22 July 2011
I have written frequently (but not recently) about the wave of “economic terrorism” which Wall Street launched against Europe - with the full support/blessing of the U.S. government.
With that campaign of terrorism having nearly reached fruition, I will review these events one more time.
Essentially, it began with Goldman Sach’s "rape” of AIG. AIG was the “guinea pig” of this experiment. The banksters had already perfected their terrorist weapons: interest-rate swaps and credit default swaps. Now they needed to determine if they actually “worked” - i.e. if their scam-victims were gullible enough to be fooled by bankster double-talk, and if our legal systems would “tolerate” this massive, systemic fraud.
The interest-rate swaps had already been tested. During the time that “economic genius” Larry Summers was foolishly put in charge of Harvard, this “genius” managed to lose approximately $1 billion in financing merely $2 billion of debt, via interest rate swaps. The reasoning is obvious: if Larry Summers could be conned that easily, then so could the “geniuses” in charge of Europe’s various economies.
The Wall Street banksters (and some European banking Oligarchs) then systematically targeted every city, state, and large public institution foolish enough to listen to the banksters’ con.
The “mechanics” of these interest rate swaps (i.e. the contracts) were extremely complex. Naturally if you’re trying to scam someone with such paper-fraud, you make the wording as convoluted as possible, so that it’s impossible for the victim to ever fully understand the contract they are signing.
Conversely, the nature of the scam itself was incredibly simple: getting these cities, states and institutions to make massive “bets” on interest rates against the same group of bankers who controlled those interest rates. One half of the bet was held by the scam-victim, while the other half was held by another multinational bankster.
The bankers were able to con all of their victims into believing that they would be the “winners” of all of these bets, with the sophisticated, multinational bankers being the “chumps” who would suffer all of the losses.
Even more incredibly, none of these victims became suspicious even once they had become aware that the banksters were all taking the same side of the bet: that interest rates would go down, with all of the scam-victims making the opposite bet - that interest rates would go up.
What actually happened? By incredible “coincidence” shortly after the bankers had finished making all of these bets, U.S. and European interest rates crashed to their lowest level in history - and stayed there.
This resulted in maximum losses for the scam-victims, and maximum profits for the banks - an amazing stroke of “good fortune” for all of these banksters. Though the final “tally” of this scam has yet to be realized, the haul certainly amounts to $100’s of billions - if it hasn’t already exceeded $1 trillion. While both civil and criminal prosecutions have been initiated by several European authorities, as of this date, no bank has been punished in any way for perpetrating this massive fraud.
Similarly, credit default swaps are a scam which is very complex in its execution, while mind-numbingly simple in concept. First, the bankers pour gasoline all over the houses that they wish to “burn down”. Then they find “chumps” who are willing to write-up “fire insurance” policies on all of these homes - with the bankers being the “beneficiaries”, even though they don’t own any of the homes. The bankers then set all of the homes on fire, and then collect their insurance proceeds.
Translating that metaphor to the real world, the “houses” were sovereign European states. The “gasoline” was the massive debts which the banksters had goaded these governments into taking-on, through promising them that the $trillions in credit default swaps which the banksters were writing-up would magically allow all of these countries to all borrow much more money, at lower interest rates than ever before - forever.
To call this a “Trojan Horse” maneuver would be giving the sovereign governments who were duped by this preposterous nonsense too much credit. Rather, it was more like the cliché of the cartoon-villain who hands a “birthday cake” to his target - except that the candles are actually lit sticks of dynamite, and (of course) the victim never notices the suspicious “candles”.
Even this metaphor isn’t entirely accurate, however, as back in the real world, the banksters actually used much more “dynamite” than “cake”. The “notional value” of these credit default swaps climbed above $60 trillion - larger than the entire global economy, and many times in excess of the debts being (supposedly) “insured”.
Returning to the arson/insurance analogy, the banksters were allowed to “insure” these houses for many times their actual value, with themselves as “beneficiaries” (even though they didn’t own the homes) - and still their victims didn’t suspect a thing. More unbelievably, with all of these European houses now fully aflame, even now most of the victims have not begun to suspect “arson”.
Here is how the credit default swap scam actually operates in European (and global) debt markets.
The scam-victim is led to believe that placing these massive amounts of “insurance” (i.e bets) on all of the debt they are issuing will magically and permanently lower their borrowing costs forever. It is even less-plausible than believing in a “perpetual motion machine”, but it fooled all of the leaders of Europe, and was instrumental in inducing all of these governments to allow debt-levels to soar (the “gasoline” I spoke of earlier).
What a credit default swap actually does is to place a highly-leveraged “bet” against that nation defaulting on its debt.
Note that the banksters were unable to stop themselves from engaging in these bets amongst themselves due to the compulsiveness of their greed and gambling-addiction.
When Morgan Stanley refused to honour one of these “bets” which it had placed with Citigroup, Citi was forced to sue. Even after Morgan Stanley was forced to liquidate the so-called collateral which had “backed” this bet, it was facing a pay-out of nearly 300:1. This gives people some idea of the massive leverage in this $60 trillion market - and the “visions of dollar signs” dancing before the eyes of greedy banksters.
Also note the other requirement here: finding a “chump” willing to write-up all of this insurance (i.e. to take the other side of the bet). Enter AIG. As with the fleecing of Harvard, AIG was the “test case”. In this case, the “test” was to see if Goldman Sachs could dupe AIG into insuring (against default) some of the worst mortgage “feces” which Goldman Sachs had been able to find - out of all the massive mortgage-fraud perpetrated by Wall Street.
The reasoning was that if they could get AIG to insure these “products” (the world’s largest insurance company), then they could dupe anyone into “insuring” anything.
Not only did AIG perform magnificently as the perfect dupe, but Goldman Sachs was then able to get their “good friend”, former CEO, and then-Treasury Secretary Hank “Bazooka” Paulson to set up a $160 billion “slush fund” within the carcass of AIG. The U.S. government then demanded that AIG pay Goldman Sachs 100 cents on the dollar for every penny of this credit default swap fraud.
With their “test case” a huge success, the banksters were now ready to officially unleash their economic terrorism on Europe. It has been painful in its simplicity. It begins with the U.S. propaganda-machine (i.e. the mainstream media). They were instructed to all don their “Chicken Little” costumes, and then to run around shrieking (“24/7”) that “the sky was falling” in European (and only European) debt markets.
The very same American media pundits who write day-after-day about the “Euro debt crisis” (across an ocean) have found the “U.S. debt crisis” to be totally invisible - despite the fact that the level of insolvency within the U.S. exceeds even the worst of the Euro debt-sinners. This propaganda-campaign began in earnest late in 2009, and has been relentlessly maintained ever since.
This made the actual “terrorist attacks” in the credit default swap market child’s play. Wall Street terrorists began massively “shorting” all of these credit default swaps. The shorting increased the level of risk/leverage on the credit default swaps themselves, while the relentless propaganda increased the perceived level of risk on this debt.
The combination of these forces, pushed the “prices” for this “insurance” sky-high.
Because the size of the credit default swap market grossly exceeds the size of the debts themselves, “the tail can now wag the dog”. Driving up the prices on the so-called credit default insurance now directly drives up the interest rates on European sovereign debt.
At best, many of these Euro nations were barely solvent before the Wall Street terrorists began driving up European interest rates with their terrorist attacks. Since that time, they have caused interest rates for Greece, Ireland, and Portugal to roughly triple, while their newer victims/targets (Spain and Italy) have also seen their borrowing costs explode.
This has made the anti-Europe propaganda and the shorting of the credit default swaps the proverbial “self-fulfilling prophesy”. The more they “short and shriek”, the higher interest rates go, making these nations even more insolvent, causing interest rates to go still higher. Wall Street terrorists can now literally drive European interest rates to any level they desire - with one proviso.
What Wall Street’s terrorists don’t want to do is to drive these economies into formal default (i.e. formal bankruptcy). This would force these Euro states to simply repudiate $100’s of billions (if not $trillions) in bond debt - and “detonate” the entire credit default swap market. The ultimate irony (and betrayal) of the credit default swap scam is that this was never “insurance”.
Real insurance directly implies that the insurer is capable of indemnifying the insured. Obviously there is no “insurer” standing by to make the extremely leveraged pay-outs on this $60 trillion of supposed “insurance”. This makes credit default swaps a prima facie “fraud”.
Detonating the credit default swap market would kill “the Goose that lays the Golden Eggs”, and Wall Street’s economic terrorists (and the ultra-wealthy bond-holders for whom they “front”) are still planning on harvesting many more “eggs” from these geese.
Indeed, as we shall see in Part II, the “golden” metaphor may literally be true.
25 July 2011
In Part I, I explained and (for many) introduced readers to two of the major scam-vehicles which the Wall Street Oligarchs (and a few European brethren) unleashed upon the world - and in particular the nations of Europe.
Interest rate swaps and credit default swaps (both forms of "derivatives") have been used to inflict trillions of dollars in losses on their victims, with no end to this massive tally in sight.
As I watched Wall Street terrorists decimate the debt-markets (and thus the economies) of European nations one-by-one, I had assumed that such an unprecedented economic "attack" against these nations had been a goal unto itself. I was mistaken. Instead, what has recently become apparent is that such terrorist attacks on Europe were merely the means to an even greater end: to completely plunder all the wealth of these nations.
In furtherance of this objective, the banking crime syndicate (and the ultra-wealthy bond parasites whom they represent) have formulated a three-pronged scheme to drain every last drop of wealth from these economies (and nations):
I will address these economic "crimes against humanity" in order.
The same Western central banks (and bankers) who literally dumped thousands of tons of gold onto the global market over a two-decade period - claiming that they had no use for this "barbarous relic" - are now all singing a different tune. They have completely ceased their own gold sales, for one of two reasons: they have now decided to hoard all of their remaining gold, or their vaults are empty, and they simply have no more gold to "sell".
Either interpretation of events is plausible.
However, depending on which premise is correct, the decision by Western banking authorities to designate the national gold hoards of these nations as "collateral" for their (fraudulent) bond debts has two entirely different (and separate) motivations. If the gold still exists, then naming gold as collateral for debts which could never be repaid (and where default is imminent) is nothing less than the theft of these nations' gold reserves.
Conversely, it is also highly plausible that there are no (remaining) hoards of gold hidden in bankster vaults (at least none which belongs to these governments). Why is there reason to suspect that the claims that these nations possess large gold reserves are more fantasy than fact?
Because when Western banksters were dumping their thousands of tons of gold onto the market to crush the "life" out of that market, their primary method of "delivering" this gold onto the market was not outright "sales" of gold, but rather "leases".
Here I must defer to the years of time and effort which the vigilant gang at GATA (the "Gold Anti-Trust Action" Committee) have devoted to monitoring the activities of these bankers. It has long been their suspicion that the "gold reserves" listed by many/most/all Western nations are complete fiction - as they do not account for the countless tons of "leased gold" which will never (and could never) be returned to these bank vaults.
In other words, most of the "gold" held in these European vaults are not gold bars physically present in these vaults, but rather merely stacks of gold "IOU's".
Armed with this additional data, it must now be obvious what the other potential motive would be in attaching a legal claim on these (fictional) "gold reserves". It would allow the cabal of Western bankers to "take possession" of gold (which does not exist), and then claim to be "holding" all of this gold in some vault even further removed from prying eyes.
Why would such a charade be necessary, or even useful? Because most of the Euro governments who claim to "hold" these gold reserves do not even store their own gold. Instead, these nations were persuaded to allow their gold to be stored at more "secure" locations - such as Fort Knox, home to the U.S.'s own "legendary" (mythical?) hoard of gold.
In fact, there is a very good reason to suspect that the vault at Fort Knox does not hold stacks of gold bars, but rather merely stacks of paper "IOU's" - that reason being that the U.S. has absolutely refused to conduct any public audit of its supposed hoard of gold for more than 50 years. It is nothing less than "un-American" for the U.S. to continue to claim that it holds far more gold than any other nation on Earth, and not want to show-off that gold on regular occasions.
Indeed, the question-mark surrounding the Fort Knox gold is less of a "mystery" than a farce.
Roughly one month ago, the U.S. Treasury Department's "Inspector General", Eric Thorson (the one individual personally responsible for verifying the claims of the Treasury Department) announced that any audit of Fort Knox would be "redundant".
The obvious question to ask is: how could something which hasn't been done for over 50 years be "redundant"? Mr. Thorson had a good answer for that: because he personally "believed" the gold was there. And with that statement, an entire new "realm" opens up in the world of accounting: the "faith-based audit".
Forget about all of that time-consuming "counting", and line-by-line "verification" of numbers. The accountant (or "Inspector") in question simply signs an affidavit personally attesting to their unequivocal "belief" that the books are in order, and presto! - "audit" complete. It's faster, more efficient, and (in the case of the U.S. government) completely above reproach, since (as we know) all U.S. government officials are both omniscient and scrupulously honest.
To be fair to "Inspector" Thorson, he had a very, very, very good reason for "believing" the U.S. government's claims about its Fort Knox holdings - despite having never actually seen one of the gold bars personally. In its infinite wisdom, the U.S. government put a "seal" on the Fort Knox vault (just like with the tombs of ancient Egyptian pharaohs).
And since every time he has "checked" the seal is still there, Inspector Thorson "knows" that all of the Fort Knox gold must be there.
Apparently a "cunning plan" where someone in the U.S. government breaks the seal, removes the gold, and then makes a new seal (at some point in the last 50+ years) is simply too diabolically clever for Inspector Thorson to even contemplate.
And so we have the "last word" from the Western banking cabal (and their "friends" in the U.S. government): all of the Western gold hoards "must" be intact, because they are believed to be intact. In much the same way, we can all "know" that Santa Claus exists - as long as old St. Nick remains "alive" in our hearts.
The bottom-line is that we are left with two competing theories regarding the efforts of the banksters to "seize" this purported gold as collateral. If the gold exists, then the banksters simply plan to steal all of it, in return for their fraudulent bond-debts, denominated in their own, worthless paper.
Conversely, if the gold does not exist, then each and every day there is a very real risk that these deadbeat governments would want to (or be forced to) sell some or all of that gold. Most certainly, anyone wanting to fork-over $10's of billions for a stack of yellow bars would actually want to see those yellow bars - at least once.
And since such "suspicious" buyers might also want to "test" the gold they are purchasing, attempting to flog a lot of gold-plated tungsten bars would also be a tactic prone to failure.
Thus by "confiscating" all of this mythical gold, it can be safely "stored" where no one would ever need to see it again.
Before I move on to the next "prong of attack" against the nations of Europe, it's important to pause to explicitly note why it would be so disastrous for Western governments (and Western banker Oligarchs) if it were discovered that the 20,000 tons of gold they claim to still possess was nothing but a gigantic lie.
To do this, I must first explain why the banksters were relentlessly dumping thousands of tons of gold in order to extremely suppress that market.
In our monetary system, gold is "the canary in the coal mine". When the price of an ounce of gold moved from under $300/oz to over $1500/oz in roughly a decade, it did not/does not mean that the gold we are buying today is "super-gold", but is in fact the same substance we were buying for 20% of that price a decade ago.
Obviously if it is not possible for the same ounce of gold to be more intrinsically valuable then the only other possibility is that the perceived value of the banksters' worthless paper has declined by 80% in 10 years.
Note that the sickening collapse of the banksters' fiat-paper has occurred despite the widespread belief that Western governments are "holding" roughly 20,000 tons of gold to (sort-of) "back" their mountains of fiat paper (and much larger mountains of debt) - in today's prices that amounts to trillions of dollars. Should most (or all) of that "gold" be discovered not to exist, it would represent much more than merely the single largest conspiracy of fraud in the history of the world.
To begin with, it would mean that all of these near-bankrupt governments would be trillions of dollars poorer than previously believed. Secondly, the same Western fiat-currencies which were crumbling in value despite belief in the mythical gold-hoards of the West would now disintegrate at a much greater speed.
The mechanics are obvious:
In a matter of days, prices for everything would be spiraling out of control.
However, as was noted with the rising price of gold, what these "price increases" would actually represent would be the even more-rapid collapse of Western fiat paper - and undoubtedly the beginning of a hyperinflationary spiral (i.e. banker-paper going to zero).
Having only examined the first avenue of this three-pronged economic assault on Europe, we can already see the enormous stakes in these acts of economic (serial) rape. It either represents defrauding the nations of Europe out of $trillions in gold (which rightfully belongs to the peoples of these nations, not their governments or central banks), or it is yet another desperation-tactic to temporary forestall the collapse of the banksters' entire fiat-currency Ponzi scheme.
As readers will see in Part III, the other aspects of the banksters' master-plan are equally diabolical and momentous, leading inexorably to a final objective: the economic enslavement of all the peoples of Europe.
28 July 2011
In Part I of this series, I reviewed the campaign of U.S. “economic terrorism” which has ravaged many of the economies of Europe - and set the stage for their economic destruction.
In Part II, I identified three of the most important strategies which will be used to “finish the job”, and discussed one of them: either to steal the national gold reserves of these nations, or to hide the fact that those national hoards of gold were already squandered.
In this installment I will focus on the second strategy for completing the looting of Europe. It is a mere two-word phrase, and arguably the most-odious two-word combination in the realm of 21st century economics: “loss guarantees”.
It is the ultimate form of “welfare” for both the banker Oligarchs and the bond parasites, and the principles behind it are extremely simple:
It is in this respect that our political leaders are “earning” the campaign-bribes which these Oligarchs used to buy our governments.
In fact “lying about things” and “hiding things” are arguably the only two “talents” possessed by the current crop of Western political “leaders”.
We got our first real exposure to “loss guarantees” after the Crash of ’08, and the multi-trillion dollar extortion campaign which Wall Street based upon that deliberately created “crash”.
Naturally when the (banker-friendly) propaganda machine writes about the “costs” of all of the Wall Street welfare they only ever point to “the tip of the iceberg”: the direct hand-outs - totaling somewhere around a paltry $1 trillion. However, once the “0% interest loans” and “loss guarantees” are added in, suddenly the Wall Street hand-outs swell to roughly $15 trillion (and counting).
It is a testimony to the monumental stupidity and apathy of the average Western citizen (in this case Americans) when we see how easy it was to dupe the American people. Understand first of all that both the banksters and the politicians (at least those at the very top) have known all along that the Wall Street fraud-factories are all hopelessly insolvent - and hiding countless $trillions in losses.
It is common knowledge that Wall Street was leveraged by an (insane) average of more than 30:1 at the time that their Ponzi-schemes imploded. The arithmetic is simple: a loss of roughly 3% on the underlying assets which were leveraged would take the entire paper-empire of Wall Street to zero.
Most of the Wall Street scam-products were based upon the U.S. housing sector. Prices for U.S. homes have now plummeted in excess of 30% - ten times what would be necessary to make all of Wall Street insolvent.
Even worse, many of the “exotic” products (i.e. bets) devised by the Wall Street Vampires were so unstable and/or heavily leveraged that losses well in excess of 100% are possible.
In this respect, the example I like to use is when one bankster sued another - in this case, Citigroup suing Morgan Stanley to force Morgan Stanley to honor its losses on just one “credit default swap”.
Even after liquidating the so-called collateral which “backed” this contract, Morgan Stanley was faced with not a mere “100% loss”, but rather a 300:1 loss (or 30,000%).
Upon examining these facts, we discover the cruel, horrifying truth about these “loss guarantees”: what they are really are guaranteed losses. Thus in typical deadbeat fashion, the U.S. government immediately committed itself to more than $10 trillion in Wall Street losses - while not actually “paying for” thoses losses…at least not right away.
Here is how the shell-game which the U.S. Treasury Department and the Federal Reserve are running actually operates.
The Treasury Department signs “Uncle Sam’s” name to the loss guarantees/guaranteed losses - irrevocably committing U.S. taxpayers to covering the $10+ trillions in bad debts. Meanwhile, the Federal Reserve has been spending the last three years stuffing $trillions in “0% loans” into the vaults of the Wall Street fraud-factories.
Of course, as anyone with even a glimmer of brain-function will immediately realize, a “0% interest loan” is not a “loan”at all - merely a very thinly-disguised gift (i.e. welfare). If one never has to pay interest on a “loan”, one simply is never foolish enough to make any payments on that loan(s). So the Federal Reserve has already given Wall Street somewhere near $15 trillion to cover its guaranteed-losses (a sizable “down-payment” on their total losses).
To finish the shell-game (and the scam) over the next one/ten/twenty(?) years, the Treasury Department will (very quietly) announce it is “covering” various Wall Street losses - as per its “guarantees”. And (best of all) should Americans belatedly decide to complain about their own economic rape, the welfare on these guaranteed-losses is a fait accompli - as the money is already sitting in the banksters’ vaults (assuming they haven’t already gambled-it away too).
And now these “loss guarantees” (guaranteed losses) are being used to help complete the economic rape of Europe.
We see exactly the same pattern forming with Europe’s deadbeat-debtors as we saw in the U.S. with the deadbeat-bankers. Hide and lie about the magnitude of losses. Attach binding “guarantees” to those losses - which are nothing but pre-approved hand-outs - and then plunder every last drop of wealth out of these economies in (relatively) small installment payments. Just as the “math” associated with the Wall Street welfare proves that these are “guaranteed losses” rather than mere loss-guarantees, so too do the numbers from Europe tell the same story.
After two years of “fixing” and “rescuing” the economies of the Euro debt-sinners, every one of those economies is less-solvent today than it was when this farcical process began - except for Iceland, which refused to capitulate to the banksters with its own loss-guarantees, and has thus escaped from the banksters’ choke-hold.
Note that only part of the problem here was the original losses caused by the crime-spree of Western multi-national bankers. Much (most?) of the damage has in fact been caused by the scorched-Earth “austerity” preached by economic neo-Nazi, Milton Friedman.
As the eminent Naomi Klein chronicled in her critically-acclaimed body of work titled “The Shock Doctrine”, any/every economy exposed to Friedman’s rape-and-pillage “capitalism” has been destroyed by it.
The notable exceptions to this are the two “champions” of Friedman’s fascist doctrine: the U.S./UK “Axis of Evil”.
Klein first lays-out how these two disciples of this sadistic ideologue were implementing his (literally) “bankrupt” policies on one nation after another. Frequently, Friedman’s economic rape was imposed on its victims through overthrowing the legitimate democracies of these nations; installing brutal, military dictatorships; and then torturing the local populations into submission.
Economically, however, the chronologies are all identical: total economic collapse.
Klein then notes how Friedman’s two, most-devoted “crusaders”, Ronald Reagan and Margaret Thatcher refused to “prescribe” Friedman’s toxic, fiscal “medicine” for their own economies. Inadvertently, Reagan and Thatcher exposed the entirely predatory nature of Friedman’s “vision”: Friedman-economics was something you perpetrated upon the masses, so that a tiny core of economic elites could make themselves filthy-rich on what they “harvested” from those masses.
In the case of the U.S. and UK, they came to the “reasonable” conclusion (roughly 40 years ago) that if they raped-and-pillaged a large enough number of other economies with Friedman’s fascism that they would be able to loot enough to satisfy their own greed - without needing to risk the bloodshed/anarchy/revolution in their own nations which generally accompanies “Friedman economics”.
We see this “harvesting” process fully underway in Greece, where the traitor-government has committed itself to selling-off any/all state assets coveted by the Oligarchs. The “problem” for these greedy banksters and bond parasites is that they will have looted every last drop of wealth from Greece long before they have satisfied the mountain of debts under which they have buried Greece. Enter the loss guarantees/guaranteed losses.
Greece may have absolutely no possible way of ever paying-off these $100’s of billions in debts (much of it fraudulent), but still-wealthy Germany can certainly be blood-sucked enough to cover those losses. Having now seen these “loss guarantees” from multiple perspectives, it becomes obvious what they really symbolize: a “yoke” of economic slavery.
The problem with trying to fashion such a “yoke of slavery” purely through piling one massive debt atop another is obvious: at some point the “mountain” becomes too large, default occurs - and the debts are swept “clean” (ending the slavery). In this respect loss guarantees/guaranteed losses are a far superior means to engage in long-term blood-sucking as they are literally “blank cheques”.
Each time one of these debt-slave economies accumulates a little revenue in their coffers (or rather is able to find a “chump” willing to lend them more money), the banksters instruct their servants in government to fill-in one of the blank cheques via “covering” a small portion of these guaranteed-losses.
Thus the loss-guarantees are designed to keep these economies perpetually on the verge of bankruptcy, where the debt-slavery can be maximized - without ever actually “pushing” one of the debt-slaves into formal default.
At this point many readers may conclude that the banker Oligarchs and bond parasites have already devised “the perfect rape” of Europe. However, as was demonstrated by the example of Iceland, these nations still retain enough sovereignty so that they can choose to sever these chains of economic slavery. In particular, the still relatively-wealthy economies of Northern Europe can detach themselves from the “loss guarantees” for Southern Europe which are intended to suck them dry.
The Oligarchs thus have one more necessary step to irrevocably cement this campaign of economic slavery: the full, economic integration of all Euro-zone economies.
In the final chapter of this series, I will look at the last/latest scheme to permanently enslave the peoples of Europe with the Oligarchs' yokes of debt.
31 July 2011
In the first three installments of this series I documented how U.S. economic terrorism had been unleashed on Euro-zone debt-markets, driving up their interest rates - and thus their deficits - exponentially.
I then explained how the bankers and bond parasites had exploited this increased indebtedness to attach legal claims against the national gold-hoards which these Euro-zone economies purportedly possess. Lastly, I pointed out how the "loss guarantees" being imposed on these debts (starting with Greece) represented nothing less than perpetual debt-slavery.
In this final installment I will discuss the last “nail in the coffin” for individual Euro states, and their populations. The ultimate goal of these ruling Oligarchs is nothing less than the full, economic integration of Europe.
Not only would this bind every European citizen to the debts of all the individual Euro states, but once full economic integration had been achieved then Europe’s wealth could be plundered as a single entity - much more efficient than their current nation-by-nation looting.
Naturally, this is not something which would be “welcomed” or even tolerated by most Europeans.
First of all, national identities remain strong within these countries, and there is no desire for any greater degree of integration. Secondly, the economic atrocities inflicted upon us by Western bankers over the past three years have greatly exacerbated the regional economic disparities within Europe. Simply, the Northern “have’s” are adamantly opposed to what they see as the “subsidization” of the Southern “have not’s”.
Conversely, the banker-terrorists and bond Oligarchs are equally determined to impose a single, economic entity on all of the peoples of Europe. This became utterly imperative in the minds of these economic fascists in order to eliminate “the Iceland option”.
Knowledgeable readers will be aware that Iceland was initially a very eager “pawn” for the Western multinational banksters at the beginning of this millennium. However, after the Crash of ’08 exposed these banksters as the international crime syndicate we now know them to be, Iceland severed its ties with these thugs-in-suits - renouncing the fraudulent debts which the banksters sought to impose on the people of Iceland through loss guarantees.
At that point, the new mantra of these Oligarchs became “no more Icelands”.
In part, this has been achieved by tightening their economic choke-hold on individual Euro zone economies - thus gaining added leverage on their weak, incompetent, and traitorous governments.
The Oligarchs realized that they had been arrogant and sloppy in their handling of Iceland - never dreaming that the government of that tiny nation would be courageous enough to “call their bluff” and simply walk away from all of that fraudulent debt. They now seek to permanently eliminate the economic sovereignty of Euro states, ensuring that no other European nation can escape from the fascist debt-slavery these Oligarchs seek to impose.
The obvious question is: how can this be achieved? With most Europeans firmly opposed to any greater integration, and increasingly suspicious of the motives and actions of their own governments, it is highly unlikely that any of the current governments in Europe have the “political capital” to muscle-through such a plan.
As with most of the machinations of these villains, it is a multi-stage strategy. The first stage is nearing completion: taking several Euro-zone economies as close as possible to the brink of total economic collapse - without triggering outright bankruptcy/debt-default. The banksters realized that this had been part of their mistake with Iceland.
At the time that they sought to impose their massive “loss guarantees” on Iceland (which would allow them to permanently blood-suck that economy), Iceland’s underlying economy was still reasonably prosperous/stable. Thus it was able to absorb the economic “shock” of walking away from the banksters’ debts - and the “penalty” of being shut out of international debt markets.
With Greece’s economy now in total ruin and Ireland, Portugal and likely Spain soon to follow, the banksters want to make these economies so ridiculously over-leveraged with debt, and debt-dependent that “walking away” would result in maximum economic devastation. At this point, there’s no reason to believe that they will fail to do to the other three “PIGS” what they have now accomplished with Greece.
The next stage of the plan has already been “launched”, in the sense that the strategy is being openly discussed (in order to create the right “climate” for the final stage). More and more bankers and Euro Zone officials are now proclaiming that a "Euro bond" represents the Final Solution for the “Euro debt crisis”.
In this respect, it is extremely ironic how the word “bond” has two entirely different definitions. On the one hand it can represent a “pledge”. On the other hand, it equally represents a rope or chain used to restrain us.
By now, it is hopefully apparent to readers that a “Euro bond” would entirely fall under the latter definition.
The idea itself is that Europe, as a whole, would issue a majority of its debt in these generic “Euro bonds” which would be backed collectively, by all of the economies of Europe. This would effectively blunt much of Wall Street’s current “terrorist attacks” in the individual debt-markets on these nations, since such terrorism is perpetrated via the individual “credit default swap” markets of the various sovereign Euro-zone economies - thus driving up their interest rates.
A “Euro bond” would be tied to the European Central Bank interest rate, and issued at only a tiny fraction of the interest rates being inflicted upon individual European economies by Wall Street. Thus the “carrot” being dangled before the eyes of the Euro debt-sinners is that if they opt for a “Euro bond” it would dramatically reduce their borrowing costs - nearly making these economies solvent.
The banksters and bond Oligarchs are also hoping this will be extremely attractive to the more-solvent economies of Northern Europe, who are currently being called upon to bankroll all of the “bail-outs” for the debt-sinners of the South. Thus they will bombard the citizens of these northern European nations with propaganda assuring them that once a Euro bond is a reality that the Southern debt-sinners will cease to mooch any more “loans” from them.
Of course, as with any/every supposedly “benign” action by the banksters and bond Oligarchs, this supposed Final Solution is merely an illusion.
Obviously, about two seconds after the first “Euro bond” was issued, Wall Street would wave its magic wand, and instantly a “credit default swap market” would be created for Euro bonds as well - within its private, totally unregulated derivatives “casino”.
Instantly Wall Street would be able to drive-up interest rates on the Euro bonds exactly as it is currently doing to these nations individually.
All that creating a Euro bond would accomplish is it would allow Wall Street to simultaneously blood-suck all of Europe with a single terrorist attack. To construct a simple analogy, you live in a house where “terrorists” are planting a bomb outside your front door every day. Instead of putting a stop to the terrorism, you simply move to the house next door - and naively believe that the terrorist attacks will stop.
Except in this case it would be like several terrorist-victims all moving into the same house, and believing themselves now to be safe, when all they have done is make things even easier for the terrorists.
Putting aside the fact that a Euro bond will worsen the debt-slavery of Europe rather than “fix it”, we can be absolutely certain that the corporate propaganda machine will hail the Euro bond as nothing less than “the road to economic Utopia”. In fact, that is precisely how the banksters described the derivatives market itself, when they first constructed their terrorist “machinery”.
Derivatives would magically and permanently lower the borrowing costs for everyone, and simultaneously lower the “financial risks” for everyone, and (totally incidentally) generate $trillions in profits for Western multinational banks. It was nothing less than the economic equivalent of a “perpetual motion machine”, except much less plausible. In fact the only part of that equation which has proved valid are the $trillions in bankster profits.
Sadly, it will almost certainly be an even easier “sell” with the Euro bond, since the Disciples of Friedman are well aware that the mass-fear which their economic carnage in Europe has generated will make their victims even more pliant and open to suggestion then back when Europe enjoyed relative prosperity and security.
In fact, the banksters are absolutely counting upon the appeal of the Euro bond - since it is virtually their only “lever” to obtain their final objective: the full, economic integration of Europe.
It is the French who have fired the first salvo here, on behalf of the banksters and bond parasites. An “anonymous spokesman” for France’s President Sarkozy was quoted by Bloomberg as asserting that it would not be possible to create a Euro bond “without closer integration of Europe’s fiscal and budgetary regimes”.
For over a year, we have seen the EU essentially dictating terms to the Greek government in return for doing nothing but piling additional billions in debts atop the people of Greece. There has been no actual “help” provided to Greece at all.
Clearly, if the EU is already able to impose its economic will on individual nations (once they have been sufficiently “softened up”), then the only way to create any “closer integration” of these economies is simply to take away the “rubber stamp” currently held by individual governments - the last remaining vestige of economic sovereignty.
As the Euro debt-sinners continue to be squeezed in Wall Street’s economic vise, we will see a relentless propaganda campaign in the months ahead. One branch of the propaganda will sanctify the creation of a “Euro bond”, while the other half will “lament” that this Final Solution will only be available to the people of Europe if they cede the last residue of their sovereignty.
Living on this side of the Atlantic, it’s impossible for me to make even an educated guess at the final outcome of this campaign to impose perpetual economic slavery on Europe.
The fact that Europe’s various governments have not already exposed and renounced Wall Street’s economic terrorism (via credit default swaps) indicates that all of these Euro governments have been totally bought-off through many years of massive bankster campaign-bribes.
Indeed, all of these servile governments have shown themselves fully willing to impose suicidal “Friedman austerity” on their own people, and to heap infinite trillions in new debts onto the shoulders of their children and grandchildren. At the same time, they have devotedly served their masters in refusing to force the bond parasites to accept even a penny of “debt forgiveness” out of all their tens of trillions in fraudulent debts.
When I published my first commentary early in 2009 on this “21st century neo-feudalism”, I assumed that it would begin with the U.S. itself. With the U.S. economy already much more insolvent than Europe, and with Americans much more thoroughly brainwashed, I expected the Oligarchs to begin with “the low-hanging fruit”.
The more cosmopolitan cultures of Europe, and their “central” location in the world in economic and geographic terms has tended to generate a broader level of individual awareness than the couch-potato societies of North America. This makes Europe a much more difficult objective. However, it is now obvious that their “plan” (perhaps altered after their failure with Iceland) is to enslave Europe first.
The logical inference here is that the Oligarchs fear that if they completed their plundering of the U.S. economy and the economic enslavement of the American people first that such an obvious example would make enslaving the less-pliant serfs of Europe that much more difficult.
After more than a year and a half of concerted terrorist attacks on European debt-markets, Europeans are now deemed “ripe” to be the first (Western) victims of Friedman’s economic fascism.
Should the Oligarchs be successful in their European campaign, then the apathetic sheep of North America meekly await their own “fleecing”.