Death of Prussia
Death of Prussia by the end of the Second World War ended 1000-year long German push into Slavic Europe, known as the Drang Nach Osten, which was pushing into Slavic Europe, starting with Schlezwig-Holstein in Polish Szlezwik-Holsztyn. A new book related to this struggle was written by Brendan Simms: “Europe: The Struggle for Supremacy.” The book is reviewed by Jeffrey Collins in The Wall Street Journal of May 25-26, 2013. The reviewer writes that Simms’es new book is an old-fashioned account of the ceaseless effort by European nations to dominate the Continent.
The review is illustrated with a reprint of the “Motley Crew 1870” of Frederick Rose, who drew the map of Europe filled with symbolic caricatures of grotesque humans and animals. Collins concludes that “the French viewed the European integration as a way of entangling Germany, while Margaret Thatcher feared a unified Europe dominated by Germany.” Collins states that a “united Germany in the heart of a united Europe tended to please Washington but alarm Moscow, Warsaw and other eastern capitals with long memories.” As usually, instead of stating that Warsaw is located in East Central Europe, Collins writes as if eastern borders of Europe were not located in the Ural Mountains but somewhere near Poland.
“In 1990 German Mark was to be sacrificed as the price of ending the partition of Germany.” Mr. Simms writes that in the current European debt crisis the inability of the “European Framework” to “constrain German power” becomes ever clearer as “a common currency nourished German manufacturing wealth and common interest rates enabled the stagnant economies of Southern Europe to assume catastrophic debt.” Germany is bailing them out with strictly dictated terms. The German dictate is resented and often causes street riots.
Money derivatives may be used against the euro in defense of US dollar as an international reserve currency. A derivative is a legal bet (contract) that derives its value from another asset, such as the future or current value of oil, government bonds or anything else. For example: a derivative buys you the option (but not obligation) to buy oil in 6 months for today’s price or any agreed price, hoping that oil will cost more in future.
Derivative can also be used as insurance, betting that a loan will or won’t default before a given date. So its a big betting system, like a Casino, but instead of betting on cards and roulette, you bet on future values and performance of practically anything that holds value. The system is not regulated what-so-ever, and one can buy a derivative on an existing derivative.
Most large banks try to prevent smaller investors from gaining access to the derivative market on the basis of there being too much risk. Derivative market has caused huge bubbles, just like the real estate bubble or stock market bubble which is going on right now. Since there is literally no economist in the world that knows exactly how the derivative money flows or how the system works, while derivatives are traded in microseconds by computers, we really don’t know what will trigger the crash, or when it will happen, but considering the global financial crisis this system will be catastrophic for the world financial system since the 9 largest banks hold a total of $228.72 trillion in Derivatives – Approximately 3 times the entire world economy. No government in world has money for the bailout of these bancs.
Not long ago former secretary of US Treasury in president’s Regan administration said in a televised interview that if US dollar would loose its position as an international reserve currency the United States would be as bankrupt as Greece is now. Thus, despite the death of Prussia and the unification of Germany as a member of NATO the unlimited trade in derivatives I very dangerous for the economy of the entire world.