Sat 8 May 2010
EU “Desperate”: “Fall of the Tower of Babel”, “Attack on Euro”, “Collapse of Euro”, “Global Systemic Crisis” -
LATEST: The EU wants to pull still much more (totally unnecessary) money out of us: The Guardian 11 May 2010: The European commission is to formally propose stricter carbon cuts (from 20 -> 30%) across Europe over the next decade in an effort to kick-start investment in clean technologies such as renewable energy. Price 81 bn euro by 2020 - says EU Commissioner Hedegaard.
NEW World Order EUObserver 12 May 2010: New World Order: Obama calls for resolute spending cuts in Spain. Mr Zapatero is due to present on Wednesday (12 May) spending cuts of €5 billion this year and a further €10 billion in 2011. EU leaders last weekend pressed Madrid for even deeper cuts. Spanish finance minister Elena Salgado managed to resist the pressure.Cutting social benefits will be tough for Spain's centre-left government as the country's unemployment rate has recently surpassed 20 percentObama´s extensive talks with German Chancellor Angela Merkel and French President Nicolas Sarkozy are believed to be one of the catalysts behind the €750 billion bailout agreed over the weekend.
The China Daily 12 May 2010: The leaders of the eurozone countries have thrown 750 billion euros ($963 billion) at shoring up confidence in the single currency. But it doesn't matter how many zeros you put on the end of a bad idea. It's still a bad idea.
In reality, you can't stabilize a sinking ship. There is no mechanism to stop governments breaking the rules. There is no popular support for massive fiscal transfers between countries.The Deal leaves govts out of ammunition next time around. The rules for the euro area have turned out to be unreliable. And there is no way to start stimulating economic growth again in the heavily indebted nations. If Greece got bailed out for behaving badly, why should any other government behave itself? Are tanks going to be sent into Dublin if Ireland doesn't stick to its austerity program? The only credible deterrent was letting Greece default. Elected politicians are going to pay a terrible price at the ballot box for offering to foot any of the bill. Don't be surprised if they start sliding on their commitments once they look at their poll ratings.We were told there wouldn't be any bailouts between member states. We were told the European Central Bank wouldn't buy government bonds in the market. We were told the stability pact would be enforced. None of those promises turned out to be true. If the rules of the euro can be rewritten on a Sunday night in Brussels once, they can be rewritten next time there is a crisis. Investors will remember that. And they won't believe what they are told about how the euro operates from now on.
The problem is is that failing states can't devalue their currencies at the same time to provide some relief to their economies, and to provide some hope of future growth. We will soon be back where we started.
Deutsche Welle 12 May 2010: The EU bail-out of suffering euro-economies presupposes the ECB to buy government debts from insolvent countries, giving governments a freer hand in raising money when it should actually be policing their efforts to do so. Analysts argue the move has compromised the central bank's independence; Citizens of euro nations have every reason to be concerned: Tuesday saw the euro retreat against the dollar as euphoria over the massive eurozone bailout gave way to continuing doubts over the ability of euro nations to reduce their deficits. Bundesbank president Alex Weber said that the purchase of government bonds “poses significant stability risks.”
Bloomberg 11 May 2010: Stocks fell, led by commodity producers and banks on skepticism an almost $1 trillion European loan package will halt the region’s debt crisis.The euro slumped 0.9 percent. The European Union’s unprecedented bailout package is unlikely to be a “long-term solution” for the region, Marek Belka, the director of the International Monetary Fund’s European department, said in Brussels yesterday. Federal Reserve Chairman Ben S. Bernanke told U.S. senators in a closed-door session that the plan isn’t a cure-all. Traders are betting the plan to rescue debt-laden governments from Greece to Portugal will fail to reverse the euro’s worst start to a year since 2000he euro
Bloomberg 10 May 2010: EU guarantee loan package 0f 750 bn euro for threatened economies. Deutsche Welle: The EU Commission will give 60 billion euros, while countries from the 16-nation eurozone would pledge 440 billion euros to the fund. The IMF is to contribute an additional 250 billion euros, said Spain's finance minister, Elena Salgado. The London Evening Standard 10 May 2010 Mats Persson, Director of Open Europe: "This deal could easily spiral out of control and see UK and European taxpayers becoming exposed to ever growing debt burdens of governments (via the EU´s budget) over which they have no democratic control whatsoever. This is simply unsustainable".
“We shall defend the euro whatever it takes,” EU Commissioner Olli Rehn said after the 11-hour meeting yesterday (meaning EU taxpayer´last cent). Comment: Let us guess at "quantitative easing": unlimited printing of money and later on hyperinflation. AP 10 March 2010 The IMF money is to come from The US Federal Reserve and other central banks, including the Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan also are involved in the dollar swap effort. The Fed's balance sheet ballooned to $2.3 trillion, more than double where it stood before the crisis struck. So far, the Greek bailout has cost US Americans 57 bn dollars in lost purchasing power.
Summary: After an inexplicable trick at the New York Stock Exchange, financial markets as at given sign suffer a hysterical attack, which immediately spreads to the world's politicians. Rothschild puppet, George Soros, and associates declare impudently that unless the EU will have a finance minister and become the United States of Europe, they will speculate the euro down by not buying weaker countries' debts/bonds. Four months ago those cynics agreed to betting that the euro would reach par with the dollar - and have borrowed huge sums to enforce this with huge gains. The speculators demanding all power to Europe at the cost of national states is definitely grist to the EU illuminists´ mill. So now they are squandering our tax money away to the greedy financial sharks who can repeat the lucrative blackmailing business of rescue packages - this time at union level. These people are talking about the euro's demise as a result of coordinated attacks on Europe - not just the euro - a thing which of course cannot happen because it is … PTH! Conspiracy theory!!! But the euro will only fall to its assumed successor, the world currency, when the last cent has been pulled out of us and ended up in the roomy pockets of the financier/politician-brotherhood. The idea seems to be that they will attack the weak PIIGS-euro countries, hogtie them by means of the IMF and let Germany, France and other wealthy EU countries pay the feast until they also go bankrupt, - and Rothschild & Associates have all values - and hence all power. Hegelian strategy is as efficient as it ever was. This article describes the eurozone's current situation, which in spite of all promises is no better than that of national states outside the euro - on the contrary, for the euro was doomed to fail from the start, according to experts.
EUbusiness 8 May 2010 EU Commission to pour 70 billion euros into protective pool. Australian Prime Minister Kevin Rudd: markets already judged Greek bailout "inadequate". Leading global economists: Euro Union could collapse. Slovenia and Slovakia: countries violating rules should be expelled. EUObserver 8 May: Sarkozy: "attack on the whole Europe, not just Greece. "there is a great deal of speculation against the euro and a systemic crisis" (ECB chief Jean-Claude Trichet)
Prison Planet 7 May 2010: Collapsing Tower of Babel: Monument Securities Chief Economist Stephen Lewis: chaos in Greece could lead to collapse of the European Union, bringing down with it the dangerous assumption that structures of global governance provide stability in times of financial peril, but the World Bank and IMF vultures will be waiting as ever to feed on the remains of a dying country.The Guardian 8 May: global crisis
I have previously written about the uncertain project and here, of the euro which was launched for ideological and prestige reasons long before most of the participant economies were ripe for it. That is becoming evident now. But I do not expect the ideological EU Tower of Babel to come down until all European economies are in shambles – and we have been looted into extreme poverty. Rothschild Puppet, EU and World state friend, George Soros, states to be be behind the speculation for 2 purposes: Money and total EU financial governance (see below). So, this could be phase 2 of the NWO plan to shoot off our resistance to their plans for a world currency and here, e.g. – indeed have us crying for the world currency – which presupposes the demise of the dollar and the euro, as well. For this is now the 2. year of world governance – according to EU Pres. van Rompuy. "… It is then that all peoples of the world will plead with world leaders to deliver them from this evil. … individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government." — Henry Kissinger 1992. Since both Soros/Rothschild and the EU want the world state I must see the theater going on as Hegelian strategy, Soros being the thesis, EU´s defence of the Euro at our cost as the antithesis and the introduction of the world currency as the synthesis.
The Greek bail-out
Spiegel 3 May 2010: Chief of the IMF, to become the world´s central bank, Dominique Strauss-Kahn and European Central Bank President Jean-Claude Trichet persuaded the reluctant members of Germany's parliament, the Bundestag, to contribute to the IMF´s bailout program, which would total €150 billion over a three-year period. During this time, the IMF would contribute €27 billion, including €15 billion in the first year alone. Spiegel 3 May 2010: Euro-zone members and the IMF agreed on a €110 billion bailout package over three years. The EU will provide €80 billion in loans, with Germany's share over three years amounting to €22 billion, including €8.4 billion in the first year alone. The German Parliament passed this on 7 May. The IMF is bracing itself to remain in the country for 10 years depriving it of a significant amount of its power.
Freie Welt.net 6. Mai 2010: Euro = Ideology and corruption
Professor Karl Albrecht Schachtschneider and here: “No participant had fulfilled the convergence criteria at the start of the euro – including Germany – except Luxembourg. The failure of the monetary union was clear even on the introduction of the euro (1998), but the vision of being able to enforce the big union state by means of the monetary union was so powerful that the Constitutional Court has disregarded the fundamental right for that policy. "Do you have support from politicians? Prof. Schachtschneider: "No. The representatives of the government are rewarded generously with government funds, we work non-profit – but in the interest of our country. Otmar Issing: "making a monetary union without having previously completed a political union, was, as one would hitch the cart before the horse". The EU is mostly frozen in its current form. But not all put up with this monster.
MMNews 4. Maj: Under the guidance of Prof. Schachtschneider Prof. Wilhelm Hankel, Wilhelm Nölling and Joachim Starbatti on Friday will file an action against the Greece-bail-out stated to be in violation of Article 125 of the Lisbon Treaty - the much-touted bail-out ban." The Constitutional Court had established that monetary stability is superior to all other goals (Maastricht decision of 1993). With the possible aid for Greece "there is a threat that the Monetary Union and the euro will become an inflationary union"! the Greece assistance violates the newly adopted debt limit in the Constitution (Article 115). So the plaintiffs expect the support of the Court this time.
In Germany, anger is rising because of the bail-out for Greece: Most will not pass their hard-earned money on to "the lazy Greek"!
Screwing the Germans
Bild 6. May 2010: The strong euro countries will possibly have to pay part or (temporarily?) all loans, including new ones, if the capital markets get obstinate, as well as to take on interest payments for weak states. Consequence: Additional costs for Germany, France etc.! Germany would have to provide an additional € 11 billion. Then instead of 22.4, we would have to push more than 33 billion euros to Greece. Money that we may never see again.
The Greek, too, feel screwed – by the Germans!!!
In an unheard of manner the Greek have transgressed the limits established in the Maastricht Treaty. George Papandreou is now to deliver a cut of 16pc in effective public wages, and a further rise in VAT to 23pc. The policy of cutting the primary deficit by 10pc to 12pc of GDP in three years will tip the country into a death spiral. Athens said public debt will reach 140pc by 2014 even after the cuts. The Times 2 May 2010 Economists regard the bloated civil service retirement as early as 45 and, bonuses for using a computer, speaking a foreign language and arriving at work on time, 2–4 extra months’ salary a year as the problem. The older generation turned the state into a giant cash machine to be plundered at will. Even greater social unrest is expected poorer families at being told to tighten their belts when wealthy Greeks can protect their fortunes by moving their money abroad. Yannis Stournaras, one of the architects of Greece’s entry into the euro zone in 2001 dismisses as “utter nonsense” allegations that Greece fudged its figures in order to be admitted.
“Ilias Iliopoulos, head of the powerful civil servants’ union: “People are stealing so they can live, so they can eat,” he said. “And it will only get worse. These [IMF] measures will drag hundreds of thousands of Greek citizens into a life of poverty.”
Resentment among Greeks at being singled out as lazy and corrupt has hardened into outrage at Germany, which is being insulted, called neocolonialistic and compared with nazis.
Riots in Greece with 3 dead EUObserver 5 May 2010
Markets fear social explosion. According to organisers, some 350,000 people took to the streets across the country. Police put the figure at 100,000. 48 hours of general strike. Fury. "The markets will view this as a sign that the government will not be able to push through its programme." The plan stands or falls on two things: government stamina and public support. This is very, very bad news." Comment: In fact, the vultures of the “markets” are using the the euro instability as a pretext for already starting a fresh attack on world economy last week. However, the violent discontent of the Greek dates farther back (Bloomberg 9, dec. 2008).
So, a central European economic governance is now being demanded
Spiegel 3 March 2010: Indeed, the German and French Finance Ministries have developed a draft plan that would significantly strengthen financial policy cooperation in the EU. The plan has been seen by SPIEGEL. Juncker explains: "We need a European economic government in the sense of strengthened coordination of economic policy within the euro zone and monitor competitiveness and handle divergences." Mr. Barroso (EU economic governance), Christine Lagarde, French minister for economic affairs, a Citigroup note and Belgian Prime Minister Yves Leterme join in, even demanding a European Finance minister. Barroso: “If we don't make more Europe we will become behind.”
Comment: But can they make people more efficient? Can they make Germans less efficient? Yes probably, if they are not rewarded – and see the fruits of their hard labour going to failing countries! The EU could kill the goose that lays golden eggs. Merkel failed to enforce a tightening of the Stability Pact. To do this the Lisbon Treaty would have to be amended. Mr. Barroso agrees – and such an amendment is abominable to these dictators: They fear the democratic process, knowing the Treaty would be rejected in any referendum. However, Merkel now demands a change of the Treaty, which the Austrian Chancellor, Faymann, declines. However, they will certainly know to cheat us once again – as with Treaty in the first place.
Surprise, surprise: Rothschild´s special tool, George Soros now reveals what the NWO political reason for the financial crisis is: An EU finance minister.
Business Week Feb. 28 (Bloomberg) The euro “may not survive” the Greek deficit crisis, billionaire investor George Soros said. The European currency’s construction is “flawed” because you don’t have a common treasury,” Soros said. The exchange rate is fixed. If a country gets into difficulty, it’s can’t depreciate its currency, which would be the normal way.” He, too, demands an EU finance minister – or (he will see to it that) the euro will fail.
Investors say the Greek bail-out is completely insufficient and now demand guarantees for euro-zone support for Spain and Portugal, too.
They will speculate against the bonds of weak countries.
The Daily Mail 26 Febr. 2010 The Rothschild puppet, George Soros, the man who broke the Bank of England in 1992 is said to be at the centre of a plot to cash in on the demise of the euro.The Soros Fund Management is among a group of heavyweight Wall Street hedge funds which have launched a series of massive bets against the euro. The bets came after an all-star 'ideas dinner' in New York where some of the world's most powerful currency speculators argued that the euro will plunge to parity with the U.S. dollar – which will happen (Rothschild bank BNP Paribas). Traders are borrowing 20 times the size of their bet, boosting their potential gains and losses
Soros also endorsed a proposed tax on financial transactions, called a Tobin tax to deter speculation (Soros´ specialty!!).
Greek Contagion? – (PIIGS)
“No further bail-outs needed, says EU Economy Commissioner, Olli Rehn. But: The Telegraph 5 May 2010: The euro tumbled to its lowest level in more than a year against the dollar and stock markets fell on fears Europe's debt crisis is deepening. German Chancellor Angela Merkel told Germany's Parliament, the Bundestag, that the "future of Germany within Europe is at stake." Axel Weber, chief of the Bundesbank/German Central Bank, voiced fears that "there is a grave threat of contagion effects for other member states in the monetary union."
Spiegel 3 May 2010: Greece is only the beginning. The world's leading economies have long lived beyond their means, and the financial crisis caused government debt to swell dramatically. Now the bill is coming due, but not all countries will be able to pay it. The national deficits of the 30 members of the OECD have grown almost sevenfold since 2007, to about $3.4 trillion today. Their total debt burden has also grown dramatically, to $43 trillion. In the euro zone, national deficits have even grown 12-fold in the same time period, with the euro-zone countries accumulating $7.7 trillion in debt. The conditions that prevail in Greece exist in many countries. US economists have calculated the critical debt limit of a country to be 90 percent of GDP.
Now Danish Paul Thomsen is to do what the EU could not do: discipline Greece´s economy without mercy on behalf of the IMF! If he fails, the EU might erode and a new Lehman Brothers Case could unfold – on a much larger, governmental stage. The so-called PIIGS countries (Portugal, Italy, Ireland, Greece and Spain might all need bailouts – maybe as much as 1 trillion euro on a total. This would endanger the donor-countries. According to a strictly confidential IMF document Germany has come through the crisis relatively well, and its debt has not grown by nearly as much as in other developed countries.
The Council on Foreign Relations 5 May 2010: The tendency of eurozone countries to raise wages too quickly could pull the monetary union apart. Some profligate member country will prove too big to fail, and the euro edifice will topple.
Portugal:budget deficit last year, 9.4 % of GDP, was lower than Greece's. Expected 2010 public debt:86 percent of GDP. Better creditworthiness. Refinances its interest payments each year by issuing new debt, rather than paying outright. Also doubt that political leaders will be able to pull off the drastic cuts needed.
Ireland plans to bring deficit down to 10 percent in 2011 and to 2.9 percent by 2014 to meet the EU's target. Total expected 2010 debt: 76.8 % of GDP.
Italy: better off: low foreign debts, high savings rate, and stable banking system. Appears on sustainable course of reform. Public debt to GDP: 117%).
debt burden was 53 percent of the country's GDP last year. Spain's government laid out a fiscal austerity package in January 2010 aimed at reducing its deficit by 1.5 percent annually to reach the European Union's 3 percent limit by 2013. Unemployment rate: 19.4 % compared to 10 % of the euro zone. Spanish Prime Minister Zapatero brushed off market rumours that Spain was in the process of negotiating a €280 billion rescue package as "complete insanity," with a spokesman agreeing.
Slovenia has indicated it will need to take out a special loan in order to helpGreece (EUObserver 5 May 2010).
Greece (The Times 2 May 2010):Budget deficit: 13.6% of GDP, overall debt at 300 billion (£260 billion). Unemployment among 16-to 24-year-olds: 30%. Crime, too, is increasing in Athens.
N-TV 4 Mai 2010: Increasing doubts if Prime Minister, Zapatero, can master the increasing deficit. Here ate the ratings of the PIIGS countries:.
Portugal Italy Ireland Greece Spain
Fitch AA- AA- AA– BBB- AAA
Moody´s Aa2 Aa2 Aa1 A3 Aaa
S&P A– A+ AA BB+ AA
The UK – outside the euro zone: The Times 6 May 2010: We are moving into the era of no-money politics. No money to placate interest groups. Yesterday the European Commission demanded urgent action to tackle Britain’s deficit (12% of GDP for 2010), and forecast that it would be the highest in the EU, surpassing Greece. Even if we pay it off in full, as the Commission points out, an iceberg of debt will remain: debt interest, pensions. Why not turn to the International Monetary Fund to lay out a plan to be presented as the Authorised Version?
Many think this and the coming economic crisis will lead to the death of the Euro. And it will, if Europeans on a large scale and and persistently do as they do in Greece. For then societies will cease to function. But, as I believe, the peoples who are paying the spree will just go on accepting what the EU system imposes upon us. We will have to leave our jobs and homes to save the holy euro, the flawed symbol of a flawed idea of mixing water and fire, cultures who will primarily enjoy life and cultures who see production and duty as their meaning in life, in order to have a union which is just a region in the world state.
One may even hope that this crisis will spread and deepen – so as to kill both the euro – and then the union – giving nation states their self determination to devaluate weak currencies and regulate their interest rates according to their needs. But – of course: The European Commission will filter citizens' petitions under The European Citizens' Initiative (ECI), introduced by the Lisbon Treaty, to make sure that "silly" initiatives like abolishing the EU are blocked, according to Maroš Šefcovic, a vice-president of the EU executive.
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