6 October 2010
from VoltaireNet Website
and President of Greek Parliament Philippos Petsalnikos, right,
after receiving the gold medal of the Parliament in Athens on Sunday, 3 October 2010.
Chinese Prime Minister, Wen Jiabao, on an unusual visit to tiny Greece, a country which normally would never warrant such a high-level visit from the world’s fastest growing economic giant, has pledged support for Greece and for the Euro.
According to the official Chinese Xinhua News Agency (and China Daily),
What it means concretely was made clear by Wen Jiabao at a press conference early October in Athens when he stated,
The last statement is far the most significant. It indicates that China has made a strategic decision to counter any future attempt by US-based hedge funds and banks to attack the weak countries of the Eurozone, including Ireland, Spain, Portugal or Greece.
Early this year, as we noted at the time, Wall
Street banks such as Goldman Sachs, working in tandem with the US-based
credit rating agencies, Standard & Poors and Moodys and Fitch, exploded the
Greece financial crisis at the precise time China and other major investors
were beginning to have serious doubts about the fiscal stability of the
United States and of the dollar.
It is inherently programmed to crises. It was
born as the product of flawed rotten political compromises in the 1990’s
Treaty of Maastricht as an attempt by
France and Italy and Britain to control an emerging German economic colossus
after German unification.
Should the US dollar lose its status as the
world leading reserve currency - today it still counts for some 65% of
central bank currency reserves - the United States would be ultimately
doomed as world sole Superpower.
Like most things that China does these days, it is part of a shrewd political calculation.
Greece has agreed to support EU recognition of full market economy status for China within the EU, while China agrees to back Greece’s call for UN mediation over Cyprus.
The two countries will will cooperate on
development as well of Piraeus Pier, upgrading it to a distributing and
transfer center for Asian exports to Europe, the Mediterranean, and the
On February 26, the Wall Street Journal reported details of a secret New York meeting involving billionaire hedge fund speculator George Soros of the $27 billion Soros Fund Management, along with,
According to the Journal report, they agreed on a concerted attack on the Euro, using the Greek financial crisis as the lever to make the attack credible.
Earlier this year, speaking at the Davos World Economic Forum, the same Soros boosted the potential of the secretly planned collusion against the Euro, when he told press there was “no attractive alternative” to the dollar, a signal for a de facto attack on the Euro which was regarded six months ago as an alternative to the dollar as world reserve currency.
He added that the Euro’s “problems” made it an
unviable substitute reserve currency.
Soros was one of the first financial backers of Obama and Roubini is reported very close to Treasury Secretary Tim Geithner.
Following his hedge fund “chat” about the future of the Euro, on February 22, Soros wrote an OpEd article in London’s Financial Times, the world’s most prominent financial daily in which he stated,
The attack on Greece and the Euro early this year also involved the most powerful players on Wall Street, the Gods of Money as I term them in my new book.
The politically powerful Wall Street bank,
Goldman Sachs, has been in the middle of the Greek financial manipulations
since Greece entered the Euro in 2001. They were also involved in the
January 2010 Greek crisis attack. On January 29, Goldman Sachs went with a
number of top Wall Street firms to Greece where they met the Greek deputy
finance minister and the National Bank of Greece. The Soros hedge fund
attacks began several days after that.
At the time the EU governments announced agreement in principle on a Greek bailout package in order to stabilize the speculative attacks on the Euro, on Appril 27, Standard & Poors announced an unprecedented rating downgrade of Greek government debt by three-levels to “junk grade.”
That move insured that pension funds and other
investors would be forced to panic sell Greek bonds, a move that greatly
exacerbated the pressures on the Euro.
In 1992, on what many market professionals believe must have been insider information, Soros claimed to have made $1 billion speculating against the British Pound Sterling and forcing the British government to abandon plans to bring Britain into the emerging Eurozone. Had Britain and the powerful financial resources of the City of London come into the new Eurozone, many in Wall Street and Washington privately feared that could spell the death knell for the dollar as world reserve currency.
The fact that the dollar is world reserve
currency has been one of two strategic props for American power in the
world, the other being the Pentagon. Were the dollar to lose that, the
future of the American Century, the sole superpower would be mortally in
The wrecking of the Tiger economies in 1997-1998 turned those economies from self-sustaining dynamic economic growth, largely financially independent of US or IMF control, into de facto buyers of US Government debt as Asia tried to defend against future attacks.
Like the Sterling crisis of 1992 the 1997-1998
Asia Crisis also served to give a few more years of life support to the
This is not to say that the Euro and the Maastricht Treaty are a model for a healthy alternative to the problems of the dollar region. Far from it. It is merely to identify the geopolitical power battle going on behind the scenes to keep the dollar Titanic from sinking.
China has evidently decided to weigh in on that
battle on the side of the Euro.