Morten Messerschmidt: The Euro will crash and burn

Dansk Folkeparti 23 Februrary 2011
By Karsten Holt, translated by Henrik R. Clausen

Already today we’re all footing the bills for the foolish adventures of the Euro-dreamers. It won’t be long until Portugal and Spain will also need money – our money – from the European Union, just like Greece and Ireland before them. In that case, the coffer will be empty. The newly created European Stability Mechanism will simply be out of means.

Morten Messerschmidt is not in doubt for a second when asked about the future of the common European currency, the Euro. Through more than eight years, the Euro has created a financial climate irresistible to south European countries as well as Ireland. Valuations were universally inflated, but the feeling of wealth was entirely illusionary.

But Morten Messerschmidt is hardly surprised. For the politicians were lying when they told us that the euro was merely a question of getting rid of exchange fees. They ‘forgot’ to tell us the truth, and instead tried to sell the Danes the tall tale that there was no way we could afford being outside. They did not tell us that the euro countries would be obligated to ‘coordinate’ their social, educational and labour market policies. They never told the European citizens that the euro was a political project – and one out of fantasy realms.

Nobody told us the truth

“There were obvious reasons to not tell the Europeans the truth, for had that been done, they’d have run away screaming. Still, the situation is already bad enough. A majority of Germans want their strong Deutschmark back, and a Danish opinion poll recently found that only 25,5 percent of Danes are certain that they would vote in favour of the Euro if Denmark was to hold a referendum about it replacing the Danish Krone. Most Danes have already found that the Euro stinks, badly.”, states Morten Messerschmidt.

But how does the future look? What means would the European Union be prepared to defend the crisis-stricken currency?

“The European Union is defending the Euro with everything it’s got, for the entire project of the European Union stands or falls with the Euro. For this reason they are – unfortunately – prepared to go to extreme length for the common currency. One of the advantages to the European Commission is that the crisis is a very useful opportunity to tighten the grip over the member countries, establish control of national budgets, and institute a direct European Union tax. In other words, the European Union intends to pull money directly from the pockets of the citizens. The Danes, who already pay close to € 3 billion per year, would have to pony up even more”, says Morten Messerschmidt.

From tiger to kitten

He also warns against the social unrest that is bound to follow as the crisis deepens. Unrest that in Greece led to a minister being beaten up by furious demonstrators, unrest which periodically throws the country into general strikes where everything grinds to a halt. Similar conditions exist in Ireland, where citizens are furious over wage decreases and hollowing out of pensions.

“In the end, it is always the ordinary citizen who will lose out. It is the ordinary citizen who pays the price for the irresponsible politics of the elite. In Ireland the banks were having a party of borrowing without equal in recorded history. Everyone were talking about the “Celtic tiger”, but that tiger has now turned out to be a tiny, rumpled kitten. ”

“In Greece, the government was fabricating heavily manipulated budgets in order to join the Euro club – and through this gain access to the international credit market at interest rates entirely disconnected to the economic reality in the country. The Euro created artificial and entirely unrealistic conditions for countries that no rational person would ever lend money,” adds Morten Messerschmidt.

“The frustrations are right there beneath the surface. It is like a time bomb that the Eurozone countries are not able to dismantle, due to the restrictions built into the Euro. This is now the cause for countries like Greece and Ireland not being able to drag themselves out of their problems. Under normal circumstances the value of the Irish Pound and the Greek Drachma would have plummeted, improving prospects of exports and job creation. But the Euro has run all sources of growth dry. I am deeply worried that the social unrest will get out of control, also in countries as Spain and Portugal.

The solution

Morten Messerschmidt warns against what would appear to be easy solutions. Nothing is easier than just going “I told you so”. The situation is much too severe for that. And the longer the problems are left unsolved, the worse they become. The European Union has to face up to the fact that the days of the Euro are coming to an end. This also means that it does not make sense to put more money into the European Stability Mechanism. Purchases of otherwise unmarketable national bonds is a bottomless hole. It is like quicksand – the more one struggles, the deeper one sinks into the quagmire. The debt bomb will no doubt detonate, and drag otherwise sound economies down along, according to Morten Messerschmidt.

“At this point, there appears to be only one viable solution, which is to ‘liberate’ the crisis-stricken countries from the shackles of the Euro. This would also constitute genuine respect for the treaty, which explicitly forbids the current bailout policies. All self-respecting economists have already declared that Greece has no chance on earth to repay its debts. Thus, we need new solutions. It will not be easy. But on the other hand, matters will only get worse, as we deceive each other with guarantees and more loans. We can choose now to carefully unscrew the lid on the pressure cooker – or wait for it to explode dramatically,” Morten Messerschmidt rounds off.

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