Home Politics Congratulations, This Is Actually The Argument Against The EU's Coronabonds

Congratulations, This Is Actually The Argument Against The EU’s Coronabonds

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The Guardian tells us that it’s just lovely, fantabulous even, that the Europ[ean Union will have these jointly guaranteed coronabonds to rebuild the economy after the current depression. They even laud it as a Hamiltonian moment, where the centre finally gains proper control of all the money and ain’t that a great step in the advance to a proper Europe?

The correct answer being that the facts there are true, but the idea that it’s a good thing is notis not:

In 1790, following the American war of independence, Alexander Hamilton proposed that federal government should take on the huge debts incurred during the struggle by individual states. It had long been Hamilton’s view that this move would be a key moment in the forging of a true United States of America. “A national debt,” he had written, “if it is not excessive, will be to us a national blessing. It will be a powerful cement of our union.”

Until now, this kind of thinking has never gained a foothold in the European Union. Despite periodic calls for deeper fiscal union, richer EU states have balked at the notion of pooling debt with weaker neighbours.

And now that they are pooling debt a major step has been taken along the way to that central control of fiscal policy. The EU will become much more like the Federal government of the United States and ain’t that great?

The answer being no, of course not. For if you look at how the United States works then you find that it’s – near always at least – where the Feds try to control things from the centre that it screws up. Look at what the FDA and the CDC have been doing over testing. First they insisted upon only using the CDC test in the CDC labs – and the CDC managed to infect its own tests while creating them. The FDA has gone on to try and ban home collection of samples as well as any alternative tests. Germany used 400 different labs – who got that right? What’s the worst housing in the United States> The vertical slums built by HUD, the Federal bureaucracy.

That is, the United States is actually our poster child for the argument that running the majority of a continent through the one central bureaucracy ain’t the way to go. At which point what is it that the federasts dream of? Quite, they’re taking the wrong answer from our useful example, aren’t they?

It is true that central control of the debt would be that Hamiltonian step toward a properly centralised state. But given that that’s the very thing we wish to avoid then we probably shouldn’t be doing it, should we?

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