From the currency union to a debt union – via a union based on joint liabilities

by Professor Dr Eberhard Hamer

From the beginning, for most of the member states the purpose of the EU was to be a redistributive union, to withdraw funds from the economically strong member states in order to redistribute them. Almost 400 billion euros in total have in fact been redistributed by the EU over the last 40 years. The main payers were Germany with 33.4%, France with 16.7%, as well as Great Britain with 13.8% and the Netherlands with 10.4% of the total sum. The main net beneficiaries were Greece (24.4%), Spain (23.9%), Poland (15.5%), and Portugal (12.7%). However, 30 years of redistribution have not really improved the economic power of the recipient countries. They have run into even greater debt than the donor countries (Greece 150%, Italy 130%, most countries over 100% of their gross domestic product GDP).
Worldwide, the debt tower stands at over 200 trillion dollars. That is more than 386% of the world’s annual economic output. Thus, the traditional way of debt reduction through savings is no longer possible. Even the leading countries in the world such as the US, China, and Japan, are so heavily indebted that, according to private principles, they would be teetering on the brink of bankruptcy.
However, this debt explosion has so far been financed by a monetary explosion; which means that the leading central banks have “printed” more and more money without value and distributed this in the form of loans (that is debt). Thus, constant over-indebtedness became possible by extension, i.e. devaluation of the currencies. In other words, money is becoming less valuable everywhere, but through skillful propaganda confidence in this money is still being maintained, while the billionaire investors have long been running out of money into the world’s assets.
The fact that the European debtor states such as Greece, Italy, France, Spain or Portugal have been able to pile up such high debts is connected with the euro as the common currency and with the “bailout packages”, first in the form of assumption of liability and then of debt assumption – last 700 billion euros by the ESM (So ESM might be taken for the abbreviation of “Europäisches Schuldenmonster” – European debt monster).
By rights, all European treaties exclude liability and debt union, and financial institutions and countries are to be held alone accountable for their own debts. In fact, however, the euro-fiscal politicians have broken not only the EU treaty, but also national sovereignty rights, pushing Europe ever further towards a financial and debt union. Now France and Italy are at the end of their solvency and pushing for redistribution, for what Macron calls a “euro reform”.
Ultimately, the liability, debt and fiscal union only serves to uphold the diabolical game of the banks’ fleecing everyone with bad loans, rotten financial products, depleted currencies and the European member countries’ conscience-free running into debt.
The main culprits of this financial and currency fraud are Goldman Sachs bankers in the US and the ECB (Draghi), who first pushed the banks to grant unrestrained accreditation in the form of unrestrained ECB loans to over-indebted countries, then bought the bad loans from these banks, so creating depleted money and currency devaluation; and at last, for good measure, they created a “Target” account, to which the debtor countries could charge their ever higher debts to the detriment of solid countries.
So the debt disease is passed on and on, the virus is transferred to all, everyone becomes ill, and instead of the bankruptcy of single states there will be a total bankruptcy of all – does this show up a desire for the common nemesis?     •

*    Prof Dr Eberhard Hamer is the founder of the Mittelstandsinstitut Hannover as well as author and editor of several books like among others “Was tun, wenn der Crash kommt? Wie sichere ich mein Vermögen oder Unternehmen?” (What should we do when the crash comes? How do I secure my assets?) 10th edition 2008,  and “Visionen 2050. Wohin steuern wir? Trends und Prognosen für Deutschland und Europa” (Visions 2050. Where are we heading? Trends and forecasts for Germany and Europe) 2016.
(Translation Current Concerns)