only alternative was also Angela Merkel’s idea, or rather that of her pen pushers, PR and marketing strategists, because without them success in politics is no longer possible.
Merkel believes there is no alternative and says it with such conviction, as though she had everything under control. On closer examination, however, her words seem pessimistic and confused.
Merkel’s slogan is based on the reality that Europe must be saved. There are few reports in the press about this. The national budgets of all EC countries were already in bad shape without the euro, even before euro was established in the early 1990s.
Up to this point, exchange rates within the EC offset the economic differences, although each EC country operated independently with highly indebted budgets. Instead of reforming, the decline of the currency has been concealed (even the German mark lost a quarter of its value between 1949 and 1999 when the euro was introduced).
All EC countries, at least in political circles, were united in this. The notion that it was crazy to oppose the co-optation of the currencies was based on political hubris and the fear that people might see that Europe and national politicians failed in the fight to reduce budget deficits. No one wanted to risk an audit of their country’s finances. No one wanted to risk the loss of power or face.
Unfunded budgets were the dilemma in all European countries. Norway might have been the only exception, where it could be said that some countries are better off than others.
Those most in need of improving their public finances were those that most approved of the common currency and associated monetary reform, which was concealed from the people. Short-sighted and politically inadequate, they briefly benefited from the declining debt and were naïve enough to believe that national budgets would be rescued. Exorbitant spending, election-year giveaways, political gimmicks, with no capital to cover any of it, soon increased expenditures and the state coffers ran dry.
As this “European Community” brochure shows, the euro was being trumpeted. Then came the lies. In an interview with the Frankfurter Allgemeine Zeitung in 2010, German Finance Wolfgang Schäuble said the bailout (then called the EFSF) was not permanent. Then, on 21 March 2011, EU finance ministers approved the cornerstone of the permanent bailout system, the ESM. (ultimately, the capital base was €700 billion, of which €80 billion were direct contributions and the rest credit). On 2 February 2012, the treaty to introduce the ESM was signed, and the euro countries ratified it by the end of 2012, although this meant that the parliamentary representatives were left on the side lines (and taxpayers would continue to pay dearly for this).
By the end of March 2014, the legality of linking the introduction of the ESM/Fiscal Compact with the disempowerment of parliamentarians was being disputed in the high courts of the different countries – the law of the debt union ultimately declared that the ESM was legal, even though it was not. It is a question of time before these lies and/or bad decisions will be exposed.
This was followed by further lies and violations of the law.
Former ECB President Jean-Claude Trichet claimed in August 2011: “The notion that we in Europe have a liquidity problem is completely false.” It is hardly possible to confirm this remark, since no official figures on the economy had been published since 2006. These figures came out on 23 April 2014, and revealed how the budgets of the euro-zone countries were so doctored that payments from the balance sheet were used to conceal budget deficits, as the Alliance for Democracy reported.
The ECB also tried to preserve the euro. In 2011, it bought up billions in debt instruments, thereby squeezing the yields of the countries that were on the brink of a crash, such as Greece, Spain or Italy, even though current ECB president Mario Draghi said of his home country on 15 February 2011: “Italy is not a risk country.” He must have known, however, that the Italian national budget was as bankrupt as the other Euro countries. Chancellor Merkel glossed over this forbidden approach of the central bank, which could not afford any direct state financing, but did so in this case, saying: “We cannot artificially lower interest rates.“ The chancellor would like to exploit the logic of this statement, if it has any; The Alliance for Democracy has only one word for it: a lie.
In the dispute over Greece’s exit from the debt union, after all political tricks, violations of the law, lies, and abuses of power, Merkel’s statement about the failure of the euro must be amended to be: “If Greece fails, then so do the euro and Europe.”
Even if Merkel did not make this statement, it is dangerous because it shows how politicians, who feel threatened by changes in the Eurozone and have always reacted with lies, violations of the law and aggression, are driven to despotism, which they have practiced on the constitutions, and which has led to the current debt union. The sovereignty of the states must remain untouched, otherwise, the last barrier of community life together for Europeans, which is protected by law, will be shattered by political obstinacy. The European treaties are designed so that every country decides for itself whether it wants to stay in the euro or not. To forbid Greece from leaving the euro would be the latest flagrant violation of the law; it would neither be democratic or legal and would expose the European dictatorship to the world.
Several laws have been broken under the pretext of saving the euro, while the real objective has been to preserve political power. Economically, however, nothing has changed in the Eurozone countries. Debt is rising along with unemployment, poverty and the number of youth with no job training, because there are no offers. Forbidding the Greeks from leaving the euro also shows how bad things are in Europe, how caught up it is in the web of political lies and the greed of big business.
Therefore, instead of forbidding the Greeks from leaving the euro, an alternative to the euro must be created at long last. This must be associated with reforms and a changes in government.
The Alliance for Democracy calls for the full criminal prosecution of those who drove Germany into bankruptcy and had the audacity to conceal this from the people. Instead of initiating reforms, they hatched more and more schemes to enrich themselves on the income and earnings of German citizens, who continue to be in a losing position.
Aid programmes are useless. No more bailout plans on the basis of credit. Only voting politicians out of office, withdrawal from the euro and new ideas will help Europe. If political leaders continue with their plan to rescue the euro and continue to be puppets of big business, the end of the euro is nigh.
Europe will not perish. Historians will have to determine how a crisis that lasted 15 years came about. They will explain how stupid it was for politicians to stick to this idea – how inexplicable this all was, and how it damaged democracy, the rule of law, the economy and government, the people and society as a whole.
Nevertheless, there are opinion-makers who think the decline of the euro is only temporary. They even think we need the euro. It is incomprehensible how the press can give credence so such views. It is a question of time before even the lobbyists are overrun by the lies, which will perhaps change their minds, like the chancellor changed hers. The law follows the politicians. The press follows the politicians. Someday, the people will stop following any of them.
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