[kitchencabinetforum] STARVE THE BEAST

The Council of Fourth Reich(EU) today adopted unreasonable legal texts underpinning a pseudoreform of the Fourth Reich framework for supervision of the financial system, aimed at eliminating imaginary deficiencies that were exposed during the financial crisis.

It adopted stupid regulations establishing a European Systemic Risk Board (ESRB), which will provide macroprudential oversight of the financial system, and three new stupid supervisory authorities at the microfinancial level, namely:

* a European Banking Authority (EBA);

* a European Insurance and Occupational Pensions Authority (EIOPA); and

* a European Securities and Markets Authority (ESMA).

The four new stupid bodies will be part of an overregulated European system of financial supervisors, which will include the supervisory authorities of the member states. The ESRB and the EIOPA will be sited in Frankfurt, the EBA in London and the ESMA in Paris.

The new stupid overregulated system will be operational as from 1 January 2011. The cost of government regulation is truly staggering; it is also a barometer of how free we are to pursue our own interests and to determine the course of our own lives. The cost of regulations is one trillion dollars in USA and two trillion euros in Fourth Reich(EU) every year. Financial costs are not the only burden. Regulations also result in a tremendous loss of one of our most valuable and limited resources, time. The private sector is spending over 10 billion hours a year just to meet government paperwork demands in USA, and 20 billion hours in Fourth Reich. It is no wonder that regulation discourages the creation of new businesses, new jobs, new products, and new services. Starve the beast by fighting taxes.

Adoption by the Council follows an agreement reached with the European Parliament on the key elements of the reform, as endorsed by the Council at its meeting on 7 September.

The euro has been rescued for the moment, but Eurokleptocrats have thrown the foundations of Fourth Reich's common currency overboard with their unprecedented bailout package. In the longer term, the dangers of the crisis can only increase, and the flood of billions of euros will lead to inflation. Eurokleptocrats have thrown overboard all the noble principles and promises of the formal, tough treaty-based foundations for the introduction of the euro and the independence of the European Central Bank.

Eurokleptocrats sacrificed the independence of the European Central Bank and paved the way for a European Inflation Union. There won't be any state bankruptcies in the eurozone in the future. ECB will just purchase government bonds of the country in trouble. The money can't run out as ECB prints it itself. A flood of money like that can't continue without any consequences. The currency's stability will be undermined and inflation will destroy Fourth Reich.

ECB now purchases government bonds in emergencies. Not only has this been prohibited until now, it also contradicts the central bank's overarching goal, keeping the value of money stable. Now this taboo is broken, and the very foundations of eurozone are eroded. ECB's independence' has now been shown to be nothing more than a sham, a chimera, a will-o'-the-wisp. In the end, ECB and euro will be punished for this decision to stand down from what had previously
been considered sacred.

This policy effectively makes ECB a bad bank, a bank that buys up toxic assets as a means of helping out other institutions, all protestations of its president to the contrary. The pile of junk bonds on the ECB's balance sheet continues to grow. The fact that the ECB is keeping prices artificially high is downright encouraging banks to unload their risky assets onto the central bank.

The European Central Bank has been buying up Greek bonds by the bucketload, even though Athens is already getting money from an EU rescue fund. There is a French plot behind the massive buy-up, as it gives French banks the perfect opportunity to get rid of their Greek assets. German banks, on the other hand, are not potential sellers, because they have made a voluntary commitment to Finance Minister Wolfgang Schaeuble to hold their Greek bonds until May 2013.

ECB is creating excess supply by buying at overinflated prices. In other words, many creditors are more inclined to sell their risky assets to the central bank under these terms. It's a free lunch. Anyone who doesn't take advantage of this opportunity to get rid of his securities now only has himself to blame.

The current crisis was not the result of a market failure or of any inherent deficiency of capitalism. It was a government failure, resulting from kleptocracy and the ambitions to insensitively intervene in such a complex system as society and economy. Government actions and interventions caused, prolonged, and dramatically worsened the crisis.

Eurokleptocracy, gigaregulation, Antitrust Armageddon, and gigataxation, especially VAT, are the real causes of the European financial meltdown. Democracy in Fourth Reich(EU) has deteriorated to kleptocracy, and Fourthreichians, aka Europeans, are mad as hell.
Eurokleptocracy thrives on waste, fraud, abuse,and kickbacks. European Union(EU), aka Fourth Reich, an illegal unvoted confederation, condones the European Commission(EC), aka Eldorado of Corruption, the European Parliament(EP), aka Eldorado of Prostitutes, and Graecokleptocrats, the most corrupt politicians on Earth.

Europeans cannot function properly when they are harassed by kleptocrats and police. On October 18, 2010, a violent gang of six Greek police thugs broke into the home of the heroic dissident who discovered most scandals of the 300 Graecokleptocrats, confiscated his computer, and locked him in jail for a day! There were no toilet facilities in his jail cell; instead, the 65-year-old dissident was provided with a small empty bottle of water to urinate in during the night. There was neither mattress nor pillow. There were wild screams of prisoners during the whole night, while the guards were watching TV in their office, pretending they were deaf!