Äike
06-18-2010, 10:36 PM
Martin Helme: the fall of European socialism (http://www.estonianfreepress.com/2010/06/martin-helme-the-fall-of-european-socialism/)
So, the socialism in Europe is reaching its natural result. Lack of law, lack of wealth and riots.
The law enforcement establishments are enforcing harsh and special measures more and more lighthandedly at the expense of the citizens freedom and earnings.
It does not matter, how big the aid packages are – still it is obvious that actually much more is necessary. The usual rate has become hundreds of billions. For example „The debt of Greece is 300 billion euros“ or „The EU created a 750 billion euro aid fund to save the countries in debt“. And by doing that, at the same time breaking all of the EU laws and not being concerned about the angry resistance of the people. This is modern Europe: in debt, breaking its fundamental laws and not caring about the voters opinion.
What is the answer to every crisis from Europe? More power to Brussels! Under our very eyes the plan, which was secretly their point of taking up the euro, is being implemented – a financial system, which is controlled by a central government.
By the lead of France, with the support of the commission and with the whimpering acceptance of Germany, a decision has been made to create a unitary debt system in Europe. This means that not only the 16 euro zone countries, but all the 27 member countries as well form a unitary till, by which euro is being supported. This means – observe carefully! – that the estonians as well are going to pay for the possible debts or Greece, Portugal, Spain and maybe Great Britain. Even before we are a member of the euro zone. And they do not need our agreement. The steps are taken with the help of the Lisbon treaty, which is the basis of the United States of Europe, and by the means of majority voting, so no-one would have the right to veto.
But what good does this kind of fund do? Solely the debt of the Mediterranean countries adds up to about 7 trillion euros and it is becoming more and more clearer that these countries are not able to handle their debts due to the budgets being negative all the time. The attempt of handling this kind of debt with 750 billion is as efficient as urinating to a burning house to extinguish it.
Because of the ’life-is-going-to-get-better’ talk the estonians have given up their independence and they are still demanded a huge ’solidarity’. The brave Estonian saving-government, who managed to cut a dozen billion kroons is a part of Greece-saving (as well as Spain, Portugal and Italy) fund in the extent of even more. Nobody exactly knows the figures, however 14 to 20 billion kroons have circled in the publicity.
At the same time, USA senat decided (with 94 votes in favour and 0 against) on preventing the government to give 320 billion dollars through IMF to the Greece’s aid-package. The money from America was virtually the only real money on the table, while the contribution of everyone else was an accounting trick. By what exactly is Germany or Great Britain, whose national debt is close to 80 per cent of GDP, in a better financial position than Greece or Italy, whose debt is about 115 per cent of GDP and growing?
What do all of these numbers actually mean? Well, firstly that euro as a currency is unstable. Wait! Was not the stability supposed to be a great advantage, which we were supposed to get by joining the euro zone? Oh, it does not matter, let us not wind it over the top with these kind of little things as stability. What do these numbers show as well?
For example, that the price of euro as a currency is dropping constantly. That is good, right? I mean for the export, which was supposed to be the big locomotive, which would pull the Estonian economy to full speed once again? Only, the bigger part of our export is going to the euro zone and our currency is strictly tied to euro. So, that brings us nothing. The price of the money is lowering – as well as are our savings and salaries – however, we do not get any real positive effect from it.
This way or the other, the „eurocrats“ do not let a perfectly good crisis go to waste. The project of the supercountry has to go on. Brussels wants that from now on, the governments have to let their budgets be looked at by the „eurocrats“ and be accepet before they reach the government. So that the countries would not spend as much, as has happened in all of the European countries except Estonia.
The creaters of the euro have never hidden their goal: it is not possible to have a common currency if there is no common budget and taxes. The crisis of euro has given the centralisers a new reason to collect taxes and start doing the budgets in Brussels instead of the capitals. How many billion kroons the poor Estonia is going to pay to the richer Western-Europeans in order to pay their debts every year, is not known, however, let us live in the hope that if the people making decisions are ones from Greece/Italy/Spain, not our politicians, the numbers will be modest.
What happens with money in a bankrupt empire, where the doing of the labour has been replaced by redistribution, should be remembered by estonians quite well. The difference between now and the time of ruble is yet conceptual: at that time we had no control of the situation and the only way to get out of the money, which brought great poverty was the transition to our money, which we control by ourselves. Now the situation is upside down: we have our money, which we control and which serves us well, however our politicians want to abandon it, to transmute to a money, which burns in every corner an which we cannot control a bit. Insanity!
The euro-enthusiasts confirm us that actually the euro and kroon has no difference, because we are so strictly tied to the rate anyways. That conceptually we have a euro with the picture of Koidula on it. It is so only partly. The country has – broadly speaking – three handles to influence its economy by: the budget, the cashflow and the price of currency. At the moment, Estonia is basically using only the first one – the budget. The price of currency we have tied to euro and for the cashflow we also have set ourselves very strict restrictions, at the same time, giving the Swedish banks a greater roll in it, than the Estonian Bank or the government. Only a dumb person or a euroagent might believe, that this will help our economy or is going to bring about the rise of well-being in Estonia.
It is clear for a thinking person that the euro as a currency is in a deadlock and no effort, aid package, further centralisation, special measure or even saving packages is going to help in the Old Europe. The euro is doomed. The only thing is to wait and see if it will happen through hyperinflation, which will be started by the desperate attept from the European Central Bank to increase the cashflow by printing more bank-notes and by that make more money to pay the countries’ debts or will it collapse through the dropout of a series of countries from the euro zone.
Before the final collapse, we will have the chance to witness the measures usually taken by banana republics, as capital control, price of currency, amount, amount of exchange, restricting certain kind of deals and declearing them speculations, implementing taxes and fees, which equal to confiscating to certain economic activities. These are all signs of the agony of the end. One way or the other, it has failed as a political project (and euro has never been anything else). It is nearly impossible to see, how the EU can last, if the main thing keeping it together and deepening integration has blown sky-high.
On the background of it all, the keenness to euro of the Estonian politicians and people who think they are economists, is unbelievable. Our politicians, economic experts, businessmen and the media should be concern of a question, how to lower all of the risks, what the fast developments in the economy of the world are causing. Beside dreaming of the economic stabilising we should think, how to save the estonian people the second time in 20 years from total impoverishment. This time, the result depends only on us.
The first and the foremost decision should be the abandoning the transition to euro. One does not plan a wedding with a walking corpse. Even if euro does not collapse before the new year, a serious instability is ahead and a collapse in the upcoming years. In the light of that, the preservation of kroon, strictly tied to euro is a half-measure, which would only give us the opportunity to control the amount of the money afloat, not the price of the currency.
Estonia must look its system of the currency committee and decide, whether to tie its money to some other currency or go over to a floating currency.
Taken in to account that we are one of the lowest public national debt countries in the world (solely 7,2 per cent of GDP), that our currency has a really good cash reserve and that we have gone through deflation, which has increased our competitiveness, the Estonian financial situation is immeasurably better off than euro or the countries behind the euro. By preserving the kroon, our opportunity to export to Europe would not go anywhere – it would improve, because the currency rate of kroon to euro would decrease a bit. The untying of the currency rate would create the opportunity to start controlling the export deficit, which conceptually leads to the exporting of wealth that is created in Estonia.
The Estonian economy is small and if the euro blows sky-high, it will influence us strongly one way or the other. That is the reason, why to give twice the effort in ensuring that we do everything to save us from the worst. The preservation of kroon and untying from the euro is our best defence against the obstacles and difficulty ahead.
[Translated by Jaanus Karlson, original article in Estonia by Martin Helme]
So, the socialism in Europe is reaching its natural result. Lack of law, lack of wealth and riots.
The law enforcement establishments are enforcing harsh and special measures more and more lighthandedly at the expense of the citizens freedom and earnings.
It does not matter, how big the aid packages are – still it is obvious that actually much more is necessary. The usual rate has become hundreds of billions. For example „The debt of Greece is 300 billion euros“ or „The EU created a 750 billion euro aid fund to save the countries in debt“. And by doing that, at the same time breaking all of the EU laws and not being concerned about the angry resistance of the people. This is modern Europe: in debt, breaking its fundamental laws and not caring about the voters opinion.
What is the answer to every crisis from Europe? More power to Brussels! Under our very eyes the plan, which was secretly their point of taking up the euro, is being implemented – a financial system, which is controlled by a central government.
By the lead of France, with the support of the commission and with the whimpering acceptance of Germany, a decision has been made to create a unitary debt system in Europe. This means that not only the 16 euro zone countries, but all the 27 member countries as well form a unitary till, by which euro is being supported. This means – observe carefully! – that the estonians as well are going to pay for the possible debts or Greece, Portugal, Spain and maybe Great Britain. Even before we are a member of the euro zone. And they do not need our agreement. The steps are taken with the help of the Lisbon treaty, which is the basis of the United States of Europe, and by the means of majority voting, so no-one would have the right to veto.
But what good does this kind of fund do? Solely the debt of the Mediterranean countries adds up to about 7 trillion euros and it is becoming more and more clearer that these countries are not able to handle their debts due to the budgets being negative all the time. The attempt of handling this kind of debt with 750 billion is as efficient as urinating to a burning house to extinguish it.
Because of the ’life-is-going-to-get-better’ talk the estonians have given up their independence and they are still demanded a huge ’solidarity’. The brave Estonian saving-government, who managed to cut a dozen billion kroons is a part of Greece-saving (as well as Spain, Portugal and Italy) fund in the extent of even more. Nobody exactly knows the figures, however 14 to 20 billion kroons have circled in the publicity.
At the same time, USA senat decided (with 94 votes in favour and 0 against) on preventing the government to give 320 billion dollars through IMF to the Greece’s aid-package. The money from America was virtually the only real money on the table, while the contribution of everyone else was an accounting trick. By what exactly is Germany or Great Britain, whose national debt is close to 80 per cent of GDP, in a better financial position than Greece or Italy, whose debt is about 115 per cent of GDP and growing?
What do all of these numbers actually mean? Well, firstly that euro as a currency is unstable. Wait! Was not the stability supposed to be a great advantage, which we were supposed to get by joining the euro zone? Oh, it does not matter, let us not wind it over the top with these kind of little things as stability. What do these numbers show as well?
For example, that the price of euro as a currency is dropping constantly. That is good, right? I mean for the export, which was supposed to be the big locomotive, which would pull the Estonian economy to full speed once again? Only, the bigger part of our export is going to the euro zone and our currency is strictly tied to euro. So, that brings us nothing. The price of the money is lowering – as well as are our savings and salaries – however, we do not get any real positive effect from it.
This way or the other, the „eurocrats“ do not let a perfectly good crisis go to waste. The project of the supercountry has to go on. Brussels wants that from now on, the governments have to let their budgets be looked at by the „eurocrats“ and be accepet before they reach the government. So that the countries would not spend as much, as has happened in all of the European countries except Estonia.
The creaters of the euro have never hidden their goal: it is not possible to have a common currency if there is no common budget and taxes. The crisis of euro has given the centralisers a new reason to collect taxes and start doing the budgets in Brussels instead of the capitals. How many billion kroons the poor Estonia is going to pay to the richer Western-Europeans in order to pay their debts every year, is not known, however, let us live in the hope that if the people making decisions are ones from Greece/Italy/Spain, not our politicians, the numbers will be modest.
What happens with money in a bankrupt empire, where the doing of the labour has been replaced by redistribution, should be remembered by estonians quite well. The difference between now and the time of ruble is yet conceptual: at that time we had no control of the situation and the only way to get out of the money, which brought great poverty was the transition to our money, which we control by ourselves. Now the situation is upside down: we have our money, which we control and which serves us well, however our politicians want to abandon it, to transmute to a money, which burns in every corner an which we cannot control a bit. Insanity!
The euro-enthusiasts confirm us that actually the euro and kroon has no difference, because we are so strictly tied to the rate anyways. That conceptually we have a euro with the picture of Koidula on it. It is so only partly. The country has – broadly speaking – three handles to influence its economy by: the budget, the cashflow and the price of currency. At the moment, Estonia is basically using only the first one – the budget. The price of currency we have tied to euro and for the cashflow we also have set ourselves very strict restrictions, at the same time, giving the Swedish banks a greater roll in it, than the Estonian Bank or the government. Only a dumb person or a euroagent might believe, that this will help our economy or is going to bring about the rise of well-being in Estonia.
It is clear for a thinking person that the euro as a currency is in a deadlock and no effort, aid package, further centralisation, special measure or even saving packages is going to help in the Old Europe. The euro is doomed. The only thing is to wait and see if it will happen through hyperinflation, which will be started by the desperate attept from the European Central Bank to increase the cashflow by printing more bank-notes and by that make more money to pay the countries’ debts or will it collapse through the dropout of a series of countries from the euro zone.
Before the final collapse, we will have the chance to witness the measures usually taken by banana republics, as capital control, price of currency, amount, amount of exchange, restricting certain kind of deals and declearing them speculations, implementing taxes and fees, which equal to confiscating to certain economic activities. These are all signs of the agony of the end. One way or the other, it has failed as a political project (and euro has never been anything else). It is nearly impossible to see, how the EU can last, if the main thing keeping it together and deepening integration has blown sky-high.
On the background of it all, the keenness to euro of the Estonian politicians and people who think they are economists, is unbelievable. Our politicians, economic experts, businessmen and the media should be concern of a question, how to lower all of the risks, what the fast developments in the economy of the world are causing. Beside dreaming of the economic stabilising we should think, how to save the estonian people the second time in 20 years from total impoverishment. This time, the result depends only on us.
The first and the foremost decision should be the abandoning the transition to euro. One does not plan a wedding with a walking corpse. Even if euro does not collapse before the new year, a serious instability is ahead and a collapse in the upcoming years. In the light of that, the preservation of kroon, strictly tied to euro is a half-measure, which would only give us the opportunity to control the amount of the money afloat, not the price of the currency.
Estonia must look its system of the currency committee and decide, whether to tie its money to some other currency or go over to a floating currency.
Taken in to account that we are one of the lowest public national debt countries in the world (solely 7,2 per cent of GDP), that our currency has a really good cash reserve and that we have gone through deflation, which has increased our competitiveness, the Estonian financial situation is immeasurably better off than euro or the countries behind the euro. By preserving the kroon, our opportunity to export to Europe would not go anywhere – it would improve, because the currency rate of kroon to euro would decrease a bit. The untying of the currency rate would create the opportunity to start controlling the export deficit, which conceptually leads to the exporting of wealth that is created in Estonia.
The Estonian economy is small and if the euro blows sky-high, it will influence us strongly one way or the other. That is the reason, why to give twice the effort in ensuring that we do everything to save us from the worst. The preservation of kroon and untying from the euro is our best defence against the obstacles and difficulty ahead.
[Translated by Jaanus Karlson, original article in Estonia by Martin Helme]