BERLIN, GERMANY – JUNE 27: (From L to R) Effigies in the likeness of German Vice Chancellor and Economy Minister Philipp Roesler, German Chancellor Angela Merkel and German Social Democrats (SPD) Chairman Sigmar Gabriel stand on a truck near the Chancellery on June 27, 2012 in Berlin, Germany. The effigies were part of a publicity campaign by the Initiative Neue Sociale Markwirtschaft critical of German spending policy, especially regarding senior care, parent child care support and proposed Eurobonds. Germany’s upper house of parliament, the Bundestag, is scheduled to vote on Friday whether to ratify the European Stability Mechanism (ESM), the permanent bailout scheme for the euro zone, which many analysts see as crucial to reigning in the current Eurozone debt spiral. (Image credit: Getty Images via @daylife)
Euro ECB (Photo credit: Wikipedia)
Two years in and they are only starting now? What took them so long. Also, absolutely nothing new here, but merely the latest attempt to shift public opinion and EUR viability perceptions ever so slightly by one of Germany’s most respect magazines. Those whose agenda it is to spook Germany with images of fire, brimstone, and 3-page mutual assured destruction termsheets if the Euro implodes, are now free to take the podium. One wonders: if it wasn’t for the inevitable collapse of the EUR…. the inevitable collapse of the EUR…. the inevitable collapse of the EUR…. the inevitable collapse of the EUR, and of course Paul Ryan, would there be absolutely no news today?
Banks, investors and companies are bracing themselves for the possibility that the euro will break up — and are thus increasing the likelihood that precisely this will happen.
There is increasing anxiety, particularly because politicians have not managed to solve the problems. Despite all their efforts, the situation in Greece appears hopeless. Spain is in trouble and, to make matters worse, Germany’s Constitutional Court will decide in September whether the European Stability Mechanism (ESM) is even compatible with the German constitution.
There’s a growing sense of resentment in both lending and borrowing countries — and in the nations that could soon join their ranks. German politicians such as Bavarian Finance Minister Markus Söder of the conservative Christian Social Union (CSU) are openly calling for Greece to be thrown out of the euro zone. Meanwhile the the leader of Germany’s opposition center-left Social Democrats (SPD), Sigmar Gabriel, is urging the euro countries to share liability for the debts.
On the financial markets, the political wrangling over the right way to resolve the crisis has accomplished primarily one thing: it has fueled fears of a collapse of the euro.
. . .
Banks are particularly worried. «Banks and companies are starting to finance their operations locally,» says Thomas Mayer who until recently was the chief economist at Deutsche Bank, which, along with other financial institutions, has been reducing its risks in crisis-ridden countries for months now. The flow of money across borders has dried up because the banks are afraid of suffering losses.
According to the ECB, cross-border lending among euro-zone banks is steadily declining, especially since the summer of 2011. In June, these interbank transactions reached their lowest level since the outbreak of the financial crisis in 2007.
Bank for International Settlements (Photo credit: Wikipedia)
Bank for International Settlements instructed to block disbursement of new computer-generated US dollars and Euros
The G5’s new fake dollars and Euros are not being accepted as legal tender outside the G5 (US, UK, Germany, France and Italy).
These computer-generated «Quantitative Easing» screen-numbers, conjured-up by élite keyboards at the US Fed and the European Central Bank, are being blocked on the instructions of the 147-nation Monaco Colloquium Group led by the BRICS (Brazil, Russia, India, China and South Africa).
The Monaco Colloquium Group is also refusing to purchase any more G5 bonds or financial products. The Chinese $47 trillion Lien in operation against the US Treasury and the US Federal Reserve Board remains in place.
When Western capitalism finally collapses under the weight of its own flesh-eating debt mathematics, and the long-planned democratic régime changes in the G5 nations take place, new gold-backed currencies will come on stream and universal debt forgiveness will be announced.
The attempt by G5 NATO-backed mercenary militias in «The Syrian Civil War» to start a Middle East conflagration which draws in Iran, Israel and Russia will fail. Designed as a Libyan-style destabilisation and media-distraction, Russia, China and Turkey will prevent the fin de siècle NATO war-mongering.
Picture: One million Euro note obverse. Commemorative issue.
One million Euro note reverse
Picture: One million Euro note reverse. Commemorative issue.
One million Euro note obverse detail
Picture: One million Euro note obverse detail
One million Euro note reverse detail
Picture: One million Euro note reverse detail
These high denomination Euro currency notes are said to have been introduced by the Rothschild EuroZone banking cartel to enable suitcase money-laundering, black market liquidity, dark pool financing and élite drug-running operations to keep the major EuroZone banks afloat after the global credit crunch of September 2008.
The particular images above are commemorative versions of the actual notes in circulation. The words «Not legal tender» show on the obverse. And the words «This certificate is backed and secured only by confidence in the European dream» show on the reverse.
At the end of June / beginning of July 2012, the European Central Bank tried to cash a €150 billion tranche of this non-commemorative «legal tender» fiat currency for bailout purposes related to Spain. It failed.
Treasury currency bunkers all over Asia are stuffed full of pallets of shrink-wrapped packages of these high denomination Euro notes. The realisation is dawning in the East, as well as in the West, that these Euros are worthless. They are backed by nothing that is due-diligence tangible in the real-world European economy. They were tendered with fraudulent intent by a rogue faction within the EuroZone banking establishment to sucker Asian creditors.
A little sense of history Greek academics feel in the current situation in Weimar in the thirties, recalls. Even then, the democracy was presented as a highly immature event.
General Frangoulis Fragos visited his troops. He still has a few days can play defense and the muscles. (Photo: militaryphotos.net)
And even then not all understood, which is what democracy is. It is not surprising that the military can play a few days before the election, the muscles. So far they had kept quite in the background. But now the defense minister suggested in the interim government, the retired general and former chief of land forces, Frangoulis Fragos, at a ceremony in Marasia in northeastern Greece on, will the military look only to a certain degree of chaos. Fragos said: «I hope that democracy works. I will pass my mandate directly to the then elected new secretary of defense. But I’ll also want to say one more thing: Do not doubt the capacity of the Greek army. I repeat: The Army holds back. But there is a strong, silent power that will make a deafening noise, should this be necessary. «
Most Greeks attach such threats no special meaning. You know that the army is at least weakened by the recession like the rest of the country. They certainly are not, however: you can never trust the military, say observers. The presence of Fragos calls the Greeks certainly the unpleasant fact in mind that military coups represent a constant in recent Greek history. It is hoped, however, still a majority that the «peace project €» if not prosperity should have, at least brought a touch more of civilization in the cradle of democracy.
The Greek government has announced new austerity measures aimed at slashing its huge budget deficit. It comes a day after the Prime Minister said that the country was fighting for survival. The new measures — which will reduce annual pay and increase taxes — were ordered by the EU in an bid to prevent a collapse of the Euro. But street protests have been raging in Athens against the plans. Meanwhile, the U.S. Justice Department is reported to have launched a probe into leading American hedge funds. They’re suspected of helping Greece cover up its debts to weaken the European currency. Journalist Webster Tarpley believes that was a plot hatched to prop up the dollar’s supremacy.
It has been evident for some time that the ongoing speculative attack on Greece, along with such other countries as Spain, Ireland, Portugal, and Italy, was not primarily a reflection of their economic fundamentals, nor yet a spontaneous movement of «the market,» but rather an orchestrated action of economic warfare. The dollar had been relentlessly falling through the late summer and autumn of 2009. It obviously occurred to various Anglo-American financiers that a diversionary attack on the euro, starting with some of the weaker Mediterranean or Southern European economies, would be an ideal means of relieving pressure on the battered US greenback. Since these degenerate elites are incapable of directly solving the problem of the dollar through increased production, full employment, and economic recovery, one of the few alternatives remaining to them is to create a situation in which the euro is collapsing faster, leaving the dollar as the beneficiary of some residual flight to quality or safe haven reflex.
This is what emerged during the first week of December with a speculative assault or bear raid against Greek and Spanish government bonds as well as the euro itself, accompanied by a scurrilous press campaign targeting the «PIIGS,» an acronym for the countries just named, coming from inside the bowels of Goldman Sachs. I have discussed this phenomenon several times over the last two to three weeks on my radio program on GCN.
Now comes concrete proof of this conspiracy in the form of a Feb. 8 «idea dinner,» held at the Manhattan townhouse of Monness, Crespi, Hardt & Co, a boutique investment bank. Among those present were SAC Capital Advisors, David Einhorn of Greenlight Capital (a veteran of the fatal assault on Lehman Brothers in the late summer of 2008), Donald Morgan of Brigade Capital, and, most tellingly, Soros Fund Management. The consensus that emerged that night over the filet mignon was that Greek government bonds were the weak flank of the euro, and that once a Greek debt crisis had been detonated, all outcomes would be bad for the euro. The assembled predators agreed that Greece was the first domino in Europe. Donald Morgan was adamant that the Greek contagion could soon infect all sovereign debt in the world, including national, state, municipal and all other forms of government debt. This would mean California, the UK, and the US itself, among many others. The details of this at dinner were revealed in the headline story of the Wall Street Journal on Friday, February 26, 2010. (See article at
Nor was this the only cabal in town intent on attacking the euro through the week Greek flank. The article cited suggests that GlobeOp Financial Services and Paulson & Co. are also piling on. The zombie banks were also heavily engaged. The article reported that Goldman Sachs, Bank of America-Merrill Lynch, and Barclays Bank of London were also assisting speculators in placing highly leveraged bearish bets against the euro. Note that these zombie banks are alive today because of US taxpayer money, in Barclay’s case through AIG.
It amounted to a deliberate attempt to create a large-scale world monetary crisis which would certainly bring with it the dreaded second wave of the current world economic depression. The creation of monetary chaos in Europe through the convulsive destruction of the euro under speculative attack would cripple commodity production in western Europe, severely undermining one of the dwindling areas of the world economy which are still functioning. The genocidal implications for humanity ought to be obvious, but the assembled hedge fund hyenas were not concerned with these consequences.
George Soros has been telling every media outlet that will listen that the euro is doomed to fall apart and break up over the short run. Soros even has a theory to deploy as part of his speculative attack. Soros argues that the fatal flaw or original Sin of the euro is that it was based on a common central bank among the participating countries, but lacked a common treasury and tax policy. This means that a country like Greece can no longer defend itself from a speculative attack on its bonds by the simple expedient of currency devaluation, since there is no more drachma, and the euro is controlled from Frankfurt, not Athens. British spokesmen are quick to point out that, even though the financial situation of London is far worse than that of Athens, the British government is already devaluing the pound through a downward dirty float.
Given Soros’s infamous track record, he must be taken seriously. In 1992, Soros became world famous through his attack on the European Rate Mechanism, which he executed by a highly leveraged speculative assault on the British pound, at the time one of the weaker members of the ERM. Soros’ speculative attack led to a pound devaluation and the ragged breakup of the ERM, and netted Soros £1 billion in profits. It was as if Soros had personally stolen a £20 note from every man, woman, and child in Britain. The speculative gains were no doubt gratifying, but the overriding political purpose of the assault was to sabotage that phase of European monetary policy.
The London Economist has gone out of its way to mock Spanish Prime Minister Zapatero’s remark that Spain was under international speculative attack. Press organs of the city of London and Wall Street have ridiculed the Greeks as a nation of paranoid conspiracy theorists. And yet, the revelations made so far are strong circumstantial evidence of pre-concert, as Lincoln would say. Even the US Department of Justice has been forced to send letters to the participants in the infamous «idea dinner,» warning them not to destroy any of their records and thus putting them on notice that they are under investigation. While we should not have any illusions about the prosecutorial zeal of Attorney General Eric Holder, who once represented the international financial bandit Marc Rich, this is at least a beginning. Spanish and Italian judges are noted for their independence, and one of or more them may wish to examine the activities of Soros, Goldman Sachs, and their hedge fund allies.
Greece does not need an austerity program, as the Greek labor movement has eloquently argued in the course of their successful and admirable general strike last week. Greece does not need a bailout from Germany, the sinister International Monetary Fund, or from anyone else. Least of all does Greece need to accept the advice of Austrian school or Chicago schools charlatans who recommend the catharsis of a deflationary crash that would destroy an entire generation through unemployment, poverty, and despair. Greece needs to defend itself with a 1% Tobin tax on all derivatives and other financial transactions. Greece should take the lead in outlawing credit default swaps, which amount to issuing insurance without meeting the capital requirements of being an insurance company. Greece needs to enforce EU and national antitrust laws. If Soros and his gang succeed in breaking up the euro, Greece should make the best of it by immediately imposing heavy-duty exchange controls and capital controls to protect the new drachma, on the model of Malaysia a dozen years ago. Greece should shut down domestic zombie banks and seize its central bank and use it to issue 0% credit for industrial and agricultural hard commodity production. If the Greeks made plain what they intend to do if they are forced to fall back on the drachma, the financiers who fear such an example would have another reason to relent.
Another obvious expedient is that of a bear squeeze or short squeeze. Soros, Goldman Sachs, and their gang of hedge fund allies have now used derivatives to establish short positions against Greek bonds and the euro, betting that these latter will go down. Political pressure is now being brought to bear on the European Central Bank and the Greek central bank to undertake an unannounced large-scale purchase of Greek bonds and euros in the forward market, causing the Wall Street predators to lose their bets, thus punishing them severely with extravagant losses. This is normal central bank practice, and it will be astounding if the Greeks do not execute such a maneuver very soon.
The world now faces a stark choice between two alternatives, with Wall Street forcing the issue. The first is that the zombie banks and hedge funds, having been saved and bailed out by national states and their taxpayers, will repay the favor by driving the national states and all forms of state, provincial, and local government into bankruptcy. This will be synonymous with the destruction of modern civilization itself. The second and preferred alternative is that the national states summon the political will to use the inherent powers of government to place the zombie banks, hedge funds, and related purveyors of derivatives into bankruptcy receivership and shut them down once and for all, relying in the future on nationalized central banks for the provision of credit. The second alternative would allow the preservation of modern civilization as we have known it. But in the meantime, the derivatives-based speculative attack on the southern flank of the euro has accelerated the arrival of the second wave of depression, which now appears likely to strike the world before the end of 2010.
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