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Letters by a modern St. Ferdinand III about cults

Gab@StFerdinandIII -

Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands.  Cults everywhere:  Corona, 'The Science' or Scientism, Islam, the State, the cult of Gender Fascism, Marxism, Darwin and Evolution, Globaloneywarming, Changing Climate, Abortion...

Tempus Fugit Memento Mori - Time Flies Remember Death 

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Wednesday, October 31, 2007

America vs. Europe

EU ambitions - the Euro, and legal fiat.

by StFerdIII

A while back some commentators wrote that the EU decision against Microsoft presaged more European attacks on non-EU firms. I certainly did []. Writing about this topic for some time it was no surprise that the EU-nuchs had spent millions of public dollars in finally breaking and fining [taxing] Microsoft over the most frivolous of anti-trust claims. This is just a foretaste. Part of the EU experiment is to extend European economic imperialism by judicial fiat. Global Warming and Kyoto ? Much the same. Europe's goal is to lay low US economic vitality – so it can assume more importance in world affairs. I say no thanks.

The 'allies of convenience' model is real enough. North American news outlets are rather chary of promoting anything that does not fit into the, 'Old Europe is superior' mould. North Americans are largely ignorant about the real state of being European, or the tatters that most Europeans find themselves in.

It is one thing to wander around the magnificient ruins of Lorenzo the Magnificient's medieval Florence; gape at Reuben; visit a Mozat concert in Vienna; behold the architectural wonders of the Romans, or ruminate about how supposedly backward 'dark age' peoples constructed massive Gothic-styled temples to God. Piazza's; plaza's; ruins; the Enlightenment; the Renaissance; complex history; ambience; beauty and stunning women, whilst these are highly laudable, they mask what Europe is really about. The EU and its political project is not what its outward appearance might suggest.

The EU experiment has some clear geo-political goals. Two of these are apparent in recent times. One is money and the other is judicial fiat extending from business to the environment.

The first is to replace or displace in some sense, US economic primacy. The Euro- single money project was an important step in this regard. About 30% of the world's currency reserves are in Euro's. Most of the rest are held in US dollars. A reserve currency unit gives the hegemon international strength – both political and economic. Economic power comes from knowing that other nations must use your currency to effect purchases of products and commodities. Oil is one example. This allows the currency reserve state to run deficits and have low or negative domestic savings rates. It is in other words a type of 'loan' the rest of the world gives the Americans to go out and freely spend and trade.

This is not necessarily bad. Trade deficits are largely meaningless. A trade deficit is simply the delta between savings and investments. The Americans import capital and send out dollars for imported product. Germany for example runs a trade and current account surplus. But so what. This means the Germans are saving more, and exporting capital. A nation wants to import, not export capital.

Most commentators including myself, have long been skeptical that the Euro would in any meaningful sense replace the US$ as the world's currency reserve. Their are many reasons for this: legacy costs [most nations have hoards of US currency]; US economic vitality; continuing Euro economic weakness and a lack of meaningful economic reforms; and the purchase by the Chinese and Arab oil states of US assets and U$ denominated reserves being the most obvious. Yet this could drastically change.

If the Americans don't stop undermining their economy by printing too much money, the power conflict with Europe will accelerate because states will move into the Euro. Once the power balance shifts in this way, with say a 50-50 split in currency reserves between the Euro and U$, then an international affairs advantage will tilt towards Europe. The US will lose political leverage and the economic benefits of 'seignoriage' or money rent, that it currently receives from being the world's most important monetary unit. Simply put the Americans though currency debasement, are destroying the monetary value of the U$. This is dangerous. Not only will living standards in the US fall, but inflation and inevitably interest rates will rise. This will depress economic growth.

The second EU tool in its economic struggle to shake off US primacy is judicial fiat. The Eco-marxist, AlGorean club is one example. Kyoto and Globaloney warming have more to do with destroying the US' energy and economic advantage with Europe, than saving cuddly polar bears and making sure that mother nature does not have a fever. Marxist plans at eco-control are perfectly suited to the EU-fetish of regulatory overkill and state aggrandizement. What better way to increase government size; union membership; redistribution schemes and tax levels; than install a myriad of programs to save mother earth, manage emissions, micro-manage industry and propagandize the young and old with endless chatter about the earth cult? This is every Euro's wet dream – unbridled governmental power.

Instead of instituting market reforms the EU-nuchs prefer legal processes to ensure equality of outcomes and of course, the primacy of governmental power. With 450 million captive members, the EU commission controls only 2% of EU GDP, but 55% of all EU legislation. If you are an ambitious socialist-Euro intent on saving mother earth, and the Euro's from unfettered, rapacious Jew-American domination which path will you choose? The painful and politically impossible task of market reforms or the tiresome negotiations to extract more budget from member states? Or the faster, 'nuanced', compassionate and largely invisible process of using courts, lawyers and the EU constitution to achieve your goals?

My old Dean Nellie Kroes is now EU commissioner on trade. She is a Dutch-flavored version of French statism. She positively drools at the thought of annihlating US firms' market share in Europe. All in the name of fairness and social responsibility you understand. Microsoft will be followed by attacks on Google, Apple, IBM, Oracle, and any other US behemoth which produces great product and is rewarded with high market share. How this will help the world; improve innovation; or create jobs no one knows. Most likely Kroes and her political friends don't much care. As long as it plays well in the Euro-media and their corporate financiers are happy, that is all that matters.

Euro-protectionism stretches across the economic landscape. Health regulations and concerns are used to keep out African commodities, literally killing poor farmers. Eco-rules keep out US poultry and bio-engineered foods. US chemical firms will soon be shut out of key Euro markets with the new EU mandate that they conform by June 2008 to impossibly arcane and difficult Eco-standards. Aerospace, transport, telecoms, and even internet applications are tightly regulated and managed. The EU is a common market – for European companies and national champions only.

The Euro model leads to failure. The average European lives in less square footage than the average poor American black. Euro incomes are 30% smaller on average than US incomes with higher tax rates. Productivity is close to zero on average, though it varies by sector, by country. Real unemployment rates are close to 20% once you factor in healthy people paid by the state to stay at home. In many countries people are retired and not working by age 55 – an unsustainable future welfare burden.

Instead of protectionism the Euro's should be liberating their markets and reforming the welfare state. But that is too difficult. It is much easier to hope that the Americans destroy their currency, thereby shifting power to the Euro. Legal fiats to protect the economy, along with Globaloney Warming initiatives designed to annihlate the US economy are also preferential tools.

When Europeans talk be very skeptical. The Romans believed in the pagan two-faced god Janus, for a reason.

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