As the cynic quoted in The
Economist article above observed, the bond-buying mechanism for countries
under the ESM will be little different from the existing system. Mario Monti
said the plan will support government bond prices only in countries that comply with fiscal targets, and that it will act as an incentive for governments to
follow virtuous policies. That means
avoiding deficits, even if it requires further austerity measures and selling of
assets. On the public level, that could mean
national treasures like the Acropolis.
On the private level, The New York Times reported Friday that some
desperate out-of-work Europeans were going so far as to sell
their kidneys to pay household bills. The shock
doctrine, it seems, has come to the doorsteps of privileged Westerners.
The German diplomats negotiating
the ESM did
leave open some escape hatches, including a request by Germany's highest
court to the country's president not to sign the treaties into law until a
legal review can be completed. At least 12,000
complaints are expected to be filed with the Federal Constitutional Court
regarding the ESM and the fiscal pact. The legal review could well conclude
that the ESM illegally hijacks taxpayer funds for private bank profit.
It is one thing to pool
national resources to bail out other sovereign governments, quite another to write
a blank check to bail out the profligate private banks that precipitated the
global downturn. Europe has a strong
tradition of publicly-owned banks. If
the people must bear the costs, the people should own the banks and reap the
benefits.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
2
2
1
