Thursday, 2 June 2016

Why we should leave the EU

a) The EU is fundamentally anti-democratic. They have a parliament in which members of which can not introduce laws, or have them repealed. All laws are penned and introduced by the commission. MEPs can vote on these, even suggest changes, but the commission is free to ignore all said communication.

b) The EU is essentially a basketcase, financially. The entire of Club Med still persists in dire straits, in desperate need of avoiding another recession. Public sector debt ratios are historically high, and it's obvious to everyone paying attention that these will never be repaid in an honest way. Greece are inching closer to 200% debt/GDP mark, Italy at around 135%, and Spain crossed the 100% recently - with a historic level of unemployment to boot.

c) Italy's private banking sector has 360bn Euro of non-performing loans on their balance sheets, with an additional 180bn in distress - amounting to roughly 25% of their GDP. There is simply insufficient capital to bail them out without extraordinary policy, and where is the political goodwill for another round of escalating bailouts to big banks? Politicians agreeing to this wouldn’t survive the next election.

d) Greece are months, even weeks away from needing another bailout, although obviously, it's won't be called that. Oh, and 45% of all private loans in Greece are non-performing, meaning a bank collapse would be upcoming were it not for continuous behind-the-scenes borderline corruption by the ECB and their various colleagues in European national banks. Did you know that is was illegal for the ECB to engage in QE programs until fairly recently? Well, it was, and then lawyers located a convenient loophole, and suddenly it was just A-OK.

e) Since 2008, the EU has seen anaemic growth (in the 1% range), and the entire zone depends on Germany, not entering a recession. The UK has done far better in this regard. In fact, of the entire developed world, only really Japan has done as poorly as the EU.

f) The above issues b-e will eventually be "solved" through full fiscal union. By then, per decree, the North will be forced to continuously pay for the South. And once that ball is in motion, there will be no reason for the South to even attempt to balance their budgets.

g) And then there's Merkel's audacity, and borderline dictatorial behaviour in dealing with immigration.

h) Finally, the EU actually want to ban "right wing extremism", by punishing nations electing these. Yes, Juncker actually said this (though obviously, the definition in this regard will be so vague it can be applied to practically anything). That's right. Your vote WILL be overruled by a bunch of unelected bureaucrats in the heart of Europe if or when they see fit, because they are your rulers and you better accept it. Because fuck you, that's why.

Oh, and btw - did anyone tell you that we're technically overdue a recession?

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