Wednesday, 25 April 2012

I'm not one for conspiracy theories but...

Today the European Commission will announce a 6.8% increase in budget - equivalent to €138 billion extra.

This is truly extraordinary when the majority of member states (25 out of 27, excluding the Czech Repubic and the UK who refused to sign up to the latest 'non-EU treaty' financial pact) are under mandate to enforce austerity measures imposed by Brussels. How then can the EU defend such an enormous hike in its own budget?

The swingeing austerity measures laid out by Brussels are crippling European economies, not saving them, with the constant cutting and adherence to the single currency project proving disastrous for the EU and global economy as a whole.

Today the ONS announced that the British economy shrunk over the last two quarters, plunging us back into recession, with the ongoing Eurozone crisis to blame.

Add to that the news that the UK will pay another £10 billion to the IMF ["It won't prop up the single currency, honest!"] and you've got to begin to wonder, what is going on?

It would appear that Brussels are the very deliberate architects of economic freefall in Europe

It cannot be simply a mistake that the financial crisis is continuing. Perhaps by creating financial disaster in Europe, while copious amounts of money fill up the EU coffers,  fiscal control is able to be diverted to the EU. Where there's money, there's power.

At one point commentators suggested the Eurozone crisis could spell the end for the EU. Far from it. 

If anything, the incredible transfer of power and money to Brussels over recent years as the crisis has taken hold has actually increased the dependence of the majority of member states upon the European Union and its associate bodies, such as the European Central Bank, European Investment Bank and so forth.

Which brings me on to the IMF.

It is shocking to witness the supposedly independent International Monetary Fund supporting the EU programme.

I do not only mean the financial impetus, including the recent call for an extra $430bn (£247bn), to which British taxpayers will contribute an extra £10 billion. 

There is the very tricky matter of the IMF, the EU and the ECB, forming a so-called Troika to effectively run the economies of disaster stricken member states. 

Part of the rules and regulations laid down by the Troika include setting up separate accounts for incoming bail out funds to ensure money is used only to save the Euro through debt repayment and is not spent structurally, in effect, helping the suffering population by a real injection of cash into the national economy.

What we are witnessing is mass unemployment spreading across Europe and a number of economies falling apart, led by an institution designed to "promote high employment and sustainable economic growth, and reduce poverty."

Instead of actually providing financial aid to Greece, Italy, Portugal and so on, the IMF is instead driving funding into bank accounts set up to support the Euro, and thus EU ideology in Europe, while co-authoring regulations which perpetuate the ongoing crisis.

Even the USA has now refused to contribute any more to the IMF, saying they no longer supported the failing efforts to sustain the Eurozone.

What on earth is going on?

It is increasingly apparent that the IMF, led by the former French Finance Minister Christine Lagarde is by no means independent. Of course Lagarde came in after the rather inglorious departure of Dominique Strauss Kahn. It is by no means implausible that his downfall and thus removal from power was all too easy to set up, given the man's penchant for promiscuity. Perhaps that is one conspiracy theory too many - but there are many out there who claim that what happened in that New York hotel room was a deliberate trap.  

Strauss Kahn may just have been a dirty dog who met his inevitable end. Or perhaps he needed to be removed in order to parachute in Lagarde, who would get the job done.

Despite calls from across the global financial sector to dismantle the single currency, instead the IMF have come out and warned against any member state leaving the Euro. It is interesting to point out that France is next in line to enter economic turmoil if the single currency crisis is not tempered. Perhaps the IMF and Christine Lagarde want to evade French financial freefall. But if that was the case, why is the IMF authoring and imposing the austerity measures that are keeping the crisis alive?

It is interesting that while the UK Government publicly vetoed the pact for financial regulation (again, not an EU treaty-despite the 'pact' involving the European Commission, 25 member states, the ECB...- as an EU treaty would have meant referenda across the continent, whose results would likely have seen the democratic obstruction of the pact's political intentions evident to the world stage). However the UK have recently agreed to pay an extra £10 billion to the IMF while our own economy has fallen back into recession, with the single currency to blame for contraction over the last two quarters.

Perhaps my imagination is too creative.

Has Britain, behind closed doors, agreed to support the federal unification of Europe by continuing to fund the bizarre operation being carried out by the EU and the IMF - as long as we can remain on the outskirts?

After all, the money being poured into the Eurozone from the IMF is helping Brussels to actuate these intentions, by breaking down the economies of  member states through destructive austerity measures, and then sweeping to their rescue by promising bail outs in return for  fiscal control by the EU and its related bodies. 

The Eurozone financial crisis is, in effect, enabling the final push for federalism to be made.

Of course in order to achieve this, Brussels needs money to uphold bogus bail outs in exchange for obeisance to their own fiscal mandate. Thus they contrinue to increase the EU budget, but that would not be enough.Brussels needs the IMF to extract money from the global economy to support the operation. After all, financially ruining economies in order to swoop in and take control by offering a golden handshake is an expensive business. So how is the IMF managing to continually pass the collection plate and get other countries to pour money in? Well the ongoing Eurozone crisis is not only a threat to the member states involved. In this hugely interlinked global marketplace, ongoing crisis in the Eurozone is a threat to economies across the world. Perhaps other countries are party to some sort of plan - or perhaps they simply have no choice, as a financial collapse in Europe would mean a heavy toll upon many countries' economic security. Now America has managed to get back on its feet, incidentally by doing the direct opposite of what is being carried out in Europe by providing stimulus rather than imposing austerity, they no longer want to be a part of what is going on in Europe. Although Obama has always championed a more deeply integrated EU, so it may just be that America is turning a blind eye but is unwilling to co-finance the operation any more.

I am sure many readers will be thinking 'what on earth is he on about?'

I am merely playing Devil's advocate -  asking the unanswered questions.

Why is the world allowing this mess to continue?

How is what the EU and IMF are doing not being condemned by the international community - and by this I mean what is overtly taking place, not my conspiratorial postulations.

The formation and fiscal controls of the Troika are perpetuating economic crisis, while 25,000 people in Greece are begging for food, yet no one on the world stage is saying anything.

Europe is not the developing world. It is not an impoverished continent with (manifestly) corrupt governance and (manifestly) tyrannical rule. It is a first world group of countries who should by now be well in the clear after the credit crunch that hit almost five years ago.

This furore has gone beyond a catastrophic mess and incompetent governance.

It is now so absurd that there is a distinct smell of conspiracy about it.

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