Thursday, June 03, 2010

Are we witnessing the birth of the Euromark?

There is a very interesting article in today's Daily Telegraph by Robert Woolnough, in which he discusses the possibility, even the likelihood, of the birth of the 'new euro'.

In the throes of the present unbearable strains in the eurozone, the political will is unequivocal - the euro must survive. Never one to let a Euro-crisis go to waste, Germany's Chancellor Merkel has demanded some Teutonic fiscal discipline: the single currency is the very nexus of the European dream; it is the essence of sovereign unity - a United States of Europe. Former Belgian prime minister Jean-Luc Dehaene once said: ‘Monetary union is the motor of European integration'.

But someone put water in the tank: Greece has been prodigal; Spain is in a 'perverse spiral'; and Portugal will doubtless follow. 'Europe', it seems, is heading for meltdown.

This is God's judgement on the Babel currency. Either that, or the financial markets have discovered that the House of Europe has been constructed on a lie.

Robert Woolnough sees two possibilities: 'either there will be stability led by vigorous state intervention, or there will be huge chaos and uncertainty'.

But he finds it 'inconceivable that the politicians and policy-makers have not given any thought to what might need to happen should it collapse'.

'So what secret thoughts might they be having?' he asks, 'How would they cope with the unthinkable?'

If the euro ceases to be the financial system would be faced with financial calamity. The means of exchange would be questionable and, in extremis, the euro would become a worthless piece of paper. In addition, all existing legal contracts in bonds and derivatives would be denominated in a dead currency. Left unchecked, this collapse would probably destroy European capital markets and severely damage economies, with global carnage close behind.

First, the authorities would have to create new national currencies as a means of exchange. To solve existing euro contracts issues, you would need a one-for-one successor to the euro, so let's call it the "neuro". We've been here before: the ECU was turned into the euro in the same way. This successor currency would then be legal tender in all European countries. But the big question is who would stand behind this supranational currency?
Did Helmut Kohl foresee this, or even plan for it?

On 15th December 1995, the EU’s leaders agreed that the single currency would be called the ‘euro’, and thus was conceived Europe’s first single currency since the fall of the Roman Empire. The Spanish finance minister of the day, Pedro Solbes, made a play on Jesus’ words to the Apostle Peter about building the Church by affirming that the euro would be the very foundation of a united Europe: ‘Thou art Euro, and on this Euro I will build Europe.’ This remark needs to be evaluated in the context of the EU’s past use of a poster of the Tower of Babel, over which the EU flag’s circle of stars were displayed in the inverted form of a pentagram. It was used by the Council of Europe to promote ‘European construction’. Such biblical images and allusions have become commonplace, though the symbolism and significance are often perverted.

The name of the currency was significant because there was a strong German insistence on a clean break with the past. Thus John Major's suggestions of ‘schilling’ or ‘crown’ were dismissed in favour of ‘euro’ - a suitably inept diminution of ‘Europa’. It was not without significance that the term could easily become a prefix, like ‘Reich’ or ‘Deutsch’, to the currency unit of the mark, and a number of German politicians have referred to the currency as the ‘euromark’.

So when Robert Woolnough talks about a 'new euro' to replace the besieged, imperiled euro, he raises the possibility of a basket-currency 'primarily based on a new Deutschemark', which would make it a hard currency. This, he avers, would reduce the risk of financial Armageddon:

At the moment, this may sound like anathema to believers in the euro dream, but it may well be the fact that Europe is not yet ready for a single currency. If so, the authorities should recognise the fact and halt – albeit temporarily – on their journey to achieving their ultimate goal. After all, the progress to monetary union has had setbacks in the past, and even ardent euro supporters should have a plan B if things go wrong. The neuro might be a significant part of the solution.
And one might prophesy that the euromark zone would not consist of the present 16 nations who constitute the eurozone: it would need to be pared down to cut out the dead wood.

Economists have identified the 'PIGS' - that is Portugal, Ireland, Greece and Spain.

To these Cranmer would add Italy.

And so PIIGS.

And some economists think Belgium won't survive.

So that leaves a euromark zone of 10 nations.

How neat is that.

And one might also prophesy, as with a number of naturally evolving European terms, that the prefix ‘euro’ will ultimately if covertly be dropped from the 'euromark', and 'Europe' will wake up one morning to find its currency is called the ‘mark’.

And thus the plan will be complete: the 'Germanisation of Europe’ will be fulfilled.


Blogger Gnostic said...

Maybe it's time for Cameron to explain why, exactly, he feels that it is the UK's best interests to remain trapped within the EU trainwreck?

At the moment it is deeply tempting to equate being "in" Europe with being up to our ears "in" deep poo.

3 June 2010 at 08:42  
Blogger D. Singh said...

Your Grace

Brilliant article.


3 June 2010 at 09:09  
Anonymous Anonymous said...

Found the idea of the circle of stars used by the EU as an emblem transformed into 'an inverted pentagram' hard to imagine. Twin hexagrams, maybe. A search with Google Images found this which literally squares the circle.

Perhaps you had another image in mind, in which case a link would be helpful.

3 June 2010 at 10:05  
Blogger Graham Davis said...

If I were a psychologist which I am not I would interested to tease out the origins of extreme Europhobia invariably displayed here and how it relates to Christian conservatism.

Of course I can appreciate the democratic deficit, loss of some sovereignty and the cost of belonging to the EU but it goes beyond the merely practical or political and is almost visceral. Gnostic refers to it as the EU trainwreck. I get a sense of the wagons being drawn into a defensive circle and the air filled with patriotic cries to stiffen the resolve with “jonny foreigner” at the door. There is a sense of foreboding that is characteristic of many posts and the constant reiteration of our “glorious” past when Christian/conservative values held sway.

There was a palpable glee when the Euro problems became evident, so why is the European project so despised? Perhaps it can be partly explained by Cranmer’s final comment And thus the plan will be complete: the 'Germanisation of Europe’ will be fulfilled. Add to that the constant references to National Socialism by Mr Singh, is a theme emerging? As the largest economy in Europe, despite its defeat in 1945, Germany is in many ways everything that we appear not to be, self disciplined, hard working and with a large manufacturing sector.

Maybe there is an element of jealousy or envy or perhaps it is simply that “jonny foreigner” is just that, foreign. Sovereignty is very close to the conservative heart along with the fear that each time we let a bit of it go we are somehow loosing a bit of ourselves. The same can be said of Christianity and both are slowly but surely ebbing away.

As an outsider I can only speculate. Maybe it’s all bound up with identity, how you define yourselves and how that identity is under threat from a world that no longer respects your values or even your opinions.

3 June 2010 at 10:07  
Anonymous graham wood said...

YG A very interesting theoretical scenario.
When Former Belgian prime minister Jean-Luc Dehaene once said: ‘Monetary union is the motor of European integration', he was right. That is why the eurocrats devised this essential element with full political union in mind.
As others have pointed out, it is a political construct, and not a realistic economic one.
As we know 27 (leave alone the 16 Eurozone members) disparite nations with their sharply contrasting economic, fiscal, and cultural national differences CANNOT be welded into a single whole without a centralised "government" of last resort to guarentee the stability and permanence of a currency - the Euro.
That blighted vision is now fading before our eyes, and with it IMO the certain demise of the EU as we know it.
Excellent! Although the fall-out will have severe results for all concerned economically, for us in the UK also.
If Plan B means a German federation of 10 countries committed to a Euromark, that is their business not ours, if they want that, but by no stretch of the imagination will it be anything like a European Union. Germany is not 'Europe' !
If the breakup of the EU dictatorship will come about via the collapse of the Eurozone, as seems now inevitable, then that is a price well worth paying.
Man proposes, and as always, God disposes.
The bungling eurocrats should have thought this through BEFORE this lunatic artificial construct was so hurriedly put in place.
It is now too late, and the financial markets, and harsh economic climate within the Eurozone members - it is these which now dictate the immediate and long term future of the EU.

"Or what king going to make war against another king.......and consults whether or not he be able.....desires conditions of peace?" (Luke 14)
Rejoice, rejoice, rejoice!

3 June 2010 at 10:24  
Blogger Mrs Rigby said...

Interesting. Well constructed and very plausible theory.

3 June 2010 at 10:46  
Blogger Preacher said...

If the motor is monetary union, then it seems the big ends have gone, personally I'm glad that we still have our own national currency. Let's not forget that a factor in WWII was the collapse of the Deutschmark, perhaps history is poised to repeat itself.
It's interesting that graham wood sees that the different fiscal demands of various nations cannot be welded together, perhaps a comparison could be drawn with the Idol in Daniels vision, it's the feet that crumble & topple the Idol, why? Precisely because it's impossible to weld Iron & Clay.
When will all the proud skeptics & would be Emperors learn that God is so far in front that they've lost sight of Him, so think that He doesn't exist, meanwhile as it says in psalms "The Nations rage against Him, but He laughs them to scorn".

WV lendem. I kid you not!

3 June 2010 at 11:11  
Blogger D. Singh said...

Mr Davis

"The dream is certain, and its interpretation is sure".

3 June 2010 at 11:17  
Anonymous Anonymous said...


3 June 2010 at 12:03  
Anonymous Bob Doney said...

Well, it's relatively easy to see that the PIIGS won't fit into the New European monetary arrangements - they will have to devalue their way out of the shit. The interesting case is France. Too big to drop out of the Euromark zone, but will the French homme in the rue stand for years of stagnation, German leadership and slow economic decline?

3 June 2010 at 12:17  
Blogger Scrigg said...

You might have D.Singh masterbating, but it sounds like desperate fantasy to me.

3 June 2010 at 12:29  
Anonymous graham wood said...

I believe Dehane's maxim: "Monetary Union is the motor of EU integration" needs to be taken to heart much more seriously.
Without monetary union and the single currency, there can be no economic strategies, or common policies. The very reverse of "ever closer union" in fact.
A destruction of one of the "pillars" of the EU.
The PIIGS are suffering within the 'one size fits all' policy of the Eurozone to such an extent that they have only two choices
1. Default on their massive debts.
2. Exit the Eurozone, and devalue their own currencies in order to repair, or rebuild, their own economies. A massive undertaking irrespective of other factors. Thus the domino effect will happen and the process is too far advanced to reverse for the EU.
Take the following comment just reported:
Former Spanish PM: "Spanish bankruptcy would probably provoke the collapse of the EU";

Bailout of Greece was a mistake

In an interview with Le Figaro, former Spanish Prime Minister José Maria Aznar says that: "it has been a mistake to rule out the restructuring of Greek debt under IMF control. We might have used part of the enormous capital made available by the EU to recapitalise banks. Yet, we have preferred conveying the message that we will not let any Eurozone member go bankrupt, without realising that there are huge differences among countries.
It has been a very bad mistake. A bailout for Greece was feasible, but it would be impossible for a country like Spain. Spain's bankruptcy would provoke the collapse of the euro, and probably of the EU".

I would omit the "probably"

What has not been considered in your original comment is the inevitable changes to the Lisbon Treaty that any such move by Germany to form a Euromark would entail.
This means the EU is even more between a rock and a hard place, for apart from other member states, for us in the UK any treaty change means a national referendum to which Cameron is now irrevocably committed. The EU establishment would seek to prevent such a course of action at all costs!
It may take time for the EU corpse to stop twitching - but give it time!

3 June 2010 at 13:08  
Blogger Graham Davis said...

Graham Wood (3 June 2010 13:08) said there are two choices for the PIIGS

There is a third and one that is the current policy, i.e. that cuts in public pending and higher taxes now will enable their huge deficits to be reduced in time by growth in their economies.

It is tempting to group these five countries together but they are very different. It may be that Greece will have to exit the Euro and that this will relieve the pressure on the other four.

As I mentioned earlier I am intrigued by the glee that underlies many comments about the Euro problems, misplaced in my opinion because Euroland is by far our biggest trading partner, problems for them means problems for us.

3 June 2010 at 13:45  
Anonymous bluedog said...

Your Grace has it right. Germany will emerge as leader of a constellation of North European Protestant States clustered around a new DM. Expect the French to be found shortly whimpering on the British doorstep and asking to be taken in. Plus ca change.

3 June 2010 at 13:45  
Blogger D. Singh said...

What an intellectually outstanding observation by Scrigg. It must have been the complexity of the posts today that combined theory, speculation, geo-politics, doctrine on monetary policy of the EU and Judaeo-Christian teleology that drove him to reach conclusions different from the ordinary uninstructed poster.

One supposes that it all adds to Scrigg’s intellectual prestige.

Unfortunately, it would have been better had his post carried a logical and consistent superstructure of thought. As it does not, it fails the elegance of sound theory. I am sure those who are looking for answers would commend it to high authority and attribute to it the status of a dominant theory whose explanatory power is of such force, that it will be studied by students for years to come.

3 June 2010 at 14:14  
Blogger writermannkl said...

Mr Davis nee Atheist
has a point about there being other answers to the PIIGS question. Let Greece and Portugal leave with a promise that they can return to the fold quite quickly (if they want to that is). It is Public Sector pay and pensions which is the real problem in Euroland.
One of the Labour party deficits was that they encouraged trade with the EU and not other markets. This present coalition are now reversing this policy.
Finally, let us have some fairness from France and Germany, it is they who over the years rode roughshod over the Growth and Stability Pact

3 June 2010 at 14:50  
Anonymous Andrew K said...

Your grace,

I think you managed to subtract Ireland twice.

3 June 2010 at 16:02  
Anonymous TheGlovner said...

Pot, kettle, black?

Shut it Singhy.

3 June 2010 at 16:17  
Blogger Bred in the bone said...

Sounds like another banks too big to fail argument to me, Italy should be added to the PIGS, then the Reichzone can blame the PIGIN SPICKS & WOPS!

3 June 2010 at 16:34  
Anonymous Oswin said...

Bred in the bone - oh that did my heart good!

Your Grace, an excellent presentation!

3 June 2010 at 17:25  
Anonymous Budgie said...

I am intrigued by the glee that underlay most previous support by europhiles like Graham Davis for the Euro, misplaced in my opinion because Euroland is a far smaller trading partner than ourselves (about 8:1 in fact).

Nevertheless the eurozone's problems with the Euro means problems for us. So we were foolish to encourage them to go for 'EMU' in the first place. And thus the biggest fools were the europhiles.

Moreover there appears to some sort of quirk in the character of the average europhile which enables him to believe, quite without proof, that Graham Davis' “jonny foreigner” either should or will look after the UK. That the “jonny foreigner” can do so better than the UK's own electorate seems a most peculiar extension of this act of faith.

3 June 2010 at 18:16  
Blogger Scrigg said...


Stop talking bollocks and admit that you are getting all excited about the prospect of Cranmer's beast rising from the sea.

Your Grace I am reading Boris Johnson "The Dream of Rome".

He says: "I was in a state of coma, watching 'The Revenge of The Sith' with my children when I jerked awake to the announcement that the 'Republic' was being dissolved, and in the interests of security an 'Empire' was being created, with a single sovereign ruler - Someone called Padme Amidila says, "This is how liberty dies - to the sound of thunderous applause."

Or in D Singh's case a loud and wet slapping noise.

3 June 2010 at 19:22  
Anonymous no nonny said...

Yes, Your Grace. Thank you for such an original and outstanding commentary. "Neatly" put indeed.

Speaking as one of your women communicants, I agree with Gnostic in cheering on the demise of the euSSR; and I trust that quite a few states in euroland will balk at the alternative of blatant control by the Hun. Like Oswin, as you see, I love that remark from Bred in the Bone! Thanks also to Mr. Singh, as usual, for his clarity and insight.

Sad to say, some other commenters here are horribly off-topic as well as inaccurate and foul-mouthed; presumably they are the product of years of indoctrination and subversion by marxist/lacanian euros. It all renders one thing clearer by the day: those of us who know we have souls cannot be understood or justly interpreted by those who-whatever they do- perceive themselves as only metal and clay:

17 But, beloved, remember ye the words which were spoken before of the apostles of our Lord Jesus Christ;
18 How that they told you there should be mockers in the last time, who should walk after their own ungodly lusts. (Jude 1:17-18)

Again - I'm off out of it for a while; but glad Your Grace and the Communicants are still here:)

3 June 2010 at 21:19  
Blogger Scrigg said...

D.Singh - Clarity and insight?

3 June 2010 at 21:56  
Blogger Graham Davis said...

Budgie. I am no Europhile, I simply attempt to view the situation without prejudice.

3 June 2010 at 22:20  
Anonymous Anonymous said...

"If the euro ceases to be the financial system would be faced with financial calamity."

No, no and thrice no. Many monetary unions have been excised without collapse. Britain/ Republic of Ireland, Czech / Slovak, etc etc

It is the politics of the EU which would be faced with calamity if the european monetary union came unstuck, not the finances

4 June 2010 at 07:03  
Anonymous len said...

In the original Babylon God confused the language of the people because He saw the Empire they were building would be based on the interests of corrupt man.
However we now have an evil world system which is based on Mammon and I believe God is exposing the corruption within the system.
Almost all crime is related to financial gain,pornography,prostitution,drugs,child labour, just to mention a few,also white collar crime whether permitted by Governments or not.
So I believe our financial system is about( or is ) having a severe shaking by God.
The cracks are starting to appear in the tower of Babel.

During the Middle Ages, Mammon was commonly personified as the demon of avarice, richness and injustice. Thus Peter Lombard (II, dist. 6) says, "Riches are called by the name of a devil, namely Mammon, for Mammon is the name of a devil, by which name riches are called according to the Syrian tongue." Piers Plowman also regards Mammon as a deity. Nicholas de Lyra (commenting on the passage in Luke) says: "Mammon est nomen daemonis" (Mammon is the name of a demon).

4 June 2010 at 07:46  
Anonymous Old Grumpy said...

@Graham Davis 3-6-10

My dear Sir, you don;t need to be a psychologist to understand the loathing that so many people have to the flawed concept of the eu.

1. It's a dictatorship, run by a statutary bureaucracy, if you hadn;t noticed
2. We were conned into joining the "common market by traitor Heath who, on his own admission, lied to us extensively
3. The common market became the eec then the ec then the eu without any input from the voters
4. Never mind the Jonny foreigner jibe, I would be quite happy to join NAFTA. And that's free, too, never mind £45m per day membership fee.
5. I have no problem with europe, or's simply the eu that I loathe
6. when you have no legitimate way of objection to an imposed state, you have a choice of do nothing or take to the streets. Being British, we choose the former. But by the same token, it's such fun to see the whole wretched business in a real mess.

Does this help at all? I am not a "little Englander" but I do dislike the "little europeans"

4 June 2010 at 08:48  
Anonymous Budgie said...

Graham Davis said "Budgie. I am no Europhile, I simply attempt to view the situation without prejudice."

"Prejudice" is in the eye of the beholder.

Europhiles frequently portray eurosceptics as afraid of “jonny foreigner” (as you did). But it is probably more valid to characterise europhiles as believing that “jonny foreigner” can run the UK better than we can.

Why? Because I do not know a single eurosceptic that hates Europe, but every europhile I have heard or read maintains that the EU should control more and more of the UK.

4 June 2010 at 08:51  
Anonymous chris r said...

"And one might also prophesy, as with a number of naturally evolving European terms, that the prefix ‘euro’ will ultimately if covertly be dropped from the 'euromark', and 'Europe' will wake up one morning to find its currency is called the ‘mark’. "

Would that be the mark of the beast?

4 June 2010 at 11:50  
Anonymous Anguished Soul said...

Interesting post, Your Grace.

Mark of the beast indeed.

4 June 2010 at 14:13  
Anonymous Voyager said...

There was a proposal floated during Norman Lamont's time for the Euro to float alongside national currencies which would have avoided these difficulties.

Having gone on a spending spree using German credibility behind the Euro Club Med countries simply cannot repay and must default. Whatever transactions currency is built around Germany will be too hard for Club Med to repay debts.

The Default is inevitable. The Credit Contraction in France and Germany as banks absorb losses from defaulting Club Med states will be matched by China and Brazil. The simple truth is that agrarian economies cannot live like industrial ones simply by importing credit. This was Gierek's mistake in Poland in the 1970s which led to Solidarnosc.

The problem is how to stabilise the major banking and insurance groups as their asset bases collapse and avoid a Kreditanstalt Wien debacle as in 1931 which destroyed the Gold Standard and caused the Government to fall in London

4 June 2010 at 16:45  
Anonymous PJ said...

The Bilderberg Conference exposed in the European Parliament

A must watch

4 June 2010 at 23:28  
Anonymous Oswin said...

Just testing etc.

9 June 2010 at 03:02  
Anonymous Oswin said...

Still testing...don't mind me...

9 June 2010 at 03:06  
Anonymous NagyEmber said...

Actually, Hungary is not a member of the euro currency. We still use the good old worthless forint. I would still take it over the euro any day.

25 June 2010 at 22:55  
Blogger vigorniensis said...

Can we PLEASE stop using the idiotic term EUROSCEPTIC. We are not sceptic about the EU. We hate out sovereignty having been stolen by Heath The Traitor. If EU-fanatic Graham Davis cannot understand this then why does he bother commenting? And he doesn't understand becasue he gave it away when he said "loss of some sovereignty". How the hell can you have that??? Major The Traitor gave it away (in more ways thasn one) when he said that Elizabeth Saxe Coboiurg Gothe was now just a european citizen. Now then Graham how difficult is that to understand. I suggest you take your seditious Common Purpose musings elsewhere. And just in case you still don't get it: our grandfathers and forefathers didn't die just for some Kraut dike to take us over, but to save our sovereignty, independence and freedom.
We WILL FIGHT BACK and regain our sovereignty - take my word for it matey!

2 November 2011 at 11:55  

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