Billionaire globalist George Soros says that the world will face a second Great Depression unless leaders in Europe come together in a closer political union to push through bold new policies, including the creation of a European Treasury.
“It appears the authorities have reached the end of the road with their policy of ‘kicking the can down the road’,” Soros writes in a piece for Reuters.
Soros argues that further integration in Europe is the only way to prevent catastrophic financial meltdown.
“There is no alternative but to give birth to the missing ingredient: a European treasury with the power to tax and therefore to borrow.” Soros writes.
“Once the principle of setting up a European Treasury is agreed upon, the European Council could authorize the ECB to step into the breach, indemnifying the ECB in advance against risks to its solvency,” the investor adds.
In other words “The European banking system would be recapitalized and put under European-, as distinct from national-, supervision” he writes.
Adding that such a move would require a new European Union treaty, Soros states “That is the only way to forestall a possible financial meltdown and another Great Depression.”
A d v e r t i s e m e n t
Soros warned Europeans in countries like Germany, that while they may be unhappy essentially underwriting debts for reckless Southern European countries, they basically have no choice anymore.
“The German public still thinks that it has a choice about whether to support the euro or to abandon it.” Soros writes, adding “That is a mistake.”
“The euro exists and the assets and liabilities of the financial system are so intermingled on the basis of a common currency that a breakdown of the euro would cause a meltdown beyond the capacity of the authorities to contain.” the article continues.
Asserting that prolonged recession with “incalculable political consequences” throughout the euro zone is already inevitable, Soros adds, “The longer it takes for the German public to realize this, the heavier the price they and the rest of the world will have to pay.”
Yesterday, the president of the European Commission, Jose Manuel Barroso echoed the same sentiments as Soros, insisting that the economic crisis has turned into a “fight for European integration,” and calling for ” a new, unifying impulse” and “a new federalist moment”.
“Economic and monetary union cannot function properly only on the basis of decisions taken by unanimity.” Barroso said, suggesting that the Commission and the EU should have full authority over the governments of member states to enforce rules via the EU “Community method”.
In Washington, IMF chief Christine Lagarde essentially reiterated these sentiments, urging advanced countries to take radical steps to combat weak economic growth and high debt burdens.
“Without collective, bold action, there is a real risk that the major economies slip back instead of moving forward,” she said in a speech ahead of the IMF and World Bank meetings of global financial leaders next week.
German Chancellor Angela Merkel continues to resist this brand of globalism, arguing that “collectivizing debts” would not do anything to solve economic problems.
“In order to bring about common interest rates, you need similar competitiveness levels, similar budget situations. You don’t get them by collectivizing debts,” Merkel said in a speech at the Frankfurt auto show today.
George Soros, along with the elite old guard in Europe, has been pushing the same agenda for some time now, calling for greater global financial regulation and further integration within the European Union.
On a speaking tour of Europe promoting the European Council on Foreign Relations last year, Soros told the elite Traveller’s Club. “The idea that markets can correct their excesses turned out to be false.”, adding that “The world does need order, and that order needs maintenance.”
Soros also spoke of a need for Europe to defend it’s single currency and re-order its financial structure “across borders”. He said the EU should be granted the power to “supervise and protect the banking system”, and “also to guarantee banks that become insolvent”
Close to eighteen months ago, at the height of the unprecedented €750bn EU bailout, we highlighted the fact that financial experts and economists were adamant that the rescue of the Euro represented another step on the road toward a monolithic globalist federal union, a mass centralization of power in Europe.
The sovereign nation state as viable economic entity is being jettisoned in favour of a vastly empowered European Central Bank and European Union.
Of course, this has been the idea all along, we were introduced to the problem, for the past three years we have witnessed a reaction of great destabilization and we are being presented with the same solution once again – more mass centralization in the name of stability – however, the stability is STILL no where to be seen.
For many years critics have warned that the EU has been slowly morphing into a federal superstate governed by unelected powerbrokers, who have increasingly sought to undermine the national sovereignty of member states.
What will the people of the member nations gain from this mass centralized union? They will simply see more of their earnings and their savings siphoned off to Brussels to prop up a failing paper currency they had never asked for in the first place. It will also mean their national vote counts for even less as unelected foreign bureaucrats are provided vastly more influence on the national economic policies of their governments.
This is a classic case of problem, reaction, solution – the very same European powerbrokers that brought us a major crisis, via enforced destabilizing monetary integration, are now offering up the final piece of the jigsaw, full integration as a means of stabilization.