Adonis Diaries

Posts Tagged ‘Nixon

If you analyse the causes of wars since the 17th centuries you will discover the modern definition of war.  War is the unethical, immoral, but legal mechanism to rounding up the surplus turbulent and employed lower middle class citizens and suspending paying off interest on sovereign debts to “enemy” creditors, due to political and economic internal crisis.”

The expedient short-term political decision of aggressing other nations is reasoned to getting two birds in one shot.  First, The vast pool of unemployed lower middle class citizens, constituting 60% of the population, are sent abroad and thus, relieving the internal political pressures for any change in the political and economic structure; hopefully, many will die and reduce or eliminate the danger of political upheaval.  Second, the enemy is targeted to be one of the major creditors, invariably judged to be weaker militarily, so that the government will default on the contracted sovereign debt, not only on the interest portion, but on the principal as well.

What are the consequences?  On the short-term, we may consider two cases.

First case, the enemy creditor turned out not to be that weak militarily and the war lasted longer than expected (as is inevitably the case).  Thus, a treaty is signed after the cease-fire, and the creditor becomes a mandatory power controlling the economy; which means the creditor gets the right of cutting out its share first of any income before the government obtains its share.  In general, the creditor obtains the monopoly of the main exporting product  such any raw material, cotton, rubber, oil… The creditor might demand war reparation as well, if he judges that the political system of the enemy is strong enough to withstand political backlash.  In fact, all defeated governments have in mind projects and plans to preempting the high probability that the returning defeated army might revolt and demand political changes.

Second case, the enemy creditor lose the war, but since he is considered a developed “modern” nation, by the standards of the period, the victor will end up just defaulting on the sovereign debt.  Both nations are back borrowing like crazy in order to maintaining the political status-quo.  Now the creditors to the two warring nations are powerful nations and eventually will impose their control in the medium-term.  The two nations have been superseded in economic power. Historical examples are recorded of the fates of Venise, Genoa, and Holland.

The consequences of the third case are on relatively the longer-term. The enemy creditor is weak militarily and also considered among the developing countries.  The victor colonize the enemy creditor in order to generating quickly raw materials and opening another market for its products. The victor finds out that he needs to borrow money in order to build infrastructures in the colonized country for producing and transporting the raw materials.  Slavery turns out counterproductive:  First, there is resistance to foreign armies and colons; and second, harsh measures decimate the population and slow down production and market population; and third, the powerful creditors put pressures to having a share in the production.  In the long-term, the powerful creditors supplant the victor as the colonial power.

There are many examples to back up these real scenarios.  The US was the major creditor to colonial Spain and ended up taking hold of Cuba and the Philippines.  England was the main creditor to monarchic Egypt and got hold of the Suez Canal from the French who made it possible.  England allowed France to colonize Algeria hoping that France would be able to repaying its sovereign debts.  France withdrew from South Vietnam and left it to the US because it could no longer sustain a losing national resistance battle:  That was a mean French decision since the US will be broke after ten years of fighting the Viet Cong: Nixon had no choice in 1968 but to leave the dollar uncovered by gold, thus, forcing the US to back up its useless paper money through military threats that is going till now.  Unfortunately, China and Japan are no weak enemy creditors to chastise them at every political and economic crisis.

By 1914, Germany was the first industrial nation in Europe, the most powerful militarily, and the most populous after Russia (65 million).   Germany was the prime creditors of Russia, France, and even England.  All European nations adopted isolationist policies in trades, meaning setting high tariffs for imported goods in order to protect internal productions.  Germany needed the Congo (a Belgium colony) to export its surplus of goods and citizens, other wise, imminent political problems might be generated by joblessness and inflation if no resolution of its surpluses in goods and men were found.  France and England refused Germany any relief valves and were uncomfortable with being debtors to Germany.  The WWI could have been avoided if borders were opened for free exchange of goods among the European States.  The US was also very worried that opening the borders in Europe would certainly permit Germany to becoming the next superpower.  The war generated 18 million of casualty, and over 20 million during the flu epidemic, and set the stage for WWII.

The most current case is the Iraqi’s preemptive war that lasted already 9 years. In 2002, the US was broke, as usual, but also witnessing high unemployment rate.  Afghanistan was supposed to be the enemy. Wrong.  Iraq was targeted because of its rich oil production: “democracy stupid”.  A quick razzias was planned but turned out sour and deadly.  Not only oil production in Iraq slowed down drastically, but the US had to borrow over one trillion dollars to “prosecute” the war.  All the allies withdrew and China replaced the US in the vast African market under the helpless watch and tacit agreement of the US administration. To make things worst, sovereign debt of the US increased exponentially, as well as unemployment rate.  Back to the devilish cycle with a harsher financial crash.

The European Union (EU) describes Modern Europe; (Nov. 7, 2009)

The European Union is the most striking political and social achievement in the 20th century.  The backbones of most of the UN peace keeping forces around the world are European contingents; the EU is the highest contributor in humanitarian budgets and for reforming obsolete public institutions in the under-developed States.

This post will cover a few statistics and then a short description of the EU administrative and legislative institutions.  The follow up post will cover what is working, then analyzing what need to be ironed out, and then how the world community is expecting modern Europe to lead.

The founding six States are Germany, France, Italy, the Netherlands, Belgium, and tiny Luxemburg; that was in 1951 with the objective of regulating the industrial output of coal and steel and resolving differences on egalitarian terms instead of purely diplomatic processes using the “community method”.  The treaty for Agricultural Common Policy (PAC) intended to insure food sufficiency was signed in 1962 which encourage exportation.  Total suppression of tariff on borders was abolished in 1968. As Nixon floated the dollars and de-linked it from gold in 1972, the EU of the Six created a mechanism to reducing fluctuation among the six States and called the “European monetary snake”.  In 1973, Denmark, Ireland and Britain were included in the union.  The European Parliament was elected by the universal vote in 1979 by the nine States.

By 1986, Spain, Portugal, and Greece adhered to the union of the 12 States and a unique market is launched for free circulation of goods, people, capitals and services. The fall of the Berlin Wall enhanced this union to expand into the east. The treaty of Maastricht opens the way for a unified monetary system; it expands the power of the European Parliament and contemplates extending foreign policies and defense to the union institutions.

In 1995, Sweden, Austria, and Finland enter the union of the 18 States. The accord of Schengen of 1995 eliminates borders’ controls among the citizens.  In 1999, 11 States adopt the Euro for common money which was introduced on the market in 2002.   By 2004, eight central European States join the EU; they are: Estonia, Hungry, Latonia, Lithuania, Poland, Slovakia, Slovenia, and Cyprus.  In 2007 there was a serious proposal for a European Constitution.

The founding Six States constitute about 50% of the EU population of 330 millions of the 27 current States; over 55% of its total economy amounting to 10 trillion euros.  Germany contains 16.5 % in population, followed by France 13%, then Italy 12%, then Spain 9%.   The economy of Germany represents 20%, France 15.5%, Italy 12.5% and then Spain 9% of the total.  England and France are about equal in population and economy.

The EU established institutions for the union such as The Commission, The European Council, the Council of Ministers, the European Parliament (all located in Brussels), and the Court of Justice. The EU is NOT a Federal State; it is a much better political concept that preserves higher democratic representations and elaborate dialogues that enrich the cultural content of any joint agreement among the States. The institutions are being developed and elaborated toward a more effective executive power in times of emergencies such as defense, finance, and foreign policies.  Currently, the EU has a unified security system and unified money with open borders.

The Commission is constituted by representatives of each States; the members are nominated by each State and it is up to the European Parliament to confirm nominated members; the President of the Commission is selected by the European Council and there is a trend to reducing the numbers for efficient collective work; it has weak executive power.

The Council of Ministers has legislative power and may reject the initiatives of the Commission. The presidency rotates among States every semester.  The voting power of each minister is proportional to the State’s population.

The deputies of the European Parliament are elected based on distinct election laws in each States.  The Parliament shares with the Council of Ministers the legislative responsibilities.

The European Council is represented by the States’ government Chiefs; it has the power of selecting the target objectives for the Commission. The High representatives for foreign policies and common security are members in the Commission.

Each State has a justice in the Court of Justice located in Luxemburg.  The jurisprudence of this Court supercedes State’s jurisprudence in matters proper to its competence.




June 2023

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