The Moral Unraveling of the EU, Bailouts and Central Banking
by Anthony Wile
The Daily Bell
by Anthony Wile: James
Bovard on His Famous Libertarian Books, America's Failing Freedom
and 'Why Life Is Too Short to Drink Bad Beer'
now approved the European debt-crisis bailout fund, but the problems
Europe is experiencing are similar to those faced by America in
the grip of the Fed's immense bailouts of the past two years.
these are seen as morally repugnant by citizens throughout the West.
And this has significant consequences that the mainstream press
declines to report.
themes work by omission as well as commission; in this column, I
want to re-examine potential ramifications. I've done it before,
but I think it's worth repeating. Not enough commentators, even
in the alternative media, point them out in my humble opinion.
to flood Western regimes and financial institutions with billions
and billions that they don't deserve and cannot properly apply.
Perhaps there is no alternative but to "kick the can down the
road." On the other hand, perhaps the bailouts are part of
a wider elite destabilization effort, one intended to generate chaos
and misery that will pave the way for global governance and maybe
a new world currency. This is the view of the more conspiratorially-minded
among the alternative media.
reasons, the bailouts, against all logic, continue apace and are
being increasingly resisted ... not merely for their Draconian impacts
but because people are using technology to become more informed.
This bailout saga, therefore, has been unusual, not only for the
incalculable wealth that's been extended but also because it's played
out in front of millions.
continue to be felt in my view. The push-back began in the US with
TARP and then continued with revelation of US$16 trillion-plus (probably
more) in short-term loans extended by the US Federal Reserve to
financial institutions not just in America but around the
Now US Congressman
Ron Paul is conducting the Federal Reserve's first "audit."
Ben Bernanke speaks, but his pronouncements have nowhere near the
power or authority of his predecessor Alan Greenspan. Occupy Wall
Street and alternative journo Alex Jones are both holding organized
protests outside Fed buildings. In Southern Europe, protests and
riots (Greece) rise wherever the EU and its bankers attempt to impose
has allowed people to see finally exactly what's going
on. Prior to the Internet, the controlled mainstream news would
have explained in unison that the Fed "made massive adjustments
to the global financial fabric to ensure that systemic collapse
was mitigated ..." or employed other nonsensical euphemisms.
These sorts of non-explanations would have been repeated ad nauseum.
But in the
era of the Internet, such gobbledygook has been effectively negated
by literally millions of articles (and thousands of videos) explaining
what central banking really is monetary price fixing
and how central bankers "print money from nothing" to
advantage their cronies at the expense of everyone else.
survived because it appeared so incomprehensible that it was beyond
criticism. Not anymore. People around the world "get it"
and the anger is breaching even the indolence of the political class.
Eventually, if certain fundamental knowledge becomes widespread
enough, the elites may have to take a "step back" as we
have predicted they might. Resistance is spreading.
We can see
this in Slovakia, where that Eastern European nation was the last
holdout among euro-zone nations to approve the EU's most recent
sovereign bailout fund. On Tuesday, the parliament rejected the
fund and brought down the government of Prime Minister Iveta Radicova.
On Thursday, the parliament voted FOR it, but the point had been
representatives, notoriously resistant to the public sentiment they
are supposed to be accommodating, are now beginning to reflect the
animosity of their constituents. The Telegraph's Ambrose Evans-Pritchard
recently captured this sentiment in a column entitled, "EU
bailout is racket for financial elites."
ago, no mainstream paper in the world would have run such an article
even given today's extreme stress and provocation. But times
have changed. The financial system has come in for criticism the
likes of which has not been seen (or heard) for decades. Here's
an excerpt from Evans-Pritchard's article:
Slovak debate has shown us yet again as if the political
storm in Germany over the past two months has not been enough
is that escalating bailouts are nearing their political
limits. The traumatic affair almost brought down the German government.
It has in fact brought down the Slovak government. You can't keep
doing this. Democracies are not to be toyed with ...
cry of defiance has not been entirely pointless. Richard Sulik
the speaker of parliament has caught a mood of popular
disgust that goes far beyond his own country. His objections are
How can there
be any justification for a state of affairs where a poor but rule-abiding
EMU state must bail out a serial violator with twice the per capita
income, and triple the level of the pensions a country
which is in any case irretrievably bankrupt? How can it be that
the no-bail clause of the Lisbon Treaty has been ripped up?
But he also
touched on the most neuralgic issue, reminding everybody that
the EFSF is 'mainly for saving foreign banks'. These are French,
German, British, Dutch, and Belgian banks, of course ... 'I'd
rather be a pariah in Brussels than have to feel ashamed before
my children,' Sulik said ... Bravo.
writes Evans-Pritchard, summing up the New Age's defiance to establishment
ways. We began to write about this back in August of 2009 when The
Market Oracle's Stewart Dougherty a financial consultant
sent us a column entitled "The Metastasis of Moral Hazard
and its Effect on Gold." He wanted us to see what he'd written.
Here's an excerpt:
miscalculation made by Washington and Wall Street is that they
could control the moral hazard genie once they removed it from
the bottle. They believed they could use the genie to enrich themselves
with trillions of dollars' worth of taxpayer money, and then replace
it in the bottle before its magic spell of immorality metastasized
throughout society at large. They assumed that the people would
be too stupid to see what was going on. And that even if the people
did figure things out, they would willingly wear the thick, choking
chains of debt being welded to their necks by the financial elite
and its Washington enablers.
thanks to the Internet and the democracy of information and insight
it affords, the people were instantly wise to what was happening,
and it stirred them. The concept of "an eye for an eye, a
tooth for a tooth," harkens to the Bible. And perhaps Shylock
was speaking for all of humanity when he said, "If you prick
us, do we not bleed? If you tickle us, do we not laugh? If you
poison us, do we not die? If you wrong us, shall we not revenge?"
then, and believe now, that Dougherty wrote one of the decade's
most profound columns, capturing the MORAL dimension of the fraud
of "bailouts" and the impact of their fundamental
even obscene unfairness. We wrote about his column (you can
see it here: Have
the Immoral Actions of Central Bankers Precipitated the Decline
of the West?) and commented:
has written a REAL article of REAL observations about the end
of Western civilization. Sheesh, ... Spengler's Decline of the
West in three darn pages ... He's right, he has gotten the morality
right. It's not just the culture of the West, or its promotions,
or even its social organization that is finished.
as a society, witness a couple of guys pull a trillion out of
their back pockets without feeling, well ... snookered. And after
feeling snookered, something else begins to percolate. "Hey,"
you say, "wait a minute. I sit here with my debts and my
job and my house in foreclosure and this guy THIS GUY
throws around trillions? Wait a minute. WHEN DO I GET MINE!"
Now the rage
Reformation is a process, not an episode.
with permission from The
Wile is an author, columnist, media commentator and entrepreneur
focused on developing projects that promote the general advancement
of free-market thinking concepts. He is the chief editor of the
popular free-market oriented news site, TheDailyBell.com.
Mr. Wile is the Executive Director of The Foundation for the Advancement
of Free-Market Thinking – a non-profit Liechtenstein-based foundation.
His most popular book, High
Alert, is now in its third edition and available in several
languages. Other notable books written by Mr. Wile include The
Liberation of Flockhead (2002) and The Value of Gold (2002).
© 2011 The
Best of Anthony Wile