Posted by Karl Denninger
I would firmly place rumors of an imminent re-emergence of the Mark in the “Tin foil hat” bin.
BRUSSELS — Europe announced radical plans on Wednesday to pre-vet member states’ budgets from next year, drawing decidedly mixed reactions from euro giants Germany and France.
The idea forms part of a post-recession drive towards pan-European ‘economic governance,’ aimed at reining in runaway state debts threatening the region’s financial stability and wider economic recovery.
Uh, without sovereignty over the budget you do not have a sovereign nation. Period, end of discussion, full-stop.
German Chancellor Angela Merkel meanwhile said that budgets are “not secret anyway,” pointing out that Brussels “can already today form an opinion about what governments put forward during budgetary debates.”
Allowing the commission to comment earlier is, “I believe, not a bad thing,” she added.
Her deputy, Foreign Minister Guido Westerwelle, had earlier stressed that the “right” to set budgets fell to “national parliaments,” representing the “nucleus of state sovereignty.”
That’s the beginning and end of national sovereignty, when you get down to it. Without the power of the purse you have no powers at all. Everything depends on the ability to cut checks and raise taxes; indeed, your entire premise as a sovereign economically – the premise on which you can borrow money – rests there.
I still rate the odds of the persistent rumors as somewhere around slim and none, but if such a thing was to happen…. well, let’s just say that the only safe stock market in the world would be the DAX.
And by the way, as has been noted by myself and others on the forum:
If Nations are to be Nations, and not subservient to banks, they better do it now. This would be the correct time, place and manner to make clear to banks that they exist at the pleasure of nations, not the other way around.