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Telling It like It Is: VERY Powerful, Accurate Words from Former Moody’s Vice-Chairman about German “Clausewitzian” Economic Policy toward Europe


Ger­man eco­nom­ic vision for periph­er­al Euro­zone coun­tries

Dave Emory’s entire life­time of work is avail­able on a flash dri­ve that can be obtained here. [2] (The flash dri­ve includes the anti-fas­cist books avail­able on this site.)

COMMENT: In so many posts and pro­grams, we have dis­cussed and ana­lyzed the EMU/EU as the embod­i­ment and real­iza­tion [3] of Ger­man plans for Euro­pean and world con­quest. It is beyond the scope of this arti­cle to sum up such an impor­tant, detailed analy­sis. Seri­ous users of this web­site should under­take to exam­ine the argu­ments at length and detail.

Suf­fice it to say for our pur­pos­es here, that Ger­many is real­iz­ing a pre­de­ter­mined, delib­er­ate pol­i­cy of pur­su­ing von Clause­witz’s dic­tum of “war by oth­er means.” It is sim­ply being done by eco­nom­ic and polit­i­cal pol­i­cy, rather than by force of arms.

In our most recent post [4] about “Clause­witz­ian health care” in Greece, we under­scored the fun­da­men­tal con­ti­nu­ity between the results of con­tem­po­rary Ger­man fis­cal pol­i­cy and Hitler’s mil­i­tary adven­tur­ism.

For those who con­sid­er our analy­sis to be extreme and man­i­fest­ing hyper­bole, we present a dev­as­tat­ing cri­tique of Ger­man EMU pol­i­cy vis a vis the periph­er­al economies of the euro­zone. Dis­cussing Cyprus as exem­plary of Ger­man method­ol­o­gy and intent, Christo­pher T. Mahoney couch­es his cri­tique in alto­geth­er unam­bigu­ous lan­guage.

Mahoney is a for­mer Vice Chair­man of Moody’s! In the arti­cle below, he sounds very much like–well–Dave Emory!

“Cyprus: Vic­tim Of Ger­man Colo­nial­ism” by Christo­pher T. Mahoney; Project Syn­di­cate; 7/26/2013. [5]

ENTIRE TEXT: “We antic­i­pate the bank­ing res­o­lu­tion mech­a­nism for the Cypri­ot bank­ing sec­tor to result in a sig­nif­i­cant down­siz­ing of banks’ activ­i­ties and there­fore to severe­ly affect the eco­nom­ic per­for­mance of the island from 2013 onwards. We expect an accel­er­a­tion in the con­trac­tion of the Cypri­ot econ­o­my in 2013, with a neg­a­tive real growth rate in the low dou­ble-dig­its and no return to pos­i­tive growth before 2016. Our view is fur­ther sup­port­ed by the neg­a­tive feed­back loop that expen­di­ture cuts may have on the econ­o­my giv­en the impor­tance of pub­lic ser­vices, hence poten­tial­ly chal­leng­ing future con­sen­sus on fis­cal strat­e­gy. We note that large uncer­tain­ties remain regard­ing the mag­ni­tude of fur­ther recap­i­tal­iza­tion needs for the finan­cial sec­tor giv­en the expect­ed sharp dete­ri­o­ra­tion in the oper­at­ing envi­ron­ment which will erode asset qual­i­ty, as well as the behav­iour­al respons­es of all eco­nom­ic actors to the shocks expe­ri­enced by the finan­cial sec­tor (includ­ing risks of finan­cial dis­rup­tion relat­ed to the tim­ing and approach for lift­ing of cap­i­tal con­trols). In light of all the down­side risks and the lim­it­ed num­ber of upsides, we view Cyprus as like­ly to default again in the com­ing years, as reflect­ed by the rat­ing lev­el and neg­a­tive out­look. Although it is not its cen­tral sce­nario, Moody’s also sees a mate­r­i­al risk of a Cypri­ot exit from the euro area which is cap­tured in the Caa2 coun­try ceil­ing. As a result of the imme­di­ate down­siz­ing of the bank­ing sec­tor and the expect­ed spillovers to rest of the econ­o­my, espe­cial­ly in terms of weak­ened con­sumer and investor con­fi­dence, we fore­cast that the econ­o­my will con­tract by 12% this year and anoth­er 6.4% next year.”

–Moody’s, 15 July 2013

The pur­pose of EMU is to reduce the occu­pied states to penury in order to make them more like Ger­many, or Ethiopia. Ulti­mate­ly the ques­tion is is: how low can per capi­ta income decline until “Europe” becomes a dirty word, and “lib­er­ty” becomes the pop­u­lar desider­a­tum. Cyprus is the lab­o­ra­to­ry of this exper­i­ment, along with Greece and Por­tu­gal. Here is the exper­i­ment: How many peo­ple must eat out of garbage cans before the euro elites under­stand that EMU is destroy­ing lives?

It must be pleas­ing to be ingest­ing a nice Brus­sels din­ner while dis­cussing how sub­hu­man the Cypri­ots are, and how they must be “taught a valu­able les­son”. That was how Stal­in felt about the “rich peas­ants” of the Ukraine: sur­plus emp­ty mouths to feed. Wouldn’t the world be a bet­ter place with­out so many peas­ants?

Per­haps, in a per­fect world, Cypri­ots wouldn’t exist, like the kulaks and the Crimean Tatars. All Cypri­ots do is enable Russ­ian plu­to­crats. Why should they exist? Liq­ui­date them. Indeed, liq­ui­date all of the par­a­site states of the Euro­zone.

So we now know that the pur­pose of EMU is not to enrich the vas­sal states, but to occu­py them and to make them penu­ri­ous colonies of the hege­mon. Periph­er­al Europe is Germany’s Latin Amer­i­ca. But there is a cru­cial dif­fer­ence: the US has not forced its Latin Amer­i­can colonies to join the dol­lar zone. Latin Amer­i­ca, despite its colo­nial sta­tus, retains mon­e­tary sov­er­eign­ty. Aside from the Bol­she­vik lab­o­ra­to­ries of Argenti­na and Venezuela, Latin Amer­i­ca is out­per­form­ing its colo­nial par­ents. Por­tu­gal and Spain should have mon­e­tary union with Brazil and Mex­i­co, instead of Fin­land and Ger­many.

What Ger­many is doing to Cyprus is a crime.