The dreaded and treasonous coup by Brussels is here: with the EU Commission issuing securities, dedicated taxation--and the emergence of a full-fledged tyranny--are coming soon
I agree on the war bonds issue, not only for historical reasons (the US began using repo facilities in 1917 upon their entry into WW1) but also because the EU Commission cannot secure these short-term loans beyond their five-year budget (which also decreases over time).
I'll have to read up on the EU/BIS relationship, but I suspect that the ECB has a bunch of accounts in Basle…
Let's just hope these don't turn into war bonds... Maybe they already are to an extent... I suppose this means that the imminent bankruptcy is the EU and UK has been avoided? Or do you see it as a necessary mechanism they put in place for just that eventuality? Thanks for the analysis!
As to the bankruptcy, well, technically, all Western countries are insolvent and their borrowing is kept on life support by pawning future tax revenues (this is how these things work).
My gut feeling is that these 'EU-Bonds and EU-Bills' will be used by the EU Commission to 'rescue' any member-state that gets into trouble; of course, Brussels will demand its pound of flesh, so to speak, hence I consider this a kind of extortion racket:
'Oh, you need some emergency money? Sure, here you go--but what do you offer in return?'
I think this capability will actually hasten the insolvency of member-states (and perhaps also the UK) as the EU Commission can now 'bail out' member-states and supersede them by adding terms and conditions.
This is interesting, because the BIS *is* actually a sovereign entity. I wonder where they fit into this. Also, this seems very 'war bond-ish' to me.
Thanks for the reporting.
I agree on the war bonds issue, not only for historical reasons (the US began using repo facilities in 1917 upon their entry into WW1) but also because the EU Commission cannot secure these short-term loans beyond their five-year budget (which also decreases over time).
I'll have to read up on the EU/BIS relationship, but I suspect that the ECB has a bunch of accounts in Basle…
Let's just hope these don't turn into war bonds... Maybe they already are to an extent... I suppose this means that the imminent bankruptcy is the EU and UK has been avoided? Or do you see it as a necessary mechanism they put in place for just that eventuality? Thanks for the analysis!
I think that these will be used like war bonds.
As to the bankruptcy, well, technically, all Western countries are insolvent and their borrowing is kept on life support by pawning future tax revenues (this is how these things work).
My gut feeling is that these 'EU-Bonds and EU-Bills' will be used by the EU Commission to 'rescue' any member-state that gets into trouble; of course, Brussels will demand its pound of flesh, so to speak, hence I consider this a kind of extortion racket:
'Oh, you need some emergency money? Sure, here you go--but what do you offer in return?'
I think this capability will actually hasten the insolvency of member-states (and perhaps also the UK) as the EU Commission can now 'bail out' member-states and supersede them by adding terms and conditions.