Saturday, 15 July 2017

Deutschland uber alles

It's no wonder that the EU has copied that other illegitimate regime, Ian Smith's Rhodesia, in stealing Beethoven's ninth as its national anthem. That magnificent music not only gives the EU a majesty it doesn't deserve but it disguises the true nature of the beast.The only anthem which truly expresses the reality of the EU is Deutschland Umber Alles. That might prove too frightening for the little chickens in the roost.

Economically the EU is dominated by a holy trinity of German interests.First there is the insistence on building up huge trading surpluses-currently the biggest in the world-which Germany refuses either to redistribute to help the poorer states or to spend to stimulate the economy.

Secondly there is the  German insistence on a competitive exchange rate to keep their economy exporting powerfully. Despite the pleas of the US and the UK they always kept the DMark down. Now the Euro does the job for them like a series of guy ropes in which the poorer economies keep the overall rate down. So markets aren't allowed to work and the German exchange rate can't rise to rebalance trade and make it fairer.

Finally there is the old fear of inflation which makes Germany insist that debts is sacred and must be repaid. Money loaned to Greece must be paid back in full even if its impossible, and any country owing money must squeeze, freeze no deflate to pay it back. See Yannis Varoufakis on that

The result is that Germany drains all the other members, requires them to deflate and prospers at the expense of the block.The EU won't work unless German dominance is ended and Brexit is a side issue which distracts attention from that.Britain can plan for escape, Macron can preach a common economic policy, a common budget and a common finance minister but nothing can happen unless the Germans agree it. If it infringes their holy trinity, they won't.

Result deadlock.Everything waits, not for Godot, but for Merkel and Schaubel. But one thing is sure. They're much more aware of their national interest and much more determined to defend it than Britain's vested interests who want to continue the drain of the single market, or our rampant remainers who have no higher ambition than  to drag Britain back, pathetic and humiliated into the new German empire.

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