Euro Inner Devaluation


How did the situation get so bad in the Eurozone periphery? There are three explanatory layers below the usual one. I will concentrate on the case of Greece, just to focus minds.

Usually the trouble with Greece is described as follows: Greece is a barely functioning state, without even a registry of who owns what, full of liars and plutocrats who pay no taxes and overspend into silence the People with corruption generalized, thanks to the full complicity of vicious bankers knowing very well that they are too big to jail, as they hypnotized all important Western politicians into abject submission.

There is a lot of truth in the preceding, but the truth is not always and only where everybody believes it is. There are explanatory layers, much deeper than the preceding ones. And they are not restricted to Greece, or even Europe. Nor to recent times.

Those deeper explanatory layers I will expose are never explored, because making them explicit would endanger the vast conspiracy the self declared financial “Masters of the Universe” have engaged in. Not only would it expose their manipulations, but how to remedy them, and spoil any further enjoyment of this vain art.

I will presently address the most superficial of these causal layers, and leave the other two for some other times (although I have mentioned them many times before). Even that most superficial of layers is something the best American economists are careful not to talk about (or maybe they are just plain ignorant?).

Economists friendly to plutocratic supremacy have failed to mention that explanatory layer: I do not wonder why, as they are plutocratically financed themselves. They are decent people, they do not want to even think about biting the hands that feed them.

Greece has no interest, does not want, cannot, and will not, leave the euro. 

That, let it be said in passing, is the number one notion for decent economists to integrate. Leaving the Eurozone would only make the situation worse, for everybody, except for those who cling dearly to American supremacy, and those who prefer dictators to lead European regimes. Indeed, if Greece leaves, why not everybody else? (I explained before that the banking problem is logically independent of the currency used.)

As Dominique Strauss-Kahn just said at Cambridge University, accepting the destruction of the Eurozone would be accepting that Europe become a “province” of the USA. (I am heavily rephrasing what he said, but his meaning was clear.)

And if that is a “province” as the original “provincia” (now “Provence“) was, that means annexation. (By the way, thank to Geo, a contributor to this site, for pointing out to me the March 2012 DSK speech. I was totally unaware of it; it’s well worth listening to.)

What was wrong with the annexation of Provincia?

Well, Provincia was a Greek state, a mini empire led by Massilia, extending from beyond Barcelona to the west to beyond Nice (the Greek Νίκαια) to the east. That empire was as old as Rome, and an ally. Massalia had been founded as a colony of the most enterprising Greek nation, Phocaea, itself much older than Rome (or Athens, for that matter), and a member of the Ionian League (now under the Meccan crescent moon’s boot).

Now Phocaea, 20 centuries later, is under the Muslim boot, and it’s all Rome’s fault. Think whatever you want about the  “mildly Islamist” ruling party in Turkey, it has more than 100 journalists in jail, for various degres of treason, or criminal inciting to deep thought.

Dominique Strauss-Kahn, who was going to be France’s much needed next president, is in very good position to know the difference of civilization between Europe and the USA (the prosecutor in New York, Vance his name, is financed by Wall Street, which hates Strauss-Kahn, just as the plutocrats in Rome hated the richest of them all, Caesar, because Caesar was the head of the “Populares“).

Rome, by breaking ancient Greek democracy-through-city-states, and unions thereof, paved the way not just to its own gigantically tyrannical self, and its grotesque mindless theocracy, but also to the giant, instantaneous Islamist tyranny of the seventh century. All this to explain not just why the relationship between Massalia and Phrygia is not as close as it used to be, but also why there was a lot of stagnation in between.   

When Rome conquered the Greeks, it killed intellectual innovation.

The Romans, whatever their charms, were no intellectuals. Nearly all Roman intellectuals of the Greco-Roman empire were actually Greeks, just as later nearly all Arabic speaking intellectuals were actually either Christian or Jewish (or  from families recently superficially converted to the master race’s religion).

The European Union is an attempt to reconstruct a world somewhat similar to the best union of independent democracies of the very ancient world, say when the the Ionian League reigned, next to Lydia and Phrygia, or even earlier, when the non sexist Cretan thalassocracy ruled the seas, in good intelligence with mildly authoritarian Egypt…

This model of an union of democracies, is the only one for this world. The historical model of the USA, crushing all the savages with the ever extending frontier pushed by crazed out plutocrats, is simply not viable. It only worked against American First Nations, because those were, really, savages.

(Why the extermination model had worked so well against the much more advanced Aztecs and Incas has to do with an immune problem, which was less important three centuries later; smallpox got to the Incas before Pizarro, and killed the Inca, starting a civil war, among other things; there is plenty of evidence that Spain massacred the American civilizations much by accident, and it was stopped at the top; the queen made enslavement of the Indians unlawful. Later Charles V ordered the arrest of the conquista, for cause of holocaust. In total contrast, the extermination of the North American Indians by the USA was deliberate, and the inability of the USA to revisit that monstrosity stays a threat… to the whole planet.)

Leaving the Eurozone would make the situation horrible for Greece: it would have to pay for all its energy and imports in an enormously devalued currency… And the People of Greece would lose the financial help from hundreds of millions of European taxpayers, and ultra cheap money directly from the European Central Bank (thanks to the amazing offices of the good Mr. Dragghi, an Italian banker, ex-partner at Goldman Sachs!).

In the 1940s, after engaging in successful war against Mussolini’s Italy, Greece was overrun by Hitler’s Nazis. Fortunately the Nazis suffered heavy losses, which piled up on top of the enormous losses they, and especially their officer corps, had already suffered over England, the enormously lethal Battle of France (May-June 1940, 200,000 soldiers killed), and in Norway (against the Norwegians first, and later against victorious Franco-British forces).

Even earlier the Nazis’ professional assassins had enjoyed unexpected losses in Poland. Bombing of Berlin by the French did not help German morale. It should have been fairly clear, even to the dimmest of Germans, that WWII would not be a repeat of WWI. This time the fascist snake would be struck at the head. But just as the Romans had no notion of intellectuality, nor did the Germans in 1940.

Thus when Hitler, delayed 6 weeks by a very costly invasion of Crete, finally attacked the USSR, his forces of professional assassins were much weakened. Many a good Nazi engineer had died in suicide charges against French fortifications, and most elite Nazi paratroops had been annihilated in Crete (they would be used again only against the French resistance in Vercors, in Spring 1944, it took that long to replenish them).

Hence we may say that democracy owes much to the courage of the Greeks against fascism, not just 25 centuries ago, in many formidable battles against the invading Persian juggernaut . But also during World War Two.

Nevertheless, for all their efforts, the Greeks were rewarded by a civil war in the 1940s between Greek communists, and foreign invaders, Anglo-Saxon plutocrats, aided by local agents. I am not exaggerating: the “Greek” civil war started with a British general giving an ultimatum in Greek to the… Greeks in Greece.

So now, here we are. Economists with access to all the centers of power, breathing together with Wall Street plutocrats, are giving advice to conservative European politicians and circles about what to do with Greece. It reminds me of 1946, with Anglo-Saxon military and special services telling the Greeks what would be happening in Greece, for the greater good of plutocracy (don’t scoff: ever since Greek ship magnates paid no taxes, and have been able to procure the likes of Jackie Kennedy as escort girls, a tradition pursued to this day).

Yet, there is an obvious mild solution to the mess developing in Europe: give to Greece and the like, the same medicine that Germany profited from.

In his editorial in the New York Times: “What Greece Means“, the honorable Paul Krugman pontificates erroneously that: “… countries like Greece and Ireland… had and have no good alternatives short of leaving the euro, an extreme step that, realistically, their leaders cannot take until all other options have failed — a state of affairs that, if you ask me, Greece is rapidly approaching.”

Well, that’s simply not true. I will demonstrate that not only there is an alternative, but that this alternative, a powerful weapon, was wielded by Merkel for her own selfish interest. Unjustifiably so.

In all fairness, Krugman’s main aim in the editorial was to show that austerity was bad, and that the situation in Greece proved the point. I agree, to a great extent. However I believe that targeted austerity, and targeted growth is where it’s at: grow schools for everybody, the market conditions for futuristic industries, and a sustainable energy procurement system; don’t grow plutocrats, socially irresponsible banks or the Islamist (“republic of“) Afghanistan. It’s all about precision bombing.  

“Why did Greece default? Americans economists, such as the pre-cited Paul Krugman, love to accuse the euro. They may as well accuse the evil eye. The euro, per se, has nothing to do with it. The all too weak powers of the ECB, much more (that is why one should be thankfull to Mr. Dragghi for violating the ECB charter; he (basically) gave more than a TRILLION to European banks englued in the crisis they created… in three months!)

All too many American “liberal” economists hate the euro, because, with all due respect, they are protecting their turf, New York City. All the caviar. Living in mansions. Looking intellectual. Without Wall Street, New York City would be just a larger Philadelphia. Made huge by all this Wall Street money, the giant 35,000 officers strong NYC police force can incarcerate all Wall Street occupiers, any time it is ordered to.

Americans have been enjoying the status of the dollar as the world’s reserve currency, so the opinion of any American economist is suspect (as Keynes, not a shrinking, anti-capitalist violet, was the first to point out in 1944; Keynes wanted a world currency, not the dollar as world currency. Don’t expect Krugman to tell you that).

Without Wall Street, the Greek conservatives who got the country in the Eurozone, could not have cheated with the help of Goldman Sachs. Was Greece a Trojan Horse conceived by the Gold Man sacking civilization?

In any case, the fruits of empire are bound to make American economists lazy, more worried about pushing for Quantitative Easing to help those who buy them caviar, than for liquid thorium nuclear reactors, to save the biosphere.

What we have done, instead of putting engineering in the lead, is allowing plutocrats to think the world. The lowest and basest have been put in charge of the grandest and most noble, penetrating vision. Saurians are steering the bus. Now we are sinking in the tar sands of lost imagination, turning away from all possibilities but for surviving as living fossils, burning whatever we can dig in the ground, like forsaken Homo Erectus.

There are three causal layers to explain the European disaster deeper than what conventional economists tend to analyze, and let’s finally roll out, after these preliminaries, the obvious one.

It points, surprisingly, at Germany. The good Frau Doktor Merkel in particular, is an obvious culprit. Merkel poses as austere, a steady hand, but she forgets to advertize loudly that she was an engineer in Greece’s demise. That’s too bad, because therein a solution.

After coming to power, Merkel effected an INTERNAL DEVALUATION. That gave an unwise advantage to Germany…that it did not need.

Merkel jacked up the German Added Value tax from 16% to 19%. This acted like a protectionist measure inside Europe. The Added Valued Tax is charged on imports, not exports, so it behaves as an import tax.

Meanwhile she lowered considerably the taxes German companies had to pay when employing someone (by a third, I computed).

OK, maybe Merkel was right: the world’s greatest exporter is the European Union. You will not hear that from those who sing on roof tops about Europe’s decline. Maybe 45% of that is directly from German exports (after a back of the envelope computation, inside my head). However, considering the impact that her internal devaluation was bound to have on the rest of the Union, Merkel should have had the courtesy of informing the others, loudly, on the probable impact of her policy.

Maybe she did, sotto voce. This is an argument why European ministers should sit on each other’s councils of ministers (as DSK tried to impose, long ago). Some will say they have more important things to do. Yes, like what? 

The rest of Europe did not engage in such an internal devaluation trick in a timely manner.

Now Sarkozy, the plutophile French president, desperate for re-election, is proposing to do the same (mysteriously he calls that the “TVA sociale“). He proposes that, 6 years after Germany effected it. Too bad he did not notice before. He was probably too busy making love with the richest of the rich, and tasting the most refined caviar together (as there is an embargo on the best Caspian sea caviar, caviar is now made in France, illustrating where Sarkozy France’s priorities are. France used to have ideas, now she has caviar…)

All the states from the European periphery should do the same: give back to Germany some of its own medicine, some of this internal devaluation Merkel loves so much.

That counter-measure is already applied, and not just in Greece (where the AVT is now 23%!).

It goes without saying that Germany should help repair the damage it caused, by doing the opposite, internally revalue (lowering the German AVT, and rising other taxes could be done next week: Merkel is obviously over-eating while Rome burns).

The state of Greece has been in default since 2010, when it stopped paying private contractors which had worked for it. The default is official in March 2012, at least the credit rating agencies say so. Greece has stopped interest payments on old bonds enjoyed by the banks.

Technically more than 80% of the banks exchanged the loans for new ones which lost more than half of their value. A few banks chose instead to activate Credit Default Swaps.

If all banks had activated the CDS, we would have been in a repeat of 2008, as those CDS are backed up by drastically insufficient capital. In 2008 the major states of the West basically ordered the taxpayers to make the CDS payments. Taxpayers had to pay for something they had never heard of, financial derivatives. This time the banks paid. Progress.

Of course the crisis is not finished. The big problem is that, worldwide, greed has created imbalances. Worldwide bankers and financiers sit with politicians and they together breathe (in Latin: con spirare).

Plutocrats don’t even hide for their breathing together: see Davos.

And this is why coal plants are everywhere ever more spewing deadly gases, from CO2 to mercury vapor. It is also why China has caught up, and sometimes passed, the West in science and technology. Hence the trade imbalance problem. Now the West (EU, USA, Japan) whines at the WTO that China was unfair with rare earths. Why don’t they extract their own, as the West used to? (By the way, energy crammed thorium is often produced as a waste, doing so.) Too much money for caviar, and bankers’ private jets, not enough for productive work? And now whining that Chinese slaves are greedy?

Thorium nuclear reactors, or rather the absence thereof, make a very good illustration of the unfolding disaster. This technology was made to work 50 years ago, but was never developed. Thorium would allow us to escape the catastrophic CO2 crisis poisoning the biosphere, besides providing the solar system with cheap abundant energy and fast transportation for hundreds of thousands of years, all the way to Ganymede, Enceladus and Triton.

Why do I mention those three? Those moons of the Solar System have gigantic quantities of (very frozen) water, and are thus much more suitable for human exploration and colonization, than, say, Mars, had we very fast transportation, something a thorium engine could provide cheaply.

It is a big universe out there, and it is a very small enchanted paradise of a planet here. When one sees that European politicians took 6 years to realize that the leading country had grabbed for itself an advantage that should be theirs, bringing forth an easily avoidable disaster, one can only smirk.

Meanwhile the Obama administration, having apparently run out both of money and imagination, cancelled Mars missions that were supposed to find out what happened to life there. You see letting plutocrats go tax free, and banks getting nearly all the money in the world, has consequences. Obama wants a billion dollars for the re-election of his beautiful brown self, because he claims his color has civilizing properties. But he does not have a billion dollar for Mars.

What will people remember in the future? That the first American president of half African descent was so obsessed by skin color, that he gave up on the solar system. One billion dollar for him, none for Mars. In other words, intellectual terra nulla. Rome’s first African born and raised emperor, Septimus Severus, founder a dynasty, is not remembered for his racial origin. He is remembered for the warning he gave about the Senate based Roman plutocracy.

Never mind that the Mars missions were collaborations with ESA (European Space Agency). Ever since 1939, when the USA allied itself with Hitler, what Europeans think, or, actually thinking itself, has not been number one priority in Washington. Do Europeans want to become a province of that? Does the world have interest to become a province of that? 

Yes, the behavior of the USA at Munich, in 1938, or with the Hitlerian Air Force in 1939 (allowing it to fly, by providing crucial industrial products) is something American civilization avoids to talk even more carefully than the extermination of American First Nations. However, facts talk louder than silence.

A frustrated American soldier killed many civilians, including nine less than nine year old children last week, four of them less than 6 year old girls. By cancelling the Mars missions, Obama saved what the Pentagon spends in ten hours capturing and killing obnoxious Americans and Afghan children terrorists, out there. Especially all those little girls. Priorities, priorities…


Patrice Ayme

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23 Responses to “Euro Inner Devaluation”

  1. Tom Degan Says:

    Excellent piece, Patrice! Please keep these coming.


    Tom Degan

    • Patrice Ayme Says:

      Thanks Tom! I much appreciate. Initially I had the three deeper causal layers in one essay, but it was all way too big… so now I have to get the other parts out! The one about how French socialists sadistically bound Europe, hand and foot, to leave her at the cruel mercy of plutocracy, is particularly edifying… Obama himself has been doing some of that; showing the openness of his bipartisan mind, by offering America to plutocracy, bound hand and foot…

  2. Old Geezer Says:

    Too much to comment on for this slow typist. So – one at a time:

    Re: THORIUM:

    Yes, it was shown to work in the 1950s, and it is cheaper to mine and more plentiful. BUT… it was never able to be scaled up to the Gigawatt size which was needed back then for the grid. Of course, if we were starting all over, we might ask, “Who needs a grid”?

    But we are NOT starting all over – we have 60 years of engineering work using Uranium. Not likely that thorium will go anywhere. Besides, we have fusion which is just 20 years away. Come to think of it, it was 20 years away when I was in engineering school in the 60s. Perhaps it always will be.

    In the meanwhile, one hour of the Sun’s radiation equals one YEAR of total global power consumption.

    Those are good odds. We should look there.

    • Patrice Ayme Says:

      Old Geezer:
      The thorium story is complex. The unranium approach was pushed, not because it was best for power (thorium obviously was), but because it was best for making weapons. Uranium allowed to make Plutonium. Plutocracy loves Plutonium, makes sense…
      Seriously, plutonium allowed to build more than 50,000 thermonuclear bombs, enough to annihilate anything whatsoever, once again, obviously very much to Pluto’s taste.

      The Thorium breeders make Uranium 233 (not 235). That can explode if made into a metallic lump, but it gets contaminated with small amount of U232, whose hard gamma rays makes it impossible to do metallurgy with (whereas U235 and Plutonium are tame that way; as long as they are not close to undergoing a chain reaction, they can easily be manipulated…but then they turn vicious in a flash, literally…)

      Whether the west makes Thorium reactors or not is irrelevant. They will be made. India had an advanced program, strategically located next to the Indian ocean, so a tsunami ran through it in 2004, delaying matters. But now the program is back on, and China has started its own.

      France (Areva) has a fortress like EPR PWR generation III reactor, and Toshiba has one too (two of the latter to be built in the USA). But Uranium reactors have many drawbacks, including the fact they run at low temperatures (but high pressure!), making them inefficient (throrium runs at ambiant pressure, and very high temperatures). One problem with Thorium has to do with the resistance of industrial tubing to corrosion from high temperature molten salts, while keeping costs low.

    • Patrice Ayme Says:

      I am totally pro-solar, BTW, and PV solar will be beating diesel by 2015. BUT that only for latitude of Spain and lower (most of USA though…) The storage problem has to be solved, though…

      In any case, that would not get us to Triton, nor actually work too well in Siberia or when persistent bad weather gets established. The number one greenhouse gas, water vapor, will augment, as the greenhouse proceeeds, so we may end up with solar, but no sun.

      We need nuclear, be it only because the energy densities are million times greater… We don’t know: a comet could head our way anytime, Thorium rockets would save us, no problem, etc.

      One thing which will not work very much is WIND. Tides and currents have more of a future, and oceanic Carnot engines could work…

  3. Old Geezer Says:

    “Greece has no interest, does not want, cannot, and will not, leave the euro.”

    They can and they will, even though they want to stay.

    Greece simply has more debt than she can ever hope to pay off. If this were you or me, we would go bankrupt and start over. Greece must do the same. She will either leave or be thrown out after the next default event (or the one after that).

    Meanwhile, Greece’s GDP keeps shrinking as they experience the austerity package. No one has ever brought prosperity out of austerity. Eventually, the people will rise up and revolt. In a country that still has the benefit of unions, we will see mass shutdowns. That will kill off whatever is left of tourism and seaport trade.

    And the French and German banksters (who loaned the money) will have to take more haircuts. I recommend the Marie Antoinette cut. It is most effective and is quickly accomplished, The crowd will love it.

    • Patrice Ayme Says:

      Dear Old Geezer: The banksters cuts have been agreed last week. It think they are above 150 billion dollars… I did not see the final numbers, they were still changing…

      Nobody can force Greece to leave the Eurozone. So Greece will not leave. In any case, it would be pointless: the problem is general, and not just restricted to Europe, as I argued in:

      Basically the politicians are servants sent, made, spiritually constructed, by the plutocracy. So now people pay taxes which then go to the rich, to make the rich even richer. Default is the way to stop this circus, to get innovation re-started and true justice triumphant.

      The socialists will be in power in France, at least at the presidential level, shortly. The SPD will immediately tell Merkel that they are not cooperating with her anymore, but with the French. Game is up.

  4. Old Geezer Says:

    DSK’s assertion that the EU has become a “province” of the USA is not far from the mark. There is a currency war going on, between the USD and the Euro for global dominance.

    Wall $treet is trying (and succeeding) to keep the USD as the SOLE reserve currency. That way, they can continue to “invent” new “financial products” to sell the world (and make a profit, of course).

    Since Nixon slammed deGaulle’s fingers in the gold window in 1971, all currencies have been fiat currencies. This is not all bad, depending on what the particular country;s fiat is.

    In the case of the EU, it is largely manufacturing; in the USA it is largely FINANCIAL PRODUCTS.

    And those are denominated in USDs and are backed by…


    Which is why the USA invaded Iraq (to keep that cheap oil from being sold in Euros, which Saddam did in 2002) and Afghanistan to control the transport of ME oil to China and India.

    Wall $treet does not care who buys it or where they live, As long as they pay for it in USDs, then W$ can create more of them, because world demand will be high.

    The “Petrodollar System started in 1973, while this nation was glued to the TV set watching the Watergate scandal. At the same time, Kissinger was cutting a deal with the Saudis, arranging for them to quadruple the price of crude and to re-cycle the proceeds with Citibank into Treasury bonds. This took years to come out, but it forms the basis of the present Petrodollar Economy.

    And the Petro-euro economy is under attack.


    After the Lehman crash, the global hedge hogs have been taking the Euro apart one country at a time. Why? BECAUSE THEY CAN. The EU has no FED organized like the USA – only a weak imitation ECB which always manages to print too little money too late to stop the George Soros’s of the world from bombing Greece, or Italy.

    This rant is a little disorganized, but I think I have hit the highlights. It is all about keeping demand for the USD high and keeping it backed by USA control of world oil.

    • Patrice Ayme Says:

      Dear Old Geezer: I agree 100% (it would seem) with all you say, and I have tried to hit these themes over the years (although some aspects you mention above have escaped my vision). I was pleasantly surprised that DSK sees the light too. It’s all about wall Street, or W$ as you put it elegantly.
      It’s not about “Anti-Americanism” as Obama is all too prompt to whine, it’s not just about USA versus Europe. It’s about the extractive, plutocratic, over-exploitative mentality on W$, now a world pandemic, and more sustainable, more equitable, and more progress and innovation oriented philosophies… So we are all concerned…

      BTW, thei ia why I mention all the time what happened between American based plutocrats and Hitler (OK, it happened also with British based ones, entangled with the preceding). Those people were major traitors to democracy, and, not only they got away with it, but they basically reproduced… Actually, without, say, Henry Ford, there might never have been Hitler, because the former not only gave ideas to the later (about Jews, say), but also giant amounts of good old dollars at a time when German money was monkey money.
      It’s pathetic to see Krugman lauds Keynes at every corner, when Keynes policies were not just Nazi friendly, but constituted what became the backbone of Nazi whining.

      Here, I am ranting too. It’s hard not to rant, and being too organized is not a good idea either. I may spend too long trying to make my essays affect a semblance of coherence. In the end, logic, if it wants to cover all, has got to be chaotic. At least that’s the clear message from metamathematics. And the clear message from the world of the Quantum… The coherence, ultimately, comes from the disorganized whole.

  5. Old Geezer Says:

    Henry Ford may have been an anti-semite as well as a Nazi sympathizer, but at least he MADE something with the money people invested. So did Andrew Carnegie, not one of my fave humanists either. Or John D Rockefeller.

    Today’s masters of the universe make money from money. They contribute NOTHING to society. There are no cars to drive, no rails to ride a century after they have gone.

    Right now, the masters are running (ruining?) the world. It is an enviable position to be in, where the banksters get to create fiar money with a few keystrokes that everybody else MUST ACCEPT as coin of the realm. Wall $treeters get to buy real mansions, yachts and jets made by workers around the world. Yet they pay with monopoly money.

    Quite a racket.

    And it looks like there is no way to stop them.

    • Patrice Ayme Says:

      Dear Old Geezer: You are right.
      But there may be a way to stop them. Information. One of my next essays is supposed to be called the “Euro Pluto Prayer”. French socialists (including DSK) set-up the hellish financing of the vast public by the few privates. Notice DSK dos not dare explain that yet, and what a crime it was.

      Same with Afghanistan, or Global CO2 poisoning: people’s opinion, even in the USA, has changed brutally recently (according to latest polls).

      I have known about Ford’s crazy Nazism forever. Hitler sat below a giant portrait of Ford in his office in 1923, and at the Nazis distributed free copies of Ford’s book, “the International Jew” (that was before Hitler wrote “Mein Kampf”). A Wikipedia article disinforms about that: Hitler was on Ford’s stipend (although Adolf did not advertize that). Contrarily to what Wikipedia insinuates (I don’t try to correct in cases like that, because some people are obviously paid to re-enter the disinformation… So it’s a waste of time!)

      The Nazis used Ford trucks down to the bitter end in 1945 (also Renault trucks until 1944, and the French government determined that was a bit too enthusiastic on the renault’s family’s behalf, so it nationalized, or, rather confiscated Renault… Something Uncle Sam of course never thought of… As IBM, GM, Standard Oil, Texaco, and countless banks would have had to be nationalized…)

      However, over the years, I have owned and driven three different Ford models, and I drive one now. Good machines. I do agree that one could reason more with the old industrial titans who instrumentalized Hitler. Actually many changed their minds at some point about Hitler. And, in the case of Ford, much of his socio-economy made total sense.

      Ford’s ranting against “financiers” was sometimes most accurate. However, he believed “financier” was a code word for Jews. True many were, and sure the Rothschilds were Jews, and brazen defenders of the Plutocratic doctrine. However, this ex-engineer, was far from just against financial plutocracy. He was a full blown plutocrat himself. And not just because he was worth 200 billion dollars.

      Convicted Hitler Youth leader Baldur von Schirach who, in his role as military governor of Vienna deported 65,000 Jews to extermination camps in Poland, stated during the nuremberg Trial:
      The decisive anti-Semitic book I was reading and the book that influenced my comrades was [...] that book by Henry Ford, “The International Jew.” I read it and became anti-Semitic. The book made a great influence on myself and my friends because we saw in Henry Ford the representative of success and also the representative of a progressive social policy

      In 1940, Ford-Werke, still under the total control of the Ford Motor Company, used French POWs as slaves, in violation of a basic Geneva Convention. And so on. At that time, Ford was not much in control of Ford M. C. anymore, by the way… So the rot was deep…

      Nowadays, what we have a much purer Plutocratic principle in power. This is the worst part. we don’t have a trigger yet, but the re-introduction of torture and execution by secret committee, is a fall-back on the worst of the Roman empire. Some will say: it is small and insignificant. Little do they know the history. It always starts small, and insignificant. Then people get used to the (very bad) idea(s).

  6. Old Geezer Says:

    Perhaps we could take a page from the Fuhrer himself. When the Nazis took over in 1933, they were faced with a bankrupt nation. No country would extend them credit because they had defaulted on their reparations payments. So Hitler invented “Labour Treasury Certificates”, a new fiat currency which was forced to be used for all commerce inside Germany. Farmers, tradesmen, shopkeepers, all had to use them. The state forced people to work in industry (unfortunately building tanks, planes, and bombs) and paid them in LTCs. By 1938, they had recovered. People were eating again. Germany was relatively self- sufficient.

    The American people have started the ball rolling with the move your money movement. I moved mine. At least, that shrinks the size of W$’s bankroll.

    There are localities like Ithaca, NY which invented local work certificates (Ithaca hours) to cut out the use of money.

    So there is hope. But there is not much time left/

    • Patrice Ayme Says:

      dear Old Geezer: Not much time left, indeed, and also because the multidimensional ecological crisis breathes down our necks. Fracking saves time for the USA right now, but mostly money to the Chinese. The entire windmill industry is a party, that will end up with a hangover, and so on.
      Hitler did have an excellent work program, a bit like, and simultaneous with, FDR. However, Hitler did steal the Jews, and others he did not like, creating wealth, and thus popularity, among his followers.

      Another contradiction the Nazis had was science and technology, they could do without, and a lot of it coming from German jews, as many Germans told them at the time, but they ignored that, being anti-intellectual, and they proceeeded to their doom. The French succeeded to hide from the Nazis that nuclear energy for bombs would work, and the British (and the Americans) that their codes had been broken…

      In any case, it was a close thing, and one can only be thankful that the Nazis hated German Jews so much, because, otherwise the Nazis would have been even more advanced technologically. The first transistors were German (not American), and so were the first cruise missiles, and one of them was used to sink an allied battleship of recent manufacture…

      In my view of things, W$ at the very least helped in the creation of Nazism and Hitler. Some bankers who set up a web site grandly called the “European Tribune” got completely enraged at tha t notion, and tried to demonstrate I was wrong by splitting lots of hair in eight different pieces, drowning the argument in irrelevant details about the exact terminology pertaining to such thing as the Hamburg Line, the world’s largest shipping company, nationalized by the government of the USA, then given to W$ connected American plutocrats who then used it to finance and arm (through smuggling) the Nazis…

      Once a commenter to this site of the Hitlerian tendency told me that my general thesis could not possibly be true, because W$ was full of Jews, and then how could they finance Hitler. Well… Hannah Arendt, not a pro-Nazi shrinking violet, but actually a Gestapo fighting philosophical maven of the greatest heroic type, made lots of enemies among PC Jews by pointing out that part of Adolf’s success was directly imputable to German Jews’ collaboration with their undistinguished executioner…

      The more all this gets exposed, the more progress will be made.

      As you point out, putting people back to work is of the essence. Europe is open to American and Chinese companies for public contracts, but not reciprocally. So, first the Americans ought to reciprocate, and then the Chinese ought to be told, not more free lunch. Same for ecological rule (and there I differ from the Kyoto accord’s rules, which exempted developping countries).

  7. JMcG Says:


    With regards to DSK’s talk at Cambridge, you refer to him taking up the subject of national interests held by the US vs the Eurozone collectively. So far, so good.
    I’ve only had time so far to listen to the first 20 minutes of his talk. It proves perhaps to be an interesting discussion in an academic setting. Pains were taken to discourage hecklers, presumably so he could deliver his remarks without interruption. I hope to return to it and listen to the remainder and also hope that there is a question-and-answer session at the end where he offers clarifications. He spoke of the imperfect nature of using the USD as the world’s reserve currency – a known situation – and possible alternatives, though none seems ready to be implemented yet. Notably, he also spoke about the tradeoffs between globalization, democracy and national sovereignty, a topic which could be expanded considerably and about the occasional success of the members of the G20 to cooperate with one another when presented with a crisis of epic proportions, such as when they met in 2009 and temporarily put aside their own agendas – perhaps out of fear but a fait accompli nonetheless.

    [I still seem to be having some computer problems as after I saved a draft the links in your e-mail
    no longer worked.]

    A few paragraphs after you begin, where you start with “…When Rome conquered the Greeks… what do you mean by “the master race’s religion”? What is the master race and which religion do you refer to? Is this a satirical reference to Islam?
    I’ll try to discover what you mean by “… it’s a question of accepting that Europe become a “province” of the USA…”. Perhaps you are basing your argument on what DSK said in his lecture and by inference how he was discredited by accusations and forced to resign from running the IMF, which in turn allowed doubts to be raised about his presumed candidacy for the French presidency.
    The topics I heard him refer to in the opening remarks are sufficiently worthy in and of themselves that he deserves at least credit for having statesmanlike aspirations, more than I can say for most
    U.S. presidential candidates.) That DKS got treated poorly by the State of New York may or may not
    be true depending upon one’s point of view. Some would probably say, yes, very much so. Others likely considered that his reputation as a Chauvinist and womanizer made it more likely some if not all of the accusations against him are true (brings to mind former Governor Schwarzenegger who controlled access to himself by the media so closely that he was able to avoid for many years what eventually proved the undoing of his personal life.) This being the politically correct U.S. and not France where we are told politicians’ indiscretions are more likely to be winked at, one cannot be too surprised when Attorneys’ General are unable to resist bringing to action a very high profile case with the ingredients one finds in TV crime dramas and then some: shocking accusations against an internationally famous public figure. That will sell some newspapers and get ratings!
    No doubt Attorneys’ General were salivating over the publicity it would bring them (having further political ambitions of their own) though in the end they were fools writ large for failing to adequately investigate the credibility of an eyewitness accuser. That the attempted prosecution of DSK was orchestrated to please Wall St. is something I hope you have taken the time to elaborate on when I read the rest of your remarks.

    • Patrice Ayme Says:

      Thanks for the long comment Jeff!

      Sorry about the links, these things come and go. I have three computers, and they behave very differently, depending on Moloch knows what…
      The “Master Race” in connection with Islam was an allusion to the Arabs’ attitude after the conquest, which is amply documented.
      Calling DSK a ‘chauvinist’ seems unwarranted to me. The word came from the mythical Mr. Chauvin a Frenchman depicted as a hypernationalist. DSK speaks several languages perfectly well, and I doubt people like that can be “chauvinist”. Even Bismarck, quite a fascist and manipulator, was no chauvinist, being too much of a multi-linguist (a recording of Bismarck singing the Marseillaise recently surfaced…)
      DSK has spent much of his career, as a finance minister, politician, lawyer and top economy professor in a universal setting.
      The fact DSK was treated poorly is beyond dispute. He got a letter from the DA saying:”We were wrong…” Those who persist to pretend he deserved to be put in jail for a week, lose his career, demolish his reputation, lose the French presidency and then put in detention in NYC are just saying that people who have displeased Wall Street are convicted criminals.
      That, per se, is criminal.

      All the more since the Wall Street sharks, and, or, their accomplice Napoleon also known as Sarkozy, Skrozy, or, as I now prefer, Skrofi (lost his “A”, but gained financing by Qaddafi).
      I do not have at all the promiscuous ways of DSK, quite the opposite, but, last I checked, promiscuity was legal.
      BTW 1, DSK had diplomatic immunity as one of the top three elected international officials (the UN gen sec being another).
      BTW 2, Americans sleep around more than the French, so the sex obsession in USA politics is hypocritical. It’s used to bring down big fools like Clinton, but everybody was strictly silent with Ike (and god knows what was going on with other republicans; I find strange only democrats sleep around, or obsess about sex, and, or, rabbits)
      BTW 3, I cannot elaborate again always on what I have elaborated about before, otherwise I would sound even more as a broken record than I already do. That Cyrus Vance is Wall Street financed (as Obama is) is public record. It can probably be checked by typing three words and two clicks.

  8. Old Geezer Says:

    Hate to leave this thread, but there is a new one to read. Thank you, PA.

    But I cannot help to comment on the Hamburg Amerika Line, since it was financed by Wall $treet’s Brown Brothers, Harriman, whose principals were Roland (Bunny) Harriman and Prescott Bush.

    Bunny’s brother, W. Averill Harriman was later elected Governor of New York State.

    Prescott Bush would later marry Dorothy Walker and produce George HW Bush and other future (mis) leaders.

    • Patrice Ayme Says:

      Ihanks Old Geezer! The line was used to smuggle American made weapons to the Nazis, allowing them to kill 10,000 of their opponents in a 1932 civil war… A war of plutocracy against those who disagreed…

  9. JMcG Says:

    I meant the commonly-used meaning of Chauvinist, paternalistic (some would say anti-feminist).
    What specifically does Wall St. have to gain by trashing DSK? I only know that the U.S. traditionally chooses the head of the World Bank and Europe chooses the head of the IMF (as long as Europe can continue to prevent the third world from exercising more influence. Christine LaGarde, in my estimation an extremely capable person, was chosen over a contender from Mexico.) Hilary Clinton says she does not want to head the World Bank. The ever-ambitious Lawrence Summers seems to badly want the job. Don’t know what that might bring.

    • Patrice Ayme Says:

      dear Jeff: What did Wall Street gain by trashing Strauss-Kahn? Safety from regulations. Safety from the termination of financial conspiracy as the engine of world economic activity. Of course, Sarkozy, who is very close to W$ also gain a lot: the hope of staying president.

      Much of the world financial conspiracy by the unworthy financiers is based on Wall $treet. That’s where the main head of the hydra is. As IMF director, DSK took severe anti-W$ measures, such as IMF drawing rights.

      Somebody like Obama wants to become very rich, like the Clintons. Or like Strauss-Kahn. But Strauss-Kahn has both the ambition, and mental means to go much further than that. He does not need to seduce, as he has already a fortune (or his wife has). Like many a true reformer, he is more interested to redesign a better world.

      DSK was top world elected official, he had, he has, enormous prestige.

      As French president, Strauss-Kahn, who speaks perfect German, and is viewed by most socialists (French or German) as their economy professor, would have easily persuaded all of Europe to crack down on international financial conspiracy. It would have been the end of the world as Wall $treet wants it.

      Being sexually obsessed by women does not have to be an aggression against women. I also believe
      that people like DSK are under enormous creative pressure and sex is a way to release steam.
      Anyway, if his wives and children don’t mind, why should we? Sex is not, intrinsically a bad thing, except, of course, if one is a very deep misanthrope.

  10. Like to read your stuff Says:

    ” Greece is a barely functioning state, without even a registry of who owns what, full of liars and plutocrats…” and yet “give to Greece and the like, the same medicine that Germany profited from.” (increase in VAT, reduction of costs for employees). Makes no sense to me. Not only because of the obvious self contradiction but also because, and this is what you fail to realize, the German “internal devaluation” was not directed at Greece or other countries in the EU, but against main trade competitors outside of the EU (and against bleeding jobs to Eastern Europe non-Euro low salary countries) Also the change was implemented in 2007, the current crisis Greece and other countries of the Eurozone find themselves in startet late 2007 in the US and early 2008 to its full extent in Europe, so when you say that the VAT change is of any relevance to the current crisis or to the imbalances in the Eurozone you are wrong. Then of course there is the fact that German VAT rations and working costs are still in the Eurozone average..

    You are right though, all EU countries should go the way that Germany did here (increase VAT, decrease labour costs), nevermind the calls of the usual suspects from what youd call plutocratic elite ala “it will hit the small man” “it will increase inflation” etc.. (as happened in Germany). The long term effect will be to the benefit of the people, not in some sort of intraeurozone competition, but in keeping even low paying jobs in the Eurozone, stop imported wagedumping, increase the importance of the Eurozone inner-market, decreasing the costs of products produced in the Eurozone etc etc. Ideally we will see some form of real coordinated taxpolicy in the future.

    You are also very correct when pointing out ” Greece is a barely functioning state, without even a registry of who owns what, full of liars and plutocrats…”. Economists like Krugman and others who see economies as potentially perfect systems mistakenly believe that the current crisis is a fiscal problem and argue about austerity or potential growth measures without realizing that the actual problem is the fact that Greece is a borderline failed state, in which even very basic institutions defining of a state are not working AT ALL. This is a crisis of governance, social cohesian and even public morale. But say this and you are branded all kinds of things, particulary as German.

    • Patrice Ayme Says:

      Dear Hahah: There is no contradiction whatsoever: I explained that the non functioning story was the usual point of view. Then I added that one should go deeper. (And I have two further layers to dig into, below, as I said.)

      Now you say the Added Value tax change was directed to out-of-EU competitors. Maybe (and I agree!), but irrelevant, as it was clearly going to have an effect, inside. Then you say the effect was not immediate. Of course. Fiscal change do not have instantaneous effects. As you youself said, it was effective in 2007, and had effect in 2008 (and ever since, as I pointed out).

      In other words, your complaints are firmly rejected, I did not “fail to realize” anything. It is not because a politician says something, that it is true. It is a fact that the fiscal changes made by Germany were going to work against the rest of the EU. That Merkel whines she did not want it end that way, is a story between herself and her, and she should go explain that to her shrink.

      To avoid a similar mess in the future, a European Federal office of budget inspections has to be set-up, or something like that. The national governments have absolutely to coordinate their fiscal policies. It does not mean they have to be identical.

      France and Germany have complained for years about tax evasion by the likes of Ireland (very low corporate tax) or hyper rich Luxembourg… It used to be like that with Britain (and still is in places such as Isle of man or the Channel islands). Let alone hypocritical Switzerland (a country close to my heart, at least some of the people, and certainly the landscape, hahaha).

      Anyway you approve the rest of my essay, so I thank you very much. As Krugman demonstrated in his latest editorial “Hurray For health Care“, he is not just on the take from Wall Street, but also the health industry and the White House. Krugman’s solution for Europe is the war of all against all. Either he does not know that was tried before, or he is just a hegemonist American living in a mansion, travelling first class worldwide nearly several times a month, to preach the plutocratic ideal. In truth, a bit of both.

      There used to be Communists, Stalinists, more exactly, and their fellow travellers. Now we have plutocrats, and their fellow travellers.

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