While it is marketed as a means to strengthen NATO, it's
clear the new command is meant as a means for Berlin and Paris to begin a
process of escaping its domination. The fear of a Trump administration also
fuels these actions.
At the Bratislava Summit, the now impotent UK delegation
protested this move, but it's clear that larger forces will have to work to
stop Berlin and Paris.
The US Justice Department has been gunning for Deutsche Bank,
a foundation of the German economic establishment and had already threatened to
levy heavy penalties. Everyone knew it would be in the billions of dollars.
In anticipation of this (it would seem) the EU went after
Apple for tax avoidance and issued fines totaling some $14.5billion.
The US (it would seem) responded by almost tripling the
anticipated Deutsche Bank fine, raising it to some $14 billion dollars which
would drive the bank into insolvency.
This tit-for-tat battle over corporate interests echoes and
parallels the larger developing political struggle. In fact they're inseparable
and that in itself is a lesson regarding the nature of the Establishment and
its power.
The breaking of Deutsche Bank which would result in Merkel's
downfall and possibly jeopardise the Euro itself. It would send shockwaves
across global markets. The US Establishment knows this and it is clearly
sending a signal to both Brussels and Berlin.
Is the US engineering Merkel's ouster and the end of German
aspirations?
Is this a mere threat, a signal to Germany (and France) to
return to their proper place? Deutsche Bank will undoubtedly negotiate the fine
down to a more reasonable number but Brussels and Berlin will have to
capitulate to Washington demands.
Everyone is puzzled by Merkel's failure to construct a
'bailout' for Deutsche Bank. It's not at all shocking. She's in a real bind. Merkel
who is already under political threat from the Right and facing an election in
2017 does not want to feed the notion that there's a crisis, which there
certainly is. In fact its magnitude cannot be overstated and yet only those
watching the financial sector are even aware of it.
If Merkel intervenes, it looks like another corrupt
administration coming to the rescue of greedy and irresponsible bankers and
then the German public gets to reckon with their tax money going to a bank
bailout and even worse, most of the money ending up in the hands of Washington.
Of course Washington's bailout of AIG in 2008 resulted in a lot of US tax money
flowing into Germany and Deutsche Bank. The threats of the Justice Department
also serve as something of a reminder if not revenge.
A Merkel intervention and bailout would also be humiliating
and destroy the perception of Germany as the ascendant European leader and it
would decimate its moral standing. Not long ago Merkel and her compatriots were
busy lecturing the delinquent and irresponsible nations of Southern Europe
about fiscal responsibility and integrity. They were forced into austerity as a
consequence of German finance's bailout of their economies. In truth the German
state and in particular Deutsche Bank proved just as guilty, irresponsible and
corrupt. The bank was a key player in the lead-up to and causes of the 2008
financial crisis. And the corruption by no means stopped there. The bank has a
somewhat sordid history involving numerous schemes and scandals (such as Libor)
as well as ties to the BND, Germany's intelligence agency.
How the US Deep State fits into this arrangement is another
story and rather complicated. At this point we can only speculate how it and
figures like Uhrlau are part of the larger Deutsche Bank story. This may be a
case of 'flip and spin' betrayals and house-cleaning in order to rectify a
situation that was getting out of control.
Another aspect to consider in this struggle is that the White
House also gains leverage over Apple as they are trembling (with rage), and desperate
for political intervention vis-à-vis the EU and its fines.
It gives the White House an occasion to say something like,
"Sure, we'll help you, but maybe you can help us eh?"
Of course when you have figures like Ann Novelli in the State
Department, that probably helps.
Apple (along with Google) hasn't exactly been cooperating on
the level the US government would like to see.
As an aside, the Arstechnica
article dating from 2013 concludes with a line on Yahoo! and their plans (or
lack thereof) for encryption. It should have served as a warning and harbinger
of what was to come. The 2016 'hack' has put the company in jeopardy and now
the Verizon deal looks like it may fall apart.
Everyone is already aware of the Apple's encryption battles
with the NSA. The US government is not going to aid them without extracting
something in return.
These events afford Washington an opportunity to solve
multiple problems at once.
It's a dangerous game as the world banking system is hardly
stable and Central Banking's interest rate tool-kit is all but neutralised.
These tensions between Washington and Brussels/Berlin have
also been magnified by the TTIP collapse. Washington really wanted that deal to
go through. Its failure along with Brexit have generated a scramble and no
doubt these setbacks play a part in the growing Deutsche Bank and Apple crisis.
The European Establishment and in particular Germany are trying
to move toward more autonomy. This is due in part to the immediate threat of
Trump and the chaos of the 2016 political cycle, but it is also an attempt to
capitalise on the sudden weakening of the US hand. Europe has long wanted to
emerge from Washington's shadow. The September 11 attacks only tightened
Washington's noose on Europe and as the years have passed, the resentment has
grown. The European Establishment sees a chance and they're trying to take it.
But it may be backfiring as it is all too clear... Washington is not going to
sit idly by and let Europe slip away.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.