Dissidentpress

August 15, 2011

TWO ALTERNATIVES FOR EURO – SEEN FROM EUROPE: ONE IS A NEW DEFACTO-ALLIANCE

The first alternative is bankruptcy States Collection without foundation, the other can lead to war

‘Who will pay’ (?), the situation in the shortest form in Euroland. We have not concealed anything in regard to this from the euro’s introduction. And we do not fear the Danish Law of Jante. It went, as we previously indicated it would.

The top in France who demanded DM Mark abolished and stopped the originally planned tough Euro to accept the reunification of Germany is now home to have the debt and deficits in France looked after – a strong Euro would have been impossible in Europe because it was bound to be the ruling-remedy of something too different.

The German state-debt amounted to 78.8 percent of gross domestic product (GDP) in 2010, where the arbitrarily chosen politician-made limit in the Maastricht Treaty and further confirmed in the newly agreed EU’s stability – and growth pact is decided the highest 60 percent of GDP.

Without a strong real economy behind the euro it is no surprise that it’s exchange-rate should be down without someone to pay, defending currency speculation or euro as a Petro-Euro. It remains up. Why? New-mercantile currency floating in oil with Europe’s the real economy in stand still, does not seem as possible way to go1). We have not yet reached the deficits and losses on loans to the old Eastern Europe, several countries admitted as EU members. EU member countries thereby plus nation-states alone even in addition has secured quite-out-the-hemp-loan arrangements including housing loans in Eastern Europe with various banks as intermediaries.

Euro and its primary tasks: to assume that the common compulsory money unit should reflect the real economy of Europe and suit this, we have apparently misunderstood. Similar to Spain’s disastrous management of the gold experience in Latin America in 1500s, it seems that the euro at the best neo-mercantilist view via trade settled in euro, for example oil trade from the Middle East for much of the globe should form the generating momentum, causing the necessary change in Europe with more than 20% unemployed and excluded (officially 9% unemployment) and a huge and growing debt, of which it is almost impossible to draw an unambiguous picture anymore. Jean Monnet – one of the ancestors to the EU project – claimed precisely in 1950s that the compulsury single currency would be used to lift a political union in full scale in place. It was the form, not content, that counted, we can note.

If for example one of the Maastricht convergence requirements for example dealing public debt, which must not exceed 60% of GDP, effectively has validity, the consequence would be that the half to two thirds of countries would not meet this requirement by without accepting stabilization crises with IMF’s intervention. This can be extracted from the real information, which escapes from time to time.

Under Mercantilism, which historically ended with the Napoleonic wars, very simple methods were used to acquire wealth. Today it is so conceived that economic stability and development are measured by a price index a debt ratio by a exchange rate or at a different ratio. I.e. when, for example, some quantitative standards are met, so this is a stable currency, stable economy and stable development are secured (with reference to the five completely arbitrary convergence criteria originally included in the Maastricht Treaty). Economcs stability and development include the dynamics of the capital formation, security of the investment process, knowledge and competences acquisition, new technology and high productivity and economic real economic growth in a country, to its leaders can be said to take voters seriously. All this can not be obtained or estimated based on some static concept, a key figure or five for that matter.

France and most other countries was originally opposed to the so-called stability pact that could have ensured that central bank acted as the old German Bundesbank and held the reins completely tight, but from a different starting point than that of today. It was decided at the Dublin Summit in December 1998 to drop Stability Pact and in the years 2002 and 2003 France came out with too large deficits of public finances in relation to the Maastricht rules and Germany just as for the past more than five years.

The battle for who should appoint the president of the ECB was decided in Dublin. It was France. The German Bundesbank was very out of pace with the German political, financial and industrial elite. In contrast, the bank was very popular in the German public opinion. Therefore, the politician former Bundeskanzler Helmut Kohl was very hard pressed between the German and French political Establishment. The French Socialists have built their requirements for euro in the subsequent treaties. Now with Kohl completely gone and the current German Chancellor (in 2011) is even a Centralist. EU has in turn recommended a German as head of IMF (International Monetary Fund). Kohl also had to eat that there could be purely automatic sanctions against a country that has sustained losses.

Now is required (after Amsterdam) 2 / 3 of the weighted votes of the active participating EMU countries to make sanctions when it goes wrong in a country. France had also approved a so-called Stability Council and thus a direct political role led into the monetary policy by that example formulated exchangerate-guidelines for the euro now. It’s quite crazy. France has secured the former French Finance Minister Christine Lagarde as managing director in IMF. If this indicates that France now exert its influence equally in the ECB and in the IMF (President Jean Claude Trichet), it certainly was perhaps an idea to have a check of the French economy. It looks like more inflation have to be expected in the future, but we can say with this any absolute certainty.

Introduction of the pure (economic) stability pact without countries in order their real economies, leads expectedly to real political instability. And can money quantity is not discussed over the entire euro zone, because it must be determined by a tough ECB, then the consequences for certain areas immediately be so insanely hard, that there is political instability. Not only Italy, Spain and Greece are examples where the way has been shown. This is not a proposal for flexible euro money, but a demonstration of the euro’s impossible integration in the EU.

To relieve the pressure, you can introduce that the more strong-going countries must “deliver some means from their public finances or even commit to this in advance”. But the problem is that nobody can or will or should do so to the less well-country, Spain, Italy, Belgium, Greece, Portugal, Poland, and that is exactly what the recent confirmation of the Stability and Growth Pact prescribes. This tightening political steering instruments, and the citizens of individual countries and thereby their politicians cannot agree to this. The next step may in consequence be the function of taxation to be transferred to the EU. This means initially in plain Danish that public expenditures should be managed crown for crown throughout the euro zone from the EU. This is common fiscal policy. Under this assumption the very little extravagant actions must quickly be closed in for, but also many others.

When you were judging by the declining DM and the increasing Italian lire in 1997-1998 market might get the impression that there was talk about a soft manageable euro at its establishment. There was simply unknown, but colossal Italian lire-volume should have ‘a forever defined’ euro exchange rate in July 1998 (so they said). How could this be possible? Since the exchange rate for Euro was reported to public in advance, speculators began to speculate of cource, especially when national currencies drove on for some time.

Already in 1996 one could foresee the consequences if Germany, France and England would take over Italy’s huge debt mountain at a time – it has happened apparently, we wrote back then, but could not know because we did not know debt figures. It would simple has destroyed the euro from the beginning and led ECB to also take care to guarantee the solvency from then onwards for both Italy, Spain, Portugal and Belgium and all the other violent debt burdened participating countries such as Greece, and what else could to be expected to introduced as EU-members in Eastern Europe in general. Therefore it happens now.

With the many new deficit countries inside, there would also be created an alliance with Amsterdam Treaty voting weights, which could put pressure on the ECB and get it to act as though it still has control over the monetary policy without it really does. Reel EMU severity by the book multiplied by three or four is what should be expected now if it is to succeed in creating economic stability in the current situation – without a strong leverage from outside.

Thus loosing the political stability is status quo and it is likely to be, and disappointment of the project will then lead to resistance to the whole euro project. Therefore they still act ‘as if’. The fear of competition inhibits rationality: globalization trivializing means the unrestricted movement of markets, including capital market. This globalization many argue destroy the democratic welfare state and the nation state. It does so only because we have no longer an international monetary system to prevent it. Free movement of capital undermines the ability of states to regulate. Especially in terms of employment. Wage pressure and cuts may intercept what threatens to be lost of jobs, particularly by outsourcing. Global financial markets are not subject to any self-regulatory competition mechanism, and induces crisis to crisis – Asia, Mexico, Russia and country in Latin America – if there is no order in the real economy. Crises will deepen because of the many debt securities, which amplify the difference between the nominal and real values of the nations. And all because you have chosen to supply the measuring tape instead of using the measuring tape to measure.

It gets worse when all the state leaders continue net borrowing more and more. Crises sharpen the social pressure with needed for cuts. The pressure leads either to dissolve the democratic welfare states, to dissolve itself into interconnected defense the blocks (blocks as the currency Euro, Dollar, Yen and Renminbi-zones) or fall back in the old enemy images that characterized the nation in advance or in a combination of both scenarios. With the dissolution of the democratically founded national and social state globalization triggers itself eventually, because it can not stand for their countries’ populations/voters have to carry larger and heavier loads without any security for himself to be covered against the worst.

Euro-Union is the prototype of this development. Its thinly disguised double-motive was a) fear of dollar dominance and competition, and b) fear of the new reunified Germany with the D-Mark-regime.

Anxiety are always based on a false analysis. Non U.S. dollar threatens Europe’s market shares in world trade, but Europe’s lost knowledge-, competence- and technical-terrains and especially Europe’s inertia with reforms and innovations are concerned. Not Deutschmark hardness and strength prevented the development and integration, but from the “Maastricht” the goal was abolition of the Deutschmark, and it has happened. The rationale was that just the Deutschmark should have driven the current euro-participating countries then into a string negative developments aimed at reforms and social limitations. Alone these fallacies and incorrect assumptions permits no realistic expectations a hard euro. Inflation is preprogrammed. Then blow more air in and let it float in the oil first, but the collapse thereby becomes even greater. All participants member-states are deeply indebted and running all at a loss. Already at the euro start the national governments were loosing their management instruments (exchange rates, interest rates, money amount and flexible budget) to ensure monetary values and regulation of labor and the social- and ecological standards which the same politicians had introduced.

Structural and competitive differences will without elasticity from the state be offset by the market. There must be real exchange rates, but definitely not in the euro-design, i.e. with a compulsory common currency, be course it can’t bear the structural differences that characterizes Europe simultaneously.

The main battle is now the labor market, social and ecosystems. The labor market suffers from the middle class is reduced, salary and social competition from workers in the southern EU-poverty zones, and there is an inevitable liquidation of the previously existing (national) unions’ rates and the minimum standards for the social level. The market is sweeping them away, employers rely increasingly on their threat potential in moving production to very favorable (salary, social, tax, eco-cheap) EU-zones and even to Asia. Wage rates, social standards and environmental requirements in Euroland will have to harmonize downwards. Social Democrats, Folksocialists and the trade unions claimed them, but also other people’s naive belief that these things finally could be improved by a signature on the Maastricht treaty. In Euro-Union labor and social policy finally wave goodby – and it happens in full connection to/acceptance of Social Democracy, Folk Socialists, the trade unions and others believers.

March 2007: http://danmark.wordpress.com/2006/05/25/euro-float-in-oil/

Union is suitable as it looks only into submission – Islam means submission

Euro-Union is not a mean towards globalization triggering the employment crisis. There is nothing special about the nature of this ‘globalization’, it newspeake; international competition is the right word. Euro-Union reinforces the power of capital and state powerlessness in the role that could do something about unemployment without having the necessary tools. It is “progress”towards the 19 century (here, an attempt was also the right management tool), not towards the 21 century.

Euro-Union is no counterbalance to the antisocial tendencies of globalization, as incompetent analysts from the left side view, it enhances them further. It obliges to adapt working life to the money economy that take commands. The European Central Bank (ECB) may lead full common-policy for at first 12 since 15 and 16 differently structured countries in the euro zone, without they can take back to the exchange rate as equalization valve. In order to prevent capital from leaving the euro zone, the central bank raise interest rates or simply centralist prohibit the export of capital (as in the Soviet), but this reduces activity and increases unemployment even more. Such a union can only end the states themselves in conflict from which no help is to find – unless it gets extended to a transfer union or a federal state with public financial equalization between the old and new participating countries, something like patchwork U.S. or the German Federal republic, but without the Deutschmark.

Once the transfer of these models in the Euro-Union proves impossible or meets much resistance the question arises: Are there plausible alternative models that can save the peace? As it is now running: Europe and the Arab world has already begun to work together economically in a de facto alliance that it was pre peeped in North-South Dialogue from 1968 and the European-Arab dialogue from mid 1970s. Egypt, Jordan, Morocco and Tunisia decided in 2006 to setting up free trade zone, and Algiers, Lebanon, Mauritania, the Palestinian Authority and Syria were invited to participate in the great free trade zone.

Egypt may be on to becoming an Islamist state, expected to be fully occupied in free trade group. However, the EU has negotiated with all 10 Maghreb countries, part of the so-called Barcelona Process about the cooperation between the EU and its neighbors around the Mediterranean to the south.

The ultimate goal of this Barcelona Process is to establish closer ties by-touching trade and social issues (immigration!) as well as political (islam!). This must after the politician-proclaimed lead to the creation of the Euro-Mediterranean Free Trade The zone of 27 countries. It is possible that European productions in the future must take place in North Africa, Middle East and Eastern Europe, until they have come up, and we have come way down. It is a matter of people here find themselves in it.

February 4 2010: Pressure er mounting across the Atlantic as Greece, Portugal and a handful of struggling countries that use the euro have to two pay-off mountains of debt accumulated from years of profligate spending.

February 13 2010: Axel Weber, president of Germany’s Bundesbank, warned that German economy will contract this year (2010). It did with 1,7%, after 2009 with -5,2%.

The latest: Spain’s Unemployment rate reached 20% in the first quarter (of 2010), doubles the euro zone’s March average. Euro-zone inflation, mean while, rose to the highest rate since December 2008. The official Unemployment Rate!

1) “Ever since the continents started interacting politically well 500 years ago, Eurasia has been the world power center “(opening book” The Great chessboard ” 1997, by Zbigniew Brzezinski). Eurasia is all land east of Germany and Poland, the stretches all the way through Russia and China to the Pacific. It includes Middle East and most of the Indian subcontinent. The key to control Eurasia, says Brzezinski, is control over the Central Asian republics. And key to control over the Central Asian republics is Uzbekistan.

He also notes clearly (p. 53) that “any nation that had become dominant in Central Asia would directly threaten the ongoing U.S. control of oil-resources in the Persian Gulf.” By reading the book it becomes clear why the U.S. had a motive to take over the $ 300 billion Russian assets in 1990-ies, destabilize Russian currency (1998) and to ensure a weakened Russia would have to turn to the west, to Europe in order to survive economically and politically, instead to look south to Central Asia. A dependent Russia would lack the military, economic and political influence to penetrate and influence in the region and the weakening of Russia may explain why Russian President Vladimir Putin has been a willing ally of U.S. efforts to date.

A New Monetary System

M. Sc. (Economics)  Joern E. Vig, 14 August 2011

Mark Steyn on “After America,” London Riots and Keynesian Culture: Scribecast, the
Podcast of the Center for Media and Public Policy

March 11, 2011

A Short Era Of New-Mercantilism

 

Three Steps Forwards Two Backwards
Petroeuro In The World Economy, And What We Really Need

“So-called hard euro is lighter than oil, that is the reason why it floats”
Choose a German version

Contents

Recommend this file

From monetary system via dollar-dominans to floating nominal currencies

The domain of dollar extends

The dollar seceded from the gold

Petrodollars

IMF – debt-crises

How USA dealt with its debts-increase

The US-world-reserve-role changing

Japan in debitor’s trap

Euro and European Union

Euro and its primery objectives

Fear of competition narrows the rationality

Euro-Union and globalization

Two suppliers of internaitonal monetary means

The need for introduction of real currency rates

More English files characterised by more contents than of form

From monetary system via dollar dominans to floating nominal currency rates:
The international system of payments after WW2 that USA and Britain actual decided, while the war was going on, in 1944 in Bretton Woods, New Hampshire, USA, tranformed the dollar to a so-called reserve currency; most of the worldtrade was agreed upon in dollars. Central banks all over the world kept a considerable reserve amount of dollars in order to be able to protect the national currency when too much imbalance in foreign trade occurred, and other currencies were expected to be measured secured in terms of the dollarvalue. The value of dollar was connected directly to the goldprice, $35 per ounce fine gold. The dollar dominans in the world trade alone implied even larger dollar reserves in the central banks all over the world. The Marshall Plan after the war secured the rebuilding of Europe; but it actually did not cost USA a cent, because the dollars (-bills) obviously are much cheaper to provide than other goods and services. When dollars returned by the accounting for goods and services in USA they made trade impacts on the American economy, otherwise they did not. But almost none of them returned. At the same time USA could import almost unlimited and pay with more dollars that did not return either. Large amounts of dollars that piled up for example in consequence of the positive result of the balances of trade were invested in interest-bearing and currency secured American government bonds and other assets. With this system the leading economic power was tempted to accept large deficits on balance of trade equalized by missuse of the means of payment via this issuing of money. The result was that US received the foreign goods for free. This arrangement simply could not continue in the long run or could it? Without going into details, inflation and state-debt was introduced as an obvious possebility among the professional politicians, who did not worry particularily about nation and tradition, and certainly did not know the hard conditions. Devaluations on behalf of the nation, and the initiatives of the state itself were also included in this dismantling, and devaluations in cooperation with IMF came like af thief in the night in a row of cases, because the really needed of necessity had to be done in time to prevent this vicious spiral to continue in the nations: Finance crisis upon finance crisis around the globe.
It was certainly not new phenomenons that were introduced by the Bretton Woods System. At the peace conference, the Wienna Congress in 1815 and the bankructcy of Denmark 1813 followed a devaluation of 90%. The collapsed monetary system from 1944 that has not yet been replaced by a new one actually had some bad temptation for the politicians built in depending on the character of the leading figures. Of other decicing impacts in the long run the following have to be mentioned:

  • Dollar and petrodollar dominans in international trade with artificial values at home and abroad – totally independent ofthe real domestic economy
  • Competing European euro-system based upon an official approved politician-phantacy on the former German stability and growth, now among indebted nations with adjustment turned downwards via wage rates and minimum standards of ecology and of social level.
  • The way to real economic recovery of Europe was prevented, in addition the unlimitation of the markets was encouraged without any self-regulating mechanism of competition directed out of the euro-zone, and combined with a clossusish lack of competition in the other markets except for the market for disguised subsidies to a too expensive structure
  • Indebted nations around the globe after two generations

An explosion of the amount of means of payment and speculation that would not be possible without the built in defects originating the from birth of the Bretton Woods System, to such a degree that the real economies in the nations are totally secluded from the system of international payments, that they were meant to protect in order to protect the nation

The domain of the dollar extends:
On the other hand the arrangement was binding for USA, externally, in the world of realities characterized by practical rebuilding of production-capacity, markets and defending efforts under the Cold War. And the rest of the world could redeem dollars at the goldsprice as required, granted that USA as an economic superpower was able to secure the dollar-value settled in gold. USA was the only country to guarantee and carry out the redemption of dollars for gold as it had the largest gold-reserves. Western Europa quickly recovered, and the growth lead to large European export surpluses that at the same time created an dollar-accummulation in the export countries. As early as in the 1960s France began to redeem dollars for gold, and others followed. At same time USA was engaged in the Vietnam War and elsewhere. This brought the deficits on the public finances in an uninflated heavenward flight of the time. In 1967 the drain of the gold-reserves in USA and Bank of in England in Britain to a critical point. That France and other Eruopean countries definitely according to the agreement increased the redemtion of dollars for gold brought the dollar under pressure, given that the goldprice measured in dollars continuing was kept unchanged. It was expected that USA would devaluate the price of the dollar in relatively to gold with a continuous bigger and bigger pressure from the demand for gold, and also from USA’s deficit on the balance of trade plus the still unfinanced war-deficits on the domestic public budget. At the same time most of European countries gradually “dyed their money issuing in dollar-green”, and they also began the inflationary growth that went into stagnating production and employment with still higher inflation to end up with a rate of short interest of 21%. This was indeed the characteristic economic consequences of the welfare that substituted wealth in Scandinavia in the 1970s.

Dollar seceded from gold:
In 1971 Britain also began side by side with France to order redemtion of dollar for gold. Instead of contnuing towards a predictable collapse of the market USA left the redemtion of gold in august 1971. That actually meant that the international monetary system built up a little on gold but much more on dollars dismantled as forseen by almost everybody (among others the Norwegian negociators in Bretton Woods), and the world changed to the system with floating nominal rates of currency[1].You may also call this international financial anarchy, if you have understood that the grocer of that time could not sell the scales, and still claim to supply his freshly ground weighed coffee.

Petrodollars:
OPEC is a cartel that agrees upon a common oil price and distribute quotes of production-capacity among each other. OPEC was founded by Iran, Irak, Saudi Arabia, and Venezuela September 1960 (later on more countries joined) with the clear objective to “coordinate and unite” the oil policy in the member countries. After the Teheran Conference 1971 (where the price-settle-initiative was tranfered from the oil companies to the exporting governments) the buyer’s market for oil closed down. Now the need for a floating dollar rate emerged, if the economic worldpower USA – still with trade deficits – should not lose ground. October 1973 OPEC sent price on the oil to the sky with rise of 400%, and at the same time imposed an embargo that forbid shipping of oil to every country that had supported Israel in the “Yom Kippur War” against Egypt, and OPEC reduced the production with 25%. USA had previous reached an informal agreement with Saudi Arabia that the country could invest in USA, if USA assisted Saudi Arabia develop its economy. Apart from the tremendous oil prices-rises – there was another smaller one in 1979 – there was nothing catastrophic in the oil countries requiering more for their oil, when the reserves were limited. The profits earned by sale of oil accounted in dollars floated into bank accounts in Britain and USA, when the OPEC-countries simply could not find a better investment for the petrodollars right away. The problem arising was to allocate the money back into the productive circulation – recycle petrodollars -, now that the West rode on wave of combined stagnation and inflation at the same time. This new phenomenon – the Philip-Curve moved, but not until reality gave inspiration to loosen the premises of the theory – was caused by issuing of money-units, irreversible increases in wage rates and deficit on the public budget. [The reason why was not the oilprice rises even though that was persistently claimed (for 10-15 years) – if not it could be claimed that so-called crisis followed from the heavenward fligt of the oil prices had to be renamed to the normal state. So-called euro-dollar-bonds were issued and became the guarantee foundation for private lending from private banks to the Third World with the Bretton Woods organizations – IMF and the World Bank – in a the role as mediators. The developing countries could not provide money to the more expensive oil from other sources[2].
Petrodollar were the foundation of a huge number of hopeless lending-arrangements, and thereby also the propellant for at lot of debt-crises in the 1980s, and in the 1990s also among more developed nations in Latin America, Asia and Europe. Who created the risks, and who transferred these risks, and who had to bear the resposibility in the end?
In February 1945 USA made an agreement with the Saudi king about military protection of Saudi Arabia, if USA was given priority to the oil sources of the country. Even though the oil occurences were nationalized in 1976 ARAMCO (an association of Arabic and American companies) was controlling the production and the markets for oil outside Saudi Arabia. Surplus of petrodollars was invested in American government bonds. This market is obviously a power potentiale in the hands of the world’s leading millitary power. An example: In 1980 Iran’s and Libya’s assets in USA was confiscated, and recently organzations dealing with international terrorism suffered the same fate.

IMF – Debt Crises:
With the organization of IMF – International Monetary Fonds – a link in the international monetary- and ledingsystem, it often was a merciless fight of debt collection against weak founded states in the Third World. It was underlined from a few sources that the yearly new borrowing in Western Europe actually was bigger that the total debt of the developing countries in the 1970s. If we take the question of creditworthiness: the single states that decided the agreement of the Bretton Woods System paid in money, but most were given guarantees[3] in the foundations of IMF on behalf of the nations’ taxpayers, and in accordance to how large an economy the nations represented, so the responsibility for the many lending-dispositions in private banks, particulary to the states in the developing countries was rather often in quite another place than the initiative. How these lending-arrangements and other international arrangement was established, you can among others read in Frederick K. Listers ‘Decisi­on-Making Strategies for international Organisations: The IMF Model’, Denver, USA 1984.

How USA dealt with its debts-increase:
About 70% of world trade is contracted in dollars. Oil is the most important good in the world, all countries have to get oil, and if they do not have oil they have to buy it, for dollars. That has been the reality for the last 40 years. Recycling of petrodollars have simply been the price that USA have requiered of the oil producing countries for having USA to tolerate an oil exporting supplying-cartel OPEC since 1973. For about two decades USA’s deficit on balance of foreign trade has increased most of the time. Today it amounts to about 25% of the American Gross Net Production (GNP) or about $2.5 (European) billions or $2.5 (American) trillions. In 1988 the balance of trade was in balance, and at this time USA was a creditor nation. Since 2002 the yearly public deficit has been $450-600 (American) billions, or 4.5-6.0% of GNP compared with 1.3% of GNP in 2000, when both federal and the states’ deficits are incounted. Russia and Asiatic central banks in China, South Corea and Japan have bought American government bonds and other assets in accordance with more than 60% of the total public domestic deficit, for more than 1 trillion the last three years to keep up the dollar against Asiatic currencies that actually reduces the domestic issuing of monetary means substantial compared with what it must have been without the Asiatic demand and everything equal. It also appears from the fact that inflation is apparently still under control (in spite of the fact that inflation has a delay before it reach full strenght), and the employment is rising substantial in the fall of 2004. November 24th 2004 the dollar hit the lowest point compared with Yen for the last 9 years and the lowest point compared with Swiss francs for the last 4 years. China began selling dollars of a substantial amount November 27th 2004.
In the first half of 2004 more than $201 billions assets were bought up by foreign central banks. Of these are $180 billions American government bonds. In Japan are large parts of the bonds placed as security for Japanese banks that otherwise would have gone bankruptcy, more below. In the case China, it is the result of a large new export of price-competing goods to USA, for example outsourced American, and also Chinese productions that result in the large accumulation of dollars. They are invested in American government bonds and real investments outside China. The currency rate of Chinese yuan is linked to the dollar rate – and this is not just an implication of the buy up of government bonds. This means that the yuan without the US-bonds perhaps would have been in the same boat as USA, when the dollar may fall further. A still continuing fall of about 20% or more of the dollar would lead to a fall in the stock market prices, and also lead to higher dividends, when foreign entries move investments away. 40% of the American government bonds are owned by foreigners, like 25% of the business bonds, and 13% of the US ordinary shares. Behind the placement of the US-debt you also have to take into consideration that China’s demand for energy for the industrial sector is expected to be dubbled in the next 15 years, and the Chinese demand for electricity is expected to dubble in the next 10 year, and to be multipied with four before 2019. Until now USA has been the only country that can increase its purchasing-power on the world market by issuing more dollar-notes. The US-import is about 50% or in dollar-terms or $310 billions more produced produkts than USA export (yearly). That put the country in a special situation, characterized by both power and vulnerability. Without this central, very peculiar status of the dollar and a consequent and constant flow of capital-investments from the whole world, the country would quickly heel over in a catastrophic crisis of balance of payments.

The US-world-reserve-role changing:
From November 2000 Iraque began to settle its oil sale in euro, and at the same time it converted the reserve-foundation “Oil for Food” with $10 billions to euro after an agreement with UN. Between 2001 and February 2003 almost the entier Iraqi oil export was paid in euro, about $30 billions. In the same period the euro increased relatively compared with dollars with 30%. Saddam Hussein had already offered concessions of oil extration to France, China, Russia, Brasil, Italy and Malaysia. Saddam Hussein had until then only used Eruopean banks to the limited sanction program, “Food For Oil”. He awarded the Palestinians with 1 billion euros in 2000. A short time later EU awarded the Palestinians with 90 million euros as a subsidy to show its friendship with the Arabic World, if Israel canceled its payments at that time. A few days later the European Investment Bank made an agreement to lent Syria 75 million euros after eight year with sanctions of have been shut out from making businesses with this country. A little earlier, August 2000, EU donated 1.7 million euros as a subsidy to Eritreans, Etiopeans, Somalis and repatriated asylum seekers from Yemen after the war with Etiopia and famine. Subsidy from EU in euros again: not long ago the Italian Prime Minister Berlusconi proposed an European version of the “Marshall Plan” which he characterized as a generous act to rebuild Europe. He proposed to give the Palestinians a help of a value of 6.2 billion euros in a period of five years.[These last things are included to characterize the motives and the understanding of the situation among the promoters.] From November 2000 to November 19th 2004 dollars decreased relatively to euro with 34.5%, from December 1st 2002 to November 19th 2004 with about 23.5%. A lower rate of dollar made the dubbled result, by lowering the enormous deficit on the balance of payments (an improved balance of trade and an improved balance of the flow of investments), and improve the competitiveness of the exporters that would result in higher investment, and higher employment in these exporting businesses. I addition a lot is pointing in the direction that the petrodollar adventure has ended caused by the increasing import in the oil producing countries, and the reduction of the relative share of OPEC in the total oil export.
Iraque has the second-largest known reserves of oil among the nations of the world. 45% of EU’s oil import comes from oil sources of the Middle East, 80% of Japan’s comes from the Middle East, that has 60% of the world’s known reserves. USA is not dependent on those oil sources. The shift to petroeuro that is mentioned by few is predicted to have huge effect only if Great Britain and Norweigh introduce euro that would result in North See “Brent” and the Norwegian oil supply being settled in euro. Shortly after Iraque’s move, Jordan began bilateral agreements with Iraque. August 2002 Iran converted more than the half of its currency reserves in Forex Reserve Fund to euros, and China also began to convert some of its currency reserves from dollar to euro. At the same time Russia dubbled the stock the Russian Central Bank of euro to 20% of the total $48 billions. An Iranian senior speaker of the oil industry Javad Yarjani noticed in a speech to the Spanish Ministry of Finance that “it was possible with a increasing trade between the Middle East and the European Union, and that it could be suitable to settle prices in euro. This would create more ties between these blocs of trade with an increasing trade, and at the same time promote a very needed European investment in the Middle East.”
The British Empire was brought on even keel via the need for Britain to import food, when the domestic agriculture was driven out by the industri. The American Empire may be brought on an even keel via the need for USA to import manufactured goods, when the domestic production was driven out by the financial services.
While the dollar has decreased since 2000 the price of oil settled in dollars has increased. The euro-price of crude oil remained almost the same in the four years period. It just don’t seem logic that this result should occur of simple by chance, and it does not seem to be a surprise either that others could begin supplying a dominant reserve currency. The money plans of EU has not been held entirely top secrete. It is most likely to be a result of considerations of thoroughly planning and design. It also seems as if OPEC react to the dollar depreciation in a most natural way; by increasing the oil price precisely to the point in accordance with the lost they would had to bear is removed.

Japan in debitors trap:
The rate of Japanese yen has decreased 5-7% a year compared with euro from 2001 to 2004, notice, a relative decrease to dollar of about the half. This means a yearly depreciation that makes Japanese products more expensive in Japan, and the country is far from being selfsufficient with food and energy. Japan has stagflation and did not get through the last stockshare-bubble-crash in Asia in 1997, because the banks in Japan continued to throw new money after bad money with guarantee of the government, mostly based on American government bonds. February 10th 2002, Observer notes: Japanese consumers flock round the banks to convert the quickly depreciating yen to gold bars. There is fear for the banksystem to collapse, when the deposit guarantee of the government is being removed in Mars. We wrote in 1999 that Japan-government tried to reuse the Japanese economic policy from 1920-1927: to issue billions of yennotes and new credits with which the banks bad loans could be bought up, the assets then had to be overestimated much like in the Weimar Republic in Germany. Now it unfortunately was I the period 1920-1927, where Japan handled precisely the same problem just as wrongly as now in the late 1990s that it would have the one to refer to, if we had to learn from experience. It is not true that history repete without further. But if leading figures use the same false way thinking on the same problem (for example as an act of bad faith), then the superstitious are tempted to believe that history repete.[And it is not totally false, apart from the fact that ignorance’s blind fate must be classified in categories of belonging to an earlier or the coming middle age.] Such a incomprehensible policy was really carried out, also concentrating at negative rates of interests and guarantee of the state for the banks to get the prices to rise “by stimulating the production in this way” in the misunderstood Keynesian way. The falling yen has really got helplessly stuck in a debt trap. The public debt is $5 trillions, a little less than the debt of USA that November 19th 2004 got its borrow-limits increased to $6.4 trillions. More state-debt is continuing contacted at still higher settled prices, even though it just increases the debt. The debt trap is closed, and there is no easy way out. Japan which regardless is an important industrial nation is also a substantial importer of oil. Japan’s surplus of trade from sails of cars and other products was used to import oil settled in dollars. The surplus was invested in American interest bearing government bond and other assets. The government of Japan owns 15% of the American Treasury assets. G-7 was founded to secure Japan and Western Europe within the dollar system. From time to time in 1980s statements about the three currencies – dollar German mark and yen – emerged from different Japanese sources that they should divide the world’s role of reserve under the floating nominal currencies. Until now the dollar remained the dominating.

Euro and European Union:
European Union with common compulsory money units, and a constitution is being established among EU’s 25 member-states now. That it is difficult to obtain adequate consensus among the Europeans about the common compulsory money unit is perhaps unnecessary to state. To establish an European monetary union right now, where all European countries are indebted more than ever – apart from perhaps two European countries outside EU -, dominated by unsatisfactory activity and employment anywhere in EU, and even negative growth in the three leading countries, France, Germany and Italy for the second, perhaps for a third year is more than a feat; it is an artificial, ideological construction. The national currency sovereignity has been abolished in the eurozone. The objective is obviously price stability and growth in the eurozone. For years we were lead to understand – in the open – that the currency reform guaranteed price-stable growth, even though the rules about the new currency in the Maastricht-treaty (for example: article 104C) tells something quite different; particulary concerning the newinvented, partly inconsistent and irrelevant so-called claims of convergency that can be overruled, if the Council of Ministers does not estimate the offence to been substantial. The countries – France and Germany – that put these claims into the treaty were the first to offence the rules about deficits, and the relative magnitude of state-debt compared with GNP – they did not even honor this selfchosen claim either without several manipulations with the respective budgets (redemtion of gold and seeling of pension duties) in both the countries, Germany and France, when they invite other countries to qualify for joining the monetary union on the same conditions. In 2004 it continues in Germany with selling of the pension duties of the civile mail-servants.

Euro and its primery objectives:
To assume the common compulsory money unit in any way should reflect the real economic in EU, and serve the union we obvious have misunderstood. Corresponding to Spain’s fatal administration of the gold extracted in Latin America in 1500s it looks as if the euro in the best Mercantilistic way via trade settled in euro for example oil from the Middle East is meant to generate the moment that created change in a Europe with not less than 20% unemployed (official 9%) or expelled, and an enormous state-debt that you no longer can make an unambiguous sketch of. Jean Monnet – one of the founding fathers of project – exactly claimed in the 1950s that the compulsory monetary unit would be used to make the union real in full scale. It was the form, before the contents that counted, we can conclude. If for example one of the Maastricht claims of convergence about the magnitude of the state-debt that must not exeed 60% of GNP should have meant anything serious, between the half and two thirds of countries could not have met this claim without to accept crises of stability. So much can be extracted of those real informations that are released time after time. Apart from Mercantilism that according to history ended with the Napoleonic wars stability and development cannot be measured as an index of prices or some procent-figure. Or when some quantitative standards have been registered, then you can talk about a stable currency (with reference to the five Maastricht-claims of convergence). Stability include the dynamics of the capital formation, security of the investment process, economic growth, education and new technology and high productitiy in a state to claim that its leaders have taken the voters and the nation seriously. All this cannot be obtained or be calculated as some simple static concept. France and the most of the other countries were against the so-called stability pact that could have secured that the central bank acted like the old German Bundesbank, and kept the reins tight, but from quite another starting point. It was decided at the summit of Dublin in December 1998 to drop the stability pact, and France made too large deficits on the public finances in both 2002 and 2003 compared with the Maastricht provisions. The struggle about who should point out the president of ECB (European Central Bank) ended with France. The German Bundesbank was out of step with the German political, financial and industrial elite. But the bank was very popular in the German public opinion. Therefore the politician Helmuth Kohl was very hard pressed between the German and the French Establisment. The French socialists had built in their claims to the subsequent treaties. Now Kohl has gone, and the new German kanzler is a centralist himself. EU has in return recommended a German as leader of IMF. Kohl also had to eat that there were no more talk about pure automatic sanction against a country that makes continuing deficits. Now the claims is activated (according to Maastricht-treaty) when 2/3 of the weighed votes in the actively participating EMU – countries vote for sanctions. France also got approved that a so-called stability-council, and at the same time a directly political rolle built into the monetary policy so that for example guiding lines for the euro currency have to be fomulated politically now.
In addition to introduce the pure (economic) stability pact without order in the member-states’ economies would lead to real political instability. If the amount of money and credit cannot be debated in the whole eurozone, because it has to be decided by a hard ECB, the consequences would be so terrifying hard in some parts the union that political instability would inevitable be the result. Italy and Greece are obvious examples.
To defect this you can then introduce the more well-going countries to hand over “some surplus” from the public finances or “commit themselves to this in advance” (but the problem is that no state can or will do so) to the bad-going Italy, Belgium, Greece, Portugal and Poland. This means on plain English that the public expenditures have to be controled euro by euro in the whole eurozone. This is common financial policy. On that assumption every extravagant expenditure, and a lot more will certainly be stoped.
If you should judge by the falling D-Mark and the rising Italian lira in 1997-1998, the markets had to have the impression that a soft euro was being established. There was a completely unknown but collosal amount of lira that should have an eternal determined rate in euro in July 1998. How this could happen without a soft euro, would be intereting to have explained, and there were lots of other problems pointing in the same direction.
Already in 1996 you could foresee that the euro would be a so-called junk-currency – that was what the speculators called it -, if Germany, France and Britain should take over the Italian enormous mountain of debt. This would lead to result that ECB had to guarantee the solvence of both Italia, Belgium, and all the other heavily indebted member countries, for example Greece, and the countries that could be expected to join EU in the Eastern Europe at that time. In this way an alliance would be created that would press ECB, and get it to act as if it still controled the monetary policy without really doing this. That was what happened. Real EMU-stringency after the book multiplied by three or four is what should be expected, if we assume economic stability should succeed in the present situation – without a strong lever from outside. But this would imply the lost of political stability as the relations are and may be expected to develop, and the disappointment with the whole project would lead to even more resistance against the project. That is the reason why they still act as if.

Fear of competition narrows the rationality:
Globalization means the unlimited mobility of markets included the capital market. The globalization will destroy the democratic society and the welfare state, many maintain. The only reason why is lack of an international monetary system that would have prevented the worst. The total mobility of capital undermine the abilities of the states to regulate. Especially the concern for the labor market: Untercuting and cutbacks have to absorbe what threats to disappear of jobs, among other things by outsourcing. The globale markets of financing are not subject to a regulating mechanism of competition, and they causes crisis upon crisis – Asia, Mexico, Russia and Latin America. The crises will become deeper caused by the paper-mountain of the state-debt that widening the difference between nominal and real values in every community in the long run. And because you have chosen to sell the tape measure instead of using the tape to measure with according to its purpose. It gets worser when all the leaders of the states continues to borrow net more and more. The crises tighten the social pressure with requirements of cutbacks. The pressure of the crises either lead to the dismantling of the welfare states or change them into linked defending blocs (currency blocs like euro, dollar, yen or renminbi-zones) or relapse to the old enemy-pictures that characterized the national states earlier, perhaps a combination of both scenaries. With the dismantling of the democratic founded national- and social state the globalization releases itself at last, because the politicians cannot stand for that the populations/the voters of their countries have to bear heavier and heavier burdens just to offset the worst.
Euro-Union is the prototype of this development. Its bad hidden dubble-motive is a) fear of the dollar-dominans and –competition and b) fear of the united Germany with matching D-Mark-regime.
Fear always build on a false analysis. The US-dollar does not threaten the European market shares of the world trade, but Europe’s lack of knowledge, technique and initiative, especially Europe’s inertia when comes to reforms and renewels. The hardness and the strenght of the D-mark did not prevent the development and the integration of Europe, but the since “Maastricht” the aim was abolishment of the D-mark, and that has then happened. The explanation was that D-mark should have driven the countries in the eurozone (now) into a tight negative development against reforms and with social limitations. Alone these fallacies and false assumption do not allow any realistic expectations about a hard euro. The inflation was programmed in advance. It is perhaps possible to blow more air into it by leting it float in oil at the beginning, but the collapse is then going to be even bigger. All member countries are deeply indebted, and all of them run with deficits.
The national governments lost their instruments of management right at the beginning of the euro (currency rate, interest rate, amount of money and flexible budget). They can no longer secure the values of the money, and regulate the labor market, and the social- and ecological standards that the same policians had introduced. Differences of structure and of competition will with governmental suspension be equalized by the market. The battlefield number one is the labor market now, and the social and ecological systems. The labor market suffers from the diminishing of the middle class, the wage rate and social cost competition originate from the workers in the southern and eastern EU-povety-zones, and an inevitable liquidation of the decided national union-wage rates and the minimumstandards of the social level till now. The market sweeps them away, the employers uses more and more their potential of threat that is to move their productions to especially favourable (wage rate, social- and ecologic cheap) EU-zones. Wage rates, social standards and claims of environment in Euroland have to be harmonized downwards. It is the naive imagination of socialdemocrats, the folk socialists and unions that these things must be better after they have signed the Maastricht-treaty. In Euro-Union the social policy has resigned forever – and it is happening with full accept of the socialdemocrats, the folksocialists and unions.

Euro-Union and globalization:
Euro-Union is not the remedy against the employment crisis of globalization. There is nothing special about this globalization; that is an apophthegm; international competition is the right word. Euro-Union strengthens the power of the capital, and helplessness of the state in the role where nothing real can be done to the unemployment without to have the needed instruments. It is a progress towards the 19th century (here the instrument of ruling were searched too), not towards the 21st century. Euro-Union is not even a counterbalance against the unsocial tendenses in the globalization, as the incompetent analysers from the left maintain; it strengthens them further. It simply forces the working life towards the monetary commandos. The European Central Bank (ECB) has to pursue the totally same policy in the 12 different structure countries, without the possebility to resort to the equalizing of the nominal currency rates. To prevent the capital from leaving the eurozone the central bank will have to increase til interest rate; but this decreases the activity and rises the unemployment further. Such an union must end in the conflicts among the states, from which there is no no help to find – if the euro-union is not rebuilt to a transferunion or an federal state with public equalizing between old and new member states, something like the patchwork USA or the German Federal Republic, but without the D-mark. When the transmission of these models show themselves impossible or they meet resistance the question arises: Are there alternative models that can save the world peace? As it runs now: Europe and Arabic world has already begun to cooperate economical, as it was forecasted in North-South-Dialog from 1968 and the European-Arabic Dialog from the midd 1970s. Egypt, Jordan, Marocco and Tunesia decided last year to establish a zone of free trade[4], and Algeria, Libanon, Mauretanien, the Palestinian authority and Syria are being invited to join this big zone of free trade. Egypt is expected fully admited in this group of free trade. However EU has negociated with 12 Miditerranean countries as a part of the so-called Barcelona-Process about cooperation between EU and its neighbors around the Miditerranean towards south. The aim in the long run with this Barcelona Process is to establish tighter bond of trade and social questions as well as of political kind. This will lead to the creation of the Euro-Miditerranean-Freetrade-Zone consisting of 27 countries in 2010.
It is possible that the European productions in future may be transferred to North Africa, the Middle East and Eastern Europe, until they come up, and we are put totally down. It is a question if the populations submit to that.

Two suppliers of internationale monetary means:
With the last European-monetary move – if it is an experiment of establishing of the euro as a possible reserve currency or currency for price-settling to some extent in line of the American dollar – no real lift of Euro-Union will happen. “If the occasion should arise there would be to ice cream booths on almost the same bathing beach. The difference to the metaphor is that the booths are supplying monetary means to be able to live on the products of other countries instead of supplying more ice creams, and employ its own working force to produce more products and more services. The climate of investment is far better in the dollarzone of the beach, and the other products and services are far more competitive in the dollarzone. The European Central Bank is organized to prevent euro from falling; it has no means to prevent euro from rising. If ECB are going to issue more subsidy-euros that are covered by the real economy, the economy is further twisted. The deficits on the public finances in the two leading countries of euro-union are of the same magnitude, when compared relatively with GNP, like the corresponding in USA, about 4% against 4,5-6%. But here you have to take into consideration that the whole here is threathened by deflation, if the euro increases 20% further, because the growth in the three leading countries in the eurozone is close to zero. The dollarzone can expect a tremendous improvement of its tradebalance. If this zone is perhaps going towards a more sound value of the dollar, it tempting to propose the single lacking arrangement. A common instrument to prevent crisis upon crisis, deeper and deeper, and at the same time secure that the monetary means are used to what truly is their only useful aim. The classical economists, for example David Hume and John Stuart Mill proved in the 1700s that without order in the monetary relations, there will not be any order in the markets of products. Without an international order of money and credits that is in the interest of the big trading countries, it will go wrong.

The need for introducing of real currency rates:
The ruling monetary system until 1971 was not the agreement that the chief-negociator of England maintained for a long time was best to be chosen. To protect against crises and inflation J. M. Keynes showed an internationalt emission-agency with an international monetary unit that was not fully negotiable. It could be bought for gold, but not the other way round. Only if the states of their free will stop the inflation-orgies and the state-borrowing or devaluate (by compulsory) or let the money amount and the credit be ruled by others, it is possible bring harmony into the international system of payment, Keynes maintained. The incitament to speculation is removed at the same time. A monetary measuring instrument without banknotes to determine real currency rates, and it is certanly not suitable to force out national currencies.
Real currency rates are the present nominal currency rates corrected for inflation. We have seen in the last half of 1900s that inflation is a distinctly harmful phenomenon. If inflation had made a country’s products lesser competitive, the country could just devaluate the nominal currency rate relatively to all other countries, and in this way benefit by the lower price of its export products, and higher prices of the import products; the exhange-relations to other countries has then been changed. Regardless if this trafic had to be repeated to have any effect – except for inflation – it was the way countries used to go not long time after The Second World War and the reparation.
There must a possibility for countries to make inflation for limited periods, caused by some structural or developing matters that have to be arranged. Such a possibility must excist, but in such way that other countries are not harmed by this inflation. The country that need inflation have to devaluate at once in advance. It is easy to incount inflation into the currency rate. By this are all other countries protected against inflation, and also against deflation, where the negative growth can lead to standstill, if the right monetary intervention are not carried out in time, as we saw it the 1920s and 1930s. No national currency must be brought into the international monetary system. We have had a much similar system under the so-called gold-coin-basic that was especially connected to the appearance of industralism, its early development, and the worldtrade via City, London. Goldstandard (a looser system) became the pivotal point, but the gold was at the same time a good of trade and therefore it did not have a settled value in itself, but the price was decided by supply and demand from the central banks, lastly a politically decided. An international monetary unit a little corresponding to the ECU – originaly the voluntary European currency unit emitted from an independ organ; it could be exchanged when needed, but for the present aim just a unit of account. A unit of account in an published, settled amount, and at a settled price, an account and reserve unit. No saleable instrument that get impacts from any supply or demand. And international arena where both debitor and credit have to pay interest on loans with the new reserve unit as guarantee, so we prevent lending out at random, and if it does go wrong, ordinary people should not be cheated every time, and it should also prevent crises of finances from overturn one deloping or misinformated country, one upon the other. You can call it a nationalbank of the world as a foundation for the international trade. It is simplicity that everyone can understand: we cannot control the national/international markets of currency from a national central bank, if the international montary unit is for sale, and thereby has become a multi-lend of all national currencies.
I knew that when I was 21 years old in 1971, and USA ”left the gold” as it was expressed, but selfconfidence grow with experience. I learnt little of economics that offered me a more solid ground to argue from.
And we perhaps have to go through another catastrophe before the leaders understand, what their predecessors did definitely wrong, or were lead to make definitely wrong from their in many respects marionet positions.

Supplementary readings:
Economics of Tide:
Big recessions and recoveries in the 20th century : http://www.lilliput-information.com/economics/tida.html (part 1)

Big recessions and recoveries in the 20th century (including the role of private company with anonymous ownership):http://www.lilliput-information.com/economics/tidb.html (part 2)

Goldstandard in all combinations:

Gold as an international unit of account for values – a historical statement: http://www.lilliput-information.com/economics/gol1/gol1.htm (part 1)

Gold as an international unit of account for values – a historical statement: http://www.lilliput-information.com/economics/gol2/gol2.html (part 2)

Keynesianism, the misused of J. M. Keynes theories:

J. M. Keynes’ theories, the moment that actual inspired the last dependence: http://www.lilliput-information.com/economics/keyne.html.

November 27th 2004,

M. Sc. (Economics) Joern E. Vig, Denmark,


[1] We remember how the nominal rates of currency sometimes were devaluated by one country or a group of countries at the same time. We were sure it must be some kind of advanced swindle with the values. We wondered that the other countries accepted it, but we did not fully understood the consequence of fraud then, to all of us. Other arguments than the need for working capital were certainly used.[3]The roles were exchanged from the beginning, The World Bank was no bank, but a foundation, and the foundation was a bank, so let’s describe the first: ”With a share capital of $10 billion distributed among 100,000 shares that should be taken over by the member-states participating in the maintenance of the bank (mine: that certainly was not a foundation neither from the beginning or later on). Admission to this was given to states, that were members of The International Monetary Foundation, but later on other states were given admission too. That was the reason why only $9.1 billion of share capital was supplied at the founding meeting. 20% of the capital should be paid in, of which one tenth in gold (in reality then just 2%), occupied countries could postpone a quarter of payment in gold for 5 years. The main task of the bank was via (mine: private) lending or guarantees to promote the reparation after the war og hereby contribute to the delopment of the international trade and increase the productivity and living standards in the long run. Direct lending should be effected, if the borrower could not achieve a private loan or a gurantee on fair conditions. The management of the bank should be organized after the same principles as the principles in the International Monetary Foundation.” The former Danish Prime Minister Viggo Kampman wrote so as a civil servant in 1944. The italicized originates from the present author. [4]Free-trade-considerations usually result in more than free trade, when we look behind the political rhetoric, and let the experience count.

February 2, 2011

A historical report on ideas – dejavue to enlighten the new age – seen from Europe

Filed under: Dollar, Europe, History, Ideology contra Reality — jensn @ 9:41 am

The Middle Age

The Middle Age is the timespace in World History lasting for about 1000 years between the Ancient Age or Classical Antiquity depending on which contribution to the later periods and their descendants you give priority – and the Renaissance. Traditionally the year 476 AC, the year when the Western Roman Empire comes to an end, points out the beginning of the Middle Age, and includes the period of the great migrations with all its dismantling and transformation of the antique culture as the overture to the Middle Age. The ending of the Middle Age is on the threshold to the 16th Century: The discoveries, the Reformation, the time of Humanism (belief in the human being), where all relation in Europe underwent great changes. Some say 1492 (at least the second discovery of America, Leif the Lucky One (one of first Christian Vikings) and the son of the Viking Erik the Red One, reached New Foundland in the Ancient Age about 500 years before on his voyage from Greenland, and other say 1517, the year of the appearance of Martin Luther. The Middle Age is characterized by Feudalism, the orders of Chivalry, the temporal power of the church, monastic orders with the Scholasticism a.s.o. The fictional understanding of the Middle Age is the time of Mysticism, of the Romantic, of the great, strong uncomprehensive feelings. The romantic poets late in the next age borrowed examples for their motives of the Middle Age. Take Scholasticism. The ecclesiastical and theological philosophy from the 9th til 15th century. The teachers at those of Karl the Great’s monastic schools were called scholastics (from the Greek scholastikos, teacher), later on the word was use for teachers and learned generally. The characteristics of the Scholasticism are that it was extreme orthodox (in contrast to the so-called free thinking in the next age), and the result of the thinking and teaching was given apriori to be those of the church officially approved dogmas, the duty was to prove them with the help of the intellect. To be projected into the next age was especially the religious psychology, and their stringent logical reasoning. The last mentioned became the foundation of philosophical thinking later on. The breaking throught of free thinking from the late 1600s was very much inspired by Descartes, but Luther, Bruno and Bacon had fought against this free thinking as you will see below.

Renaissance

Means rebirth or redescent of the classical spirit, the rebirth of the interest of classical, Greek and Latin literature and art. That is a single and also a minor essential part of the Renaissance. When the interest of classical languages and cultures expanded to the wider circles outside the circles of the learned, it was more a consequence of the Renaissance, than it was its cause. You could perhaps say that Renaissance was the rediscovery of the human being itself and of the world. After school discipline lasting for centuries in the monastic schools, a natural maturation, and then a jump out into the light of history and life to conquere themselves and the world. The personal right and duty must claim oneself his individuality. The distinctive character has value, is not a sin. Artists, poets and scientists aim at originality. At the same time a ferucious interest of the nature, and of the objective world around the individual. Where the Middle Age saw sin and temptation, the Renaissance find new eternal values, objects and jobs and study, sources of pleasure and delight. Also new foreign countries and peoples are studied, a lot libraries, botanic and zoological gardens are founded. It is not a new paganism. It is solid founded on Christianity, its art selects only religious motives, its greatest men are believing Christians. The Pre-Renaissance (before 1500), the High-Renaissance (1500-1550), and the Late-Renaissance, the first with the starting point in Florence (or Firenze) concentrating on the awakening life to fight, and to find expression, and conquere the means of expression, intoxicated by spring, the next in full display, and then the harvest. In the humanism we have a single, common very doctrinaire and barren expression of the Renaissance, but the breaken through of the both the Reformation and the sciences has been prepared in this period. The evolution in the interior, exterior life, and the society as we would call it today, takes place as an interaction.

The universe and the relation between celestial bodies are investigated and compared with dogmas from the ruling Catholic Church. The typical assumption was that God must have created the world in complete accordance with perfective and simple mathematical formulas and geometric figures. So-called true causes – the physical causes, the causes shown in nature – replaced the former explanations that for example the movements of planets were to be explained by the souls of the planets. The mathematics and the experiment gave epoch-making results, but the Catholic Church was threatened. The so-called knowledge of the human being, and its power are the same. With the Renaissance the thought of the human being as a total independent being arises. Only by obeying nature you can conquere nature. The atmosphere of life was an overwhelming feeling of possessing unlimited and intiring possibilities, a deep feeling of being fully at home in the world, and to be the unrestricted master of everything, what the world may offer. You felt as if the world has just being created, and as if it suddenly had appeared from the darkness of the Middle Age, and now it was offered to the human being. At the same time the great rupture of unity of the Church happened. The personal relation with God. The human is being justified by faith, alone. The purpose of knowledge is to increase the control over nature because only in this way the nature can be utilized in the service of mankind (according to Francis Bacon). Here you already reach some clear contrast to the Scholasticism, and also to the Renaissance itself.

Rationalism (The Age of Enlightenment)

In the 17th and in the 18th century you find the great attempts to give a comprehensive explanation of the life by using the new concepts of scientifice. They wanted to replace such concepts of Aristotle (born 385 BC) with concepts from science. Movement was no longer something requirering a teleological explanation, and was no longer to be percepted as a possibility that by help of the formal cause was being made real. The new science required a new picture of the universe. The same mechanical basic laws for movements of the celestial bodies and the earthly bodies. All change is movement. Movement means a body changes its place in space, and such a movement has only one cause, the so-called caused cause. The statement of the law of inertia growing from Galilei, was experimented in the circle of Descartes and Huygens. And then the first law of Newtons dynamics. Newton operates with an absolute space, in relation to which every movement can be described. It is for this even movement, and even movements seen from this starting point which is expressed by a straight line relatively to the absolute space that Newtons mechanic laws have validity. The law of Inertia is a breach with the Ancient Thinking. A body can move even and along a straight line in a initial system without any exterior influence, that means without any influence of a power. Logic based on incontrovertible truths but on limiting assumptions. Assumption based on the senses can be doubted but “Cognito ergo sum. I think ergo I am”. The consciousness and the extent, both depending on God. Nothing comes from nothing. So it began.

The leading minds of Europe assumed from the definition of the human being that it was a rational being and attributing to the development of the intellect, and the exaggarating meaning of it. A rational human being has to live in rational state and in a rational world. That was what they were tending towards.

To get information, to look for all inherited views and examine and revise all of them in the light of a huge number of scientific discoveries was needed. It was necessary to do this in the interest of truth. But it was also claimed as long as a large part of life, and nearly all the people were mastered by the old agenda. For a great deal of the participants of the enlightenment, propaganda and agitation were also used to get consent to the attack on all antiquated – not at least the visible power brokers. The two aims are naturally often difficult to separate. And a lot of the published writers wrote very clear and understandable, and at the same time often so subtle teasing that the writings became common readings much more than anything else earlier. They wrote with warmth and enthusiasm, and knew how to spread their ideals. They caught the interest and incited the unaccustomed readers.

The most common ideas among the writers of rationalism was tolerance, freedom of expression and freedom of the press. Most of the published writers of Enlightenment forgot the debate about a theme originating from the thinkers of natural law, but Montesquieus wrote about how to limitate the power of state, and introduced the tripartition of the power in a so-called democracy. What troubled him was especially, what the Englishmen had achieved in 1679, the Law of Habeas Corpus – the suspect individual had to be shown in court before he could be charged.

Jean-Jacques Rousseau 

(1712-78) gave – among few in the 18th century – a very personal and passionated contribute to an understanding of the state, its so-called nature, its beginning and its objects. Rousseau even call enlightenment and culture in question. His thoughts have had a tremendous effect on the Western societies in the 19th and 20th century. Later on in his life he began to distinguise between false and true culture and between what is natural in the “natural state” and in the “state of community”. He claimed that a natural urge is in the human being – a dominating power – to be open, spontanious, good, sympathetic and thankful. That these instinctive and real feelings are more original than (and before) the reason, its the emotional life alone that makes the human being great and good, it is certainly not the brain. Rousseau’s writing are filled with contradictions and obscurities. But also his way of writing made a tremendous impression on the readers, even today. Rousseau got a least three children with different women outside marriage. The Scottish philosopher, minister and economist David Hume found three of Rousseau’s children in an public institution for orphans in Paris, France, and took them into his private care.

The end of philosophy and idealism – or the beginning of industrialism and ideology

The relatively short period 1750-1810 is one of the most fateful range of years in the ages of mankind. The previous ages had been charactericed by a considerably immutality in both the mental and the material life. Inventories, a new economic system and a reformed Christianity including a changed wealt-distribution are categories of exterior changes while the dominating (selected) philosophical contribution, and the general way of thinking among people will be charactericed as interior changes. I shall not postulate how causes and effects precisely are to be distributed, the sections about (selected) dominating philosophical thinking certainly support this omission. Already from the late 1600s and even more in the 1700s the cranks had golden times, government, influential figures and also the public were swamped by often pure phantastical proposals of new inventories in all areas of exterior life, but above all in the technical-economic. Industrialism changes nearly everything in the material world and “gave birth” to peoples.

Along with or contemporary with the war between England and France a Scotsman David Hume wrote “A treatise of Human Nature”. The Radical Empirism with all its consequences, written with literal elegance (might be the reason why it was published). It was “stillborn from the press”, Hume wrote in his selfbiography. In a way the contrary to Descartes. To observe, watch, to feel or percept something is to receive perceptions. Most of these perceptions are, what you will call of complex character. First premise: To say something exists, that something is existing, is to say that a certain perception, complex or not, are available or can be made avaiable. Second premise: The relationship of the language to the existing – the avaiable so (relevant or potential) – perceptions are deciding. The words of the language are understood as names of the different perception, Hume claimed. What is essential in this connection is that the language is secondary in relation to the perception. You may say that things and the facts of the world exist independent of the language. To maintain that the perceptions are present, ready to be given a name, is the same as to maintain that perceptions can be understood, identified and even be recognized as this or that quite certain independent of the language. And this is certainly not true as we shall see, but it is important, and an important discovery for the coming end of philosophy.

 

Idealism (and philosophy) at an end:

Hume’s radical empirism consist of three things, a theory of existence – everything existing might be presented as perceptions – , a theory on the relationship between language and reality – that the language comes after reality that already has been perceived, and has been understood – as a theory on the meaning of word. Words only have meaning if they are names of perception. This means that several word can given up – inclusive the word “I”. If the word “I” is an assumption of all consciousness it is an assumption of every language. Even therefore Hume’s radical empirism certainly has to be rejected.

A deciding difference between Emmanuel Kant and David Hume is their understanding of the relation between the language and that what the language is on. According to Hume the role of language was exhausted by being the names of the perceptions. But Hume failed. The use of concepts takes place in the language, alone. The smallest element of the language, according to Kant is the verdict, a statement where you state something (the predicate) on a thing (the subject). The concept and its use is the work of the intellect. The role of the intellect to understand reality by use of its concepts. It is imported to understand according to Kant that the concepts is the work of the intellect, and just by manipulating the reality to fit to the concepts of the reality, it is understood by the intellect that is different from the reality that is not decided by concepts – Das Ding an Sich.

Kant uses a distinction between empirical concepts and categories. Empirical concepts are concepts that make me understand the things I observe as being any certain kind of things. A cat can be understood as a mammal. By categories Kant understand concepts included in the assumptions of having and of using empirical concepts. The assumptions of language. Without getting further towards the categories of Kant it could be interesting to mention, one of them: the categories of substance. Hume rejected substance, because it was not possible to find perceptions connected to the substance. But understand, to Kant as well as to Hume the substance is not a part of reality, an existing extent. Kant has the language as an assumption. The logical structure of the language is alone deciding the existing facts. An example: Deciding to a scientific observation is that it is prepared and described in such a way that it can the reproduced by others, and an observation can not have value if it with the same observation made by others gives a different result within the accepted limits of accuracy of measurement. The scientific area of experience has to be independent of the observing individual. Whether the objective experiences are independent of the existence of common treats of perception and of consciousness is another matter. When it is understood that the object that is understood, by you understanding of it, is subject to the conditions of the understanding, the Kantician problem is inevitable. The recognition is viewed upon and investigated as if it was a tool which qualities – nature and limits – it is nescessary to investigate. If you have found out the qualities, you are perhaps tempted to make an experiment with the tool outside its qualifications and limits. Kant’s investigation of the pure reason was exactely such an investigation. The pure reason was the tool by the help of which we were able to recognize. The Kantician model involves that categories are used in time and space on given. The concept application or use has the implication that the categories (the tools) have to be used on something (the substance). Only when the categories have made their work recognition has any meaning, and it implies that the substance before the use of the categories is outside the recognition. But do not reject Kant’s philosophy because Hegel understand even the philosophical history as an dialectical process, and that is God’s consciousness before creation. Here you perhaps recognize the clear analogy Hegel’s understanding of philosophy of history and and the Jewish-Christian understanding of history.

“Die Phänomenologie des Geistes” by G. W. F. Hegel (1807). An explanation and an understanding of the result involves concepts themselves that are just understood by the help of concepts that have been used by the preparation of the philosophical system. An example: before the flower there is a bud. When the bud breaks the flower unfolds, and finally after the flower comes the fruit. According to the understanding of Hegel the bud, the flower and the fruit do not belong each to three different philosophical systems. The three formations cannot be separated, they constitute a whole. The problem for philosophy is therefore not the result of philosophical thinking. The truth is neither the result nor the process that leads to the result, but the result understood as the end result of a process that began with the bud. Hegel’s phenomenology includes philosophical considerations and philosophical arguments that are relevant for the understanding of the identity of subject and substance, and for the desciption of the dialectical process.When Hegel set out his views on the subject he means neither the empirical nor the individual subject but the universial. There is an identity between recognizing the universial subject and the object that are recognized. The dialectical process that leads to the recognition of the identity is a historical process where the universal subject actualizes the recognition. The Absolute of Fichte and Schelling (not further refered to here) was the basic on which all recognition build and the assumption of all recognitions. According to Hegel the absolute is on the other hand nothing different from the philosophical thinking or from the philosophical system. The Absolute is the actual philosophical system from its beginning to its ending.

How can an actual existing process of development (or dismantling) be understood only by the logic of the concepts? The cave parable by Platon gives much of the liberation by increasing metaphysical understanding. The dialectical process is similiar.

The founding idea of history is like everything else Hegel handled a concentration of ideas in which every imaginable phenomenon in life has its place and its explanation. Hegel understand life as development, the changes are the interior reality in everything. The principle of changes has a schedule in which life makes its own development. This schedule is Thesis, Anti-thesis, Synthesis.

To explane the use of this schedule let’s take the basic concepts of all life: to be, nothing. All existing must be, and the only sentence that in every sense is true about everything is to be. If you think of this concept to be, you find out that it is empty, without any content. This means according to Hegel that the concept is transformed to its complete contrast: nothing. The most extraordinary about the most positive word to be without content is the immidiate transformation to nothing. Is there a third word, in which the two word to be and nothing meet? When you at same time are and are not , what are you then? You are coming into existence. All existence is coming to existence. Every given state is Thesis that with interior logic nescessity turn into Anti-thesis, but these two contrary states then meet in Synthesis, that include both the two other states. The new synthesis is becoming the new thesis in a new threeparted development and so on. This Hegelian Principle is a deciding element of Hegels dialectical process. The history of mankind is understood by this schedule, Hegel claims. The single cultures have by logical nescessity developed from each other, and the historical cource could not have been another than the actual course. Every single epoke is as long as it exists, the reality, and beyong any critics a view suiting the ruling class in the State-Absolutistic Germany and especially the Prussian authorities in Berlin, where he gave his lectures in the 1820s. But there is a hope, everything most transforme into its contrast. The inventiveness of people and their effort do not lead the historical development, but the the interior logic of the historical course, by the name the dialectical process. In the Middle Age we had Thomas Aquinas who tried logically to prove the existence of God. Now God has got a new name serving the same purpose. This dialogical process has come to an end according to Hegel. W.G. F. Hegel, himself, appears to have been a very genuine man. Put very simple, the modified version of his thinking has been adopted by the controlling elite. The idea might perhaps be to create a war, and then win the peace in the way you restructure the devasted post-war world.

The Hegelian Principle.

The dark history of freemasonry

 

(an extract of Jüri Lina article (1999) with same title. Jüri Lina is an exile Estonian in Sweeden, member of the Swedish Society of Authors)  

 

Quotation:

“As early as 926 the free bricklayers grounded their lodge in York, England. In the free bricklayers lodge you taught the apprentices secrets of the geometric in the art of building. In the year 1375 was written in a document later found in the London archives that the free bricklayers were workmen who were subjugated by the feudal masters, but they were free go around in the country and in Europe. The mason’s guild had so-called free-letters with extensive privileges…..

In the beginning of the 1600s (Jakob IV of Scotland became Jakob I of England. He belonged to the family, the Stuarts. Their coat of arms was a bricklayers trowel and a sword that refers to ’Freemasonry and to the Templars Order) the mason’s guild began systematically to accept members who was not worksmen mainly caused by their extra economic contributions.

The modern political Freemasonry began in London 24. juni 1717 when a grand lodge was founded by joining four smaller lodges… To mislead the public they selected builder Anthony Sayer as Grand Master. Later on the workmen were shut out. The old mason’s guild came to an end. The corporative Freemasonry took their place. The next Grand Master was the lawyer Jean T. Desaguliers, who began in the year 1719. A new Grand Master was selected every year. In the years 1721-22 John, Duke of Montague, became Grand Master. At the same time he was a spokesman of the Hellfire Club, where he was busy with Satan worship, homosexuality and black magic rituals. In 1728 this Duke Montague was even Grand Master in the French-Scottish Freemason in Paris…(Unquote)

Another source

(among others fully specified sources David Icke’s ..and the truth shall set you free. David Icke is a former BBC-reporter, and Dr. John Coleman’s Conspirators’ Hierachy: The Story Of the The Committee of 300. John Coleman is a former MI6 employer, London)

Quotation:

“As illustrated there is fundamental difference between Freemasonry and what I will term ’Illuminised’ Freemasonry, those parts of the order which have been infiltrated by Illuminati agents. The word Illuminati – ’the Illuminated Ones’ – goes back into the ancient world. It is a covert force which has created or taken over groups and organisations to manipulate the world in the desired direction, but I believe it is a part of the globale Elite, a leading vehicle for manipulation, rather than very peak of the pyramid. finding out what happens at that level, above Illuminati, and identifying the people involved is a life’s work. The Illuminati’s greatest weapon is the advanced esoteric knowledge it has passed on through its initiation ceremonies and the misuse and abuse of that knowledge. The most obvious expression of Illuminati was the Bavarian Illuminati created by the German professor, Adam Weishaupt, in May, 1776, and supported financially by the House of Rothschild, the bankers to endless revolutuions and wars. It was Weishaupt who used his wing of the Illuminati to infiltrate and take over Freemasonry.

Weishaupt was trained as a Jesuit, which is short for the Society of Jesus. The founder of the Jesuits, the Spaniard, Ignatius Loyola, formed a secret society within this apparantly Catholic order and the initiates were called the ’Alumbrados’ which means the ’enlightened’, the ’illuminated’. Conflict followed between the jesuit ’illuminism’ and Weishaupt’s German version, battles which the traditions of Weishaupt mostly won. He created 13 degrees of intiation in his Illuminati and the key personnel were to be found in the top nine degrees. The Illuminati is a pyramid, too. The members were given special Illuminati names, inspired by the anscient Rome and Greece. Weihaupt was called Spartacus. These people became members of other secret societies like the Freemasons, and then ’illuminised’ them. – took them over and used them to destabilise nations and hasten the New World Order. They did the same within governments, banking, commerce, military, and the media, on behalf of the Elite.

So there is Freemasonry and Illuminised Freemasonry. The former manipulates at one level, but it too, is manipulated by another covert force, the Illuminati, which, in turn, answers to the global Elite. There are organisations within organisations (say, Freemasonry network within a government) and another organisation within those organisations (the Illuminati membership within the Freemason). This Illuminised form of Freemasonry became known as The Grand Orient Lodges or fraction. It followed the modified Hegelian tradition of infiltrating two extremes and playing one off against the other to create the desired change. Using these methods, it was pledge to overthrow the rule of the monachies, destroy faith in God, put an end to patriotism and nation states, abolish the ownership of property and dismantle traditional social order…”.

Beast die, Kinsman die,
One I know that never dies,
the Judge against the dead.  

 Some of the more silent coordinationed actions with an tremendous mental effects beginning in the 1800s

 American education in the first quarter of the 1900s becomes Danish and European pedagogy, marketing and the like in 1970s

In the following a short extract from a reading that is founded centrally on the well-documented facts of the ‘The Leipzig Connection’ by Lance J. Klass and Paolo Lionni, published by The Delphian Press 1978, Sheridan, Oregon, USA …..

The Leipzig Connection

But did this so-called “rational civilization” overstep the mark, you might ask?

The Danish Georg Brandes visited Berlin on his journey in 1870-1871, but with poor results for himself, and he had to be helped by influent people at the University of Copenhagen to come home and to enter upon a post at the university.

The so-called ‘Modern Breaking Through’ in the Danish intellectual life in 1870s started, when he returned. Oh, I remember the intellectual arrogance of this man (his readings). The head-master of the Gymnasium of Svendborg tortured us with this author nearly every day in the period 1967-1969. At last I thought (as a country boy) I was not apple to learn anything, perhaps I could not even understand anything essential of what was needed, especially in the disciplin literature.

Georg Brandes repaid the missing results (perhaps just his karma) to write to his family: “I hate Christianity to the marrow of my bones”. The head-master did not tell us this. Now I understand a little better, and I am apple to correct a little of, what I learnt in fear by heart by looking in ‘Explanation of Literature’ by Politiken.

 Charles R. Darwin’s

(1809-82) so-called pioneering work “On the Origin of Species by Means of natural Selection”, 1859, shall not be ignored though Darwin himself admitted late in his life that he had written it for spirit of time. Science or Myth? “Surviving of the fittest” and “The Master Race”. Could you reconsider debates over social and public policy issues from the 1870s through the 1910s with an openness and sensitivity they would wish for their own statements without Darwinism.

It is one thing to argue (as have Robert Young and others) that Darwinian science was ideological from the start, but another to demonstrate that the science was then pressed back into ideological service. The capitalism (no ism because it is not based on any ideology – but defined and named by Karl Marx) in the Gilded Age defenders of free market mechanisms, individualism, and laissez faire (so-called “conservatives” but in reality liberals by mid-19th century standards) rarely laced their prose with appeals to Darwinism, and virtually never in the way described in conventional accounts. What should the New Deal-defenders in the 1930s by characterizing the so-called laissez-faire policy have done without Dawinism, ditto the New Marxism in the 1970s, and ditto New-liberalism in the beginning of the 1980s.”Wilhelm Maximilian Wundt was born 1832 in a little town in southern Germany. At university in Tübingen, when he was 19 years old, transfered to Heildelberg after half a year and appointed to doctor of medicin at the university in the year 1856. He stayed in Heidelberg for the next 17 years. At first was employed as a professor assistent, later on he was appointed professor in psychology. At this time the word psychology meant the study (ologi) of the mind (psyke).

In 1874 Wundt left Heidelberg to take over the charge as professor of philosophy at University of Zürich. He stayed there for only a year, as he agreed to tak over the chair in philosophy in Germany at the University of Leipzig . He stayed in Leipzig for the rest of his academic carriere i Leipzig, eventually to be appointed to Principal of the university. Wundt died in 1920.

  The period of Wundt. How was this?

After the defeat of the Prussians (Germans) by Napoleon at the battle of Jena in 1806, it was decided that the reason why the battle was lost was that the Prussian soldiers were thinking for themselves on the battlefield instead of following orders. The Prussian philosopher Johann Gottlieb Fichte (1762-1814), described by many as a philosopher and a transcendental idealist, wrote “Addresses to the German Nation” between 1807 and 1808, which promoted the state as a necessary instrument of social and moral progress. He taught at the University of Berlin from 1810 to his death in 1814. His concept of the state and of the ultimate moral nature of society directly influenced both Von Schelling and Hegel, who took an similarly idealistic view.

Using the basic philosophy prescribing the “duties of the state”, combined with John Locke’s view (1690) that “children are a blank slate” and lessons from Rousseau on how to “write on the slate”, Prussia established a three-tiered educational system that was considered “scientific” in nature. Work began in 1807 and the system was in place by 1819. An important part of the Prussian system was that it defined for the child what was to be learned, what was to be thought about, how long to think about it and when a child was to think of something else. Basically, it was a system of thought control, and it established a penchant in the psyche of the German elite that would later manifest itself into what we now refer to as mind control.

The educational system was divided into three groups. The elite of Prussian society were seen as comprising. 5% of the society. Approximately 5.5% of the remaining children were sent to what was called realschulen, where they were partially taught to think. The remaining 94% went to volkschulen, where they were to learn “harmony, obdience, freedom from stressful thinking and how to follow orders.” An important part of this new system was to break the link between reading and the young child, because a child who reads too well becomes knowledgable and independent from the system of instruction and is capable of finding out anything. In order to have an efficient policy-making class and a subclass beneath it, you’ve got to remove the power of most people to make anything out of available information.

This was the plan. To keep most of the children in the general population from reading for the first six or seven years of their lives.

Now, the Prussian system of reading was originally a system whereby whole sentences (and thus whole integrated concepts) were memorized, rather than whole words. In this three-tier system, they figured out a way to achieve the desired results. In the lowest category of the system, the volkschuelen, the method was to divide whole ideas (which simultaneously integrate whole disciplines – math, science, language, art, etc.) into subjects which hardly existed prior to that time. The subjects were further divided into units requiring periods of time during the day. With appropriate variation, no one would really know what was happening in the world. It was inherently one of the most brilliant methods of knowledge suppression that had ever existed. They also replaced the alphabet system of teaching with the teaching of sounds. Hooked on phonics? Children could read without understanding what they were reading, or all the implications.

In 1814, the first American, Edward Everett, goes to Prussian to get a PhD. He eventually becomes governor of Massachusetts. During the next 30 years or so, a whole line of American dignitaries came to Germany to earn degrees (a German invention). Horace Mann, instrumental in the development of educational systems in America, was among them. Those who earned degrees in Germany came back to the United States and staffed all of the major universities. In 1850, Massachusetts and New York utilize the system, as well as promote the concept that “the state is the father of children.” Horace Mann’s sister, Elizabeth Peabody (Peabody Foundation) saw to it that after the Civil War, the Prussian system (taught in the Northern states) was integrated into the conquered South between 1865 and 1918. Most of the “compulsory schooling” laws designed to implement the system were passed by 1900. By 1900, all the PhD’s in the United States were trained in Prussia. This project also meant that one-room schoolhouses had to go, for it fostered independence. They were eventually wiped out.

One of the reasons that the self-appointed elite brought back the Prussian system to the United States was to ensure a non-thinking work force to staff the growing industrial revolution. In 1776, for example, about 85% of the citizens were reasonably educated and had independent livelihoods – they didn’t need to work for anyone. By 1840, the ratio was still about 70%. The attitude of “learn and then strike out on your own” had to be broken. The Prussian system was an ideal way to do it. One of the prime importers of the German “educational” system into the United States was William T. Harris, from Saint Louis. He brought the German system in and set the purpose of the schools to alienate children from parental influence and that of religion. He preached this openly, and began creating “school staffing” programs that were immediately picked up by the new “teacher colleges”, many of which were underwritten by the Rockefeller family, the Carnegies, the Whitney’s and the Peabody family. The University of Chicago was underwritten by the Rockefellers.

The bottom line is that we had a literate country in the United States before the importation of the German educational system, designed to “dumb down” the mass population. It was more literate that it is today. The textbooks of the time make so much allusion to history, philosophy, mathematics, science and politics that they are hard to follow today because of the way people are “taught to think.”

Now, part of this whole paradigm seems to originate from an idea presented in The New Atlantis, by Francis Bacon (1627). The work described a “world research university” that scans the planet for babies and talent. The state then becomes invincible because it owned the university. It becomes impossible to revolt against the State because the State knows everything. A reflection of this principle can be seen today with the suppression of radical and practical technologies in order to preserve State control of life and prevent evolution and independence. The New Atlantis was widely read by German mystics in the 19th century. By 1840 in Prussia, there were a lot of “world research universities”, in concept, all over the country. All of them drawing in talent and developing it for the purposes of State power and stability.

Experimental Psychology

The great Wilhelm Wundt asked and answered the question:

What is will?

“To Wundt, as it developed, ‘will’ was the direct result of the collection of experienced influences, not by a independent intention of an individual of causal relations”. “His intention was to prove that the human being is a sum of its experiences, of the influences that push his consciousness and unconsciousness..” “What decide the difference in time of reaction between individual and other things?” “Why do some individuals experience the influences different from others?”… To the experimental psychologist education is the process which gives meaningful experiences to the individual to secure correct reactions…”

“Wundt’s thesis laid the philosophical foundation for the principles that later on became deciding to the development of Pavlov’s animal-experiments and to American psychologists of behaviorism… in addition decisive to the development of schoolchildren, who were orientated more towards socialization than towards the development of the intellect of the child with the intention to continue the culture, but in favor of the development of a society that more and more submit to the satisfaction of sensual wishes on behalf of conscientiousness and endeavor for perfection.”

The young Americans who had learnt by Wundt, returned and established departments of psychology all over their own country. All of them were successful and they got respected on influential posts, especially at the American Universities. Each of them educated big crowds of students to the American doctor’s degree in psychology. New periods and other publications, new societies and clubs emerged, and every psychologist was pulled into another subject too at once, and here there was opened for the new urgent German psychology everywhere.

Some of he first American students at Wundt’s institute were G. Stanley Hall and John Dewey. The first were known for a lot things, as a great inspirator at the John Hopkins University that was founded on the German model, and he were known as the founder of the American Journal of Psychology.

After he had been taught by Hall for a year at the John Hopkins University, Dewey should start an exceptionally intensive and deep influence of the American sector of education. In 1886 Dewey published the first textbook of psychology with the same title. In 1895 he was invited to join the faculty at the Chicago University that was supported by Rockefeller. He became the leader of the department of philosophy, psychology and pedagogy.

In 1904 he published his master work: Upbringing: Its psychology and its relation to physiology, anthropology, sociology, sex, crime, religion and education. With Dewey’s words: “Upbringing consists of either to use ones own force in a social direction or in the ability to share the experiences of others, and in that way expand the individual consciousness to the consciousness of the race” (Dewey, John, “Lectures for the First Course in pedagogy”, unpublished, No. 1 (1896) pg. 1)…..

…..Of other most well-documented readings I must mention ‘Klokke (Bell) Roland’ in Danish by Johannes Joergensen, published by Pio’s Book-Shop, Copenhagen 1916. In this most special reading 93 German personalities of culture are exposed. They certainly did not tell the truth to the public about World War I in ‘Proclamation to the world of culture’, when they said they did so.Johannes Joergensen proves this mostly with himself as an primary source. On page 155 in ‘Klokke Roland’ you can read:

‘What do Beethoven and Goethe have to do with those, who burnt Louvain and bombarded Rheims. And also Kant – ‘Kant’s Vermächtniss’ you dare to allege – Kant’s Testament to the world. But an Eucken, a Wundt (mine: 2 of the 93 named) must know that Kant’s Testament, Kant’s Perspective was the united states of Europe and the eternal peace (mine:naive,but), Johannes Joergensen wrote in 1916. (unquote) Never mind Johannes Joergensen verified and told the truth about, what was happening in contrast to what the peoples all over the world were told about the World War I.

“Bell Roland is my name
“when I peal, it is fire
“when I ring, it is victory in Flanderland!”

To read more on:

Experimental-Psycology exported to USA –  US-dependence in full scale 1776

How EU and UN among others accomplish this project today:

 A New Human Being

 How many enemies fight in wars?

  Trading with the enemy

 The shortest version I have heard: “Figureheads are lying”

 Today…

 (don’t forget Rousseau and his belief in the human being, and later on the Modernism from the midd 1800 making plans for the ideologic state in the next century after having succeded with the so-called democracies as an experimentation playground with partly privatised partly government (and therefore false) influented central banks in advance)

 Freemasonry today represents the reality-advancement of the multiculturalism

General Wesley Clark, high ranking freemasoner and commander-in-chief for NATO-forces in Kosovo. He admitted to CNN in June 1999: ” In the modern Europe is no room for homogenious national states. They were an idea from the 1800s, and we shall carry it (the multiculturalism) through in the 2000s, and we shall create multietnical states”.

 The final step in dialogical process?

 Myths and superstition can be benevolently, Z. Brzezinski wrote in 1970. “Short of a benevolent world dictatorship bent on reform, we must work within the bounds of an ineffective, adolescent international system, with all the pains, crisis and irrationality, which adolescence dictates”, Z. B. wrote in the mid 1970s. The half secret Trilateral Commission, which shall gather the world in three blocks first, was established 1973 by the C.F.R-organization of 1919 with Professor Z. Brzezinski as its first director. Zbigniew Brzezinski (Z.B.) points out in his book from 1970, ‘Between Two Ages’ his and Robert Baily’s view on the changing of the European time-spirit:

“We shall from today live through a phase of time with the following aspects, 1st There is no progress, 2nd Social evolution is cyclical, 3rd Western civilization is in period of disintegration and decline, 4th Man is non-rational or irrational, 5th Society is composed of masses who, being non-rational and easily influenced, shall reduce mankind to mediocrity, 6th Scientific truth and knowledge may be harmful for society, 7th Myth and superstition can be beneficial, 8th A society is composed always of conflicting, 9th The society is ruled by the elite, 10th Democracy and humanitarian social values are unfortunately misundertakes that results in the rule of the uneducated masses. And he also adds that mankind has to live through the following phases in the long historical perspective, The phase with a religious clarification, the socialistic phase, then the era of the nations, and in the end The One-World-Society to crown the achievement”.

 Notes:1. Every thinker have to be accepted by the top to be known, so even Karl Marx’s, who was baptized Mordecai with the helper Albert Pike to manage his writings, and still including a bunch of mistakes for example that he forget the internatinal division of labour discovered about 100 years earlier; he build throughout his entire writings on Hegel’s dialectrical process, in the Marx-version dialectrical materialism; all in all suited to take the power assumed that the subjects were completely indoctrinated. Also Adolph Hitler’s thoughts had to be accepted by the top in order to be known.

 John Maynard Keynes’ thoughts were used from the 1930s in last phase of paving the way to turn the ordinary Liberal thinking into its Socialistic end:

Try:

The Truth Is (That) What You Believe In (?), that among other issues proves this.  

 When I select some of contributing figures in this file, they all, their ideas, and way of dividing up the last 1500 years have been chosen in advance by the top, except from a few figures in the end (we were not meant to know them, their influence and especially their connections. I have even reduced the number of reported ideas and contributers very much further to end up with a brief resumé that as far as I can judge is fair.

 I then had to give a supplement on freemasonry and Illuminati, and point at the Experimental-Psycology which have had an enormous influence which the reader perhaps can judge by realizing reality (not TV), and other documented sources. These issues have been closed country, but with amphetamines used on Danish school children, if they don’t fit into the systems, and school classes with one half of the pupils consulting a school-psycologist I have to tell the truth. And not at least the perspectives made by EU and UNESCO that you can read about on the link “A new human being” above.

February 9, 2010

Day Of Denmark – Day Of The Western World

The time is characterized by form without contents

In addition

Praeterea censeo….

NO CLIMATE CHANGE CAUSED BY MAN
Link: The Great Global Warming Swindlehttps://www.youtube.com/watch?v=52Mx0_8YEtg
Shown as clear as the day in 2007 (click at the arrow above)

September 18, 2008

The Collapse is Coming

 The Collapse is Coming

It happens almost just once in a lifetime, so the possibilities to experience are few. It will be even worse this time. The collapse is caused fundamentally by the human characteristics, when the morales and ethics disappear from the top to bottom.

 

Professor L. v. Birck wrote 1922:

 “We live in a world, where the ‘machine of state’ that really should lean us selves against, is weakened in its foundation. It is hated by the rich an just tolerated by the poor. In Germany and Austria the holders of the economic power of society the organized capital that is considered to destroy the parliamentarian so-called democracy and the state influenced by the people to take the power itself. In United States is the conflict between the political and the economic postponed for the time being, as the political power by the latest presidential election has fallen in to the hand of an oligarchy (a rule of the few). Everywhere you find the sign of the powerless stat, and the possibility to establish the power outside the state and without oligarchy seems far away for the moment.” (quotation from ‘Denmark and World Crisis’)

 

Professor L. V. Birck also wrote a lifetime ago:

“The middle classes was short-sighted, it would not save the system they were place in themselves and get rid of all these amounts of paper that threatened the economic system that support the middle classes.

 

Does history repeat in some version when you are not allowd to learn from it?

The same happening today in much wilder speed

 

How inflation and speculation become possible, and how they are accelerated:

The private limited company was not really widespread until the 1800s. Also the bank houses of the Absolute Monarchy (which ruled in most states) were businesses owned by one man or by partners. The private limited companies are introduced en mass in the 1800s. Thereby you have to distinguish between physical and juridical persons, and at the same time distinguish between the responsibility of a physical person and a juridical subject. It was not my task to analyze the laws of private limited companies in different countries, but to show how the clear advantages of the private limited company turn to disaster for the society under the industrialism and the so-called democracies from the mid 1800s. All laws concerning the private limited company in the different countries are partly different, but a lot of the substance, of the rights and the responsibilities are rather common. Definitely common to such a degree that a rough outline will be described here:

 

The theory or principles of the private limited company: 

A juridical subject with its characteristics and rights. The private limited company gets a private life that has to be protected. Here the deciding is its position as owner of a business, its protection, and its free access to profit. The company owns some real goods, factories, land and products. The share holders are directly related to those goods, because they look upon themselves as members of a co-operative society, and because the business of the company was not bigger or more distant than they were able to keep the information up to date. The stocks and shares and share certificates were pieces of evidence for a certain share of the real goods of which revenue and profit were made. The participants of the circle of share-holders share interest of certain common aims. That is the reason why they join their efforts, and because each of the share-holder is not economic strong enough. They appoint some  participants – the biggest share-holders – to form a board of directors that appoints a director/a president, sometimes among the members of board of directors. In this way the board becomes some kind of a deputy for the shareholders; the board has some duties to the shareholders. It is not without some functions, but its whole existence is caused by the private company. The shareholders are in a way a kind of managers who are acting via delegation, but they feel and certainly have a responsibility, even outside economics.

 

The interest of the shareholders are certainly not profit due to appreciation, and he even feels some kind of moral responsibility that his goods must work in a honest pro-duction, not even the profit of the year is of his primery interest. The share-holders’ relation to the company are lasting, they do not sell the shares, the price of the share is just of interest in connection with inheritance or if misfortunes forces him to sell, and share is often solid fixed for life. The legislation concerning the private limited company was introduced several decades after the private limited company had become wide-spread, and describes the private limited company just as I did here. The task for the legislation then is to regulate the relations between the share-holders, to protect the minority and secure that the capital of share-holders is present considering the credi- tors. Gradually a breach of confidence from the board of directors from the management appears, and legislation then set up some common rules on documents of general meeting, on the authority of the company, and on some duties of the board, often expressed very vague.  

 The reality of the private limited company:

Reality does not correspond to this idyll. Life has denied the thought that the private limited companies are just another kind of tradesmen. It has become a social organi-zation, created for the advancement of some productive tasks. It is like a municipality, it has a long duration, longer than the life of an individual, independent of the share-holders, the board of directors, the management, the labour. It is an expression of a wanted co-operation. It is something in itself, and it gets itself means, management and labour. The most obvious differences between the municipality and the private limited company is the way the organization is managed, its protected acces to profit, and in the advantages of whom it is working. The tasks are often different, but they don’t have to be. The company is not working primary to satisfy neither the shareholders’ need of profit nor the need of the board of directors to get higher salaries.

A company does not have a private life or soul, nobody that can go to prison and no reputation that can be sullied. In principle it is irresponsible and amoral, because it is just an idea when all is said and done. The tangible is its capital – that is limited and divided – but have to be present.

The share-holder has stopped being a manager, the intense connection between him and the company and his pointing out of his friends and good connections to the board of director has come to and end. He gives nothing to the company but the amount of capital represented by the share. Often he has not bought the share by subscription but from another share-holder. He has been reduced to be a lender, he is almost on the same footing as the owner of a bond.

 

This is underlined by the divided shares in different categories, preference-shares with cumulative interest, and ordinary shares with varying interest, and we have the share-bond, and the preference-bond which is a transition to bonds. We also have the deferred sharethat does not yield profit from the moment it is issued. Some improvements have to take place, for example in the organization of sales or in the degree of monopol before profit is received. In 1926 France and Belgium consolidated the loose debt in form of state-bonds that supplemented the fixed interest with a share in the profit from state-railroads and state-monopolies. The company’s capital originated from loans, and in this way the primary difference between the share and bond disappeared.

The share is a borrow evidence with a varying interest and second-rate security and second-rate legal position, while the bond has a fixed interest or yield, but first-rate security and first-class legal position. Often the bond-capital represent the real values. The preference-shares often represent the most likely profit-possibility and the ordinary share the hopes. By this the share has stopped being a real evidence of some shares in certain real goods. It has become a letter of right to varying profit, which value has to be dependent of the amount of profit, its duration and security compared with the general rate of interest. In this way the varying price of the share is getting the primary interest, and speculations in the changing price is becoming the deciding foundation for the owner.

And remember that the right to vote at the general meeting has also been split-up following the splitting-up of the capital. The share has then been detached from its basic, the real goods of fortune that produces and at the same time (but in reality pretty independent of this) also yields profit. It dismantles further, and the “hot air-process” follows.

You will understand that the share-holder to a high degree has been separated from the business, from where he gets his profit. The example from the French railroads was just an illustration. There are numerous ways.

The worst happens when the public creates private limited companies or join those, and steal the majority with new-printed notes. Notice, some convincing justifications have always been carefully chosen in advance.

Anyway the holder of the ordinary shares will have difficulties to judge anything, and as a difference of a few percents in the company can lead to a doubling of the profit for the ordinary share-holder or totally disappear, and as the board of directors and the management know the total profit long before the share-holders, the last mentioned has actually been separated from the company.

But when the company – inspired by all the new capital as we shall explain below – that has to make an effort to yield interest, to make things effective (or monopolize) make business-fusions vertically and horizontally, then the trust (and the public control or lack of the same) has been really introduced to control what will happens then? Now the share-holder is just a lender, whos position is unbelievable weak.

The share has now character of the paper of gambling. The share-holder cannot monitor the distant company that really produces: “I, who own a share in a London finance-company that owns shares in South American diamond-trusts that owns shares in individual mines” has no means to know anything of the production and prospects. I have to buy after haven listen to rumours, and I sell I panic. I have no human interest together with real producing units in the company. Everything is unknown. You listen in City that they expect a certain profit next year, I have no interest in honest work anymore. The share has become a lottery ticket.

But the share is not even owned by somebody. Through margin-payments you can “own” a share by paying one tenth of the price, perhaps less. The stockbroker or lombarding bank is in reality the owner. What is turned over is just the one tenth I paid. In this way the interest in the business is reduced further and my interest in the price of the share overwhelming strong. The trade-off between the interest, price-differences and the lending interest rate in the bank is what concerns me now.

The share-holder has stopped being a share-holder in the original sense. He has nothing to do in production. The non-speculating holder of share certificates, who owns and has paid his share entirely and has the share for years, has gone.

If you look at the administration of the company, you find share-holders at the general meeting who are entirely unprepared, and know nothing. The accounts are at best opaque, and often uncorrect. The share-holders are simpletons as lambs and are under normal conditions forced to be meek as such, because they know that critics of the management of company are going to press the price on their own shares. The share-holders therefore are incompetent to give their votes with any sound reason. But most of the votes given at the general meeting are not those of the non-speculators. The shares have been used to borrow money, and the right to vote has been transferred to the bank, or a group of finances by means borrowed in a bank which take possession of the majority of shares by the famous ten percent payment, or the board of directors take the power by buying the majority of shares in the days before the general meeting. The board of directors whos interests are not those of the company, and its actions are dictated by objectives that do not concern the running of the company and a reasonable management. The management is not a crowd of non-speculating representatives of shareholders. It has been elected by a group of power that certainly do not own the capital, but it has been able to pay just the tiny bit of the price of shares in majority. Often the financing bank – that has financed the majority – points out the management of company. Often the capital is simply owned by savers in the financing bank, without they know it and can have their legal right. The group of finances is certainly not the old type of share-holders and does certainly not represent those. They are professionals with means not owned by themselves, they act as irrelevant self-licenced masters of industry and are possessors of the community’s capital. The management that is not dependent of the board of directors leads to the fact that the management cannot act in the interests of the company in the long run. It has taken what the bank or financing group wanted, and seldom it is in the interest of the company.

Source: http://www.lilliput-information.com/gol2/gol2.html

http://www.lilliput-information.com/tida.html

History: http://www.lilliput-information.com/truth/app3.html

Might it be prevented better in the future after the war: http://www.lilliput-information.com/intmo.html

 

J. E. Vig

 

April 27, 2008

Europe On Its Way To Dark Ages

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Europe shall be darkened –

the political leaders have sold their souls to the oil producing Arabic countries

(new updated version from the original of 5. Mars 2006)

Europe and Islam now and in the future according to numbers

Norway has made its official population forecast 2006 – still without any most needed correction. There is no correction in Sweden and Germany either. The be able to quantified the problem is the basic for any debate. So we hear about numbers that are declining all the time – but it’s a lie. In Denmark you read in Jyllands-Posten 9. August 2005 that the number of foreign citizens begun substantially to decrease from second quarter 2005. All in all we ended up with an official fall in the number of foreign citizens even though the rise of number in a politically incorrect analysis was (numerically) more than three times larger. When you look at the number of foreign citizens in the official accounts, the number of naturalized has been subtracted year after year. So if the number of naturalized exceeds the number of immigrants in a given year, it looks as if the number of foreign citizens has declined and the influx has turn to outflow. This phenomenon has been continuing for years. In Denmark we made a correction and got a politically incorrect but more accurate account.

Perhaps the simple truth after all is too complicated for reporters:

“The camouflage from the number of naturalizations by law just exceeded the number of new immigrants”

The demographic development In Norway : http://www.honestthinking.org/no/pub/HT.2005.05.15.OJA.Bakgrunnsinformasjon_for_artikkel_om_SSB.html (in Norwegian)

The future population of Norway :
http://www.aftenposten.no/meninger/kronikker/article1209423.ece
http://www.meforum.org/article/337 (in Norwegian)

Sweden has Islamic majority about 2050: Report on researcher Jan Lindh’s results: http://danmark.wordpress.com/2006/06/20/svensk-forskerne-svenskerne-i-mindretal/ (in Danish)

A crescent over Europe?
http://www.afa.org/magazine/July2005/0705europe.asp

On the German blog Politically Incorrect run by Stefan Herre we read this entry on the theme: “The Number of Muslims in Germany” with an answer from the Mideast expert and economist Hans-Peter Raddatz: http://www.pi-news.org/2007/10/stefan-herre-about-the-islamization-of-germany/

Europe and Islam: Crescent Waxing, Cultures Clashing: http://www.twq.com/04summer/docs/04summer_savage.pdf

Islam in France: The French Way of Life Is in Danger :
http://www.meforum.org/article/337
From Holland we get positive comments on : http://ayaanhirsiali.web-log.nl/ayaanhirsiali/2008/02/newspapers-repu.html and http://nekklachten.web-log.nl (in Dutch, German or English)

Denmark got the possibility to correct the false numbers of immigrants and their descendants:

In 2006 the number of naturalizations by law for 26 year divided on former citizenship suddenly was published by Danmark’s Statistics.

That lead to correction that shows the official number of most foreign immigrants had to risen by 106 p.c. to reach a politically incorrect but more accurate number.

http://www.lilliput-information.com/uscan.html (English version) and

http://www.lilliput-information.com/eumork.html (older Danish version)

A beginning critical activity seems to take place in Norway I have to say. Norway and Holland are respectively about 10 years behind and 15-20 years ahead of the wrong immigration-development in Denmark. I.e. we will see a majority of Muslims here about 2035-2040, in Norway in about 2050, but in Holland (with a corrected number of about foreigner-percentage in 25-28) they will get the Islamic majority in 2025-2030. There has definitely been a war long before this happens, perhaps a war that will prevent the development to escalate further towards a multietnic chaos, who knows? The war is being orchestrated from Bosnia and Morocco and from within the EU-countries. You don’t believe? See the video: http://www.sky.com/skynews/video/videoplayer/0,,91134-bosnia_p3705,00.html

All European governments continue steadily and calm with the great extention/expansion of a European co-operation to the west and to the south and with promising final inclosure into the Lisbon-Treaty (a camouflaged European constitution), where they perhaps should re-arrange the trade and contacts instead taught by the latest experiences. This co-operation is about “exchange of workforce, education and culture (and immigration)” and surely on money from EU paid to the development-restricted areas in 10 countries south of the Mediterranean. Most likely we should expect our governments to do nothing to prevent or delay of anything in the connection. In addition the Euro is being held floating by Arabic Oil and self-strengthened continuous interest-rate rises caused by the Euro-construction itself. Any kind of support from our busy leaders most likely have to be regarded as non-existing, seen from this point. The Arabic oil countries unfortunately have them very much in their pocket so to say, so much that they will do nothing at best to open up their antiquated systems of education and of the general business-structures under the accelerating international competition. In addition Euro is floating in oil as a payment from the other side with immigrants in return from Middle East and Africa. For details and background:

http://www.lilliput-information.com/curint.htm

http://danmark.wordpress.com/2007/11/20/dollar-is-definitely-not-quite-passe-english-version/

 

To get out of this dilemma is more than difficult:

A series of interest-rate increases simply presses the rate of exchange further up in a Europe with close to zero real growth, and it worsen the conditions further, precise as we described it just before the first referendum on Euro in Denmark. Now they have not even prevented to make inflation again (in Denmark, 13.4 p.c. the latest year) in order just to use this as a false argument for a second referendum on Euro about 2009-2010, when it has went wrong. The interest-rate increases slows down the activity even more on Mainland, and even though the politically incorrect unemployment in reality is close to 20 p.c. of the those who could go to work. The natural rules of capital formation seems to have been forgotten in an indebted Europe. European population and European workforce: http://www.lilliput-information.com/engeufolk.html and http://www.lilliput-information.com/engeuarb.html

Here you could have imagined perhaps a re-arrangement of the trade with most terror-fixated areas of the world assumed that we got our energy-trade directed into safety. Europe could replace the deliveries we get from countries that are expected more and more to use a terroristic policy of trade against the West in the nearest future. In reality Denmark has been self-sufficient with energy resources for the last 20 years. The other alternative was chosen by the leaders: They sold Europe to the men of the hour.

That is the background and the reason why we have to collect and possibly create power of resistance right now. If we don’t succeed the European peoples will not get the needed support in upcoming fight and war that surely will come as sure as the Amen in church. And this war is coming much sooner than the majority expect. Without civil resistance we have lost beforehand. It is 2 minutes to twelve.

If your heart is filled use your brain
Joern E. Vig, M. Sc. (Economics), Denmark

http://www.lilliput-information.com

http://lilliput-information.blogspot.com

http://Danmark.Wordpress.com

November 20, 2007

‘The dollar is definitely not quite passé’

President of Iran Mahmoud Ahmadinehad recently used the following expression about the American currency dollar at the meeting with the oil producers in Saudi Arabia: “A worthless piece of paper”.

The American dollar has since the last global war (WW2) been substantial overestimated, because USA made an agreement with Saudi Arabia on oil extraction and on foreign and security policy on way home from the Jalta Conference 4-11 February 1945.

It developed further on and petro dollar kept its rate of exchange at a level higher than corresponding to USA’s ability to compete. The dollar was simply kept up, because an enormous amount of monetary units from the oil trade remained abroad and did not returned to USA to demand goods. Dollars was demanded everywhere after WW2.

This phenomenon has the American government aimed to reverse to get closer to its ability to compete in a globalizing world since 2000. In addition Iran was one of the first oil countries that replaced its oil trade to the European compulsory Euro in the Euro-Zone.

A lot of rumours are told – also in Denmark. On the anti-war front it is often reported that USA
is close to bankruptcy. Let me express it in this way: This rumour does distinctly not build on any insight at all. The war expenditures – that is mentioned in this connection – are mostly financed by government bonds. A substantial amount of those has been sold to among others China. This is a kind of safety net, ‘where the believers had hoped they had found a dead dog burried’. It’s just about the time to remember ‘Funny Ali’.

The war of interest-rates that actually has been fought across the Atlantic – as usual I am tempted to remark – has among other things the effect that EU with a strong oil trading currency has severe difficulties with getting the real economy of EU going toward a popular succes. They chose what we have called New-Merkantilism instead of making order on the home front. ‘Naturally it is quite different in Demark, as you might imagine or perhaps heard’. Anyhow we have explained earlier why the Euro is not a protection against international competition, and why the currency rate and speculation do not secure any dynamic capital creation that is the precondition for every responsible society in development, rather on the contrary.

That a new alliance between the Arabic countries and EU – the Mediterranean Process – is emerging might be overlooked by a few ‘weak-sighted’, even though the efforts has been held semi-secrete by the chosen ones and the European Elite. That is perhaps the reason why Iran uses this rhetoric. In addition there is still a lot of sanctions intact against Iran, and a continuing international claim of an effective control with its atomic program.

19 November 2007
J. E. Vig, M. sc. (Economics)
Denmark
informationomdanmark@yahoo.com
http://www.lilliput-information.com
http://Danmark.wordpress.com

A new international monetary system shall be needed

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