Bankrupting the System To Save It?
by Jonathan Goodwin
DB: Is Brussels backing away from austerity? …We are being informed that a decision may have been made by the Brussels crowd to monetize their dilemma. When in doubt ... print.
BM: This is quite interesting, and has given me reason to revisit some of my thoughts on this subject of Europe and the Euro. Start with the premise that for the elites, control is the most important objective….
I believe it is safe to assume that the elite knew in 1914 (with all major currencies leaning more on central banking than on gold), or in 1945 (with the doomed-to-fail Bretton Woods agreement), or 1971 (when Nixon said no mas)…that the current system would not last forever. However, it was certainly a system designed to skim wealth from the middle class – something that was done quite effectively for a century.
The elite have used this time to consolidate – the USSR, the UN, NATO, the World Bank, the IMF, and the EU; all steps toward consolidation. They have since seen setbacks – the USSR, Yugoslavia, Czechoslovakia: all decentralized. And now, visible to a minority of the masses but likely understood by the elite decades ago, the loss of the USD-based global money system. Oh well, that chapter is closed….
In the meantime, the elite have had plenty of time to do the skimming and to consolidate wealth in real stuff – physical assets, productive businesses, and gold.
So, back to Europe. The technocrats have tried so-called austerity (save the banks on the backs of the people). They find that the people aren’t going along – and that continuation of this path will result in the loss of legitimacy for regulatory democracy in the people’s eyes. Now the technocrats will try inflation. This will buy some time, but eventually cannot work either.
Note that I say “technocrats.” Is it possible that the elite are now sitting back, biding their time? They know there is no hope to save the current system in the manners in which the technocrats have been taught over the decades to believe. The elite also know the technocrats will do everything they can to preserve and build on the status quo. All of this might be just fine for the elites, as long as one very important tool for control is not lost.
So what’s next? So-called austerity hasn’t worked. Inflation won’t work. I keep in mind, for the elite control is the most important – control is best exercised through regulatory democracy. The worst thing that can happen to the elite is for the people to lose faith in this system – a system designed to sheer the sheep with the sheep’s blessing. Regulatory democracy is the best thing going for the elites to work through in exercising control.
The only way this will be possible is through sovereign default, I believe. The people will cheer – “our government stuck it to the rapacious banksters. Praise be to the state.” In no time, the elite will ensure that lending to the state begins anew – the best creditor is one with no debt, after all.
Sure, many banks will go belly up. But this seems to be the only path for the elite to maintain control (I don’t believe worldwide coercion will work). They cannot allow a situation where the people lose faith in government as currently constituted. The elite have their financial assets in safe places – real assets, gold, productive businesses.
The most important asset is regulatory democracy – this cannot be lost. Sovereign default can ensure the same game can be continued.
Link:
http://lewrockwell.com/goodwin/goodwin27.1.html
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