The countries of the European Union, in opposition to U.S. President Donald Trump’s moves for peace, are now attempting a huge $1 trillion-plus military buildup called “ReArm Europe”. Targeting 800 billion euros in new military spending across Europe, plus hundreds of billions more in Germany, ReArm Europe will use “new” money backed by central banks, pure debt, created outside the fiscal revenue, budgeting, and borrowing of sovereign governments.
At the same time, the European Central Bank (ECB) has announced that it will introduce its “digital Euro” in October of this year. This is not unconnected to ReArm Europe, as the crypto publication Cointribune noted on March 19:
This project [the digital Euro—ed.] is set against a particular economic context where the European Union seeks to mobilize significant financial resources. Ursula von der Leyen recently launched the “ReArm Europe” initiative, requiring funding estimated at 800 billion euros, as well as the “Union of Savings and Investment,” aimed at redirecting 10 trillion euros of “unused savings” from European citizens.
In other words, Europeans and their financial institutions are to use the “digital Euro” currency to buy the bonds for a new “ReArm Europe” war economy.
This method, leading to economic ruin, belongs to “Schachtian economics”, named after Adolf Hitler’s Nazi central banker and Economics Minister, Hjalmar Schacht, who designed Nazi Germany’s shift to an economy of war-production labor camps.
It is important that the government of President Donald Trump not try to goose the American economy by using private money—“new dollars”—created by Silicon Valley tech companies, outside the U.S. Constitutional currency system. Hjalmar Schacht’s bad invention in 1933 Nazi Germany was “Mefo bills” issued by big arms-producing companies and guaranteed by his central bank, the Reichsbank. The bad idea of the billionaires in and around President Trump’s Cabinet, is “stablecoins” issued by big tech and authorized by Congress to act like dollars deposited in the U.S. banking system.
We already have, in the U.S. banking system, one major drag on American economic growth. That is the Federal Reserve Bank, which does not lend or provide credit to any part of the U.S. economy, but buys unlimited Federal government debt, right after it’s issued. Out of these Federal debt buys, the Federal Reserve creates from thin air, large volumes of new deposits—so-called “excess reserves”—in the biggest Wall Street banks. It has made those huge megabanks another 40% bigger since the financial crash of 2008. And the megabanks don’t lend those deposits either, to anything in the economy.
America does not need, on top of this recessionary Federal Reserve, to have crypto tech companies issuing private, unregulated currencies, called “stablecoins”, to buy Federal debt as it comes flooding out of the U.S. Treasury at more than $2 trillion new debt per year. The $30 trillion Treasury market will be made extremely volatile, destabilized, and set up for an unthinkable crash. Rather, America needs a national bank which will lend, to provide credit at reasonable interest rates to participants in the real economy, to raise productive employment and productivity.
