Free-Market Sovereign Debt Manifesto
by Ron Holland
by Ron Holland: The
Fiat Dollar & Debt Democracy Experiments Have Failed
from Greece There is an eerie disconnect involved with
analyzing the frightening financial and economic consequences of
the ongoing 2011 Sovereign Debt and Equity Market Crash while sailing
around the Greek Islands. But taking a look at Greek history clearly
shows some parallels and solutions to what the nations of the West
are facing today. For the last couple of days weve been in
Spetses, the first Greek island to have raised the flag of insurrection
and secession from an already crumbling Ottoman Empire on April
and political experts believe the only way out of the deepening
recession is for Greece to now withdraw from another empire, the
European Union, and to repudiate the EU and sovereign debts, primarily
to German banks. This would require the restoration of the independent
Greek currency, the Drachma, and would likely create another short-term
drop in the Greek economy as was previously created by the earlier
EU austerity demands.
Greece was one of the first European nations in the faltering Ottoman
Empire to withdraw from the failing, bureaucratic and bankrupt regime.
Although independence was a long and difficult process, this action
served Greece well then, just as pulling out of the EU now could
create a new long-term positive economic environment for the nation.
German-led and majority German-financed EU is a relatively new political
entity or economic union of nations, this dream of powerful German
leaders from Bismarck to Hitler is now a reality. However, it was
mistakenly modeled within the EU on the now failing US system of
debt democracy and is now sinking like the earlier Ottoman Empire.
I respectfully suggest Greece should follow their earlier historical
parallel with Ottoman rule and seek to get out of the EU sooner
rather than later.
The costs of
remaining inside the European Union and paying crushing debts owed
to German banks is too great when the option of restored national
independence and a Greek currency together with limited taxes and
free markets tailored to Greek needs is an alternative solution,
one that worked before and can work again for the country. Why totally
impoverish a nation to support a few banking elites with the euro
and sovereign debts when debt repudiation now is the answer?
experts have argued, in defense of the euro and the EU, that Greece
has an economy based only on tourism, with very limited industrial
and agricultural assets; therefore the nation has no way to support
an independent Greek currency.
I agree with
the establishment defenders that the Greek economy is based primarily
on tourism and most tourism is island centered. Certain EU economists
have also suggested that Greece should sell selected islands, which
are the only valuable assets really available to be mortgaged or
sold, to guarantee their unpayable sovereign debts to the banks.
Rather than ceding this national territory to the German banks to
be sold with big profits going to the banks, however, I suggest
a course of action to benefit Greece rather than the EU and banking
to repudiate the existing sovereign debts and develop a new currency,
should it withdraw from the EU. I suggest many of the Greek islands
could be leased or pledged to back a new Greek drachma rather than
given to the banks to postpone the day of reckoning on the sovereign
debt. The banks could go under without the wealth of Greece or ownership
of island assets but giving these profits to them would guarantee
Greek poverty; using the islands to back a new currency could restore
Greek prosperity, jobs and economic growth.
Parallels of a European Union
The goal of
European union under Germany has had a long and conflict laden history.
Many wars, starting with the French and German late 19th century
conflicts and the arms race leading up to the First World War, were
instigated by powerful banking dynasties and their favored arms
industries for financing and war industry profits. There was little
regard as to the severity of any conflicts or the question of winners
for the British and French politicians their war goals were somewhat
different and designed to ultimately prevent the German economic
domination of Europe. They were willing to use even military means
if necessary to achieve their political and economic goals.
shifting alliances and brinkmanship diplomacy continued back and
forth until the Second World War. Here, Hitler used military actions
similar to the British and French attempting to undo the harsh results
of World War One and the infamous Treaty of Versailles. Thankfully,
his short-term military success was followed ultimately by defeat.
Now, once again,
Germany the economic powerhouse of Europe is attempting to build
a European union and succeeding this time using economic and political
rather than military means. Few talk about it but the European Union
today is predominantly controlled from Berlin and financed by Germany
but lead by a Brussels bureaucracy fronting for the German banks.
The EU was
established with the full support of London and Washington to serve
first as an economic power but with the eventual goal of an all-powerful
political union and full ally of Anglo-American interests in Europe.
This earlier dream of German leaders now endorsed by Washington
and London was mistakenly modeled after the powerful American union
born out of Washingtons victory in the American Civil War.
Therefore, it deliberately does not have a mechanism for nation
both flawed unions seek to maintain monopoly control over formerly
sovereign nations in Europe and sovereign states in the US by powerful
special interests that often conflict with the will and best interests
of member countries and their citizens.
The real problem
for Greece and other EU captive nations is that Wall Street, the
Federal Reserve and the Bank of England developed a sovereign debt
model to fund the EU takeover of independent nations. They supported
using political bribes and unsustainable benefits designed to build
an EU base of voter support inside each new controlled nation.
This was combined
with central bank created fiat currencies to allow future hyperinflation
to inflate away these unsustainable debt loads once permanent control
was achieved. Of course, no mechanism for national withdrawal was
planned to prohibit competition or an easy way out for either nations
or peoples. While a voluntary confederation modeled on the Swiss
confederation or Canada and even an economic trade agreement might
have worked for the benefit of all, the created EU monster only
benefits powerful politicians and banking elites.
But now the
sovereign debt crisis is here and the German banking system as well
as related London and Wall Street banks can only survive if the
status quo is maintained. Individual and national wealth in member
countries must be drained off and stolen to pay the sovereign debts
and keep the EU monetary and banking elites in business.
I enjoyed an
off-the-record private dinner several days ago with
an ambassador representing one of Greeces closest allies.
His experienced view on the Greek situation today probably parallels
the opinion of most governments and the EU establishment, something
to the effect that the Greek political leadership will continue
to protest but eventually agree to all EU austerity, privatization
demands and new revenue generating tax efforts necessary to get
more EU money and better terms on Greek debt. The primary debt holders
are German and some French banks and they will continue to pretend
to accept the Greek promises and guarantees because to question
the situation or to make more demands on the hundreds of billions
in sovereign debt would likely turn into first a German, then European
and finally a global banking crisis.
While the game
of European economic chicken continues, both sides believe
the real outcome will be the usual scenario nothing
will change with Greece. All parties to the negotiations understand
that Greek politicians have no plans to live up to their agreements
and neither do the German banks or EU have any intention to make
them do so because they fear the resulting banking crisis. Maintaining
the status quo is the best outcome possible until the sovereign
debt crisis passes.
Alternative to Continued EU Domination
other EU members should accept the fact that top-down rule from
unelected Brussels bureaucrats and related sovereign debt financing
has failed. Nations which continue to buy time through more debt
deferment and increased taxes and austerity measures are only playing
a rigged game for the banks. The debt PONZI scheme has played out
in both America and the EU and only those nations getting out of
the scheme early will have an opportunity to preserve their wealth
and state movements to repudiate the sovereign debts made by bought-off
government leaders, congress and parliaments must be formed. There
is no such thing as a free lunch unless you leave before the meal
is over and the check is paid.
and other EU member nations should consider withdrawal from the
European Union now before it is too late. These nations and ultimately
even individual US states should democratically decide their future
through referendums and polling.
efforts are needed to show the economic advantages of sovereign
debt repudiation now over more debt and ultimately government bankruptcy.
Rather than postponing the day of reckoning for the banks and politicians
that got us all into this mess, it is time to get out.
I hope one
day soon, the people of Greece will begin a similar process to their
actions of April 3, 1821 in Spetses. They will become a beacon to
the world by showing how individual citizens can rectify the problems
created by the politicians and banking elites. I believe the solution
will never begin in a capital city, a parliament or in congress
but rather by free people away from the seats of power and special
and the citizens of these united States, now is the
time to raise the flags of peaceful insurrection, debt repudiation
and democratic withdrawal from a corrupt and broken system of debt
financed democracy and supra-national dominance from Brussels, Berlin,
London, Wall Street and Washington.
and banking elites have destroyed the economy and prosperity of
the West. They have burdened our children and future generations
with a debt load so great as to insure poverty and depression rather
than our preferred birthright of prosperity and opportunity
all to enhance their power, control and wealth without regard to
the consequences for the rest of us.
free markets are the answer, not more top-down political, monetary
rules and controls. It is time to restart the world economy through
entrepreneurial actions and restore political power to productive
citizens through democratic and localized government actions.
A working democracy
was first born in Greece back in 508 BC. They began working for
independence from the Ottoman Empire around 1821. As I get ready
to leave the beautiful Greek islands, I hope these people will once
again take the lead now in the 21st century and show the rest of
us how to achieve freedom again in a very un-free and economically
with permission from The
Holland [send him
a contributing editor to the Swiss
Mountain Vision Newsletter
and Chairman of the Advisory Board of the Foundation for the Advancement
of Free-Market Thinking (FAFMT)
in Vaduz, Liechtenstein.
© 2011 The
Best of Ron Holland