Two facts you may not know about the Maastricht Treaty…

 

Last December I said there was no more to say about the ridiculous EU; just lately I have had to say more, mainly after José Manuel Barroso said the EU needs to become a Federation urgently! Baroso former PM of Portugal with a stupefying record of economic incompetence is now in charge of the EU project … words fail me …

If you, like me (a few years ago), didn’t give a damn about Maastricht or even notice it, well, you should; it is nothing short of a criminally incompetent plan to turn member states into a Federal European state run by Germany.

Barroso crying after he learns that the people of France & Holland do not want the EU
President of the EU; José Manuel Barroso, former PM of Portugal (there’s a CV to be proud of) crying after he learns that the people of France & Holland do not want the EU

The Maastricht treaty was the final, in a slimy, devious series, of non-democratic treaties; moves, by Federalists within the appointed EU bureaucracy, to change the EEC, which actually was a jolly good idea into the European Union. We voted YES for the EEC in the 1975 referendum.

We now have, in the EU’s current form, an organisation where the leaders are NOT taken from the elected European MPs – they are appointed by Herman Van Rompuy’s department. If you want to know how that happened then I welcome you to the LaLaland of smoke, mirrors, incompetence, unbelievable inefficiency and corruption of all that is decent about humanity; viz the EU Commissioners.

The Dutch said No

However, we, the people, never ever voted for this slow morphing of the EEC into the EU; and when, accidentally, the French & Dutch were given a chance to express their opinions in 2005 they said NO – very loudly; and were quietly and sickeningly ignored.

The French say Non!

The Irish were supposed to be asked too but this was delayed because they would have said no too; later, when they needed an illegal bailout – they said yes after a slimy YES campaign!

We, in the UK, were not asked and most of us didn’t know that we should care; so there we are – screwed!

The two facts you might not know:-

1) According to the Maastricht Treaty, EU member states are not allowed to finance their public deficits by printing money. That is one reason why the Bank of England has been buying government bonds from financial institutions, not directly from the government. However – the EU states led by England are doing exactly that, but now it is called ‘Quantitative Easing‘. Faced by those weasel words, most of us just turn off and watch X Factor or Strictly instead. Meanwhile our pensions are being raped by the rich because QE is inflation by another name.

Quantitative easing is actually a backdoor process to save the banking system by apparently improving the asset side of Banks’ balance sheets, and it STINKS!

Here is what actually happens:-

  • The Bank of England prints money electronically – one minute the UK money supply is say £40 trillion quid and the next second it is £41 trillion – magic!
  • The Bank of England buys government bonds from the banks with the magic money and a public statement is made by Osborne to the effect that banks should now lend more to business.
  • UK Banks’ balance sheets now look better and have more cash for bonuses HURRAH! Buying government bonds from Pension funds has the effect of reducing the return on bonds this making shares “look” more attractive and somehow overcomes the limitation of the accepted definition of “Printing money” (Pre-war Germany, Zimbabwe etc.)
  • However, banks still do not loan to businesses because that does not return as much profit as digging holes in 3rd world countries does, which by the way is how Merchant Banks have always made their money. It is a dirty exploitative way of making profit and it STINKS.

‘The Bank of England believes  QE is different because it is “printing money” as part of monetary policy – to prevent deflation. It is not printing money to help the government finance its deficit. Also, unlike Zimbabwe, this is a temporary policy: the Bank expects to sell the government bonds back into the market when the economy recovers.’ ( Ed: Oh yeah? We wait with bated breath … 😉 )

2) According to the Maastricht Treaty, EU member states cannot be bailed out if they cannot finance their own debt requirements. Err, but, they have been, as in Greece, Spain, Ireland and shortly Italy and in November Greece again. This is all simply par for the course for the worthless, disingenuous (aka lying, duplicitous) corrupt EU bureaucrats who invented the completely irrational Euro – simply madness to invent a common currency where no member state can control its own tax system or money supply.

To conclude:-
1) The Euro is a nonsensical construct by any rational examination; it was obviously conceived, as a first step, by those who wanted the United Federation of Europe by the back door.
2) Any member state breaking fiscal rules are simply told off (over a nice lunch) – and never held to account (e.g. Italy, Greece, Portugal never, ever met the 5 criteria for joining the Euro).
3) The so-called Treaties are worthless; because they are not democratic & nobody is ever held to account (i.e. fired!).
4) The EU itself is worthless and irrational; because no-one ever voted for it and its own accounts have failed every audit for the last 19 years!
5) Most European governments are colluding in this desperate measure to save the bankers from financial reality because it is the bankers that keep the status quo.

All three main UK political parties don’t seem to mind, do you?

It’s a funny old world (#2) QE2; £75 billion “boost” for the economy!

 

The casual hypocrisy of George Osborne:-

09/01/2009 – “QE is the last resort of desperate governments when all other policies have failed” – George Osborne in opposition

06/10/2011 – “QE is an appropriate tool” – George Osborne (reported on politics home)

Yes it is par for the course for politicians to lie and spout bollocks – this is a jolly good example.

Here is some sanity from my favourite BBC economics commentator, Stephanie Flanders,  who blogged  “Some say that QE is all a confidence trick – albeit, an important one. What, exactly, the Bank does is less important than the fact that it is seen to be doing something. The US comedian, Mitch Hedberg, had a line I reprised on the Today programme this morning: “My fake flowers died, because I forgot to pretend to water them.”

Which is slightly funnier but just as accurate as is my definition of Quantitative Easing espoused in meBook.

The sound of gentle weeping … etc.