But the euro also had some other defects of which the architects were unaware and which are not fully understood even today. In retrospect it is now clear that the main source of trouble is that the member states of the euro have surrendered to the European Central Bank their rights to create fiat money. They did not realize what that entails – and neither did the European authorities.
I find this a so called master builder dilema for what it is from Soros above, dangerous to free Men . Greece is the outpost to slow the tide into the hinterlands. Thus the true gatekeepers heed another day under the sun. http://www.middle-ages.org.uk/el-cid.htm
The discovery by financial capitalists that they made money out of issuing and selling securities rather than out of production, distribution and consumption of goods accordingly led them to the point where they discovered that the exploiting of an operating company by excessive issuance of securities or the issuance of bonds rather than equity securities not only was profitable to them but made it possible for them to increase their profits by bankruptcy of the firm, providing fees and commission of reorganization as well as the opportunity to issue new securities.
When the business interests pushed through the first installment of the civil service reform in 1881, they expected to control both political parties equally. Some intended to contribute to both and to allow an alternation of the two parties in public office in order to conceal their own influence, inhibit any exhibition of independence by politicians, and allow the electorate to believe that they were exercising their own free choice.
Nothing has changed since 1934 to today since technocrats and lobbyists are the market. The rest is a waste of pen. I just note 1965 as my trend modifier
to scale of ruin of design.
Sample today: The illusion comes from the fact that this paper profit was not the result of selling products that allowed businesses and consumers to be more productive and more profitable in their own right. What was really happening was that financial firms were extracting equity that had been built up over nearly a century by businesses and consumers. The financial business had become a predatory business, scavenging the land for pockets of wealth to convert into cash that would be funneled in part to the banks as fees.
It’s not clear that even at the highest levels the bankers understood what they were doing, since businessmen in the heat of competitive battle do not have the time to muse over the broader social implications of what they do. This is a job for government policy wonks and business professors, most of whom spent their time enabling and cheerleading for the banks. Moreover, some of what the industry did helped their customers, such as automated bill paying, even though this was a smaller proportion of bank profits.
The Last Frontier
We come to the final stage of this process, wherein the financial industry has infiltrated the federal government itself, capturing it completely for its own purposes, and latching on to the last great source of equity – the ability to tax.