Today was a black day for democracy in Germany. The German constitutional court ruled in favour of the European Stability Mechanism. In combination with last week's announcement by the European Central Bank to purchase government bonds without limits (breaking the No-Bail-Out clause at the core of their mandate more obviously and irreversably than ever before), the German people have lost a good deal of democracy today.
Why? — you may ask… because from now on, fiscal and financial policy will be made in Brussels, by people enjoying full immunity, but who are not elected democratically by the European people, let alone the Germans, and they will freely decide over who has to pay and be liable for whom.
I am talking about people like Klaus Regling, who was already involved the very first time the Maastricht Criteria were violated. He is now at the front of the largest and most powerful financial weapon ever conceived. With immunity.
And people like Mario Draghi, whom I would possibly call the most corrupt person I know. His announcement to save the Euro at whatever cost accidentally came only a day before his motherland Italy had to go to the market for more money and was able to place a bond at such ridiculously low interest rates that anyone who's kept up to speed with Italy's development had to rightfully ask how that was possible.
While in the past, for whatever reason, the European people have let the ECB get by saying that they are not bailing out countries when they buy bonds on the secondary market (wtf!), they have finally dropped that "restriction" (the law).
And as of today, the ESM is ready to go, along with the fiscal pact. Germany is now liable for more than quarter of all of the Eurozone's past and future debts.
And no citizen will be able to have any more influence in this, or reverse it. Budget, fiscal policy and currency control are forever gone.
Not that parliamentarian democracies were ever direct. Yet, in the past, one could at least vote for those people whose promises one was inclined to believe the most. You can still do that in the future, but those people won't be able to influence fiscal or financial policy anymore.
There is no way back. The ESM and its employees enjoy full immunity, and the ESM is forever-binding. There is no exit clause.
Thanks to the ECB's law breaking and the ESM, which I consider highly unconstitutional, at least in Germany, Eurozone-countries may refinance their debts at interest rates that are in no way related to their ability to pay back loans. All other countries — foremost Germany — are henceforth liable for others' debts. The fundamental rule of the EU that no country would have to stand up for another country, is gone with the wind.
Within an hour, the "markets" reacted. Germany, which previously had to "pay negative interest" (a sign of stability) saw interests on its bond shoot up. And Spain, Portugal, Greece and others who couldn't previously refinance their old debts, are now getting fresh money cheaper than ever.
Spain's president Rajoy today didn't even bother beating around the bush anymore, he's now going to apply for fresh money but won't bother with any saving schemes or other restructurings. Monti in Italy has suggested the same.
Wouldn't you take money if you were offered it for free, without the need to pay it back?
This is more than inflation, in my opinion. What is currently happening in Europe is active depreciation of individual wealth. Our heads of state are actively working against the people. The Euro has lost all credibility and everyone knows it. It is only a question of time until it will tremble and fall. Meanwhile, "the market" celebrates and continues their gambles while they still can, on the backs of our currency and our wealth.
Most affected are the people who have savings in Euros, whose life insurances are decreasing in worth and who cannot afford to diversify into other asset classes or currencies.
On the other hand, those who "let their money do the work" are being saved. Whoever previously invested into bonds of struggling states, hoping to reap massive interest gains, is now proven right. Brussels has eliminated the risk factor. What kind of message does this send???
Hands up if you thought that our politicians are even interested in closing the rapidly widening gap between rich and poor. Really? That's naive. The Eurozone is corrupt, and our currency has never been as virtual as today.
Nobody can say whether saving the Euro at all cost is the right thing and noone knows whether what's currently happening is just bad. I would have wished that our politicians had taken the crisis as an incentive to fix the system in the interest of the people and with a long-term focus:
Europe should have returned to the law it gave itself, without exceptions: The No-Bailout-Clause, as well as the Masstricht Criteria. In general, you cannot spend more than you earn, and this principle seems to have been forgotten entirely, and those who had most actively forgotten it, are being rewarded.
A shared currency requires a shared fiscal policy. This policy has to be in place before the currency, the currency can only ever be the result of a common strategy. The EU has done this the wrong way around and it failed. Trying to put a fiscal policy in place now is patchwork that is guaranteed to fail. And putting fiscal policy into the hands of undemocratically chosen people in Brussels is not representing the people.
But on the contrary! Europe's policiticans are making it crystal clear that the foundation upon which it was built, the laws and rules, the promises and guarantees, no longer apply. The people were not asked. The promises once made were broken. Our politicians have ruled over our heads.
More debts are being made, and more debts to pay off debts, and so on. It's long gotten out of control, now the process is institutionalised. I feel sorry for our kids. I find it irresponsible what is being done to them (in addition to the way we rape the environment).
I also feel deeply with the people in the struggling countries who are being screwed by the crisis and are not at fault. What our politicians are doing is unfortunately not going to help long term. The problems are just postponed, and with every day, the inevitable crash will be more painful. I am sorry.
Today is a black day for democracy. We have lost souvereignity. We have lost control over our currency. We have lost our budget rights.
And I have lost my faith in the last instance of the German government that I trusted. As of today, I know that the German constitutional court is nothing more than a puppet in the hands of the politicians (who are themselves puppets of Brussels and the banks).
The limit they imposed (Germany's liability must not increase beyond 190 billion Euros without the federal parliament's consent) is worthless. Soon the politicians will explain to us why it's inevitable that we must raise this limit. Not that the people could prevent it, but still…
I had hoped for a fundamental ruling. They should not have touched numbers. The EU had a no-bailout-clause from day one. It was conditional from the start. If one of the fundamental principles of a contract is broken, the contract becomes invalid. Not only did I expect the court to rule against socialised debt, I would have wished them to go a step further. The German national bank gave up control over the currency to the ECB only because the ECB incorporated the principles of the German national bank. Once the ECB overturned those principles, Germany should have reclaimed their souvereignity.
But noone else in Europe would have wanted that. Merkel became a puppet herself.
I am grateful that our daughter has dual citizenship.
NP: Porcupine Tree: Live at Atlanta 2010