There has never been a worse time for Europe than now. Its euro zone economy is almost bankrupt. And this long awaited time-bomb is taking place after decades of loading their economies with unsustainable social benefits, guaranteeing aristocratic kind of lifestyle of citizens of Europe. Just like Americans, Europeans have been borrowing massively in an effort to maintain their expensive social capitalism. But the difference between Washington and Brussels can be clearer. While by externalize the cost of its citizens’ social aristocratic benefits thanks to using the dollar, without rest of the world picking up the euro bills, it is obvious why Europe is bankrupt.
So what is happening in today’s Europe should not be seen as an accident. It’s a cancer that took time to grow and spread all over the body to what is now incurable. Angered that Germany and France could muster the courage of organizing a euro currency coup against the omnipotent dollar, the undeclared euro/dollar supremacy cold war cannot be messier, with Washington now flexing its muscles to teach these ‘old European’ a big lesson.
Little wonder, what is going on in Europe is being applauded in America. Used to be silently celebrated, but with people like the former Federal Reserve Chairman, Alan Greenspan going public the mood is Washington has since changed. It is now openly discussed by those who matter in Washington that Europe’s wild dream of euro zone has no longer anymore in doubt that euro currency is now in irrecoverable coma. Even London too is in celebratory mood. And no one could express that more forceful than the British Prime Minister, who visits Brussels not to help the situation but to watch the end of the euro currency come. Too certain that the days of euro currency are numbered, Beijing is doing all it can to fully take advantage of the process leading to its giving the ghost.
The question that comes to mind is: But why are the same Chinese agreeing to rescue the drowning euro zone economy? Very few people, other than a handful of international monetary experts could grasp how skillful Beijing is buying the Eurobond. Investing in euro not only reduces the power of the dollar (known or unknown to Washington). Beijing is fully aware of the enormous influence that would earn Yuan in Europe. It is because of this strategic benefit that Beijing is happy coming to euro rescue. Or what else would have made Beijing to willingly risk foreign reserves built on the sweat and blood of hardworking Chinese people?
Of course, it’s not that the leaders of the ‘Chinese Century Project’ do not know that what’s going is not about finding a lasting solution to the euro problem but simply slightly postponing the doomsday. Rather, Beijing is eager to take a cue from Washington’s 1947 Marshall Plan, granted Europeans simply to make postwar Europe America’s economic and military appendage. In other words, if Washington could use its Lend-Lease aid to flood cash strapped Britain with $31 billion during the war, abruptly withdrew the aid when it’s most needed, and by so doing threw Britain into financial ruin that caused British Empire’s inevitable collapse in 1945, why shouldn’t China inject hundreds of billions of dollars into increasingly bankrupt euro zone, and then use the debt as the bargaining stick to force Europe to join the rising Yuan Century?
China has little or nothing to lose no matter the amount of money it throws into Europe’s financial wreckage. The strategic benefits are huge. First, keeping the euro zone on a life-support machine will keep Chinese exports to Europe uninterrupted – since such interruption is the last thing Beijing would want happen. Second, with euro zone overloaded with Chinese debt, demanding Brussels not only to abandon euro currency, but also to join China’s quest to replace dollar with Yuan as the world’s reserve currency would be a possibility. At the end of the day, Beijing can unload its vast $3.29 trillion reserve in keeping euro zone afloat as long as with this ‘benevolence’ a deal with Europe to quicken Pax Americana’s sunset is obtained.
The consequences of the success of such a coup would so devastating Americana. Not only will the dollar’s role as the world’s de facto reserve currency cease, but also the petrodollar power as well as the dollar international trade exclusivity too will cease. Gone with the unlimited power to print dollars is the immense military spending exporting US inflation to the rest of world in the form of de facto dollar devaluation has continued to guarantee Washington since 1945. And above all, the vast vassal states scattered all over the world will disappear, the same way the army of vassal elite protégées, who depend on Washington’s ‘good grace.’ Shouldn’t that too mean the eventual rise of submerged great nations like Nigeria?