NEW WORLD ORDER STATIST SOROS SPEAKING TO THE EUROPEAN PARLIAMENT CALLS FOR MULTI-BILLIONS IN EU ‘SURGE FUNDING’
SOURCE: ROBERT WENZEL
The billionaire statist Geore Soros appeared today before the European Parliament and delivered a speech discussing what the EU should do in the wake of Brexit.
If you weren’t sure Soros was an all out one world order statist before this speech, you shouldn’t have any qualms after it. The speech was simply stunning in its attempt to intensify the role of the EU in its remaining sphere of power.
The 85-year old clearly wants to use the opportunity, of the British vote to leave the European Union, to take a giant leap and strengthen the EU into a greater central super-power—paid for by the subjects living within the EU region and resulting in greater coercion of the people in the sector by a more powerful EU governing body.
Specifically, he told the European Parliament that the EU should go on a massive multi-billion euro borrowing spree. “Surge funding,” he called it, to restructure the EU, shore up its power and become a much greater influence over Europe.
Without sufficient funding, the EU cannot perform the functions it was designed for nor meet the expectations of the European people. And because it fails to achieve the objectives it has set for itself, the Union loses its legitimacy and the support of its citizens.
The refugee crisis illustrates the problem. At least €30 billion a year will be needed both inside the Union—to build effective border and asylum agencies, to ensure dignified reception conditions, fair asylum procedures and opportunities for integration—as well as outside its borders—to support refugee-hosting countries and to spur job creation throughout Africa and the Middle East….
Given that its very survival is at stake, the EU should be putting all of its available resources to use. And yet the triple-A credit of the Union has barely been deployed. This is the height of irresponsibility…
In order to raise the necessary funds in the short term, the EU will need to engage in what I call “surge funding.” This entails raising debt by leveraging the EU’s relatively small budget, rather than scraping together insufficient funds year after year…
There is a strong case to be made for using the EU’s balance sheet. Tapping into the triple-A credit of the EU has the additional advantage of providing a much-needed economic stimulus for Europe. With global interest rates at historic lows, now is a particularly favorable moment to take on such debt…
In the short term, reforms of the EU’s existing instruments would allow a far more effective mobilization of resources than the creation of new ones. Two sources of money in particular—the European Financial Stability Mechanism (EFSM) and the Balance of Payments Assistance Facility (BoP)—should be put to the task…
The Macro Financial Assistance facility (MFA) is yet another source of borrowing specifically designed for actions outside of the EU. It has proven an important instrument in countries like Ukraine but it needs a new framework agreement. (This is urgent because a framework agreement takes a long time to enact and the current Ukrainian government deserves more support than the EU is currently able to offer.)
The combined gross borrowing capacity of the EFSM and the Balance of Payments assistance facility is €110 billion. The borrowing power of the latter is almost completely unused. The EFSM has made some €46.8 billion worth of loans to Portugal and Ireland and its spare capacity grows each year as those loans are repaid.
All the instruments mentioned add up to a substantial unused borrowing capacity.
Spending a large amount at the outset would make it much easier to manage immigration and will allow the EU to respond more effectively to some of the most dangerous consequences of the crisis….Making large initial investments will help tip the economic, political, and social dynamics away from xenophobia towards constructive outcomes that benefit refugees and host countries alike.
How does Soros propose that such massive borrowing be eventually paid back? He called for EU- wide taxes:
Of course, raising more debt with the current budget will eventually pose deeper questions in light of the limited revenues of the EU budget. The situation has gotten worse over the years as the real own resources of the EU budget (such as customs duties) have shrunk. It is now time to drastically reshape how the EU’s own resources are raised.
The reduction of the EU’s resources in 2014 to 1.23% of GDP was a tragic mistake and we are paying the price for it now. The EU cannot survive with a budget of this size. I was greatly encouraged last year when Minister Schauble raised the idea of a pan-European gasoline tax. The European Parliament should seriously consider this idea…
In any case, the EU and its member states must find new sources of tax revenue. Another approach would be to levy special EU-wide taxes. The new tax revenue could come from a variety of sources, including the existing EU-wide VAT; or a new tax on travel into the EU and on visa applications, which would shift some of the burden onto non-EU citizens wishing to travel to the EU.
And don’t think for a minute that this global statist would stop here. He didn’t go into details but he dead allude to “EU military threats.”
[T]he EU faces growing military threats. Our external enemies have been emboldened. They pose new, as-yet unfathomable dangers in various parts of the wider region that are also liable to aggravate the refugee crisis.
It is difficult to think that a global statist like Soros doesn’t have in his mind that an EU that borrows billions and taxes its subjects shouldn’t have a grand military force also.
It appears the Brits are leaving not a minute too soon. In the wake of Brexit, Soros has revealed the naked power lust of the statist new world order schemers. Europeans should beware.
The full Soros speech is here.
Robert Wenzel is Editor & Publisher of EconomicPolicyJournal.com and Target Liberty. He is also author of The Fed Flunks: My Speech at the New York Federal Reserve Bank. Follow him on twitter:@wenzeleconomics