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„Mad Euro” as a Product of „Prussian Megalomania”

In pre-war Poland in Silesia, when on a hot Sunday afternoon a couple would be walking while the husband was carrying the overcoat of his wife it was obvious that the couple was Polish – on the other hand should the wife carry her husband’s coat everybody knew that the couple was German because such was Germanic tradition which was in full bloom in the ”Kingdom of Prussia” which was liquidated in 1945 a century and half after it initiated the international crime of partitions of Poland in 1762-1795.

Traditional Germanic imposition of an inferior position on women in the traditional German culture was well known to the Poles. It was diametrically opposed to the ideals of “Polish Mother” which are venerated in the Polish national tradition.

During the week ending on May 13, 2012 the financial markets continue to surge and collapse based on the latest news from Europe. Slovakia’s unwillingness to contribute to a bailout fund resulted in the failure of Dexia, a French-Belgian bank with assets of almost $700 billion. As the sovereign debt crisis has intensified in the last few months, it is becoming a real possibility that the “mads” euro itself will soon collapse.
The euro’s vulnerability underscores the folly of a “political currency,” the euro has been a creation of German technocrats. The euro may be on its deathbed a decade after its birth. It demonstrates the futility of central planning.
The European Union and euro were officially created by the Maastricht Treaty in 1993. The euro as a single currency could provide stability across the continent under German leadership because a currency’s ability to facilitate transactions only increases as more people use it. In reality there were formal rules (called the Maastricht criteria) that new applicants needed to satisfy before adopting the euro. It was a good luck of Poland that it did not qualify.
The designers of the euro understood that the euro is a fiat currency, meaning that the printing press could be used to achieve political purposes. There is a constant danger that the more profligate members will require a monetary bailout.
In the present crisis Krugman and many others think the “obvious” solution would be for Greece to devalue its currency. This would make it easier to repay its debts and would make Greek exports more competitive, thus boosting economic growth. However Greece is not the master of its own economic destiny. Since it adopted the euro it is now powerless to inflate its way out of trouble. Thus the Greeks are condemned to suffer from fiscal austerity and a painful deflation of wages and prices.

Thus, Europe needs to “make a quantum step up in economic and political integration.” Mainstream theory shows that it is suboptimal to have a single currency covering areas with governments enacting different fiscal policies, and hence the “obvious” conclusion is that the European governments “must” be brought under the control of a single German agency.
After the fall of the Soviet Union as the century ended and a new millennium begun, Germany's Government and Parliament have come back to Berlin, the nation's historic capital established as a result of the partitions of Poland in 1762-1795 and defeat of France in 1870. Germany today is the world's third largest economy and the economic foundation on which Europe's common currency “the mad euro” exists as a result of the Prussian megalomania still blossoming despite German defeat in two world wars, both of which were initiated by Berlin in order to create German Empire “from the Rhine River to Wladywostok on the shores of the Pacific Ocean.”

www.pogonowski.com
16 maj 2012

Iwo Cyprian Pogonowski 

  

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