Friday, November 18, 2011

- The Progressive Petri Dish

The collapse of the Euro currency is an interesting look into the Petri dish that is the progressive agenda. In Europe we have an ‘enlightened’ elite dominated by Ivy league technocrats (or their European equivalent), who are trying their level best to consolidate and centralize power so that they can then do ‘what is best’ for the plebs they rule over. And like our progressives here, the only thing standing in the way is a troublesome little detail called the rule of law. In our case it’s the US constitution, but in their case the Lisbon Treaty which defined the Euro currency.

These European technocrats are struggling desperately to free themselves from this archaic constraint on their actions. In short, they’re trying to find a way for the European Central Bank to be allowed to buy the debt issued by the member governments. But in order to approve the treaty of Lisbon, the European people needed to authorize it through their various national democratic processes. And the only way it managed to receive popular support was if the ECB was specifically prevented from doing that very thing.

The Plebs you see, rightly believe that if the ECB were allowed to do this, it would set up perverse incentives for the various national treasuries to be mismanaged, and the costs passed on to those member states who weren’t mismanaging their treasuries. They were also afraid that this would inevitably result in inflation, and the erosion of national sovereignty.

Now comes the punchline of the joke that was the Lisbon treaty.

Just as the ‘know nothing’ Euro-skeptics have predicted, the national Treasuries have been mismanaged, and the European elite would now like to use the ECB to pass those costs on to those nations which have not been mismanaged. This will of course result in inflation and erosion of national sovereignty, but that’s OK now because the elite have now decided that both inflation and the erosion of national sovereignty would be in the broader European interests. So they’re now doing their level best to find some loophole in the contract.

To put it in American terms, they’re looking for a ‘general commerce clause’ which they can expand the meaning of and then use to circumvent not only the treaty of Lisbon, and national sovereignty, but the very concept of the European nations state. They want to issue taxes collect revenue and distribute largess all from a central European government that is totally ruled by them. The nation states are free to exist in a sort of honorary form, but the money will all pass through and be controlled by Belgium. Once there, it will all be managed without further interference from the plebs of Europe, and their troublesome democratic processes and archaic institutions.

At this point, that anyone would ever consider any other option to addressing this crisis seems to the elite, quite uncivilized. And as they continue to say ad-infinitum on CNBC, they would really please prefer it if the plebs would simply shut their stinking pie holes and finally learn to obey their betters when they give them a command.

This is how progressives see the world. This European drama where the last of the nation state is being stripped away from the people, in many cases against their will, is what the progressive end game looks like. They’ll give lip service to the rule of law and the democratic process until it gets in their way. As soon as it does, they want to replace the law with something else that isn’t so encumbered with archaic traditional mechanisms. Corruption isn’t a problem for these people, it’s a process; one which is considered "awful" if it serves someone elses interests but "essential to peace in our time" if it serves the interests of the European ruling elite.

The truth is, they don’t really believe in democracy at all - they never did. What they would really prefer is to be granted supreme rule by divine right; or since they don’t actually believe in god anymore, by bureaucratic fiat. And in the end, to fulfill the progressive vision, the ECB will have to break its own laws. It’s either that, or see the progressive dream of a financially centralized Europe end.

Money is split on which way it will turn out.

Remember all this the next time the NYTimes editorial board tells you that our system is broken and it would be much better if we simply didn’t have to worry about elections, or the separation of powers. We’re growing this very same progressive fungus here in America, and it will end up taking us to the same place, and doing the same thing. Festering.

I'm not the only one whose noticed this. Behold Britain's Nigel Farage who had me laughing so hard at 4:15 this morning, that I woke up my daughter.


ikaika said...

The Epitaph on the Tombstone of the EU and the EURO shall read:

"Beware of those that insist on levelling the playing field"

Blegoo said...

ECB will print.
It will be like "A Bridge Too Far".
Heroism, courage and all that.
The germans won that battle.
Yeah, they lost the war... but looks like they want a replay.

Anonymous said...

Go Nigel Farange! The truth shall set us free!

Anonymous said...

And so what if a country, ooh, let's say Great Britain, decided to pull out of this whole Euro/EU thing? What would the rest of them do? Attack? With what?

Tom said...

Good point.

I think the real question is, whose inflation is it going to be? Will the inflation only be felt by those countries which have mismanaged their Treasury, or will it be a 'shared phenomenon' that everyone in Europe has to cope with. We will be getting inflation, of that there is no doubt. The only decision is whether it will be Drachma and Lira or broader Euro's.

BTW…Back in the day, I worked for a time on a currency desk, and was building program trading systems to manage Euro convergence under the tutelage of Piotre Karasinsky. Its industry minutiae, but Piotre was coauthor of the Black-Karasinsky swaps model.

Back then we used to kid that Italy would be considered an emerging market, if anyone seriously believed that it would ever emerge from anything. The future is not so hard to figure out in this particular case.