A comment on Michael Robert’s blog; The euro’s corona crisis
Oh, dear! Roberts usually has such good stuff but here he is getting it way wrong. Raise the Eurocrats cut of the common wealth to 20%? The last things those bastards need is more money and more power. Imagine the mess they could make, beyond what they have done already.
Like most wrong economic ideas, this comes from a misunderstanding of the nature of money. Money is an abstraction, not a commodity. It is used as a unit of account. It is issued by a sovereign power. It has value because the sovereign power designates it as legal tender, which must be accepted as payment for all transactions, and which the sovereign accepts in payment of taxes.
When an economy is being run properly, the sovereign power manages the economy and regulates the money supply by issuing the currency through government programs, and withdrawing it through taxes. Thus there can be only one sovereign power and one tax system for any currency. And by the way, a real democracy is one where the people are the sovereign power, and is essential to overcoming capitalism.
A single currency circulating among several sovereign states each with its own tax system does not make any sense. There will be no way to regulate the money supply so that unjustified investments are not made. Most of these sovereign powers will be unable to raise enough revenue and so their economies will decline. All the wealth will be concentrated at the centre of the territories within the currency system, which is how colonial empires work, isn’t it?
People miseducated in economics, who can only understand money as something banks put out, will be unable to understand this. Banks rule the world, neo-colonial empires enforce their privilege, the idea of truly sovereign and independent polities is beyond their comprehension. Alas, certain Marxist economists also seem to accept these particular shadows on the cave wall.
The Euro might have been useful if it had just circulated between the treasuries of EU countries, as a way of balancing trade, much the way gold used to be used. As it is now, there are only two ways to go. One is for the Brussels bureaucracy to overthrow the sovereignty of the EU member states, merging all tax systems and most government programs into one. Imagine how well that will go over. But maybe that is what Roberts is thinking? I hope not!
The other is to get rid of the Euro and return the EU to just being a common market, as it should have stayed. That will also require a long and hard fight because the Eurocracy has had time to entrench itself strongly. They are strongly supported by globalist bankers.
I could do a good deal of blogging about the political and economic strategies which the people of countries like Italy and Spain will need to pursue to fight their way out of “Hotel California”. But ‘full and harmonious convergence’ is not possible or desirable under capitalism or any other conceivable economic system. Further, a “United States of Europe” would be a calamitously bad idea. That really should be self evident, but it can be the subject of some of my future bloggings.
The upshot is; if you want an end to capitalism you want an end to the Euro. Cheerleading for the Eurozone while claiming to espouse Marxism is cognitive dissonance. As for coronavirus threatening the collapse of the Eurozone, that was in the works anyway. The pandemic is helping it along.
People in Europe, as elsewhere, are realizing that elitist power structures are not going to provide them with security and a decent standard of living. The strongly neoliberal Eurocracy is being rejected and new, local solutions are being sought. The sad thing is that The Left at present has gotten totally lost. It has lost contact with reality and with real people.
I can see the beginnings of a renaissance of The Left but it will take some time to develop. Left political parties are currently talking the same monetarist and Neo-Malthusian climate crap as the elites, constantly betraying their potential support base. The public is doing what the public always does when the existing system fails. It looks to The Left for leadership. When The Left is not there, it looks to the right.
Rather than look at their own failure, The Left has been screaming about the rise of a new fascism, or about ‘populism’. But the European public seems smarter these days. They are making clear they do not want rabid nationalism and racism. They want their bread and butter issues dealt with. They want their sovereign national governments back, with more direct democracy. They want an end to Neoliberal austerity. This means necessarily that they want less EU.
The West Europeans are the most culturally and politically sophisticated people on earth. That would be one reason the Globalists hate them so much and work so hard to drive them down with this EU machine. North Americans are in comparison quite backwards. They have not had to work so hard to control us.
In Canada especially, we are way behind the curve on what is needed to insure security and decent living standards in future. Of course, to insure that public health services are sufficiently developed that pandemics like Coronavirus do not turn into a shambles and an economic catastrophe. This requires building stronger democracy, which of course can only work within the frame of sovereign national states.
Of course, that is about strengthening the integrity of national states, not breaking them down. It is also about curbing all these extranational institutions, operating without any effective control, which the Globalist financial elite have worked so hard to build up. I have often wondered why so many Marxist and other ‘left’ theorists are so fond of these institutions and so hostile to the nation state, comporting closely with the Globalists.
This seems to me to be the big flaw in ‘Marxism’. I don’t think Marx himself made this mistake. That is, the failure to understand the need for real democracy, which requires the sovereign state. They seem to see the state just as something getting in the way. And that is just how the Neoliberals see it. So…?
One final comment; the Marshall plan was never any great benevolent act to help Europe out. It was about helping to lock Europe into the American empire. Southern Europe does not need Macron’s bailout. They were doing fine until they got locked into the Euro. They do not need to be “build up from the centre”. They need all ‘centres’ to leave them alone and let them develop themselves in their own ways.
To conclude; all facts and fancy graphs presented by Roberts should be read as supporting a ‘divergence’, not a ‘convergence’. His support for convergence comes from looking at it through a warped lens which fails to see that public control over, and accountability from, institutions is essential to dissolving capitalism. How the lens got warped, I do not know. tr