Political Power Grows Out of the Central Bank

Many people have observed the phenomenal level of social and political control that is exerted over the populace of the European Union by the nomenklatura in Brussels.

The mandarins of the EU are able enforce a uniformity of thought and behavior with an efficiency that Stalin could only have dreamed of. And, most importantly, this control is maintained without entering the awareness of the people who are being controlled.

It’s useful to consider how the EU accomplishes such a feat. Enormous power is wielded without the existence of a secret police force, or concentration camps, or the breaking down of dissidents’ doors at 3am.

If total control is not maintained through brute force, then how is it exerted?

I bring all this up because of a comment by copywriter on last night’s translation of an article about EP President Martin Schulz:

Baron, I object to your statement “the European Commission, after all, is where the power resides”

The EC has no power, all the power resides with the member states. If the memberstates say “no” than it will be “no” period, no matter what the EC wants or says.

The entire EU is nothing but a paper producing organisation. They have no income of their own and rely on handouts from the memberstates.

They have no army to enforce the law.

They have no popular support.

If the memberstates were to decide “enough is enough” and pull the plug the entire structure would come crashing down, and they know it. Look at their reactions on Brexit.

It’s time to see the EU for what it really is, a paper tiger.

Wet paper at best.

In response, I revised copywriter’s statement slightly to clarify the nature of power:

Stalin has no power, all the power resides with the Russian people. If the Russian people say “no” then it will be “no” period, no matter what Stalin wants or says.

The entire Soviet Union is nothing but a paper-producing organization. They have no income of their own and rely on the labor of the Russian people.

They have no popular support.

If the Russian people were to decide “enough is enough” and pull the plug the entire structure would come crashing down, and they know it.

It’s time to see the Soviet Union for what it really is, a paper tiger.

Wet paper at best.

The main place my analogy failed was at the statement (which I omitted): “They have no army to enforce the law.”

The USSR obviously had an army and the KGB to enforce Soviet “law”.

However, the EUSSR has something even better than an army: the European Central Bank. It keeps the peasants in line, makes them obedient slaves, but invisibly, unlike the army. You, the ordinary tovarishch of the EU, keep your eye on financial incentives and disincentives. By rearranging those carefully, the Politburo in Brussels can get you to do whatever it wants, without firing a shot, without any jackboots and Black Marias, without your even realizing that you are under complete control.

Power is all about perception. When people wake up and realize that the Emperor has no clothes, the Emperor’s power instantly disappears, and his orders are futile.

That’s what happened to the USSR. And it may happen to the EU, when people realize what the ECB is doing. Or — more likely — when the ECB fails, which it inevitably will.

The same may be said, of course, for the Fed and the good ol’ USA.

33 thoughts on “Political Power Grows Out of the Central Bank

  1. A lot of the problem comes when countries spend beyond their means, financing the deficit by loans or money juggling with the compliance of the German bankers.

    A country that spends within its income is far less susceptible to financial blackmail. The ideal situation for the EU bureaucrats is for everyone to subsidize everyone else, so no one has enough untaxed income to live on, and everyone depends on the rebates from the government. In that case, they are easily controlled by simply cutting off the rebates.

    And, by Public Choice theory, every bureaucratic organization will resort to this type of mechanism, if it can. This is the strongest basis for the objections to the TPP (Trans-Pacific Trade Partnership). The TPP sets up an independent tribunal to make decisions, bypassing the sovereign governments. Like the UN, this will inevitably lead to ongoing pressure to dissolve national sovereignty.

    • One of Hungary’s wise decision was to kick out the IMF and re-introduce its own independent central bank. Adjusted interest rates (down) and stopped inflation in the country. The central bank used to have billions of dollar worth of loss per year (as Leftist economists explained this was natural) pumping money out of the country. Now the central bank has a positive results billions in the positive… Since the country paid off a large portion of its debt (committed by the criminal post communist Socialist government). The Leftists economists now try to use personal attacks (as they got burned on the professional level) against György Matolcsy. Of course the Soros chorus also joined the attacks… It seems when Soros paid people criticize someone or something, you can be sure it is the right thing to do or the correct person to do it!

      • Soros holds joint Hungarian-American citizenship, does he not?

        I think the US, but certainly Hungary, should make joint citizenship illegal. Your loyalty is to one country or another. I think Soros would not like getting hemmed in like that. He might think twice about fouling his own nest if his getaway became more complex.

        Also, Soros makes his billions on international banking and currency exchange of government-manipulated currencies. It’s perfectly natural that he would support maximum involvement by national and international governments in banking loans, deficit spending and currency supports.

        If Soros were forced to choose a single country, the other country could make him and his officers persona non grata. It’s probably a dream, but a very pleasant thought nevertheless.

        • Second your proposal re joint citizenship, RonaldB. The French had the right idea, at least in theory; the Germans got it horribly wrong, especially with the Turks.

  2. With you all the way on that, Baron! The EU is certainly a malevolent, power-mad organization, insidious and devious.

    • and responsible for Ukraine and Syria. The creature called the “High Representative” is typical of this arrogant ignorant “elite”. She knows nothing, cares about nothing and simply demands or instructs. Twenty six nations must become Islamic and the inhabitants disappear into “Eurabia”. Very very dangerous people indeed.

  3. Most people in Britain have known this for some time. The Remainers used a lot of smoke and mirrors to paint us a “Little Englanders” stuck in some version of Britain around 1957. When the truth was, we saw the Emperor’s fat bum, wobbling while he strutted arrogantly through the halls of the EU. We giggled…then voted to leave.

    • You’re still in danger,Ellie. The British politicians have many way to sabotage the Brexit vote.

      They can simply dawdle for years, never really making a firm move.

      They can elect for associate status, paying the dues and fees, and binding themselves by EU rules, including open borders. This is most likely what Vanessa May will try to do. It involves minimal work on the part of the government, and pretty much keeps things as they are. It also keeps the socialists and communists plugged into the EU international government.

      The honorable thing would be to make a clean break of it, throw out the EU regulations, stop paying all fees, and make all trading and currency agreements bilateral treaties between countries. I think you could stuff into a closet all the people who would expect the British government to act honorably. Most of the British wounds are self-inflicted: the gigantic welfare state, the huge population of Muslims and the velvet-glove treatment of vicious Pakistani Muslim rape gangs.

      • “Vanessa May (Mae)?” Didn’t know Theresa played the violin.

        Have to disagree about the welfare state; now I’m 68, I live off what I paid in when working, and get health care and travel in London for free. My small private pension pays for treats like holidays abroad.

        • Lol.

          That’s what you get when you take a short-cut and go by memory. But then again, any mention of Vanessa Mae makes me drool, so the slip might be worthwhile.

          I don’t remember mentioning a welfare state one way or another. Viewing your involuntary payments into the social system as an insurance is not quite like the welfare state.

          The big problem of the welfare state is it becomes a means of transferring resources from the productive people to the non-productive people. The productive people have fewer children than they would otherwise, and the non-productive people have more children.

          I would rigidly separate the insurance part of the welfare state from the charity, and require the charity recipients to not have children while receiving charity, on pain of having their aid withdrawn.

  4. Jackson understood it, and killed the central bank beholden to foreigners, and many people in colonial times did too. Lincoln understood it, and waged the civil war without going into debt to foreign bankers. The sneak Wilson betrayed America.

    • yeah, while we were celebrating the Christmas season, Ho, Ho, Ho. Gee willikers Mr. Wilson, merry Christmas?

  5. [M]artin schultz,

    This tw[i]t, ugly jockey face,
    I cant wait till i read about his capture and trial […].

    This fat phoney is a satanic evil communist murderer.

    He is complicit in the murder, rape of millions of white native westerners,

    He must [be] arrested immediately.

    He is the “ace of spades” in the list of the 52 most wanted European traitors and mass murderers.

    We need to arrest this nazi schultz.

  6. Queen of clubs

    Angela merkel, in the list of the 52 most wanted killers of white peoples.

    Merkel is the: Queen of Clubs

  7. The same may be said, of course, for the Fed and the good ol’ USA.

    After the USSR collapsed, there were on-going controveries as to how much of that implosion was due to its own policies, how much to being goaded by the US:


    And the West paid long-term for our arming of the mujahadeen in Afghanistan back then. We will continue to pay unless the policies/language from Washington changes. Europe is stuck with America’s spineless and idiotic foreign policy. Make that Obama’s f.p.

    Trump is making noises about the Fed, but I haven’t actually looked at his policy statements. He’s made it very plain that he’s appalled about our level of debt.

  8. One has to realise, that the EU developed from the oeconomic part of the NATO.
    And with the exception of so called neutral countries (Austria and Sweden) every EU-member first joined the NATO before joining the EU.

    Or look at the planned accession of Turkey to the EU.
    It was President Clinton that called upon European politicians by a meeting in Washington to start the accession-process with the long time NATO-member Turkey.
    Because at first the EU and many national governments opposed that idea.
    Could you fe. imagine that the Europeans tell the US that it has to join up with Mexico?

    So the real power you will not find in the official EU-Commission or in the EU-Parlament.
    They are just an executive element, the puppets on strings.
    The masters you will find in organisations like Goldman Sachs, Spinelli Group, Bilderberger, Trilateral Commission, European Round Table…
    Or by George Soros, the Albright Group etc. pp.
    You will also find it in the OIC, the Arab League or in the Center for Strategic and International Studies (https://en.wikipedia.org/wiki/The_Grand_Chessboard).
    Sometimes those players have common interests, sometimes they oppose each other.
    But even if their motives may differ, for Europe it means the same result – Islamisation.

    • The EU will fall when those masters behind the curtain don`t need it any more (fe. because mass-migration or the sell out of Europe to foreign state funds has allready done its work), or if the lost their trust in it.
      There are some signs (like the Brexit) that this could be the case by some of them.
      But anyway, their destructive work still goes on in the greater part of Europe.

    • This illustrates the problem of organizations that are too large: they lose any internal controls, and are susceptible to takeover by people whose main talent is…taking over large organizations.

      They also provide a very effective leveraging mechanism for special interest groups: the Islamist Saudi aristocracy, Muslim Brotherhood, or Soros communists. By investing a few hundred million dollars in likely political leaders over time, they achieve complete but not-very-well-understood penetration of the target governments and mega-governments.

      I have made it a personal policy to not speculate on motives, since the actions of these malevolent groups are perfectly predictable, and speculation on their motivations is distracting and unnecessary. Nevertheless, my own speculation is that these people are intelligent, but extremely ignorant of anything outside their own agenda. They have no idea of the heritability of human characteristics, including intelligence and sociopathy, and furthermore, don’t care.

      They have a strong drive to power, however. They’re not going to leave a situation alone. They’ll inject themselves into it, even if it takes them a lifetime to do so.

      They have to be taken into account whenever a global organization is created or given power. They have taken over the EU and UN, and the many malevolent UN organizations, like the High Commission for Refugees. The upcoming TPP trade treaty, with its decision-making powers independent of national governments, is ready-made for this type of personality.

      The framers of the US Constitution were well aware of this type of personality, and tried to structure a government of checks and balances, where nobody in authority could do too much harm. Even an ardent power-grabber like Abraham Lincoln had to wait until the Confederacy committed the lunacy of attacking a federal installation, before he could launch his war of conquest.

      Now, with the secret budgets and dark ops of the CIA and related agencies, a US President pretty much has authority to conduct wars with minimum accountability.

      It’s much easier to not create mega-organizations that will eventually oppress you, than it is to take back power from them.

  9. On a related topic I bought the new release Armageddon produced by Mike Norris and supported by Alex Jones on Infowars. The movie shows that the globalist are doing the same thing in the United States. When the time comes and the elite try to take the guns the you know what will hit the fan. Trump 2016!!!!!!!

  10. Baron, I must object again. The EU Central Bank is not that powerful as you make it out to be.
    The EU economy is rather small compared to larger economies elswhere in the world, like US, Japanese and Chinese.
    Whatever the EU Central Bank decides they must carefully consider the impact of their decisions on the much more powerfull economies in the world around them and what’s more important the impact they have on them!!! Their room to manoeuvre and powers are very limited.
    Like all other EU structures the Central Bank is an emperor without clothes.

    Herein lies the difference between the USSR and the EU. The EU is an open society with a free flow of goods, money and people between its countries and the rest of the world. Its economy is not isolated from the rest of the world as was the USSR’s

    Second, I must object to your statement;
    “The mandarins of the EU are able enforce a uniformity of thought and behavior with an efficiency that Stalin could only have dreamed of. And, most importantly, this control is maintained without entering the awareness of the people who are being controlled.”

    This is totaly untrue. Never before in my lifetime have I experienced so much dissent and discontent in Europe as today. You can take my word for it, I live in Europe (Dutch) and I’m in the thick of it.
    I’m retired and I have plenty time to read and read I do.
    In my daily scan of news articles and blogs across Europe I’m noticing more comments akin to calls for revolution than ever before. The pot is slowly coming to a boil.
    “uniformity of thought” may exist amongst the elite (and there only up to a point) but among the population at large it is non-existent.
    What outsiders don’t realize is Europe has such an an incredible variety of peoples and cultures, traditions that are rooted for thousands of years, it’s next to impossible to get all the noses pointing in one direction.
    A United States of Europe will never happen unless enforced by a full-blown war.
    But the EU has no army and the armies of its member states are rather dilapidated so war is not very likely.
    And thus we muddle along.

    • copywriter,

      Could you please explain how the EU was able to force the resignation of the Italian Prime Minister Berlusconi when he displeased them?

      • Mob tactics. They simply started to lean on him. Threatening him with financial ruin of his broadcasting empire.

    • OK, you tell me where the power comes from in the European Union, then. If it doesn’t grow from the barrel of a gun, and it doesn’t grow from the Central Bank, where, then, does it come from?

      It doesn’t come from the voters, that’s for certain. Because no matter who they vote for, they get more immigrants, which they most emphatically don’t want.

      As for dissidents — Yes, there is plenty of ferment. People are angry. But anyone — and I mean ANYONE — who becomes a prominent voice of dissent, who sticks his head up above the common ruck, who gets noticed, is squashed like a bug. People are being arrested, tried, convicted, and fined for expressing anti-immigrant sentiments. Geert Wilders is about to go on trial in the Netherlands.

      And even without being arrested, people are being squashed. People lose their jobs for having “racist” political opinions. In the UK, Sweden, and Germany, their children can be taken away from them. The Powers That Be can ruin your life. I know quite a few people personally who have experienced this fate.

      At bottom, the process of ruining people’s lives is mainly a financial one. You lose your career, you can’t afford your digs anymore, you can’t have a car. The life you have known is taken away from you.

      It’s not the Central Bank that does all this, obviously. But the fiscal policies that allow all this to go on are set at the top, and trickle down to the peons. Control via money begins at the level of the Central Banks, which are the primary engine of the New World Order.

      The fiscal managers at that level are the power behind the politicians. The policies they demand must be implemented by those politicians, or they will be removed and replaced by others.

      One of those policies is that there must be no impeding mass Third World immigration into the West. Politicians are obliged to implement that policy at all costs, no matter what the people who vote for them want. If they don’t, they are removed and replaced with someone compliant.

      Donald Trump is the little dog who pulled back the curtain to reveal a man standing there pulling all the levers. Now we’re at the stage where the booming voice is frantically shouting “Pay no attention to that man behind the curtain!”

      As for what comes next, I can’t say. All I know is that Donald Trump is opposed by the entire political establishment, both domestic and international. They’ve told Americans they’re not allowed to vote for him, but Americans — ornery, as always — appear to be planning to do so anyway.

      The Bush family — the most recent scion of which was Satan Himself in the eyes of the Democrat Party — is out there stumping for Hillary now. Doesn’t that tell you something?

      When the Bushes and the Clintons coalesce into a single oligarchic entity, you know we’re living in apocalyptic times.

      No, I can’t agree with you. The things you describe are all theater, and do not affect the substance of power in the West, which is fiscal. Real power grows from the fiat money system. That’s the means by which control is exerted.

      • The real power in this world goes way above the Central Banks.
        Ever heard of the Rothchilds?
        Start from there and work your way down.

    • This concerns the proposal to create an EU military force not constrained by NATO approval.

      This, of course, will be a major step to totalitarian control of Europe, the enforcement mechanism on dissident countries like Hungary. It could also trigger a major war with Russia, if Russia sees an aggressive, international military headed by Germany, on the borders of Russia.

  11. Interesting sculpture outside (I presume) the European Central Bank. It has a certain 1930’s look about it. If you replace the euro “E” with a swastika it could have been something Albert Speer had commissioned to decorate Berlin.

    • It’s the statue ‘Europe’ by May Claerhout, next to the European Parliament in Brussels. I call the style “Eurofascist”. It’s widespread in Brussels. Very creepy stuff.

  12. According to latest reports the EU is trying to organise their own Army (Oh, Sorry – they call it “Defense Force”) and their Foreign Policy Defence Chief, one Frederica Mogherini met with other EU countries on Sept. 16 to discuss this very matter. Top of the tree were Germany and France. According to Article 44 of the Lisbon Treaty if there are some EU countries who DON’T agree to an EU Army, that is too bad, if the MAJOR PLAYERS DO!
    So now they are putting forward plans swiftly to get their own Army. Co-incidentally, this policy was well in hand but UNRELEASED until the day AFTER the Brexit vote!
    I wonder why!!! Any commenters with any further information?

    • Hmmm.

      Seems like any country wanting to exit the EU should do so, and stabilize its diplomatic situation while the getting is good.

      Once the EU develops its own military capability, it will be easy enough to pay off local dissidents of any country wanting to exit, so as to create a conflict situation requiring “intervention to preserve order”.

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