By Steven J. Grisafi, PhD.
Francesco Saraceno cites approvingly an article written by Jared Bernstein, formerly the economics advisor to Vice President Joseph Biden. While doing so, Saraceno appears to lament the comparatively weaker monetary policy response of the European Central Bank, to the still occurring global economic recession, than was provided by United States Federal Reserve Bank. Perhaps, what he is not yet aware of are the suggested procedures through which the Federal Reserve Bank anticipates it will need to contract the money supply in the United States in order to preclude an over active economy. While there continues to be no evidence of any over activity within the economy, the American central bank seeks to prepare itself for that eventuality. In a proposed effort to decrease the money supply, the Federal Reserve Bank has devised a plan to pay American banks not to lend. In some sense this seems very peculiar to me. The reason many laymen were misled into thinking that inflation would result from the quantitative easing policies pursued by the US central bank is because, such people, myself included at that time, were unaware of the distinction between reserve money and the money supply. No inflation resulted from the quantitative easing policy pursued by the central bank because most of that money created by the central bank went into the reserves that banks are required to maintain in their accounts with the central bank. The money never actually entered the economy on Main Street, USA. Now, it appears that the Federal Reserve Bank proposes to pay those money lenders, who never did lend any of that money they were given through quantitative easing, not to lend money. This, dear reader, is why I propose a decentralized alternative to central banking, to make central banks redundant.
My proposal does not require a complete abolition of the Euro dollar. Yet, this appears to be a desired effect of former Bundesbank Governor Thilo Sazzarin, who believes that Europe Doesn”t Need the Euro. While I agree with Governor Sazzarin, I believe that a relatively simple modification to the European Monetary Union can enable the use of a decentralized Euro crypto-currency concomitant with the retention of all national currencies within a two step international trading scheme. More intriguing to me than Governor Sazzarin”s assertion that Europe Doesn”t Need the Euro is his assertion that Germany Abolishes Itself (Deutschland schafft sich ab). I empathize much with Chancellor Merkel”s defense of how she views her Germany. But I also recognize Governor Sazzarin”s admonition. As I watch the refugee crisis unfold in Europe I marvel that I find no European news media casting blame on perhaps where it falls most, the foreign policy of the United States. For this, we Americans should be thankful, but ashamed. I understand that, when the United States passed its immigration law in 1923, the purpose of that law was to keep my grandfathers out of the United States (they were already here). Yet, I believe that law was in the best interest of the American people.
Those readers who have read the essays accompanying my piano compositions already know that I have repeatedly urged the termination of all immigration into the United States. I do so because it feel it is necessary for the United States to develop a stable culture of its own and not be an amalgamation of numerous other cultures. I have found an exchange in a news article that I think might help Europeans understand a possible destiny for their countries. Most European nations have served as sources of immigration and only recently have become destinations for such. America has always been a destination for immigration and never a source. Our experience today is your future in Europe. So, I thought you should read this. Although no one speaks of it as such, I perceive much of the animosity that the Millennial generations have toward the Baby Boom generation as being demographic. The Baby Boom ended in 1964. The restrictions placed on immigration to the United States in 1923 were removed in 1965. The Baby Boom is primarily of white European ancestry. The Millennials are everything except white Europeans. As one can perceive from the news article, they resent us much. At work my sister is often confronted by her coworkers who complain using the same refrain: Old White Men. Perhaps they do not recognize that my sister is married to an Old White Man and someday soon her son will be an Old White Man. Paul Krugman appears to be fond of this refrain and blithely unaware that he is also an Old White Man. This is something I suppose Europeans may find difficult to understand. Yet I see people come to America from places in Europe and Asia, such as from the former Soviet Republics, who although technically Caucasians, do not want to be identified as white. I am told that, since both my grandfathers were born in Italy, I am entitled to Italian citizenship, if I should so choose it. But at no time, although there be no Anglo-Saxon blood in my veins, would I ever deny that I am a white man.
I have great admiration for Chancellor Merkel and I know that Germany can do it (Wir schaffen das!). European nations already have strong cultural identities. But they should also recognize that assimilation is never perfect. Immigration will change Europe, that is understood. You will want this to be a pleasant experience and not an unexpected one. Europe failed once to recognize the Black and the Red, that both the Pope and the Emperor, united them all. Please do not let Europe abolish itself this time.