Must A Reserve Currency Explode The Trade Balance? No! Just Look! Also: Avoiding Slavery Is No Socialism!

Established economists say that Trump doesn’t understand the nature of the dollar: its status as world reserve currency causes a trade deficit for the USA. Really? It takes one look at one graph, while knowing the USA conspired to make the dollar official world currency in 1944. (And when the French Dominique Strauss Kahn tried otherwise, as head of IMF, he soon fell to a huge sex prosecution, out of which nothing came, except the destruction of his career. That would teach all those who, like DSK, pretend to follow the exact same idea Lord Keynes had in 1944… when Keynes chaired the Bretton Woods conference!) WTF? 

I have a Facebook friend who is a fanatical anti-Trump, she retweets anti-Trump material frequently. 2 days ago she put out 2 posts (retweeting from overseas oversea junk) which were deeply offensive. One extolled a woman cop killer; the young mom he had killed was unarmed; the other compared Trump to Hitler, and emanated from Germany, supporting whom I call Merkler (for her economic war against the Greeks and others… which has killed many).

My friend didn’t know her (French) jailbreaker hero was an unarmed-woman-officer killer (because my friend doesn’t know much about Europe). Neither did my friend, who has socialist pretentions, know Merkel was a fascist exploiter hiding under a “left” immigration policy (importing slaves to better exploit the working class). My friend took down both posts (and my smart comments, unfortunately!). We are still friends. Some of the political hysteria is just misunderstanding. For example, do conventional economists misunderstand what causes the deficit? If we can’t learn to live with (some) intolerance, we aren’t tolerant.

Another friend, an economist objected to my playing dumb in economic matters. I had asserted there was no connection between reserve status and deficit (contrarily to what self-declared “liberal” economists say). To the price of starting a squirmish with dropping a thermonuclear warhead on the opposition, here is the proof:

Those Who Brought You Reagan, Brought You the Trade Deficit. Economists of the Clinton-Obama persuasion say the dollar as reserve caused the deficit. This is obviously false: the dollar has been a reserve currency for about a century, and officially since 1944. However, there was no sizable deficit before Reagan. Reagan was a tool of global plutocrats, so the deficit exploded under him, right away. He was succeeded by G. Bush, who knew all too well where real power was an re-established the balance. But then came the stooges of plutocracy, and they let the deficit fly, as their masters told them to. The idea was to weaken American US unions, workers, and citizenry.

Eugen Roden wrote:

“Even if it is hard to believe, that you Patrice don’t understand how reserve currency will necessarily create deficit, I will do my best to explain to you and to your followers in a very easy way, why [the status of the dollar as] reserve currency necessarily creates deficit in US.

Reserve currency means,  that the currency is saved in other countries, than [the] country of its origin. It can be done by private corporations or public entities,  or even private individuals, who prefer to hold the reserve currency, as media of savings, because of the trust [they have] in it, compared to the local currency.  By doing so, they create demand for the money itself, as if it would be commodity or item of value by itself. And the truth is the reserve currency is an item of value, because of the trust people all over the world put in it. This trust is result of long history of reserve currency origin country’s military dominance,  democratic political system, free competitive market economy and unchallenged right for private property and wealth. China, even with its size of economy, (a bigger economy than that of US, not in nominal but real terms) doesn’t have a reserve currency, because it couldn’t create the trust in its sincerity in most of the above mentioned issues.  Europe succeeded only partly in making the Euro a reserve currency, because of its history of because of the world wars it initiated, and their economic consequences on Europe. Even 70 years of peace was not enough to create enough trust in Europe, to make from its currency a reserve currency comparable to US dollar, which has a history of continuous respect for the values mentioned above, since its declaration of independence.

The need for reserve currency exists,  to create trust in local currencies, based on these reserves. Just as in the past precious metal reserves, like gold or silver, made the currencies trustworthy, today holding of US dollars makes local currencies trustworthy.

But then if there is demand for reserve currency,  not as media of exchange, but as value holding item, its price, or exchange value will be influenced by this demand, without the question if exists enough additional production capacity to satisfy the value of potential demand that reserve currency promises. But then the relative prices in the country of origin of reserve currency,  have to be higher than in countries who accumulate the reserve currency, that has to create surplus in trade with reserve currency origin country, to be capable to accumulate these reserves. Such a surplus can be created only if the local currency value is undervalued compared to the reserve currency. Then the other side of this surplus has to be the deficit of the reserve currency origin country.”

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Too Much Reserve Makes You Deficient?

The argument seems partially to be that, to create a store of dollars overseas, one needs to send said dollars there, to start with: a deficit. The graph of the deficit from the Federal Reserve which I put on top shows this is not correct: a continual flow of dollars is not needed to entertain a stash. A stash is a stash, it’s not a current.

OK, so we need X amount of dollars to create an overseas dollars stash. Say that stash is $10 trillion (a large overestimate). That’s 25 years at the present rate of deficit with China alone. And the stash existed before, it started before 1945. And also 4 trillion dollars of the stash is unpaid taxes by US corporations…

Moreover, consider, say, Argentina. It has a dollar stash. However the US has long exported cars to Argentina, so how did the stash develop? Through plutocratic mechanisms involving either tax cheating (laundered Argentine currency) or US plutocrats buying vast tracts of the country (also done in Chili).

In any case, the fact that the US dollar is considered reserve doesn’t mean one needs to have a deficit! And the fact is the US has been reserve since 1944 (after cheating Lord Keynes who didn’t want the $ as reserve, and headed Bretton Woods, but documents were switched!) There was no deficit for decades! And the fact is the massive deficit with China and Germany, or Ireland are recent. And the fact is, Germany has used its bankrupt small banks to self-finance its massive export machine, even within Europe…

And the fact is, the industrial core of the USA in the Middle West, got gutted, although it had a large educated population, and lots of fossil fuel energy. I say it got gutted precisely because it was educated (and thus a risk). Unions used to be hyper powerful in the USA, now they are near nothing…

Trade is good, exporting work, exporting ALL work, is bad… Yes, Merkler, 44% unemployment in Greece thanks to YOUR policies, was a terrible thing. Yes, the Greek government was an accomplice, an accomplice of you and your ilk. But We The People of Greece was innocent.

There are legal incentives to exporting job overseas, because corporate plutocrats told politicians to pass such friendly laws: watch how wealthy the Clintons are. And now the Bamas. Bahamas Bamas: a jungle rhythm. Main offenders in trade should be punished, until they cease and desist:

• China/Hong Kong exported to the US 3 times as much as it imported from the US.
• Japan exported to the US 2.2 times as much as it imported.
• Germany exported to the US 2.2 times as much as it imported.
• Ireland “exported” to the US 32 times as much as France, per capita, all of it being tax evasion by US corporations.

Notice that the French Republic should not save Merkler’s skin: whereas Europe didn’t have the muster to correct the exporting and exploiting ways of Merkler’s Germany, Trump does, and Southern Europe (that includes France, which is both northern and southern…) should enjoy the shooting down of the Merkler vulture by Trump, hopefully ending the austerity which has, and is destroying Europe (see Brexit).

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Krugman, Smelling Blood In Global Plutocratic Waters, Turning “Socialist”?

Krugman blocked and banned my comments for years, presumably because they were “socialist” (what else? I supported Sanders, Krugman dined with the devils, including Obama and Clinton, and took systematically anti-“socialist” position). But now he is changing. Suddenly, “Radical Democrats Are Pretty Reasonable“, opines Paul.

A “Socialist” newcomer young woman defeated the fourth ranking democrat in Congress in New York.

“Alexandria Ocasio-Cortez’s upset primary victory has produced a huge amount of punditry about the supposed radicalization of the Democratic party, how it’s going to hurt the party because her positions won’t sell in the Midwest… But I haven’t seen much about the substance of the policies she advocates, which on economics are mainly Medicare for All and a federal job guarantee.

So here’s what you should know: the policy ideas are definitely bold, and you can make some substantive arguments against them. But they aren’t crazy. By contrast, the ideas of Tea Party Republicans are crazy…

Ocasio-Cortez’s positions: Medicare for all is a deliberately ambiguous phrase, but in practice probably wouldn’t mean pushing everyone into a single-payer system. Instead, it would mean allowing individuals and employers to buy into Medicare – basically a big public option. That’s really not radical at all.”

***

A hefty minimum wage is not a question of having it more social, it’s a question of avoiding a slave society:

Medicare for all was proposed by yours truly, more than a decade ago: the idea is to open Medicare to all… As long as they pay the cost of insuring themselves. As Medicare is not for profit and is huge (economies of scale), it would be cheaper than ANY private health plan. So Medicare for All would quickly devour for profit healthcare gouging. My friend Obama meekly proposed it to his cabinet, which unanimously rejected it in favor of giving subsidies to healthcare billionaires, their sponsors (“Romneycare aka, Obamacare”).

Employment for all, as presently done in the USA is a good thing… Except if people work for free, in which case that’s called slavery. Thus, to avoid slavery, a hefty minimum wage insuring minimum living standards, in particular the capability of affording a home. In places like Oakland, California, or cities around, with all those jobs, a minimum one bedroom is $3,000 a month. That’s 36K a year. Cities around Oakland are instituting a minimum wage of $15. That boils down to 30K a year, working full-time, 2,000 hours a year: not enough to afford a roof! Thus college professors in San Jose have been observed, sleeping in cars….

$15 an hour is not socialism, it’s not even, a realistic minimum wage in the most booming part of the US. It is just an effort to avoid a slave society.

We are all socialist, just as we are all progressive. Just as we have to be somewhat conservative (to save the planet). The only question is how much. Not whether. 
Patrice Ayme

Long Live The Euro: 3) Exiting By The Top

“SORTIR PAR LE HAUT”:

The Euro is one of the elements necessary to unify France and Germany. Fully constructing the supporting apparatus the Euro needs, entails, by itself, an entire hierarchy of unification projects subordinated to it.

So the problems the Euro creates are supposed to appear, and being solved, thereafter. How? By “coming out on top”. Division and bitterness, is coming on the bottom. Coming out on top means higher ideas, unification, harmony.

To reconstruct a European state is as if one were constructing a cathedral: one has to do the following. One decides to build it, and then make it so. Cathedral construction was modified, as needed. Arches were progressively added, and, when problems were found, they were fixed. When it was discovered that the gigantic Amiens cathedral was bulging out, and was going to collapse, and enormous iron belt was added to its waist. It survived the world wars.

Paris had an enormous Roman cathedral for nearly a millennium. However, in the Twelfth Century, Parisians decided that, instead of refurbishing it once again, and expanding it, it would be better to build an entire new cathedral in what was known then as the “Frankish style”. The church leaders explicitly stated this as a technological project to awe the masses, and instruct the plutocrats as to the new possibilities technology offered. So the old cathedral was demolished, and the present one built. (There are no picture of the previous building, it stood fifty meters west of the present one.)

What present day, patritotic Europeans do not want to see again:

By 1200 CE, The Renovated Roman Empire of the Franks Had Become A Big Disunited Mess. Wars Blossomed All Over

One thing can be picked up from the map: it is the French themselves, the Western Franks, those based around Paris, who created the mess, by insisting on going their own way, and that everybody had the right to go their own way.

Charlemagne himself had launched the way towards that mess: he let Venice stay sort-of independent (although the Frankish empire needed Venice’s fleet), and then Charlemagne outright created the Papal States (by giving territories to the Pope upon which he could exert material power).

It is finally Francois I who understood that France and Germany had to be unified again. But, although he had been elected king of France (by the kingdom’s council), he failed in the 1519 CE election as Roman-German emperor.

Instead, Spain, Germany and Italy (plus the Americas) got united. The result was nearly 200 years of war between France and Spain, which created the independent, tolerant, somewhat republican Netherlands, while finishing with still another world war, the War of the Spanish Succession, which France barely won (losing territory in the process, and fostering British and Dutch power).

By then the Netherlands, Britain and France, the former two created by the latter, and long the same polity, were at each other’s throats. To win, Britain heavily financed Prussia, while France enjoyed a succession of ill advised dictators (Louis XIV, Louis XV, Napoleon).

Clearly one should go back to basic principles:

Europe Was A Creation Of The Franks, Not Just As A State, But As A Concept:

The power, and vision, of the Franks created Europe. It was originally mostly motivated by survival, and the will to set right was Late Romans had set wrong.

We actually know enough about the rise of Frankish power to discern the philosophies at work. Aetius, a Roman commander-in-chief who had been brought up (from an exchange/hostage program) among the Huns all too long, naturally used the Huns all too much. After Aetius was assassinated in one of these conspiracies Late Rome was rife with, his closest collaborators took over. They switched back to the 150 year old alliance with the Federated Franks, the fiercest enemy of the Huns (who thereafter disappear from history).

Europe is a modern concept created by the Franks anew in the Eighth Century; the original Europe, in the Eighth Century BCE, 16 centuries earlier, designated continental Greece. But that name, itself, the name of a Princess, was an older myth which acknowledged the debt Greece had to Phoenicia (nowadays Lebanon, and, more generally, the Middle East).

If one wants to build something great, one has to start somewhere. A European currency exists, and France and Germany constitute an “optimal currency area”, all by themselves. They have very similar republics. Both have a very high minimum wage, German police can pursue thugs inside France at will (and reciprocally). Both consult continually, Germany has agreed to help France’s wars in a supportive role.

In truth, Germany has become France, after around two centuries of error under Prussian misguidance.

So what are the problems with the common currency? Well, all these problems it was supposed to bring. A first one, of course, is the problem of making a Banking Union. The situation there is quite complex, yet unification is under way: the 200 largest banks are supposed to be inspected (smaller banks are crucial to the German economy, but they tend to be bankrupt, so they have been spared the present inspection regime).

What is there not to like? Well, don’t ask American plutocrats and their obsequious servants; they will stat to recite again Friedman’s hare-brained, shallow and disingenuous arguments.

Finally all what the American plutocrats and their butlers have to stay is that, never, ever, could France and Germany get unified again, so they could not possibly share a common currency (aside from the dollar, which American plutocrats control, through their rogue financial system). What they should stay, if the truth was their goal, is that they dread an ever greater unification of France and Germany.

First, because they won’t control it as readily. Secondly, because of the tradition of revolution, for which France, in particular, is known.

Civilization means revolutions, plutocracy, its obsequious servants and greedy opportunists, hate both. Thus they hate European Unification.

Why is the USA different? Simple: countries such as the USA, Canada, Australia are gigantic, and full of recent immigrants. Recent immigrants in a giant country can always go somewhere else, where construction, expansion, conquest, fracking, tar sands, coal and iron ore, lithium, what-not, is going on. No such possibilities in Europe, or then tightly regulated.

Recent immigrants are also anxious not to be seen whining, complaining, talking back, agitating, rebelling, lest they be not trusted anymore. In countries such as France, or Greece, if you do NOT whine, complain, talk back, argue, rebel, it is the exact way around: it is a servile, anxious to please, fit and conform attitude, which is not trusted.

One could see this with Obama: for years, it was said by his opponents that he was not a genuine American. Actually, he was not even an American, they asserted. The American Constitution invites this: it distinguishes American-born Americans, and immigrants (the French and now German Constitutions do not). An immigrant American cannot be elected president.

Discrimination is more American than mother or apple pie. Anxious to conform, American Jews, such as Milton Friedman, who could not even bother to express concern on behalf of their brethren while they were in danger of being exterminated, now have the infuriating impudence to teach us about strife being hindered by division. Verily, some people learned nothing, and are the lowest of the low.

So should the French and the Germans have a common currency? Well, in a sense, they used to have one, what was called “Euro-dollars”. The dollar, was, de facto, Europe’s common currency.

France and Germany do not discriminate against their citizens on ground of their origins. This is one of many ways in which France and Germany are similar. Why so similar? Well, they spend a lot of thinking finding out which French, or German qualities, laws, regulations, habits, appreciations, they should adopt.

France and Germany are now closer in spirit with each other than they are with the USA. So they should have rejected the dollar as a common currency, and get their own, according to the very argument the Euro haters have been using. And that’s exactly what they did.

Patrice Ayme’

Long Live The Euro: 2) Friedman Ignorant Anti-Euro Rant

Is Europe an “optimum currency area”? Milton Friedman believed it was not, and he gave apparently cogent, and now much repeated reasons, why it was not. However one should remember that appearances are deceiving, the most venomous snakes look like pretty leaves. Some people do not know how to add, but they claim they can multiply.

American economist have been lying, they are paid to lie, because their lies in economy give justification to otherwise unjustifiable policies. The policies of the USA have been, overall comfortable: having eliminated the Natives, American and Canadians, like the Australians, enjoy entire continents for themselves, far removed from the rest of the world, and its often crowed, overwhelmed realities.

Whereas France is in a different situation. French major policies have not been comfortable, since 360 CE (when the elite Parisian legions revolted, refused to leave France, and proclaimed the Caesar Julian, Augustus; the central government in Constantinople was not happy, and those in-between, distinctly uncomfortable).

France did not just declare war to the Nazis in the 1930s, when the USA was busy doing profitable business with them. France has been fighting Islamists since 721 CE (before that the Franks’ James Bonds were spying on said Islamists in the Middle East).

The war with the Islamists requires much power and determination. Here is a picture from April 2015, taken at night, with a high resolution radar. The famous Second Foreign Parachute Regiment (2 REP) is dropping at night on the Salvador Pass, in the middle of the Sahara, at the Libya-Niger border. It then engaged Islamists in combat:

Reality Check: Economics Serves War. Combat In More Than Half A Dozen Countries Costs France Beaucoup Euros

[The dots are French soldiers, and equipment, not trees. The area is the most barren desert on Earth.]

Here is Milton Friedman, that supposedly great economist, as we will see a great liar, a little man, a European war lover, in the conclusion of his famous essay supposedly demolishing the Euro. That essay is oft-repeated with glee since, by pseudo-”liberal” luminaries such as Paul Krugman, and, in general, all faithful, one should even say, obsequious, servants of Uncle Sam:

“The European Commission based in Brussels, indeed, spends a small fraction of the total spent by governments in the member countries. They, not the European Union’s bureaucracies, are the important political entities. Moreover, regulation of industrial and employment practices is more extensive than in the United States, and differs far more from country to country than from American state to American state. As a result, wages and prices in Europe are more rigid, and labor less mobile. In those circumstances, flexible exchange rates provide an extremely useful adjustment mechanism.

If one country is affected by negative shocks that call for, say, lower wages relative to other countries, that can be achieved by a change in one price, the exchange rate, rather than by requiring changes in thousands on thousands of separate wage rates, or the emigration of labor. The hardships imposed on France by its “franc fort” policy illustrate the cost of a politically inspired determination not to use the exchange rate to adjust to the impact of German unification. Britain’s economic growth after it abandoned the European Exchange Rate Mechanism a few years ago to refloat the pound illustrates the effectiveness of the exchange rate as an adjustment mechanism.”

This sounds all very smart, but, it’s mostly poorly informed BS. When one knows enough, and when one is in a mood favorable to European Unification, Milton Friedman just sound like a highly paid prostitute. What he sells is lies.

Examples of Friedman ignorance, or deliberate lying:

1. The member countries are more important, true, but only to some extent.Even France and Germany are tied up by the various European institutions, because the latter are part of the member countries national laws (that’s called the Single European Act). So France, for example, cannot contradict the European Court of Justice, without contradicting the FRENCH Constitution.
2. Member countries are of three types: great powers (France, Germany, Britain), middle powers (Spain, Italy, Poland; Italy is a middle power because its north is more Franco-German than Sicilian, so it’s de facto divided; Spain has the same problem: Catalonia historically is more French, or Roman, than Spanish). And then small powers. Small powers can stand in the way, but not for long (Greece being the best example).
3. That “regulation of industrial and employment practices… differs far more from country to country than from American state to American state” is simply, a lie. A lie disguised as a truth. European regulations are extremely similar to each other, and very far from the American ones. The exception is Great Britain, which asked for an exemption, and got it.
4. Labor is less mobile in Europe, because Europe is made of different nations talking different versions of English.
5. “If one country is affected with negative shocks”: the entire idea of Europe, Friedman, is to have no more “negative shocks”.
6. When Friedman talks of France, he brays like an ass. The strong Franc policy is an atavism of France. France invented the strong currency thing, like 12 centuries ago. Those who did not believe in it, were boiled in wine. Alive. France applied it in the 1920s and 1930s, when the USA, the UK, Germany, and other critters tried to devaluate themselves to health (some got mad in the process). The strong Franc is a case of Germany coming to think like France, not conversely. (True France devalued in the 1960s, but then Germany wrote off more than half of its debt, with the benediction of its allies, in the 1950s.)
7. The United Kingdom has been highly successful with its currency policies in the 1990s, and after 2008. However that is, first of all, because enough money was provided to run the economy. Although having a national currency allowed it to do so, currency independence is neither necessary, nor sufficient.
8. Wages, prices, regulations, national laws are under convergence in Europe. Recently Germany finally imitated France and introduced a high minimum wage. German workers are now for the first time as expensive as French workers.
9. Friedman ignores ways in which European countries are more similar to each other, than to American states: no death penalty, universal health care, strong privacy laws, labor protection are examples.
10. The important political entities in the Eurozone are France and Germany. United, they form a superpower, especially when adding their automatic influence zone (Austria, The Benelux, Northern Spain, including Catalonia, Northern Italy, and yes, Switzerland). Since May 8, 1945, France and Germany did not have ONE serious differences, and have pursued a steady program of “ever closer union” (to use the language of the European de facto constitution). The heads of France and Germany sit together at the European Parliament, during important events. I believe, and French and German leaders believed

All right, so Friedman does not know what he is talking about.

Friedman also asserts what is well-known, that the Euro is a political project (what he does not say is that it is a French political project, because he is not anxious to spoil his hidden bias with obvious francophobia). Notice that, if some project is mostly driven by politics, that does not mean that it cannot turn out to be economical. Says Friedman:

“The drive for the Euro has been motivated by politics not economics. The aim has been to link Germany and France so closely as to make a future European war impossible, and to set the stage for a federal United States of Europe.”

Of course a USE, a United States of Europe, would be a formidable rival to the USA, and probably less friendly to the people who paid Friedman for his flood of BS venom. Then Friedman, in his conclusion, slips into psycho-politics, a domain which mixes psychology and politics, for which, considering the long list of erroneous ideas I exposed above, he has no expertise whatsoever. Friedman is like somebody who does not know how to add, and now he wants to multiply:

”I believe that adoption of the Euro would have the opposite effect. It would exacerbate political tensions by converting divergent shocks that could have been readily accommodated by exchange rate changes into divisive political issues. Political unity can pave the way for monetary unity. Monetary unity imposed under unfavorable conditions will prove a barrier to the achievement of political unity.”

The truth? Milton Friedman, the economist does not the history of economics. Let me give him a F. F for “Failed”. The Thaler/Tollar, functioned as a currency in Europe for centuries without any political unification.

The truth? France and Germany are unifying ever more. The last divergence was about Libya: France decided to overthrow the dictator there, and Germany did not help. However in Syria, Germany, and Britain are now helping France. Germany is presently sending troops for occupation and control in Mali, because and while France is getting its shock troops for attacks in Syria and Libya.

The truth? When Saddam Hussein, Iraq’s president, decided to switch to the Euro for international transaction, thus exiting Washington’s orbit, Washington decided to make Iraq an example for those who switch to the Euro. The Washington strategists wanted a murderous mess for those who switch to the Euro, and now they have it, and one must them chuckling at night, far from prying eyes. (People like Paul Krugman absolutely refuse to understand any of the preceding, as it would murder their careers to do so. At the very least.)

The truth? In the 1940s, the Nazis and the French resistance, the Free French and the French Republic agreed that “divisive political issues” and “exacerbated tensions” came from “converting divergent shocks”. To eliminate divergent shocks, eliminate differences. In this respect, the Euro is helping France and Germany achieve an ever closer union. (Notwithstanding the sea of lies American economists swim in.)

And it’s all that matter. American Jews such as Friedman, Krugman, and all these other “mans”, should remember that, when “Francia”, the Renovated Roman empire, Franco-Germania, extended from Barcelona to Berlin and beyond, there was no discrimination against the Jews.

Why? Because the very nature of a sustainable, vast empire, is tolerance. So let a common European currency be, it will be more comfortable to divergences, hence ideas.

Patrice Ayme’

Long Live The Euro: 1) Basic History of Romans & Franks

Marine Le Pen proposes to go back to the Franc. This is rather ironical for a nationalist, as the Euro, a French invention, extends French power. However, as it is, in the present international context, the Euro is not functioning optimally, and indeed, seriously hindering the French Republic. Nevertheless, I will demolish the stale anti-Euro arguments imagined by servants of the USA’s plutocratic order, the ones Le Pen is following like a bleating sheep. There is a glaring problem with the Euro, indeed, but not the one talked about by those who dislike the Euro. And that problem has an obvious remedy (long found by the USA), a change in the mandate of the European Central Bank.

In a nutshell, the Euro was conceived as a top down mechanism to force one more unification device inside Europe. The idea is to create problems which only further European unification can solve. The Euro is functioning correctly that way, albeit too slowly. And no wonder: at this point, European finance is led by an ex-partner at Goldman Sachs, a Wall Street bank, under the mandate of making the Euro a store of value (even if kills the European economy). That has to be changed. Along… American lines.

Common Currency Area: Roman Empire Europe, 815 CE. In 1066 CE, the Franks Launched Their Re-Conquest of Great Britain

Those who don’t understand the map above, should not talk about the Euro. As we will see, though, they do talk about the Euro, while not minding whether, or not,France and Germany were actually part of the same polity, for half a millennium.

(For the election of Holy Roman emperor in 1519, the two candidates were the Duke of Burgundy, ruler of the Netherlands and Loraine, and the King of France, Francois I; both were native French speakers, born not far from Paris. The former became emperor as Charles V.)

Those who don’t know European history, including hordes of American pseudo-intellectuals, can only talk foolishly about the Euro. That’s the whole idea: they are supposed to make us all stupid. Once we are stupid enough, we will be eager to serve them, or so they have observed.

That despicable horde of greedy disinformers and impudent liars includes one of the leading (diminutive) bulls, Milton Friedman, bullying his way into a thicket of absurdities which he himself erected.

Friedman learned nothing, absolutely nothing, from the Second World War. That, too, is no accident. It’s a disease frequently found in American Jews. It’s not just the usual francophobia. There is a much more sinister mechanism at work. American Jews are supposed to know nothing much about the Second World War, except there was a big bad “The Holocaust”, and, somehow, the French were involved.

Why so ignorant? Preservation of their own Jewish sanity. If American Jews knew more of the history of the Second World War, they would have to explain why they did nothing, while their brethren and relatives were mass assassinated in Europe.

In particular, American Jews would have to explain why they did nothing, while racist American plutocrats were totally, massively supporting and enabling Hitler and Mussolini. Where was Friedman then? Well, he was employed by Roosevelt’s National Resources Committee (on which he more or less spit later, naturally).

Fortunately the Nazis and their enemies, the French, did learn from WWII what had to be learned. And what they learned, is that they had to unify.

Whereas, it is telling that people who allegedly claim to care about holocausts in Europe, want to divide Europe some more, when it is precisely those divisions which caused the holocausts. The basic flaw of Eastern Europe, where most American Jews are from, is that a divided, divisive, grotesque patchwork of little authorities at each other’s throats, some of this nation, some from another, some from one religion, some from one other, some from a language, or sect, some from another language, or sect.

The first fact of European history is that those who invented the modern usage of the word Europe, the Franks, conquered, unified, and… (to a great extent) created Germany. Including the German language! (The Franks, being themselves Germans, were in excellent position to bark out orders to other Germans.)

To understand the Euro, one has to go all the way to the first Roman State, and why it failed spectacularly:

The Roman empire’s border inside Germany, anchored on the Rhine and Danube, was too long, too fractal, hard to defend. The one and only solution was to conquer all of Europe (and make a short border across the European peninsula). The only Roman who decided to do this, Julius Caesar, was assassinated on the eve of his departure at the head of the most formidable army Rome ever had. After that unfortunate event, the assassination of the leader of the Populares, Roman plutocracy took over enough to impose its agenda. Roman plutocracy was more interested to exploit the Roman people, rather than to call on the Republican spirit to make Rome safer, and more sustainable.

Actually, the history of the next five centuries of Rome showed that Roman plutocracy preferred to be invaded by barbarians, rather than to call back the Roman Republic (analogies with what is going on today, are invited). In the end, it was the Franks who brought back enough Roman republican elements to progress beyond Greco-Roman civilization, and, later, thoroughly destroy the invading Islamists (once again, comparisons with today jump to mind).

As it sank in ever thicker plutocracy, the first Roman State never conquered Germania. The result was half-baked military solutions, beating the German hordes back, each time they raided the much richer Roman empire. It brought constant, expensive wars which Rome could not afford. It also brought catastrophe, when the Huns, charging through the steppe, all the way from Mongolia, pressured the Goths, and the latter decided to take refuge inside the Roman empire. It was a refugee crisis second to none, yet the refugees came in, fully armed and battle trained, and the Christian dazed Roman emperors confronting the problem, may have longed so much towards the apocalypse, promised by the Bible, that they may have spurred it along. (Once again, comparison with today, are invited.)

However, the Franks turned Augustus’ strategy on its head. As soon as it succeeded the first Roman State, the Second Foundation of the Roman State, the empire of the Franks, threw overboard Augustus’ stupid advice, to leave Germania alone. The Franks relentlessly pursued the conquest of all of Germany, and more. It took three centuries. Charlemagne, Carlus Magnus, finished the job.

The preceding map of Europe is not understood by despicable people such as Milton Friedman and his ilk, who are paid not to meditate upon it (supposing they ever came across it). Friedman is paid to entertain the idea that Germany is bad for France.

Low intellectual lives such as Friedman typically don’t know that, under the Franks, freedom of cult was extended to all those who did not have a Cult of Death (thus the safe Sufi practice of Islam was tolerated). They don’t know that the Franks three times, earlier than Charlemagne, broke three massive Islamist, Cult of Death invasions, and that the Damascus Arab Caliphate fell consequently, having lost its armies (750 CE). They know nothing, these haters of Europe, and still they talk, exuding their venom, because they are paid to do so: it helps the American empire and its overlord, global plutocracy, to tell the world and themselves that the Europeans are self-destructive idiots. At this point the Friedman-Krugman venom is feeding Marine Le Pen (who has opportunistically jumped on it; as a Member of the European Parliament, she probably knows better; in any case she could only hope to implement her program if she had an absolute majority at the French National Assembly).

The Roman Currency failed, because Rome did not conquer Eastern Europe:

The Romans ran out of precious metals in the Third Century: using the technology they had, the mines were exhausted. By 300 CE, Rome, under emperors Aurelian and then Diocletian, had switched to a complicated mix of Fiat Currency and command economy. As the state, weakened by plutocracy, was not strong enough, the Roman Fiat Currency suffered inflation (although the Roman gold currency would not, and was used for another millennium).

China had the same problem, lack of precious metals and invented the ultimate Fiat Currency, paper money, in the Seventh Century to circumvent it (Bolivian silver traded by Spain would solve the Chinese problem nearly a millennium later).

The Franks solved the argentum/argent problem the old fashion way: they did what the Romans did not find the force to do. The Franks conquered Eastern Europe, where the silver mines were. Suddenly, there was enough money to operate the economy again, and, by 1000 CE, the Franks were the richest per person and per unit of energy (my AWE), in the world (contrarily to what the “China-on-top” school of thought has it).

[To be continued… Next: Milton Friedman ill-informed, asinine and biased observations about the Euro, and whether the Eurozone is not an “optimum currency area”]

Patrice Ayme’

DSK, Hillary, & Spiritually Corrupt Justice

HOW GENERALIZED PROSTITUTION PERVERTS SPIRITS & JUSTICE:

Hillarious Clinton: Will the Joke Be On Us Again?

Ex New York Senator and Secretary of State Clinton made her first major campaign speech. In New York, with the reborn World Trade Center in the background, as she pointed out. She looked fantastic, spoke even better than that, and promised plenty of candy to anybody who voted for Obama.

Is she for real? We now know Obama was not for real: when he could have done everything, in the beginning, he did nothing. I got very depressed (I am intimately involved). Now Obama has stooped, for all to see, to ally himself with such right wing extremists that even plutocrat Pelosi voted against him. Obama fights to enable plutocratic corporations to sue the government of the USA, one of the many seductions of the TPP. That Trans Pacific Partnership is negotiated in secret, among the haves, as it should.

Tigers & Plutocrats Have A Sense Of Right Which Makes Them Even Worse

[Siberian/Amur Panthera Tigris Altaica.]

Is Hillary for real? It’s hilarious: there is no choice. The excellent Senator of Vermont (Green Mount in French), Bernie Sanders, has a much better program: to make the USA like France (hopefully without the tyrannical French law, administration, and taxes on the middle class).

Bernie’s program could be paid, if, and only if, the taxes on the rich got as high as they were in the 1940-1970 period. However the vulgum pecus has been conditioned to identify with the wealthiest, spiritually speaking. An hilarious form of corruption. Bernie would lose to Jeb Bush, as a result.

It’s hard to have a democracy when common folks’ spirits are those of dogs conditioned like Pavlov’s dogs, to salivate, each time they hear of wealth and mentors.

***

Carlton Affair: Sex Drawing Rights?

Carlton is a luxury hotel in Northern France where Dominique Strauss-Kahn (“DSK”), ex-head of the International Monetary Fund, was suspected by French “judges” to have organized an international prostitution ring. How likely did that sound? Not too much: no government prosecutor could be found to prosecute DSK about this. But the judges persisted in their search for judgment of whom Manhattan (aka Wall Street) found right to jail. Perhaps the honorable French judges hoped to qualify as honorary Wall Street Very Important Persons, or something equally worthy. In this plutocratic world, consideration by the wealthy has become everything (wealth can even get you passports fast!). Wall Street inspired “justice” has been relentless to find that whoever looks like strong competition is in breach of the law of the USA.

After four years DSK and 13 other co-defendants were found not guilty whatsoever. DSK said: “Tout cela pour ca. Quelle destruction.” (All this for this, what destruction.)

DSK of course deserved his punishment: he drew for hundreds of billions of SDR. DSK was then ripe for retaliation, extortion, vulture justice. See how it all started, from that well known left wing propaganda outfit, CNN, which wrote in 2011: “IMF calls for dollar alternative”:

NEW YORK (CNNMoney) — The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.

The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

SDRs represent potential claims on the currencies of IMF members. SDRs can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs

While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.

Dominique Strauss-Kahn, managing director of the IMF, acknowledged there are some “technical hurdles” involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system.

“Over time, there may also be a role for the SDR to contribute to a more stable international monetary system,” he said.”

This is what Keynes wanted to do, as head of the commission in charge of setting up the world financial system in 1944-45. Lord Keynes, who could not be accused to not be a racist plutocrat, found himself in a total fight with the government of the USA. Enable to stop Keynes, the USA finally made a forgery, and substituted the forgery during the signing ceremony. This is how the dollar became the world’s reserve currency (a move that torpedoed Europe as an independent financial actor). But here is again CNN Money, from 2011:

“The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.

In addition to serving as a reserve currency, the IMF also proposed creating SDR-denominated bonds, which could reduce central banks’ dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs.

Oil prices usually go up when the dollar depreciates. Supporters say using SDRs to price oil on the global market could help prevent spikes in energy prices that often occur when the dollar weakens significantly.”

As many men of power, DSK was sex-crazed (although this is a tangent, it’s an important one: when you are at war, trying to impose your power, you need extreme aggressivity, and, in males, sex and aggression are roughly connected; so sex acts as a relief; the present French president is supposed to go around like a crazy rabbit, although he looks like nothing; Dr. Goebbels, the Nazi, a deformed midget, was even worse; his hatred of Jews was born the day a beautiful Jewess dared to turn him down; when the time came to take out Assad, the sex crazed Hollande had the balls, but Obama lost his; Hillary, a hawk who long watched Bill, has her own domination hormones; she actually said something very strange, exciting, scary and extremely revealing, in her own discourse in New York, I have to check the transcript, before writing it down here…).

So DSK was easy to bring down, by making sex charges against him. In the Carlton Affair, extremely expensive prostitutes operated on several continents, including the USA (yes, the USA is a country-continent). For the occasion, apparently corrupt (French) judges, posed those ladies of sex as “victims”.

However, there was no evidence whatsoever DSK ever paid a dime for sex. He was adamant that he never did, that defeated the purpose (seduction from his good looks, I guess…). So who paid those hard sex workers, to pose as victims? Those ladies who charge a thousand Euros a night? The judges? People whom the judges should have known about? Girls want to know.

Some will sneer that I proffered the heavy accusation of corruption against judges, without any direct proof, and that, this is, per se, a crime.  Yes, it’s a crime, as implementing a plan to draw trillions of dollars worth of SDR by DSK was a crime. To paraphrase president Jefferson, some crimes it’s our duty to commit.

There are two types of corruption: what is labelled as such in some countries under some laws. The plutocracy of the USA is notoriously equipped with laws to accuse rivals of corruption. In China, president Xi had the ex-security chief, Zhou Yongkang, condemned to life in prison, for corruption. In an officially secret trial. Corruption, there too, is in the eye of the beholder. Xi’s family is said to own hundreds of millions of real estate in Hong-Kong alone.

The other type of corruption is mental. The spirit itself is corrupt. It is broken-with. In the case of Obama, the left, the spirit of the left, with the help of the naive, such as yours truly, elected someone whose spirit was, deep down, straight out of the London’s Financial Times. The spirit of the left was ruptured-with the spirit of the Financial Times.

When the currency of one country controlled by Wall Street, is the world’s reserve currency, there can’t be economic, financial, and social justice, worldwide. This is the spirit which break the spirit of justice. Whether French judges were aware of this, is unlikely. Instead, they got carried away by a weird spirit of justice which defined the partisan of SDRs as the devil incarnate, and blackmailing high class prostitutes into confirming this, was viewed as justice.

The tiger is most dangerous, when he believes he fights for justice. Yet, there is no justice when the very spirit of justice has been corrupted by anything far removed from correct human ethology. Sex is ethological, the dollar as world reserve currency is not.

Will Clinton be able to undo some of what her husband did, when he himself undid president Roosevelt’s Banking Act of 1933? Why not? That would be the best way for her to divorce him, and impose whom ought to have been really the boss, and rule, with a less corrupt spirit.

At some point, the true leaders of the human spirit realize that to leave behind a nicer place in the sun is more important than to get to a place in the sun. Obama got to his place, played big boy on the town, forgot it took balls to be the real thing, communed with the spirit of London’s Financial Times, and wasted our times. A mother may be keener to leave a better prospects for Earth behind.

Patrice Ayme’