Financial Dictatorship Expands with Spanish "Bank Bailout," as the System Prepares to Blow Out
June 11, 2012 • 7:06AM

The relentless destruction of what little remains of the sovereignty of the nations of Europe—and indeed of the world as a whole—took another step with the so-called "bailout" of the Spanish banking system announced June 9. After consultation with the 17 finance ministers of the Eurogroup, the Kingdom of Spain announced it would seek up to 100 billion euros ($125 billion) to recapitalize its banks. The exact amount to be provided—and the conditions to be attached—will be determined by the European Commission, in conjunction with the European Central Bank, the European Banking Authority, and the IMF, after a formal request is received from Spain. The money will come from either the European Financial Stability Fund (EFSF) or the yet-to-be-formed European Stability Mechanism (ESM), and will be distributed through the Spanish Fund for Orderly Bank Restructuring (FROB). So Spain is not actually getting any money at this time.

The British Empire is using the Spanish announcement to push its demand that the nations of the eurozone give up any remaining notions of sovereignty, so that the technocrats can "solve" the "banking crisis" by killing off the population, as in Greece.

  • British Chancellor of the Exchequer George Osborne took to the pages of the Sunday Telegraph to complain that the British recovery is "being killed off" by the European problems, and that "the eurozone needs to follow the 'remorseless logic' of monetary union towards much greater fiscal integration." The Eurozone needs "most of the mechanisms that make other currencies work: more support from stronger economies to help weaker economies adjust; more pooling of resources, whether through common eurobonds or some other mechanism; a shared backstop for the banking system through a banking union; and as a consequence much closer collective oversight of fiscal and financial policy.... We will also not stand in the way of further political integration among the eurozone countries that any successful solution will require, including a banking union... a banking union is a natural extension of a single currency." However, Osborne made clear, "Britain will not take part, British taxpayers will not stand behind eurozone banks."
  • IMF Managing Director Christine Lagarde said June 8 that Europe must move toward deeper fiscal integration, complementing a monetary union with a financial union. Lagarde called for unified bank supervision, a bank resolution authority, and a single deposit insurance fund. "That means more Europe, not less," she said.
  • U.S. Treasury Secretary Tim Geithner, in a statement, welcomed "Spain's action to recapitalize its banking system and the commitment by its European partners to provide support. These are important for the health of Spain's economy and as concrete steps on the path to financial union, which is vital to the resilience of the euro area."
  • The U.S. Treasury also released a statement on behalf of the G-7, welcoming "Spain's plan to recapitalize its banking system and the Eurogroup's announcement of support for Spain's financial restructuring authority. These steps represent important progress as the euro area moves forward on greater financial and fiscal union to reinforce monetary union."
  • Der Spiegel reported Saturday that European Union Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, Eurogroup head Jean-Claude Juncker and European Central Bank President Mario Draghi are working on plans for a "genuine fiscal union." Under the plan, member states would no longer be able to borrow money on their own; new borrowing would require approval from a new eurozone authority, and if approved, joint Eurobonds would be issued to finance spending.
  • EU officials want to use the ESM to fund the Spanish bank recapitalization, but the ESM does not exist. "That's why it's so important that the ESM ... be ratified quickly," German Finance Minister Wolfgang Schaeuble said.

These statements make it clear that the demands are for the destruction of nation-states and the imposition of corporatist fascism. The financial system is dead, and can never be revived. So-called bailouts mean only genocide and global fascist dictatorship. The only effective antidote to this is Glass-Steagall, the credit system, and global redevelopment, beginning with NAWAPA.