Greece Was Set Up...By The Euro!

Discussion in 'Conspiracy Theories' started by PoliticalChic, Apr 11, 2010.

  1. PoliticalChic
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    PoliticalChic Diamond Member

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    According to the following article from the Philadelphia Trumpet, the power elites of Europe knew when they conceived of the Euro, that weaker countries would not be able to remain within the economic parameters of the EU.

    "After the EU single currency system was implemented, certain voices predicted the failure of the euro. A handful 
theorized that the euro may well even have been deliberately created to fail by certain German elites. The theory was that Germany would bide its time and allow the unworkable monetary union to prevail till it reached a point of collapse and then, having wrested control of the European Central Bank (ECB) out of any competitor’s hands (read France, in particular), move in quickly and take direct control of EMU administration. Germany could then ensure that a preferred core of EU member nations would receive ECB favor, with the disfavored reduced to vassal status or worse."

    Leaders of the plan were "aware of the difficulty of convincing voters to willingly relinquish their national sovereignty. Monnet felt that the only way to achieve unification, without war, was through stealth. The people must not know that sovereignty has been surrendered until it is gone.
    English conservative and author Adrian Hilton described Monnet’s intentions for Europe this way: “Europe’s nations should be guided towards a superstate without their people understanding what is happening. This can be accomplished by successive steps each disguised as having an economic purpose, but which will eventually and irreversibly lead to federation” ("The Principality and Power of Europe") As Monnet said on April 30, 1952 “The fusion [of economic functions] would compel nations to fuse their sovereignty into that of a single European state."

    When the euro was created, a chain of events was set in motion. For nations like Greece, a future debt crisis was almost inevitable.
    1. By joining the eurozone, Greece traded its inflation-prone drachma for the stability of the euro. It also gained the economic borrowing clout of a superstar, even though it had the economy of a small supporting actor.
    2. Initially, these two advantages vastly improved the standard of living for the people of Greece. They allowed corporations, individuals and government to borrow money at the low rates typical within large developed countries like Germany.
    3. The new low interest rates were more than Greece could resist. All levels of society binged on seemingly cheap money. The government, for its part, embraced a massive welfare state, also made possible by easily obtained low-interest loans.
    4. [T]here was a good reason Greece paid far higher interest rates to borrow money when it was not a member of the Union. Greece has a history of borrowing too much.
    5. With a projected budget deficit of 12.7 percent of the nation’s gross domestic product, Greece is far out of compliance with the eurozone’s mandated 3 percent maximum.
    So, what does Greece do, and how does it pay its bills?
    1. Typically when a country takes on too much debt, it contracts Argentine-disease. Known also as “quantitative easing,” countries devalue their currency by turning on the money printing presses and simply creating the currency to pay the bills.
    2. The economy also gets a short-term kick-start because a devalued currency makes exported goods less expensive; thus foreigners buy more domestic products.
    3. Greece, however, does not have this option. Since it is locked into the euro, it does not control the printing presses. Germany does.

    The Telegraph’s Ambrose Evans-Pritchard wrote on January 31 that the solution to the crisis could involve a paring down of the eurozone. He noted the possibility of a bloc of nations centered on Germany leaving the eurozone and creating a new currency: the Deutsch mark 2. The rest of the eurozone countries would then be free to devalue the euro (turn on the printing presses) to pay down debts.

    It is “Time for the Eurozone to Grow Up,” headlined the Wall Street Journal on February 8. There is a way out of this dilemma, it wrote. “It would require a European federal government with substantial taxing and spending power, with the ability to redistribute resources and impose fiscal discipline across the continent. In short, it would require a far greater degree of political union …. Yet the choice is now clear and inescapable.”
    “The crisis has revealed our weaknesses,” said European Union President Herman Van Rompuy in February. “Recent developments in the euro area highlight the urgent need to strengthen our economic governance.” Europe needs a powerful “economic government,” he said.

    Yes, the days when the free nations of Europe charted their own destiny are indeed "
    The Greek Crisis Was Planned! | theTrumpet.com by the Philadelphia Church of God
     
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  2. Baruch Menachem
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    Baruch Menachem '

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    you make your own choices. No one sets you down for self destruction.

    The argument sounds a bit like the guy telling the judge "Ok, so I am curb crawling along a known stroll looking for an address. I asked this nice lady how she was doing, makeing some nice conversation, and she looked cute and i told her that and all the sudden half a dozen cops arrested me!"
     
  3. Toro
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    Toro Diamond Member

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    The fall of Greece wasn't planned.

    There were and still are a lot of skeptics of the euro, and they may eventually be correct, but to say that it was planned is pretty silly.
     
    Last edited: Apr 11, 2010
  4. PoliticalChic
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    PoliticalChic Diamond Member

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    If you read the article, the point is actually that Germany benefits from diluting the number of EU nations, and the euro becomes stronger without the PIG nations.

    Further, John Mauldin points out the Greek finacial proclivites over some 200 years. Based on that history, how difficult would it be to predict Greece's ability to live up to EU commitments.

    In other words, 'pretty silly' seems less than a thoughtful response.


    John Mauldin is a money manager and author of several books and numerous articles on various topics of economics and investment. He is president of Millennium Wave Investments, based in Arlington, Texas. His bestselling book to date is "Bullseye Investing" (a "New York Times" bestseller), and his most recent book is titled "Just One Thing". He also authors the weekly e-letter "Thoughts from the Frontline". John Mauldin

    "Greece is running a budget deficit of 12.5%. Under the Maastricht Treaty, they are supposed to keep it at 3%. Their GDP was $374 billion in 2008 (about €240 billion). If they can cut their budget deficit to 10% this year, that means they will need to go into the bond market for another €25 billion or so. But they already have a problem with rising debt. Look at the following graph (top of post) on the debt of various countries.

    Oh by the way, did I mention that the history of Greece is not exactly pristine in terms of default? In fact, they have been in default in one way or another for 105 out of the past 200 years. Aristotle, can you spare a dime?"
    John Mauldin: Greeks Bearing Gifts! Socio-Economics History Blog
     
  5. Toro
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    The fall of Greece wasn't "planned." Its silly to think so. I know of all the data you post - I have been for months and still am shorting the euro. You can argue that the inclusion of Greece was misguided, as I believe it was. But it wasn't planned.
     

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