Receivership for Entire Countries?
If you think that suspension of democracy justified on fiscal grounds will only be a small scale phenomenon occassionally affecting a municipality here and there, think again. From the Daily Telegraph (h/t Walter Russell Mead)…
An intrusive European body with the power to take over the economies of struggling nations should be set up to tackle the eurozone crisis, according to a leaked German government document…Over on our side of the pond, Rhode Island is a little bit ahead of everyone else in dealing with the mechanics of this. Are we going to be leaders in a movement to displace representative democracy with governments of the financiers and by the financiers, or are we going to be leaders in making sure that the fiscal insanity of the past half-century is addressed through structures of government of and by the people?
The proposals urge that the European Stability Mechanism (ESM), a eurozone bailout fund that will be established by the end of next year, should be transformed into a version of the International Monetary Fund for the EU.
The European Monetary Fund (EMF) would be able to take full fiscal control of a failing country, including taking countries into receivership.