In an age when a concept as obvious as gender has somehow become a bizarre focal point of confusion (for the rather large number of you who were unaware of this, we remind you all of the scientific fact that there are only two genders), no one should be surprised to see that most confused of currencies, the euro, edge towards disintegration.
While ostensibly the euro project was undertaken by the Delors Commission for reasons of commerce, the true, barely concealed aim of the currency which emerged from that Commission was the destruction of the concept of the European nation state and, along with it, the European peoples.
The real need of all currencies to be in harmony with a viable nation and the crackpot, anti-nationalistic fanaticism of the European Union which compelled it to launch the only anti-nationalist currency in history have finally led to these two fundamentally conflicting ideas, fraudulently combined in the single form of the euro, to approach a boil.
It took three, grueling, decades to reach this sad point in history but the European Union is, before it is anything else, a technocratic dictatorship of the bureaucrats; therefore the speed of its collapse was destined to be bounded to the glacial velocity of bureaucracies.
Be that as it may, the long-awaited critical mass has arrived. The catalyst for the reaction that will end the euro, the currency of roughly 20% of world GDP, and spark either a deep global recession or a depression, is Deutsche Bank.
The accelerating crisis facing this bank leaves Chancellor Merkel well and truly behind the eightball – All choices on the decision tree ultimately branch off into the failure of European Monetary Union.
The options before Merkel are:
A) Allow Deutsche Bank to fail.
B) Bailout Deutsche Bank with state funds.
Option A is more viable than might be supposed on account of the political difficulties associated with any bailout. A bailout of a major German bank would be greeted by demands from Southern European governments for the German taxpayer to also backstop their equally insolvent banks.
At this point Merkel could give in to their demands and face a political revolt across Northern Europe generally and, in particular, in next year’s general election where AfD is positioned to be the main benefactor at the expense of Merkel’s Christian Democrats. Or she could refuse to support Southern Europe’s banks and see Italy leave the euro and the EU under a new Italian government composed of centre-right and nationalist parties which are now all promising to hold a referendum on euro membership; a referendum pro-euro forces would certainly lose if Merkel decides that in a union of equals, German banks are more equal than Italian banks.
Whether Northern Europe or Southern Europe votes to exit the euro, the currency is finished in either scenario.
Where does this leave our presidential election?
Obviously the establishment had been hoping any economic crisis could be postponed once more until after the election. The problem in the case of Deutsche Bank is that it is paying the price of delaying the inevitable collapse of the European Union for the sake of previous elections. The price has accumulated astronomical interest and the economic gods may no longer have the patience to wait another election cycle to collect. In DB’s case the interest has accumulated to $42 trillion worth of derivatives. That level of insolvency is large enough to ignore any political expediences and bring about a global crisis with a mind and will entirely its own, at a time of its choosing.