The Nefarious Plans of the Centralization Faction

It is known that certain elements in the EU actually expected that the introduction of the euro would eventually lead to a crisis. It was a crisis they were wishing and hoping for, because they wanted to use it to drive EU centralization forward. As former EU commission president Romano Prodi told the FT in an interview anno 2001:


“I am sure the euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.”


Here is what the very same Prodi said in 2012 in an interview with Euronews, after the crisis had devastated the economies of Southern Europe:


euronews: “What drove you all, what convinced you about the necessity to adopt a unique European currency?”

Prodi: “The same thing that convinces me even today – because I haven’t changed my mind. I mean, if we want to build up a new Europe we have to put together the pillars of a modern State. And these pillars are: the army and the currency. With ‘army’ I mean foreign policy, defence and security, with currency an economic symbol.

“Of course we could start with one or with the other, but historically we had this possibility, because the economical side has developed more quickly. That’s why, in that precise moment, we pushed with all our strength (to reach the target)because if the economy isn’t unified and we don’t have a common currency we can’t face the future.”

euronews: “Ten years after its birth the euro is experiencing its most difficult time. Do you see a future for the common currency?”

Prodi: “Well, the difficult moments were predictable. When we created the euro, my objection, as an economist (and I talked about it with Kohl and with all the heads of government) was: how can we have a common currency without shared financial, economical and political pillars? The wise answer was: for the moment we’ve made this leap forward. The rest will follow.

“Then instead came the Europe of fear: fear of China, fear of immigrants, fear of globalisation. So it was clear that this crisis would arrive. But the euro is so important, it’s so convenient for everyone — especially Germany — that I’ve no doubt that the euro won’t just survive, but it will be one of the landmarks for the world economy.”


(emphasis added)

This despicable bureaucrat, who himself is sitting pretty with a huge tax-payer funded pension and perks the average citizen can only dream of, is telling us that unemployment rates of 27% in Greece and Spain and 18% in Portugal, and the utter devastation of the middle class in these countries were 'worth it'? That the fact that once prosperous people have been made paupers, who in many cases are forced to literally live a desperate hand-to-mouth existence, and soaring suicide rates, were 'worth it', because he wants Europe to have its own army?


Citizens Are Better Off with a Less Powerful State

There is no better illustration of the true character of the EU's 'centralizers and harmonizers' than Mr. Prodi. The main thing these sociopaths ultimately care about is political power.

The average citizen by contrast couldn't care less about the 'stature of the EU on the world stage', which is constantly pushed as a reason as to why one should support the centralization effort. The only people who really worry about this are the eurocrats themselves (eurocrats in the wider sense, which means the typical representatives of the European politico-bureaucratic class. There is no strict delimitation between these two branches of the ruling class in Europe).

The average citizen wants to be free and have a fair shake at the pursuit of happiness. Whether a bunch of politicians are able to throw their weight around on the 'world stage' is so far down on his list of priorities it is not even worth discussing. In fact, experience shows that the less powerful and grandiose a state is, the fewer impositions on their liberty and property its citizens have to fear. Switzerland, Hong Kong, Liechtenstein and a number of other small countries are excellent examples for this.  None of them are able to intervene militarily in the world or threaten anyone with their power. In fact, Liechtenstein doesn't even have an army. And yet, these countries are among the freest and most prosperous nations on earth, with a minimum of government interference in the economy and citizens enjoying a maximum of liberty, not least in terms of economic freedom. That should be the example worth striving for. What the 'centralizers and harmonizers' of the EU have to offer is the exact opposite.  In fact,  few things would be more detrimental to the liberty and prosperity of the citizenry than the plans of this centralization faction.

Luckily, national interests are frequently at odds with these plans and keep standing in the way of the centralization effort. The latest example is the dispute over the banking union between Germany and France.




Romano Prodi, former Italian prime minister and president of the EU commission – a major proponent of the EU's centralization faction.

(Photo credit: La Presse)





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19 Responses to “The EU and the Centralization Dispute”

  • HitTheFan:


    Go back 3-4 years and I was vehemently anti-Eu, anti Euro, and scared of what lie ahead.

    The geopolitical insights within the Another archives, as well as the understanding of how fiat currency is an essential tool for modern living, but that gold must be set free…all of that and much more set my mind at rest, and led to a greater understanding of what is actually happening in different parts of the world, as well as as roadmap for what lies ahead.

    I will leave you all in peace, and we will all see what unfolds. In the years ahead you may look back on this little (declined) offer of some shared insights, and ponder why you were unwilling to entertain some new ideas, even if you ultimately decided you disagreed with them. I suspect you will have some regrets.

    Good luck.

  • HitTheFan:

    Jimmy, you appear to have a closed mind.

    ‘It is the mark of an educated mind to be able to entertain a thought without accepting it.’


    • Solon:

      Jimmy, you appear to have a closed mind.

      Wow, that sure doesn’t speak well to your own reading comprehension, nor your self-awareness. You appear to be the only one exhibiting a closed mind in this comments thread.

      Thus, it doesn’t appear that you can have a “good debate” on anything, much less the nature of money, since your only argument is “read the archives”… archives that Jason has exposed as incorrect not once, but twice. To which, you have responded with an ad hominem attack, rather than addressing Jason’s rebuttals.

  • JasonEmery:

    @HitTheFan–Why do you go on and and on about a bunch of aliases (another, foa, etc.)? The NSA knows who they are. Why don’t they just come out of the closet and publish their credentials?

    Supposedly, Another was a cartel banker who saw the light, or some such tale. So, what’s his real name? The CIA knows, why not just publish it?

    Here’s the real issue. The world’s GDP is something like $60 T, and after you strip away the parasites (govt., financial sector, etc.) is maybe $40 trillion. There are many hundreds of trillions of dollars (or Euros, if you prefer) in claims on the wealth produced by the goods producing sector.

    Individuals can protect some of their share of the claims against this wealth by owning gold, or owning the output itself (houses, farm land, tanks of oil, etc.). To a lesser extent, governments can do the same, but mainly it is going to come down to who has it and who has the guns to take it away.

    And since the EU produces very little, except for Germany and maybe a little olive oil in Greece, it is very difficult to see the Europeans maintaining a standard of living above that of Zimbabwe, once the post Bretton Woods system completely breaks down.

    The std. of living in the USA, will be halved, but that is no where near the order of magnitude cut the EU region will take. Ironically, speaking Portuguese (think Brazil) will a very valuable asset in a year or two, much more so than French, wee, wee, lol.

    • HitTheFan:

      Jason, simply read the archives, it will answer your questions. Or remain ignorant, I care not.

      You are correct, the world is rebalancing. Good.

      • jimmyjames:

        I encourage you to read those archives, before it is too late.


        5/27/98 Friend of ANOTHER


        This article (see below) puts a different light on the Euro. I think a major effort was underway for many years to unseat the dollar. It was only after the gulf war politics that the EURO group saw a way to use gold to draw in the oil producer currency backing. It was clear that the dollar was going to someday fall from reserve currency status because of it’s compounding debt load. With nothing to replace it, gold would become the world oil currency, as Another says.

        Initially, they built the Euro with little talk of gold, all the while building a paper gold market that is dollar settlement based. By increasing the Gold Trading Market with paper gold, it not only drove the gold price down, but gave these contracts credibility as they could be settled in a strong dollar via gold. The hook came when they suddenly wanted gold as part of the reserves for the Euro! Now the BIS just stops supporting the London market with Central Bank gold loans and sales. By the time for the Euro to debut , gold starts to rise through the $360 area, there by breaking the entire dollar based paper gold market! Every oil state, and anyone else that is holding paper gold, will try to first exchange it for physical. After that guess who will be waiting with a brand new hard world reserve currency, ready made for converting dollar gold loans into Euro gold loans!


        So OK.. as soon as gold breaks the $360 level the paper gold market will collapse and a brand new hard backed reserve currency will emerge-

        I guess we’ll have to wait until gold breaks above $360 to see if he and you are correct?

  • jimmyjames:

    I’d be interested in gauging your understanding of what real money is?

    I also suggest you go read the archives of Another/Foa, as you like conspiracy stories I think you will enjoy it


    If you cannot understand what I referred to as real money in my post… oh well-


    Date: Sun Oct 05 1997 21:29
    ANOTHER ( THOUGHTS! ) ID#60253:

    Everyone knows where we have been. Let’s see where we are going!

    It was once said that “gold and oil can never flow in the same direction”. If the current price of oil doesn’t change soon we will no doubt run out of gold.


    The ghost of gold “ANOTHER” really outdone himself with that one-

    I have some gold for sale- at the right price-

    I can buy as much gold today as I could in 1997 albeit at a higher price- so can everyone else-

    • HitTheFan:


      So you cannot explain your self I see. Disappointing, we could have had a good debate about the nature of money.

      I encourage you to read those archives, before it is too late.

  • HitTheFan:


    You wrote: ‘I can’t believe anyone who has even half a clue about what real money is-defending any of them- including the USD-‘

    I’d be interested in gauging your understanding of what real money is?

    I also suggest you go read the archives of Another/Foa, as you like conspiracy stories I think you will enjoy it. It will require you to temporarily suspend your beliefs, an open mind if you like. It’s pretty deep, a lot tricky to grasp. You can dismiss it after you’ve read it all, but you’ll know more about gold and its place in the grand scheme of things than the sum total of all you currently know via KWN or ZH and their ilk.

  • jimmyjames:

    No coincidence that gold and oil started to rise in price in 2000.


    If oil started to rise because of the EU situation.. which btw.. has zero oil- then oil would be looking at the complete dependence of the euro zone on foreign oil and could see they would be in a bind somewhere in the future and that has never changed-

    If gold with its feral like instincts started rising because of the euro- then it could see that a major currency was on its way to blowing up somewhere in the future-

    As Jason said above– the ECB balance sheet is full of toxic PIIIGS debt.. marked at par on the balance sheet but marked to market.. somewhere around zero value- try unwinding that poisonous “collateral” someday-

    As far as EU gold reserves go.. isn’t it going to take “7” years for the fed to deliver a measly 300 tons to Germany?
    It’s not who has the claim to the gold that counts.. as we’ve all seen.. it’s who holds it.. if they even have it-
    Where is Portugal’s gold where is Italy’s gold.. where is France’s gold-where is Germany’s gold-
    Has it been leased out/rehypothicated.. who knows- if you don’t hold it.. you don’t own it-

    The EUR is just another piece of paper garbage like all of them-
    I can’t believe anyone who has even half a clue about what real money is-defending any of them- including the USD-

    Some of the great balance sheet unwind-


    The slump in gold prices has hit the European Central Bank where it hurts: its balance sheet.

    “The consolidated balance sheet of the ECB and its 17 member central banks plunged at the end of last week as a result of a revaluation of gold prices, data provided by the ECB showed Wednesday.

    The regular quarterly revaluation meant that the Eurosystem’s gold holdings fell 115 billion euros ($149.5 billion dollars). Gold prices fell by nearly 25% in dollar terms in the second quarter. In euro terms, the ECB used a price of EUR919.9 per fine ounce in its revaluation.

    As a result, figures published by the ECB showed that balance sheet declined by EUR122.89 billion to EUR2.43 trillion, its lowest level since November 2011. It’s down about 18% so far this year, largely due to early repayments of three-year loans the ECB extended to banks in 2011 and 2012.

    The ECB’s gold losses (or profits) don’t affect its ability to conduct monetary policy or extend loans to banks. But given that it’s a big gold holder, price fluctuations can lead to big changes in its balance sheet, as Wednesday’s data showed.

    According to the Federal Reserve’s balance sheet, the U.S. central bank has about $11 billion in gold. Even after the recent revaluation, the ECB is still sitting on over $400 billion in bling.


    400 billion in gold weighted against this- and at what value is the paper collateral on the balance sheet?


    None of it looks good for anyone-
    I sure as hell wouldn’t be schilling for the EUR- as the so called “union” continues to belch out smoke-

  • HitTheFan:

    Sorry Jason, re the Washington Agreement(s), they were very much the Euro-block saying publicly ‘no more sales of our gold’ to the world, as the Euro was ready to go.

    No coincidence that gold and oil started to rise in price in 2000.

    If you’re curious check out the (very long but fascinating archives of Another and FOA over at USA Gold…they’re just called ‘Thoughts’. Your eyes will be opened.

  • HitTheFan:


    Assuming the ECB sticks to its charter then it’ll survive anything that comes along. Based on evidence to date that is what it is doing. But we’re headed for the end of the dollar, finally. If the euro blows it, no other currency exists to take its place, so oil would bid for gold. Lets hope that doesn’t happen, I feel confident the Euro will weather the storm ahead, and the marked to market gold means it gets stronger as the Dollar weakens against gold.

    No, the Cyorus model means banks won’t be recapped. They’ll be bailed in, creditor losses. That’s all part of the ECB plan, stuff the banks, save the currency. Watch what happens when unallocated gold contracts with banks are written down……the end of the LBMA and paper gold. Yes, wages are going to level out around the globe, at a lower level than the West would like. But no, devaluation isn’t the way it can or will be dealt with. Capital will survive, so will sensible savers. Tough times for sure, but real times, and eventually a real recovery, minus big government.


    In fact the banks are paying loads of it back, right now, have been for months. Check the ECBs press releases, and don’t believe the misinformation out there. The ECB has seen a shrinking balance sheet all year. No chance of hyperinflation in Europe, none at all.

    • JasonEmery:

      @hitTheFan-“They’ll [EU area banks] be bailed in, creditor losses.”

      I think the French banks have liabilities of 300 or 400% of french GDP. So I don’t think the Cyprus model will apply. Also, don’t EU banks count as ‘assets’ certain things of a dubious nature, such as bonds issued by such basket cases as Greece, Spain, and the United States? At least in the case of US Treasuries, they won’t have to worry. If they absolutely must sell, Ben can always create another trillion or two, out of thin air, in fiat to buy them, lol.

  • HitTheFan:

    Very interesting isn’t it?

    In another post today, the question was asked ‘how can we expect socialists to cut welfare spending’?

    Simple conclusion was reached, you just can’t.

    However, France WILL be forced to retreat from socialism, in the same way Greece, Spain & Portugal is being forced to cut its spending.

    The sole reason for this retreat? The Euro. There can be no devaluing of currencies to penalise savers/retirees at the expense of the state and other debtors.

    The end result…much much smaller governments, smaller banks, less risk, more space for capitalists. It’s a right-wing utopia.

    And all because of the Euro set-up.

    It’s genius beyond most people’s comprehension isn’t it? And when the dollar collapses and the Euro becomes the defacto reserve currency (reserved 100% by physical gold) it will be even better for Europe, with all of those gold reserves to start rebuilding.

    Watch it happen folks, even though you may not grasp the enormity of the advance mankind is making. (OK, you are aware because I tell you, you can thank me in the years ahead).

    • SavvyGuy:

      @ HitTheFan:

      Guess what…you may be right! Unfortunately, on the other hand, you might be totally wrong.

      My point is that we are going through a time of considerable flux in the global economy. The exponential expansion of debt over the past several decades has masked underlying weakness, misallocation and ultimately consumption of capital.

      This debt-expansion trend will end at some unknowable point. When that happens, an event horizon will be reached and credit will start to implode. Whether this process results in a stronger Euro or a stronger US$ is really impossible to determine in advance. Smart money always hedges its bets!

    • JasonEmery:

      @HitTheFan-I saw a youtube video featuring Kyle Bass a few months ago. He claimed that the
      EU area banks have not yet been recapitalized, unlike here in the USA. Won’t they have to create trillions upon trillions of Euros, out of thin air, to do that?

      Regarding gold, didn’t most of the EU member central banks jettison about half their gold during the Washington Agreement (and its unnamed 5-yr followup) period?

      And finally, haven’t they been exporting their manufacturing sector, same as the USA, to low wage countries for decades? Processes like that cannot easily be reversed. I would think that some sort of currency blowup would be required as a catalyst to even start the reversal.

    • worldend666:

      Or they could just continue to print up euros for the banks through the back door and pretend that one day they will be getting them back, with the continuing state of emergency dictating that now is not the time until we finally reach the point where the system becomes unstable and launches into hyperinflation.

  • rodney:

    The word despicable doesn’t do justice enough. I can understand it, though, for as long as we need to call him something without resorting to name calling, I can’t find anything much better. IOW, Words Fail Me !!!

    • jimmyjames:

      With ‘army’ I mean foreign policy, defence and security, with currency an economic symbol.


      What is the boogeyman that the Euro’s must be on guard to defend against- maybe Russia the old enemy pawn that was used to teach me how to crawl under my desk in case a nuclear bomb was dropped on my school?
      I think Putin could simply close off the Nat Gas valve and claim victory- not much an army could do to defend against in that scenario- not much a currency or foreign policy could do either-
      If I was a Euro- I think I would be grateful to have a resource rich neighbor like Russia-

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