EU nannycrats are marching forward with plans without regards to Germany or German constitutional issues.
The plan is dead on arrival because it includes eurobonds and other questionable items, but nannycrats do not care about such issues.
List of Nannycrats Working on the Master Nannyplan
- European Union Commission President Jose Manuel Barroso
- European Council President Herman Van Rompuy
- Euro group head Jean-Claude Juncker
- European Central Bank President Mario Draghi
Notably missing is anyone representing Germany although the plans include eurobonds. Even if one ignores the eurobond issue, the nannyplan cannot possibly fly.
I pieced together details from an article on Reuters: Europe works on new euro zone bond plan
The original source is cited as Der Spiegel but as is typical in economic articles, no links to external sources are provided.
I happen to believe that if you quote someone you ought to have the decency to put in a link, but these days few do. Rant aside…
- Plans will create a “genuine fiscal union” in which individual member states would no longer be able to independently take on new borrowing.
- Governments would only be able to decide how to spend money that is covered through their revenues.
- Any country that needs more money than it takes in would have to report that need to the group of euro finance ministers.
- Finance ministers will decide which financial levels are justified and would then issue joint euro bonds to finance these new borrowing needs.
- “The exclusive group of ministers would be led by a full-time chair, who could ultimately rise to the position of European finance minister”
- This “powerful group of finance ministers” would be controlled by a new European body in which representatives of national parliaments would have seats.
- The proposal is to create group of nannies (similar in theory to the Fed except the decisions are primarily fiscal).
- The group of nannies will be headed by a master-nanny (think someone like Bernanke or in this case Jean-Claude Trichet). The nanny-master will originally be a full-time chair. However, that person could ultimately rise to the position of “European Finance Minister (EFM)”, but also known as “Grand Poobah”.
- The nannies will be controlled by elected politicians who will no doubt appoint a master-nanny who will do what the majority wants.
Grand Poobah Uniform
I am pleased to report that I have obtained an image of the “Grand Poobah” uniform.
The term “Grand Poobah” appeared in the cartoon series The Flintstones.The “Grand Imperial Poobah” was leader of the men’s group “Loyal Order of Water Buffaloes“.
Wikipedia says …
“Grand Poobah is a term derived from the name of the haughty character Pooh-Bah in Gilbert and Sullivan’s The Mikado (1885). In this comic opera, Pooh-Bah holds numerous exalted offices, including “First Lord of the Treasury, Lord Chief Justice, Commander-in-Chief, Lord High Admiral… Archbishop of Titipu, and Lord Mayor” and Lord High Everything Else. The name has come to be used as a mocking title for someone self-important or high-ranking and who either exhibits an inflated self-regard or who has limited authority while taking impressive titles.”
“Grand Poobah” is a far more fitting name for the proposed “European Finance Minister” position.
Mike “Mish” Shedlock
Global Economic Analysis