The following horror story concerns the impending financial catastrophe in the Eurozone, as arranged by unaccountable bureaucrats for the purposes of engineering the final dissolution of the European nation-state. If you think the little minuet between the Fed and the U.S. Treasury is bad, check out the frantic tarantella now being performed by the ECB and the brand new ESM.
Many thanks to JLH for the translation. The translator includes this note:
This reminds me of Nancy Pelosi saying, “We have to pass it to know what is in it.”
If the Germans are rushed into this, the sky is the limit and the plundering of Europe by its self-appointed elites will begin in earnest.
The translated article from Junge Freiheit:
For all Bundestag representatives and citizens who have still not read the draft treaty for the ESM (European Stabilization Mechanism — the Umbrella), here is a swift summary of the arguments against the enabling law.
by Michael Paulwitz
1. The ESM institutionalizes the breaking of the treaty, intends to eliminate economic laws with floods of billions and is making permanent the politically rubber-stamped dragging-out of the bankruptcy of the failed protective shield.
2. The ESM cements the transfer and debt union and introduces Europe collective bond issues by the back door. Article 21: The ESM can sponsor borrowing “in fulfillment of its tasks,” i.e., financing overextended countries and their banks at the cost of the more solvent ones. The German-French window-dressing argument about Euro bonds is only distraction. The fact is…
3. The ESM removes the ban on central bank financing of national debts — a ban already as full of holes as a Swiss cheese because of the tender of trillions and the buying of bonds by the ECB (European Central Bank). The ESM will become a shadow central bank which is allowed to do everything still formally forbidden to the ECB. The ECB is degraded to a money-printing machine. Reason:
4. The ESM can operate as a supra-national bank. It can make loans to Euro countries (Article 16), subscribe to bonds of Euro countries (Article 17), deal with national bonds (Article 18), re-capitalize banks (Article 15), set up lines of credit for Euro countries (Article 14), establish interest rates (Article 20) and issue Eurobonds (Article 21). The bank license France and Italy intend to issue it would be the icing on the cake. Then — using high yield bonds as “security” — the ESM could supply itself directly and without limit with money from the ECB, to buy bonds and turn them in as security… a never-ending loop. Alternatively:
5. The ESM is a mega “bad bank” and super hedge fund rolled into one. It can buy national bonds that no one else wants; extend non-performing loans to countries no one wants to loan to anymore; like a gamer, use “leverage” to quadruple lending volume. And:
6. The ESM can increase its capital itself, anytime. In fact — Article 10 — by decision of the “governing council.” So Euro finance minister, Wolfgang Schäuble’s reassurance that German liability risk is covered is just a lie. He can simply be outvoted. The Bundestag can only say yes and amen. For,
7. The ESM annuls parliamentary budget law with a keystroke. If the “governors” decide that they need money, the states must pay inside of seven days. If one of them fails, the others must compensate. In the end, Germany is the last resort paymaster. When the bill comes due, it will already be too late:
8. The ESM has no clauses for dissolution or withdrawal. For better or worse, we, our children and our children’s children are guaranteeing the debts of others. The carousel will keep on turning until Germany too is broke. Judicial review is off the table:
9. The ESM is above statute and law. State norms, rules of overview and control do not apply to it now or in the future. It is released from the obligations of regulation and licensing for credit institutions (Article 32). No court can arraign or impound it . But it has the right to take legal action against all or any. Not even heads of state enjoy such a privilege. No wonder Schäuble wants to stay on when he was scheduled to become head of the “Euro Group.” The reason:
10. The ESM is becoming a self-service store — not only for insolvent nations but for its own “governors” and staff. They set their own stipends — secretly, of course; they are exempt from national taxes and fees (Article 36) and have immunity from legal prosecution (Article 35), even if they willfully gamble monies away. Fact:
11. The ESM secret cabinet is a putsch against sharing of powers and the sovereignty of peoples. To avoid plebiscites, the ban on collective debt (“no bailout”) in Article 125 is canceled in a “simplified treaty alteration procedure” by means of an “amendment” to Article 136 of the Lisbon Treaty. Result:
12. The ESM stands the legal basis of the EU on its head and contravenes constitutional law and the decision of the federal constitutional court of September, 2011. The ESM law transfers national authority in unprecedented measure to an uncontrollable European mega institution. This self-castration of the parliament can never be legitimately decided without asking the people whether it agrees to the dismantling of its national state.
Photo caption: Storm over Germany: The ESM is doing away with Germany
Update: I’ve made the correction suggested by K in the comments, and another one sent by the translator.