2/6.Chouard.Metz.oct2011-UE=CHÔMAGE DE MASSE

"Europe : and if we had to do it again?"

OK but only with a constituent assembly
disinterested and therefore raffled.

I suggest that we start with
the first part , i.e details,

and I won't explain
all the details,

I will insist on three or four points

among the ten that I think are
really serious.

If there are some points that
you want to deepen

in the list of the second document,
the one that is a little sheaf,

which is called "Main grievances against
Europeans institutions" that I handed out.

This document contains..

We'll talk about Europeans institutions
a little more specifically.

When I said "these institutions are
no good" I prove it.

At least, I believe that I prove it.

I grouped ten points that,
I think, are really serious.

Each one of these points is
an actual disaster, a major risk.

Something that should makes us think:
"What is this?"

"Who wrote this text?"

On each of these points.

So we'll discuss about some of those.

I invite you to read them later.
The texts that I talk about

are in the document.
I put the articles at the back.

I'm not talking without proof.
If you think I'm wrong,

because the texts didn't say
what I interpreted,

I invite you to tell me. I want to know.

The first page is the ten points summary.

And after it's the involved articles
with in [braquets] comments

where I am pointing out
[look what is happening here] ;

or [be careful, watch out].
It's complicated

to understand how the authors
of the European institutions

planned our powerlessness
in an unnoticeable fashion.

We have to deal with that and concentrate.

It's worth it because
we understand where there is a trap.

We understand it and we prove it.

Let's begin by the first one
and it's something.

First one: Europeans institutions
institutionalize massive unemployement

by institutionalisation.
Without saying so of course.

It's not written in
the European institutions:

"The European Central Bank has to ensure
that unemployement reaches it's peak."

Obviously, if they did that,
we would have revolted against them.

That's not the way european constituents
express it.

They say : The European Central Bank,

1) will be independant from
the people that you will elect.

This means that
you can vote for left,

extreme left, right,
extreme right or center.

You can vote what you want,
it won't change anything.

The ECB even has the right not to receive

your members of the European Parliament.

They can leave them outside
and say :

I don't want you to visit me.

1°) the ECB is totally independant
of who you elect;

2°) Its unique mission is
to fight against inflation.

We need to explain this
because "to fight against inflation"

is a good way to present the thing,
it's misleading.

Because all day, we hear in the medias
that we need to fight against inflation

that all of that may bring
more inflation, and they overexpose it

2,3 or 4 cases in human history
which are actually remarkable,

and they have to be noticed,
I don't say they shouldn't be,

but they overexpose it
and say that

there is a great danger
in the water system in 1720

of the Assignats during the revolution,
of german hyper inflation in the 1920's

of Zimbabwe recently..

These are red rags that they wave at us,
which are real risks

I don't say there is no
risk of hyper inflation

if we create to much currency,
I know that.

These red rags are waved at us
in order to justify

an exclusive, prioritary and crazy fight
against inflation.

It's crazy today to fight
against inflation

while we have a massive unemployement

and there [currently] is no inflation.

It's criminal, they know that very well.

It's stupid to put in a constitution,
it's more than stupid,

It's anti-social to put in a constitution

and even in a international constitution,

it's not even a constitution
that you can change in France.

Even if all the french people
did not want it,

we would have to leave the European Union
to get out of this trap.

Because it's isn't up to us anymore
but of 27 countries. 27 countries!

I don't know if you see how difficult
it will be to do popular education,

so that all 400 millions
Europeans understand that

when we fight against inflation,
we pay it with massive unemployement.

So, I brought some books,
I have to remember to tell you about these

as I go on. There is a good book to read
which is called

"The fabulous destiny of
the Philips' curve"

This was written by somebody
who should have been here

Liem, who is an econonomist who writes
really well and his book is very useful.

He recalls to our memory
the work of an economist,

Philipps who showed [this] correlation.

He didn't show it in a theorical way,

but in an empirical way.

By looking at the numbers,
the statistics over a century.

When you have inflation,
there is no unemployement.

When we have unemployement,
there is no inflation.

This is the short version,
it's a little more complicated than that.

It took other economists
to do the correlation

to end Philipps' work.
To picture it, we know that,

empirically, we don't know why...

Well, we have some ideas,
there are discussions on it...

but we know that empirically,

When you fight against inflation
you pay it with unemployement.

When you fight against unemployement,
you pay it with inflation.

So, when you fight
against unemployement,

you don't have unemployement anymore.

If you loose your job

you'll find another one,
there is no unemployement.

People will start making
social statements.

They will ask for better wages.

because if they don't get higher pay,
they just have to find another job.

It's not the only link.

The link between inflation and
unemployement is multi-factorial

but it's an easy to understand
and powerful reason.

When there is no unemployement,
the employees ask higher wages.

And the employers can't do otherwise

because there is less
labor supply on the market,

they can't do otherwise
than accept these pay increases.

As these wage increases are costs, they
affect the prices and create inflation.

It makes sense.

And in the other way, when you let
the unemployement skyrocket,

when you let 10% [of unemployment]
in France, and I don't say 10% randomly.

And now I musn't use swear words...

These awful persons fixed the
unemployement marker at 9 or 10%

so that people stop
asking for higher wages.

In Japan, they are more docile,
it doesn't take as much..

This index is called the NAIRU.
It's a minimum unemployement level

so people stop asking for higher wages.

In Japan they are so disciplined
that 1% is enough.

Do you see the level of
cynicism of our rulers,

and of "our economists"?

The NAIRU, it's official. It's not
a complotist theory, it's a doctrine.

There is an unemployement level,
calculated to avoid the inflation!

Thoses people don't want
to reduce unemployement,

they want to reduce inflation.

By the way, they institutionalize it,
they write it in the constitution.

They write: The Central Bank
shall be independant,

so you can vote whatever you want,

it will not change anything
to this situation,

and it's only mission is
to fight against inflation.

This of course in exchange
of unemployement.

So to sum up this first topic is
that the European institutions

comdemn us durably,
voluntarily to a massive unemployement.

Just this topic is enough ground
to say "we have to get out of here."

Who wrote this text?
Whom for this text was written?

Another word about inflation..

one consequence of the luck I had in 2005,

was meeting some well known people,
researchers and

I became friend, in the last part
of his life, with Maurice Allais

Our only economic nobel price, I spent
hundreds of hours chatting with him,

it was fabulous, I had the feeling
of discussing with Keynes,

Maurice Allais who was
a free minded economist, a self-taught,

a scientist who learn economy by himself,

by reading the best,
by reading Juglar, Fisher, Keynes...

all these great thinkers, Smith , Ricardo,

He wasn't deformed by university,

I will talk more about that
when we will talk about the currency

because he viputerates
the Bank money creation,

he condemned the money creation
by private banks, he said

"it's illness, we get poorer
with this system"

I will talk about this later, this book
of Maurice Allais, about money creation.

But i wanted to talk to you
about it beacause of the inflation.

Maurice Allais wrote
a book about indexation,

by defending the idea of indexation,
he says :

it's true that inflation makes wrong
the economical reports, it's like cheating

A lot of people gets poorer
without reason,

gets richer without reason
because of the inflation,

people who don't pay back
what they have to

because they pay back with "monkey money",

there is one solution to this fool game

which is in the inflation,
as long as it remains reasonable

it doesn't have to be an hyper inflation,

but we know how to do it,
it's the indexation.

during the "30's glorious" we experimented
indexation : the salaries sliding scale ,

if there is 10% of inflation this year
your wage is increased by 10%

you lost nothing.

The indexation is very important.

It's socialist people
who removed indexation,

it was socialists who removed
the salaries sliding scale.

It's a social disaster...

So a little bit of inflation and
indexation, those who work

and the little and medium companies have
nothing to fear from inflation

with indexation. A moderated inflation,
not an hyperinflation.

Those who work and

the little and medium companies have
nothing to fear from inflation.

Those who can fear the inflation are
those who have cash money

because if they invest their money,
they have

an interest which compensate inflation.

Those who have a lot of cash ,
have some interests, but who are they?

They're noone. They are a few, this is not us,

so european politic which consists
in protecting.. against inflation

as if it was a major society choice
that we absolutely had

to make, in exchange
for massive unemployement.

As if massive unemployement
wasn't important.

As if massive unemployement was..

and there is a strong chance that
it's integrated in their calculations

that the massive unemployement is
a good way to obtain people docility..

If there is a lot of unemployement..
it's an old trick,

Marx talked about it before,
with the reserve army, we know it already.

Unemployement makes workers docile.

There is not just Marx, it's the logic,
everybody can understand that.

So there is a society choice
between inflation and unemployement,

Those who wrote the Europan institutions
made the society choice

that it needed unemployement
and no inflation, it's the first point

So in the next pages ,
there are the articles ,

which describe the ECB independance,
which describe the unique mission

on inflation.

To follow : Video 3 on 6 The EU forbids
money creation to the states