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The East German laundering machine and Greece
by Thanos Kalamidas
2015-03-13 09:52:52
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german04_400Martin Schulz, the president of the EU parliament, in a Solomonian statement a few weeks ago - and in support to the German minister of finances, Wolfgang Schäuble - said that the EU legislation and future doesn’t depend on local elections. This would have made absolutely sense if the dream of a United States of Europe had succeeded and if all 27 states were in absolute harmony; leaving critical decisions regarding the union’s economy, defence and foreign policy, into the hands of a federal government. But for Europe this is an aim, a dream for the future and far from today’s reality.

Actually local policies and agendas are the main reason Europe is in trouble and especially Germany’s changes in EU policies the last thirty years. The last three decades with three different chancellors in the German chancellery, the German EU policies have change so much that they have created a European turmoil and they are partly responsible for the euro-crisis.

In 1990 the then German Chancellor, Helmut Kohl, made it clear that the European unification was a priority and for this reason Germany was obliged to help weaker states and partners to catch up. It was also the period of the German unification when the Berlin Wall was falling and USSR ended.

german01_400Even though a Christian Democrat, Helmut Kohl, acted in continuation of his predecessor, Social Democrat, Helmut Schmidt, making sure that all European states could find the way, with the necessary compromises, into forming a common economic policy, a common defence policy and of course a common foreign policy. Working closely with French president François Mitterrand, Kohl tried to end all the old prejudices and using the momentum of the fall of the Wall to build a new era for Europe.

But the same time, Helmut Kohl had also to deal with a new German reality. While in the surface, the East German part that unified with the rest of Germany, was a state in ruins, without visual structure and financially destroyed, the truth was a bit different. East Germany was one of the biggest powers in the eastern bloc; probably the second biggest after Russia. With strong industry, competitive defence manufacturing, huge production of raw metals, gold reserves and perhaps one of the cheapest labours in Europe then.

We are talking about an industry that could produce quantities of automobil, airplane, tanks, ships, weaponery and many more things, an industry that worked even hours before the fall of the Wall. But after the fall all we saw was photos of ruins and poor east Germans trying to exchange usless east German marks with west German marks. Furthermore it was known that at least for a decade the East German goverment was collecting gold creating a huge reserve that disappeared after the fall of ther Wall even though the East German authorities gave up peacefully wihtout any problem.

The problem that appeared for Helmut Kohl's unified federal government was how to legalize everything without spoiling it, the exact word would have been laundering the illegal or better the non-accountable looting of East Germany and bring it back as assets of a united Germany from the back door.

Friends and allies were fully aware of what was going on with Germany, but 1980s and 1990s was the era of optimism, where international economics were doing well and from America to England, France to Japan, they all thought that a strong economically Germany would profit everybody and inspire stability in Europe. It did temporary. The same time East Germany’s laundering was a work of long process and to make the new united Germany not looking like it won the illegal lotto would take a lot of time. Time that exceeded the time Helmut Kohl had.

Next in the list was the Socialist Democrat, Gerhard Schröder. Schröder from early 2000s, realized that the whole globe was heading for an economic crisis – the first signs were coming strong from USA – and for that he needed to speed up the East German laundry his predecessor had started. Cleverly he saw the solution inside the EU borders and the common currency.

german02_400Schröder had inherited a strong economy constantly growing with little attachment to dangerous relationships or dependences. That was fine for a country that can survive in a growing global economic crisis and actually profit form it presenting a safe land which offers stability for investments. Germany that period worked as a magnet for a lot of investors from all around the world including the recovered Russia. Russia dealing with her own laundering problems found in Schröder a partner with a lot of understanding and ready to help if he was helped.

So during Schröder’s era a laundry bridge was created among the two nations with main issue the energy products. The small difference between the two country’s laundering was that while Germany was laundering state’s assets, the Russians were laundering former state assets that have come to the hands of the new Russian oligarchy former Russia’s mafia bosses or the president’s men. Again a common European currency under the protection and guarantee of the German economy was a necessity.

This is where the political mistakes start. Schröder is in a rush and he is ready to do everything he can to speed the creation of the euro-zone. If he wants to laundry all the East German assets he must make Germany independent from the American dollar and as far from any relationship with the British pound. There is a myth that Greece is the only country that cheated the euro-stats creating an artificial environment to enter the euro-zone. Nearly all the first member countries that joined the euro-zone they did it manipulating numbers and stats. Actually France and Italy lead this group of cheaters, but there was no way to create a Eurozone and a common European currency without France and Italy. Germany took the political decision not only to ignore the facts and accept the manipulated accounts but also took the responsibility to support those countries in future troubles.

Then with a purely political move and violating fundamental EU criteria expanded overnight to 12 new countries. Most of them, including Poland, Estonia, Hungary, Latvia, Czech Republic, Bulgaria and Romania, far from the democratic European models, with corrupted judicature, corrupted governments, prejudice systems and economies still trying to recover from their dependency from the USSR. But for Gerhard Schröder this was a union of half a billion consumers for the new currency that was depended from the German economy. The exchange was very expensive and immediate.

Understanding Schröder’s urge that had absolutely nothing to do with the European Unity, the Kaczyński brothers led a negotiation with EU that led to Poland even though not ready to join the EU, to profit in exchange unbelievably and much better than any other new member state had profited in the history of the Union. Gerhard Schröder’s role was essential since he didn’t only guaranteed – with a little help from the German satellites, Holland and Finland - for the entrance of those countries he also promised Germany’s help to cover Poland’s demands.

This was a political decision motivated from Germany’s rush to laundry fast the East German assets and marked the beginning of a crisis that hits the fundamentals of the union and not just the economic side of a united Europe.

german03_400Angela Merkel was the next natural step. Half of Germany entered the 21st century still suffering from the anti-Russia syndrome like most of the former east European republics. Everything socialist or even labour friendly makes them shiver without understanding that in their psychotic mania they move from the one side of the political spectrum to the other. Only guilt and the fear of an international outcry keeps the Germans from reviving old methods from 1930s. Angela Merkel has nothing to do with her predecessor and protector in the Christian Democratic Union, center-right Helmut Kohl.

Angela Merkel represents the psychic of the East Germans, anticommunism, antisocialism, extreme right and she survives thanks to the votes of the former East Germans. On top of that Angela Merkel represents the ideals of the old Prussian Germans – ideals much idolised from the former East Germans – which want the hard working and iron fist Germans dominating Europe.

The euro-crisis was the golden chance for Angela Merkel and her court of politicians, bankers and industrialists – coincidentally the same that dominated Germany in 1930s – first to establish the German dominance over Europe since it was the only country which had the cash flow and secondly not only to further speed the laundering but also profit from it by lending the countries on crisis.

Luckily for her the only opposition in Europe came from mediocre personalities like Sarkozy in the past, or Holande today, Berlusconi and Blair in the past, Cameron now and a European Commission, puppet under her wishes and demands. That’s because the whole euro-zone and in extension the whole Europe is depending financially from the German cash flow. But that changed a little when the Greeks elected a left wing goverment.

The problem with Greece’s new government this moment is not that Greece prioritizes the wellbeing of her citizens instead of repaying its creditors or that measures that can help to control the deficit have failed, but the fact that Greece demands equal treatment as an equal partner and most of all demands Germany to be treated equally. But Germany is in a very critical momentum. The laundry of the East German assets is nearly over but nearly is far from over yet and Germany doesn’t have the luxury to be exposed. Actually under the protection of allies and partners, Germany commits one of the worst corruption scandals in history a nation has ever committed. Be careful, here we are not talking about a corrupted prime minister or an official, here we are talking about a corruption scandal where a whole nation is involved.

This is the reason Greece gets some support from other nations in Europe but always not in the open. They are still prisoners of the German blackmails. They all know the crime the last three German governments have committed the last thirty years but they are all depended financially from the spoils of this crime. The French economic survival this moment depends on the success of the German East German laundering from Angela Merkel so France can have the necessary cash flow, otherwise France is in much worst position than Greece will ever be. If it didn’t suit the German plans and agenda, Italy would have bankrupt far earlier than Spain and Portugal and Belgium wouldn’t exist anymore. But pay attention, both these countries’ role in the expansion of the euro-currency – mainly through the former colonies – is essential for the German plans. Still everybody feels that this has gone too far, dominating Europe as an economic power is one thing, creating a new Reich is another all togethar and not one of Europe's favourites.

To give you an idea of the size of the scandal and the consequences just think that USA – the global financial dominant - in front the global crisis was forced to print more dollars without gold representation in the US reserves. Germany just had to open the secret safe and pull raw metals, gold and old German marks from the secret East German reserves.

When Wolfgang Schäuble says that the EU legislation and future doesn’t depend on local elections he’s actually twisting reality, because in his mind and for the German plan to work, the destiny of the European Union is tightly connected with the future of Germany. This also demands certain style of German governments led from certain politicians with certain ambitions. The rest have just to obey if they want to survive. Hollande’s big turn two years ago that actually has cost him his popularity and perhaps the end of the socialist party in France as we knew it, is the best proof.

Sadly and against all prejudice it seems that poor little Greece is the last chance for the Europeans to regain their dignity and give an end to the most corrupted act a nation has committed in modern history.


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Emanuel Paparella2015-03-13 10:43:16
Indeed Thanos, the real issue has do less with economic considerations and more with corruption. One is brought back to the famous words of Socrates at his trial and condemnation: the issue, gentlemen, is not whether I live or die, the issue is whether corruption, which is faster than death, catches up with you, and once she has caught up, you may not be able to escape her grip.”

A bit closer at home, we have this very recent and very revealing statement from Mark Leonard, director of the European Council on Foreign Relations: “The euro was meant to bring Europeans closer together and to strengthen political union, but the Greek-German clash has led to a scary return to civilizational language—national stereotypes, hatred, lack of trust.” Really? So, to bring Europeans together and defeat the centrifugal political forces of the EU, all that is needed are better economic strategies and solutions, and, of course, the careful avoidance, like some sort of desease, of the “scary” return of the cultural anthropologist with his language of civilization and culture?

As the presentation on cultural anthropology in the 47th Ovi symposium makes quite clear still on today’s cover, it is exactly that reluctance to look in depth at the cultural substratum of Europe's cultural identity, that is the primary cause of so much lack of trust and stereotypization currently going on among the 27 EU countries. It appears that the truth has been turned up-side-down. Are we to be surprised at the results? Indeed, Socrates was right: corruption runs faster than death and the first most lethal corruption is the corruption of the truth. Let those who have ears, let them hear!

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