Adonis Diaries

Posts Tagged ‘Benjamin Franklin

Is the Greek Crisis Over? Why this overwhelming silence in the news media?

The Greek crisis was not that confusing from the start: European politicians needed this normal crisis to take a world dimension.

1. The Greeks wants to remain in the Euro Zone and benefit from all the facilities extended by this vast market, especially the financial ease of borrowing and be able to travel without visas everywhere. Turkey was better positioned than Greece to join the Euro Zone, but for imaginary cultural affiliation to Europe, the European leaders forced Greece within the membership.

2. The Greeks refuse the stringent constraints imposed on them after the 2008 financial crisis.

3. The steady austere programs imposed on them to reform their institutions has taken its toll and its economy is unable to restart due to lack of Liquidity.

Remember Benjamin Franklin explanation of how the American colonies managed to expand their economy? It was because the colonies still had the right to issue money as their internal market expanded.

How to reach a satisfactory deal with Greece, a win-win deal that unburden the shoulders of most EU members?

1. Greece needs liquidity for its internal market to function and expand. The monopolistic right to print Euro is in the hand of Germany who is generating $5 billion just by printing new Euros. And Germany is not about to relinquish this manna and power status.

2. Short of printing rights of currency for the internal market, Central Europe Bank should consider issuing Euro B, earmarked for the internal usage of each member State.

3. Euro B will not be used for any export of goods or services. Only the main (Euro A) currency will be handled for export outside the Euro Zone and among the member States.

4. A special institution will study and analyse the necessary set of criteria that should trigger the issuing of Euro B for each internal market. When the internal market expand, more liquidity is injected. When the internal market shrinks, Euro B will be extracted from the market to keep inflation in check.

5. The Euro B will give each member State the implicit sense of autonomy and provide more incentive Not to transfer the blame to other States for their economic failure.

6. The internal liquidity problems will be the best Indicator to pre-empt future financial difficulties

The implicit enduring political colonial mind-set of the major power player in this Union says:

  1. We have been for centuries the first colonial powers before the current superpower existed
  2. We have been the first Capitalist nations that amassed wealth before the current capitalist nation existed
  3. We are the first to comprehend that pre-emptive wars to maintain economic supremacy is the main strategy for powerful nations
  4. We are Not about to bow to lesser economic States in the Union to dictate to us the world strategy via local democratic means such as Referendum
  5. 5. The lesser States have got to grasp the requirement to bow down to the higher developed States.

Unless the economic Liquidity problems are separated from higher political positions, Greece and other Union members are in deep trouble for many years to come.

Mind you that the Union decided on the single currency because they forecasted the financial crisis of 2008 and had no other alternative but to wait for the USA to announce the financial catastrophe.

The Euro was the best strategy to face the incoming distabilizing conditions.


Consequences of Neglecting Base-Rates in your behavior

“When you hear hoof beats behind you, don’t expect to see a Zebra”: Zebras are minority among all the hoof species.

Nothing is certain but death and Taxes” Benjamin Franklin

It is a good habit that physicians are practiced to learn Not to neglect base-rates when diagnosing ailments: The physicians learn to investigate the most likely ailment before starting any exotic diagnosis of the disease.

For example, the probability that a new firm will survive the first 5 years is at best 50%.

Depending on you level of education, the university you graduated from, the social class you are allotted to, your genders, your height, your handsomeness, the color of your skin… the chances of landing a high spot on a Fortune 500 company is alarmingly low.

Get data and statistics on the base-rates of your status conditions before you invest all your strength and energy on a selection process.

You heard of the Gambler’s Fallacy: “Something must change eventually…”

Actually, outside casinos, lottery, coin tossing (not loaded or tampered with)…events in nature are interrelated and you should Not bet on them as “independent” or “memoriless events“.

We also tend to fall prey from drawing universal certainties based on individual observations. This is called the Induction bias.

Do you remember the feeding goose allegory? The goose started to have confidence of the feeder just before Xmas Day slaughter-hood.

We tend to fall hook, line and sinker for induction in our lives.

We believe that aerodynamic laws are totally understood and applied in designing airplanes: As if only aerodynamics is the major safety issues in plane accidents.

Read: Art of Thinking Clear


This Day-Saving hour. Let’s save 2 hours, once for all and in all seasons

And delay the school schedules for kindergarten and elementary kids 2 hours.

It stands to reason that these tiny creatures be saved from this modern initiation to early slavery apprenticeship.

Kids need to wake up as the weather is warmer.

And the elderly be saved from staying awake longer than necessary during the extended day seasons.

As well as kids. They don’t have to get used to black rags covering their eyes to sleep.

And reducing significantly the Time Zones around the world.

And saving much needed electric bills on the sprawling mega-polis that are kept illuminated at night

Benjamin Franklin’s ingenious idea was mind boggling 3 centuries ago, and he managed to convince the French King Louis 16 to save one day hour during winter so that people will be more productive (and maybe save a few whales for their precious oil)

Every year, Russia is still undecided and keeps altering its decisions: No for switching hours, no for decreasing Time Zones from 11 to 9…

People need something that don’t change all year round, anything that make them feel safe and secure in their convictions.

Production my ass.

Have anyone asked people how they want Time to be altered?

Beer: Built the Pyramids, caused the settlement of mankind, and amassed Capital

232 million of gallons of beer were needed to build the Giza Pyramid. Each worker was compensated with 2 gallons of non-alcoholic  beer for along  day work. Beer was most nutritive and safest liquid to drink by everyone one, including kids.  Water was too polluted to dare drink and the brewing process eliminated many bacteria in the water .

Just figure out the quantity of barley that was necessary to produce and import for the brewing of beer.

For example, if not for beer drinking, far more than 50% of the Europeans in Medieval period would have died before the age of 6.

Beer brewing was discovered about 9,000 years BC, while bread was invented less than 6,000 years ago.

Nations were considered wealthy according to the amount of beer produced.

Beer was used as medicine as well for gum diseases and for bowel problems. The tetracycline (an antibiotic) in beer cured many illnesses.

Alcoholic beer is a modern product and consequently, women and children were banned from drinking beer on the ground of not that healthy for consumption on a large scale.

Beer was the first and most widely traded commodity, and remained so even in our time.

Mariners survived on beer during their long voyage since it didn’t spoil.

People in Europe of the 16th century consumed beer 6 times as much as today and everyone drank beer for fear of drinking water and because it was very affordable.

The monks in monasteries were the main brewers on an economical scale and the monasteries were filthy rich and prosperous. And beer was promised to people attending mass.

In the Arabic Empire, the Christian monasteries in Iraq and Syria were very prosperous because they were the main beer brewers. The caliphs and government officials paid regular visits to monasteries in order to drink at their leisure.

Actually, Wine or Khamra in Arabic and Persian poems referred to beer.

Beer brewing was the first means for amassing capital.

George Washington, Thomas Jefferson, Sam Adams… were brewers of beer on large scale.

Taverns, the first communication hubs, were created to cater for beer drinkers during breaks, before workers return home and during trips to other villages.

Do you believe the Green Dragon Tavern in Boston was the catalyst for the Boston Tea Party insurrection?

The melody of America’s national anthem (the Star Spangled Banner) is a 17th century beer drinking song.

Refrigeration was developed for the beer brewing industry and applied to control the temperature for the Lager kind.

And Carl von Linda invented the first commercial refrigerating machines in 1881.

Michael Owens invented in 1904 the mass automated production of beer glasses. This automation almost wiped out child labor within a decade.

Benjamin Franklin said: “Beer is the proof that God loves us and wants us to be happy

Note 1: Inspired by an article of Jean Maroun Aziz published in the Lebanese magazine Beryte

Note 2: If the beer industry start producing very affordable non-alcoholic beer at a large scale, maybe mankind will have another chance to survive from these heavily polluted rivers and water sources.

Third President: Thomas Jefferson (1801-09)

Thomas Jefferson (1743-1826) was behind the formation of the Republican-Democrat Party against the Federalist Party that seek a strong executive power and supported by Alexander Hamilton.

Once in power, Jefferson switched to a “strong executive” concept and nominated Hamilton for the Treasury.

Jefferson was born in Virginia and inherited from his father 1,000 hectares of land with 200 slaves at the age of 14. His was educated at College of William and Mary and become lawyer. At the age of 25, he is elected at the Chamber of the Bourgeois, the colonial assembly of Virginia (the richest and most populous of the 13 colonies).

He published in 1774 the pamphlet “Summary View of the Rights of British American” which accused the British government of killing American individual rights. and was selected to represent Virginia at the Philadelphia Congress of 1775 and to write the essential parts of the Declaration of Independence.

From 1776 to 79, Jefferson is member of Virginia legislative body where he demanded the separation of Churches from the State.

At 36, Jefferson is elected governor of Virginia and has to confront the frequent incursions of the British.

In 1781, he retired to his property in Monticello and published his “Notes on the State of Virginia”. His wife Martha died in 1782 and Jefferson decided to return to the public life.

In 1785, he is appointed ambassador to France to replace Benjamin Franklin. Consequently, Jefferson could not be physically at the Constitution Convention of 1787, but approve the text globally.

He witnessed the French revolution of 1789. On the autumn of 1789, Jefferson is nominated by George Washington to head the department of foreign affairs. He has this certitude that only France can counter balance the power of England. His ideas on foreign affairs go counter to the Washington inkling and resigns in 1794.

Aged 50, Jefferson is enjoying the life of a land grower and focus on his studies. His friend James Madison is in charge of organizing the opposition to Washington.

Jefferson took residence in the new Capital of Washington DC in 1801. It has barely 3,000 people. His inaugural address:

Minority own equal rights that an equal law must protect… We are all republicans, we are all federalists…” He walks to the Capitol without the traditional white wig and the formal reception is cancelled.

James Madison is nominated head of foreign affairs and replace most of the 600 executive employees with people of his party.

He launched in 1801 a naval attack against the Algerian Pasha for ransoming American ships.

Thomas Jefferson purchased the Louisiana Territory from Napoleon Bonaparte in 1803 for $15 million and the negotiations are held in total secrecy from Congress and invented a new procedure: The Executive Order. This territory included all the States where the Mississippi River passes through. The mischievous story is that England extended the loan to the US for the purchase in order to get the French out of the American continent. Napoleon was preparing to invade England and needed funding…

That loan came with a heavy price: Alexander Hamilton convinced Jefferson to sign on the monopoly of the Rothschild family of England to print US paper money and eventually have control the expansion of the internal US market.

The second calamity attached to this monopoly is that England invaded the US in 1814 in order to pressure Congress to extend this license for 24 years…

The third catastrophe was that England (through the Bank Of US) cut-off credits to the settlers in Ohio and the North-West Territory and plunged the US in a deep financial crisis in 1819.

Jefferson imposes an embargo toward European ports in 1807 and denied any ships coming from Europe to accost on US ports.  This decision is a blow to US trade and Jefferson decides not to seek a third term.

Jefferson returned to Monticello at the age of 66 and created the university of Charlottesville.

He died on July, 4, 1826: a date that coincides with the independence.

Privately owned Federal Reserve Bank: How the Rothschild family controlled the printing of the Dollars?

The US British colonies had the right to print their own currencies before they snatched their independence. Benjamin Franklin was ambassador in France and delivered a speech in London. He explained how the colonies developed and prospered by issuing money as the internal market expanded to facilitate transactions.

The Rothschild family got the message clear and set about to acquiring the monopoly of printing the US money.

In 1804, Alexander Hamilton, US finance minister and aristocrat during President Thomas Jefferson, coerced Congress to sign a charter with the Rothschild financier family to print US currencies.

This decision came as a price for England loaning Jefferson the necessary money to purchase the Louisiana Territory (all the States bordering the Mississippi River) from Napoleon Bonaparte in 1803.

In 1811, the charter for the Ashkenazi Rothschild family owned the first Bank of the United States and managed to be in control of the US money supply. This control expired and the US Congress voted against the renewal of the charter.

Andrew Jackson, later the 7th President of the US from 1829 to 1837, said:

If the US Congress has a right under the US Constitution to issue paper money, it was given them to use by themselves, not to be delegated to individuals or corporations.”

Nathan Mayer Rothschild was not amused and he stated: “Either the application for renewal of the charter for the bank is granted, or the United States will find itself involved in a most disastrous war.”

Andrew Jackson’s response to this was “You are a den of thieves vipers, and I intend to rout you out, and by the Eternal God, I will rout you out.”

Nathan Mayer Rothschild replied:  “Teach those impudent Americans a lesson. Bring them back to colonial status.”

In 1812, backed by the Rothschild’s money, the British declared war on the United States, entered the Capital Washington and set fire on it.

The Rothschild’s plan was to cause the United States to build up such a debt in fighting this war that they would have to surrender to the Rothschild family and allow the charter to be renewed.

In 1816, during President James Monroe, the charter for the Bank of the United States was renewed for another 20 years and the  Rothschild recovered the Control of the US money supply again.

The British war against the USA therefore ended with the deaths of thousands of British and US soldiers, but the Rothschild’s got their bank.

In 1819, the Bank cut-off all credits to the settlers in Ohio and the North-West territory and generated the first big financial crisis.

In 1861, President Abraham Lincoln (16th President of the US from 1860 till his assassination in 1865) approached the Rothschild’s to try to obtain loans to support the ongoing American civil war. The Rothschild’s agreed, provided President Abraham Lincoln allows them a Charter for another US central bank, at interest of 24% to 36% on all monies loaned.

President Abraham Lincoln was very angry about this high interest rate and so his government printed its own debt free money and informed the public that this was now legal tender for both public and private debts.

By April 1862, $450 million worth of President Abraham Lincoln’s debt free money had been printed by the US government and distributed. Lincoln stated:

We gave the people of this republic the greatest blessing they ever had, their own paper money to pay their own debts.”

That same year, The Times of London publishes a story containing the following statement:

“If that mischievous financial policy, which had its origin in the North American Republic, should be become indurated down (be rooted) to a fixture North-West territory, then that government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of civilized governments of the world.

The brains and the wealth of all countries will go to North America. That US government must be destroyed or it will destroy every monarchy on the globe.”

In 1863, The Rothschild’s used John D. Rockefeller, one of their agents in America, to form an oil business called “Standard Oil“, which eventually took over all of its competition.

In 1864, President Abraham Lincoln discovered that the Tsar of Russia, Alexander II (1855 – 1881), was having problems with the Rothschild’s for refusing their continual attempts to set up a central bank in Russia. President Lincoln asked the Tsar for help in the Civil War and the Tsar sent part of his fleet to anchor off New York and the other part off California.

The Tsar made it clear to the British, French and Spanish that if they attacked either side, Russia would take the side of President Lincoln. Lincoln subsequently won the Civil War.

In 1865, in an a statement to Congress, President Abraham Lincoln stated,  “I have two great enemies, the Southern Army in front of me, and the financial institution in the rear. Of the two, the one in my rear is my greatest foe.” Later that year, President Lincoln is assassinated.

The US Federal Reserve, an owned private institution, was created on December 23, 1913.

It was planned at a secret meeting in 1910 on Jekyll Island, Georgia, by a group of Zionist bankers and politicians. The power to print money was transferred from the US Government to a private group of Zionist bankers.

The Federal Reserve Act is hastily passed just before the 1913 Christmas break.

Congressman Charles A. Lindbergh Sr. warned: “This act establishes the most gigantic trust on earth. When the President signs this act the invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized.”

US President John F. Kennedy planned to terminate the privately owned Federal Reserve System. In 1963, he signed Executive Orders EO-11 and EO-110, returning to the government the responsibility to print money, taking that privilege away from the Rothschild.

Shortly thereafter, President John F. Kennedy was assassinated.

Another myth that all Americans live with is the charade known as the “Federal Reserve.” It comes as a shock to many to discover that it is not an agency of the United States Government.

The name “Federal Reserve Bank” is not federal, nor is it owned by the government. It is privately owned.  Its employees are not in civil service. Its physical property is held under private deeds, and is subject to local taxation.

It is an engine that has created private wealth that is unimaginable, even to the most financially sophisticated.

It has enabled an imperial elite to manipulate US economy for its own agenda and enlisted the US government itself as its enforcer.

Federal Reserve Bank controls the times, dictates business, affects Americans’ homes and practically everything in which Americans are interested.

It takes powerful force to maintain an empire, and this one is no different.

The concerns of the leadership of the “Federal Reserve” and its secretive international benefactors appear to go well beyond currency and interest rates.

Alan Greenspan, served as Chairman of the Federal Reserve from 1987 to 2006, stated at the annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research on December 5, 1996:

“Augmenting concerns about the Federal Reserve is the perception that we are a secretive organization, operating behind closed doors, not always in the interests of the nation as a whole. This is regrettable, and we continuously strive to alter this misperception.”

The privately owned Federal Reserve has confused the public, lied to them and stole their gold and silver.

All the perplexities, confusion and distress in America arise, not from defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation.

Of all the contrivances devised for cheating the laboring classes of mankind, none has been more effective than that which deludes him with paper money.

After many years of blundering toward it, and only a few months before the beginning of the World War 1, Rothschild found the formula for the most efficient credit machine that was ever invented. This was the Federal Reserve System.

Most people are unsure of the meanings of words such as money, dollar, wealth, inflation and credit. The average person would be very surprised if they knew how the money system used to work compared to how it operates now.

The essence of psychological warfare is to confuse the meaning of words, and infiltrate the mind with conflicting concepts. The use of the word Federal in the name federal Reserve leads the public to believe that the Federal Reserve is a government institution, when it is really a private corporation owned by foreign and domestic banks and operated for profit.

The Federal Reserve controls America’s money supply and interest rates, and there by manipulates the entire economy, in violation of

1. Article 1, Section 8 of the United States Constitution that expressly charges Congress with power to coin money and regulate the value thereof, and.

2. Article 1, Section 10 of the constitution says “No State shall make any thing but gold and silver Coin a Tender in payment of Debts.”

Over time, gold and silver coins were removed from American money supply and removed as backing for American paper currency and replaced with debt (or credit).

The definition of dollar has changed to hide the fact that a dollar is not money, but a unit of measurement for gold and silver coin. For example:

1. Title 12 United States Code Section 152 says: “The terms lawful money or lawful money of the United States shall be construed to mean gold or silver coin of the United Sates.”

2. Title 31 United States Code, Section 5101 says: “The money of account of the United States shall be expressed in dollars.”

The recent equivalent to the goldsmith’s receipt for gold is the Federal Reserve Note. The word “Federal” implies Federal government, but the Federal Reserve is a privately owned corporation. The word “Reserve” implies that something gives the paper receipt value, but no gold or silver backs this paper.

The word “Note” implies a contract, because legally a note must state who is paying, what is being paid, to whom and when.

Most people say something like, “I have a dollar bill”. But what is a bill?

A bill is a receipt of a debt owed by one person or company to another. Therefore, a “dollar bill” is a receipt (or bill) of debt of one dollar that is owed.

From 1914 to 1963, Federal Reserve Notes never claimed to be money, nor did they claim to be dollars. A note for five dollars read: “The United States of America will pay to the bearer on demand five dollars.”

How can a promise to pay five dollars be five dollars?

To the left of the President’s picture and above the bank seal, it said: “This note is legal tender for all debts public and private, and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank.”

In 1963, the Federal Reserve began to issue its first series of notes without the promise, while taking notes with the promise out of circulation. How can paper become what it promises by removing the promise?

To the left of the President’s picture and above the bank seal, it now read: “This note is legal tender for all debts public and private.”

A note is a proof of debt. It is not possible to pay off a debt with a debt. No debt can be paid in full unless paid in gold or silver, coined and regulated in value by Congress. The name “Federal Reserve Note” is a fraudulent label since each word claims to be something that in reality it is not.

By removing the promise to redeem the note in lawful money, the Federal Government in cooperation with the Federal Reserve, eliminated the monetary system of the United States as established by the Constitution and replaced it with something totally different.

If you are holding a one dollar Federal Reserve Note, the question is: “what is it one dollar of?

The answer is absolutely nothing. The number one measures no substance.

The only thing that give paper money value is the confidence people have in it as is stated in chapter 30 of our textbook.

Federal Reserve Notes are only accepted because people believe they have value.

Note:  The article was from Nalliah Thayabharan in response to my post:

“Euro B”: For internal trades?

Most population or demographics of the Northern European States such as Germany, Holland, Danmark, Sweden, and Norway are on average much older than the Southern States such as Spain, Portugal, Italy, Ireland, and Greece.  For example, the average age in Germany is 45 and thus, Germany spends less for new housing and can save much more than the younger States. States experiencing high deficits in budget and in GNP need plenty of credit to get its young citizens settled down.

The smaller or emerging States in the EU are suffering from another major handicap.  In the previous decade, these States received plenty of financial funding from the richer States in the EU and thus, most of the young people quit colleges and universities in order to work in a booming economy and to make money and purchase consumerism products that their families never owned or experienced. 

Statistics show that 80% of the newer entrepreneurs in Spain and Portugal have not earned a college degree; they have restricted and limited skills to compete in this global economic environment.  An entire generation was lost to shoulder the next challenges.

The problems of the Euro currency and the economy of European Union (EU) States had begun before the latest financial crash, but this financial upheaval uncovered problems that were swept under carpets for as long as the illusion of global economic development was not that evident.

The European common market is a vast market of 450 million consumers, as large as the combined USA and Russia markets.  If the EU policies focus on internal trades among its States then, most of the difficulties would be far more bearable in this climate of stringent conditions to slowing down deficits in budget and to GNP. 

The EU needs to consider issuing a currency valid for its internal trades that is heavily devalued compared to the current Euro.  This inner currency may be called “Euro B” which will have the consequences of lowering the cost of living compared to reductions in salaries and public reduction in sectors of health, education, family planning, and small business lending facilities.  The other consequence is that tourism will increase and tourists will be able to purchase more consumerism goods as product prices effectively fall. 

Another additional remedy that may keep internal trades developing smoothly is to allowing hard hit States to asking for more liquidity of “Euro B” as internal trades increase and develop.  Obviously, Germany should keep the exclusive monopoly of issuing Euro, both Euro A and Euro B(a monopoly that generates over 5 billion Euros to Germany per year), but the mechanism for evaluating the needs for more liquidity should be more lenient and timely.

For example, the colonies in the US before independence experienced economic expansions while England was having hard times.  Benjamin Franklin, Ambassador to France after the US independence, let out the secret: Economic expansion was related to the colonies enjoying the right to “printing” currency when the economy needed this “oiling” mechanism.

England then convinced the US government, after US independence, to have the monopoly of issuing money instead of the US treasury.  The Rothschild family in England endeavored to ruin the US economic expansion by refraining from issuing badly needed currencies. The dollar received a higher value than being simply an oiling mechanism: thus, the dollar was overvalued and the economy shrank.

The “Euro A”, designed for external trades outside the EU, can still be devalued, but since export balances favor only export economies such as in Germany then, “Euro A” may be considered as a political currency that should not affect significantly internal trades in the European common market. 

The Euro of the European Union (EU) currency or what I call “Euro A” is witnessing healthy devaluation lately compared to the dollar and needs to be lower to around 1.1 to the dollar.  The increasing difficulties experienced by many States in the EU result from initial weaker economies that could not compete efficiently in the European common market and then, were buffeted by the US financial crisis as financial multinationals extended credits not based on tangible sound economic improvement.  

As long as “Euro A” is overvalued and individual States have no sovereignty for issuing currency then, the smaller States will have no options but exercising internal devaluation of 20% represented in lower salaries and harsher budget cuts.

The European and international financial and political medias are breaking the taboo of discussing whether maintaining the Euro is a viable alternative in the short-term. The arguments of the group that staunchly defends the Euro is mostly based on political reasons: To them it is becoming a matter of safeguarding dignity and sovereignty.  It believes that the Euro is the major factor in the reconstruction of the European market and for the political stability and the cohesion of the European market.  This group would like you to believe that without the Euro there would be no EU.

The “taboo breaker” group believes that the EU is in dire difficulty because it prematurely created a common currency before ironing out and strengthening common politics.  Germany and its satellites States in the northern hemisphere benefited most from the Euro since their currencies were highly overvalued “stronger” than the Euro and thus, they managed to compete better and export more to the European common market.  The other States in the Union could not deal with a Euro that was much overvalued compared to their national currencies and thus, had to suffer in market competition.

The financial and economic commotions in Greece, Ireland, Portugal, and Spain are symptoms of the financial and economic imbalance with respect to the vaster and stronger economies in Germany, France, and Italy.  This group believes that the EU is heading toward a deflationary period within a couple of years if no structural institutions are installed.

The main source of imbalance is that the original six States in the Union had firmer and better tested administrative and political institutions that could apply regulations agreed on; they had the capability to supervise and monitor laws and regulations governing the union members.  The weaker States are at great disadvantage: The main powerful States in the union have no confidence in the resilient determination of the weaker States to effectively executing the agreed upon regulations and second,  the weaker States are prohibited to issuing (printing money) to satisfy liquidity in their internal trade and commerce.

It is not the Euro that created the common European market: the EU was already instituted and functioning well before the common currency was created on political grounds.  The Euro was mainly to be the material “symbol” of the Union and this symbol degenerated into a calamity at the first major problem.  The EU could have imagined much less costly symbols for its unification until political coherence was firmly established, tested, and thoroughly evaluated.

The Maastricht treaty set limits to budget deficit below 3% and public deficit below 60%.  Currently, only Spain has kept its public debt at 54% and Germany its budget debt at 3.3%.  The remaining States in the Euro have doubled and even tripled both limits. Joblessness is very bad all over the Euro zone averaging 10%; Spain has 20% and Ireland and Greece about 14%.

It seems to me that the Euro has encourage many mafia type “economies” to expand simply because it became much easier to transfer a unique currency and circumventing further money exchange regulations and constraints.  The “Euro A” will be a good barrier for whitewashing mafia money outside the EU.

The financial institutions and the medias are sending waves of terrors claiming that there is lack of confidence in the Euro; they claim that this confidence is so low that investors are shirking the Euro zone States.  I believe that the Euro should stay but be restricted to the main large economies such as Germany, France, Italy, Spain, Holland, Danmark, and Norway where the same homogeneous spirit for taking seriously the application of financial and economic regulations among the member States.

The other weaker States should have an alternative common currency or “Euro B”, far devalued from the Euro and backed by the “Euro A”, until political coherence and institutions are equalized in efficiency and modernity.  The weaker states should enjoy the privilege of preempting slow internal trade by issuing liquidity in the newer common currency within limits.




October 2017
« Sep    

Blog Stats

  • 1,002,457 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by

Join 494 other followers

%d bloggers like this: