[P2P-F] Why not let countries go bankrupt ? Is the ESM meant to enable a permanent financial coup d'etat ?

Tue Oct 18 16:39:26 CEST 2011

Why are Governments and Supranational Institutions so concerned about paying
off creditors ? ( and interests for the creditors )
*Why not let countries go bankrupt* ( even if it means getting out of
Treaties related to the Euro ) , and start anew, as Argentina nearly 10
years ago ? ( http://en.wikipedia.org/wiki/Argentine_debt_restructuring )
And why maintain Article123 of the Treaty of Lisbon, which prevents states
from creating their own interest free money, as it was in some european
countries before the middle of the 1970 ies ?
( currently, what some countries pay back is mostly the cost of the interest
on their debt, not the debt itself, as the cost of interest itself
represents huge sums of tax payers money )

It seems one of the main objectives of the ESM (
http://en.wikipedia.org/wiki/European_Stability_Mechanism )
is to avoid bankruptcy of states, hence providing more time to maintain
pressure on countries and enforce on them a pillage of their resources and
"acquis sociaux" by a capitalist elite ? *A financial coup d'etat ?*
Via the consolidation of a non-democratic european "state" ?

http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/10/636

excerpt :

In the unexpected event that the debt sustainability analysis reveals that a
country could be insolvent, the Member State will have to negotiate a
comprehensive plan with its private creditors, in line with IMF practices,
and liquidity assistance under the ESM may be provided.

Also see :
http://www.youtube.com/watch?feature=player_embedded&v=5CZr17HLH5U#!

//

more on article 123 of the Treaty of Lisbon :

article 123 of the Lisbon Treaty,
and the privatization of monetary creation ( credit ), with
compound interest <http://en.wikipedia.org/wiki/Compound_interest> ,
which leads to a greater and greater part of tax income to be paid only to
cover the interest o n this debt :

http://www.lisbon-treaty.org/wcm/the-lisbon-treaty/treaty-on-the-functioning-of-the-european-union-and-comments/part-3-union-policies-and-internal-actions/title-viii-economic-and-monetary-policy/chapter-1-economic-policy/391-article-123.html

including its background :

http://fr.wikipedia.org/wiki/Loi_n%C2%B073-7_du_3_janvier_1973_sur_la_Banque_de_France

excerpt :

"Cet article a également été repris par l'article 104 du traité de
Maastricht <http://fr.wikipedia.org/wiki/Trait%C3%A9_de_Maastricht> et par
l'article 123 du traité de
Lisbonne<http://fr.wikipedia.org/wiki/Trait%C3%A9_de_Lisbonne>
."

when googling, I find various videos, including for example this 9 minute
video ( worth listening to in the background )

http://www.youtube.com/watch?v=zeYUNbVlDoc

Also note that compound interest, in my understanding, leads to a need for
the economy to grow its monetary mass exponentially ( through debt ) , while
such interest on the debt creates artificial monetary scarcity and a need
for competition at the roots of the real economy, as to repay , in addition
to principal, an interest that has not initially been created through the
credit issuance mechanism , hence the need to exponentially grow the
monetary mass till "credit peak" , a tipping point one may argue we are
approaching, where individuals and/or governments are not capable or paying
back the compound interest on all the debt, debt which is at the base of
monetary/credit creation.
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