Jul 27, 2015

The Curse Of The Euro: Money Corrupted, Democracy Busted

The preposterous Gong Show in Brussels over the weekend was the financial “Ben Tre” moment for the Euro and ECB. That is, it was the moment when the Germans—–imitating the American military on that ghastly morning in February 1968——set fire to the Eurozone in order to save it.
Some day history will judge good riddance……..but that get’s ahead of the story.
According to an American soldier’s first hand recollection of the Vietnam event, it was a Major Booris who infamously told reporter Peter Arnett, “It became necessary to destroy the town to save it”. 

After the massacre of Greek democracy in the wee hours Monday morning, Angela Merkel said the same thing—even if her language was a tad less graphic:
It reflects the basic principles which we’ve followed in rescuing the euro. It now hinges on step-by-step implementation of what we agreed tonight.”
Now no one in their right mind could think that lending another $96 billion to an utterly bankrupt country makes any sense whatsoever. After all, the Greek economy has shrunk by 30% since 2008 and is wreathing under what is objectively a $400 billion public debt already in place today.
That figure follows from the fact that on top of Greece’s acknowledged $360 billion of general government debt there’s at least another $25 billion loan embedded in the ELA advances to the Greek banking system. The latter is deeply insolvent, meaning that some considerable portion of the $100 billion ELA currently outstanding is not an advance against good collateral in any plausible banking sense of the word, but merely a backdoor fiscal transfer from the ECB to keep Greece’s financial shipwreck afloat.

Likewise, as I demonstrated Friday, given the even deeper deep hole into which the Greek economy has tumbled during the last six months, the fiscal targets extracted from Greece under this weekend’s demarche are utterly ridiculous. Indeed, even if the targeted primary surpluses of 1,2,3 and 3.5% of GDP are miraculously reached through 2018, upwards of $15 billion of budget deficits after interest accruals would be incurred anyway, and a lot more than that if there are material budget shortfalls, which is a virtual certainty.

So even before the latest dose of Troika economic punishment further debilitates its economy, Greece at this very moment has a de facto public debt of $400 billion sitting atop $200 billion of GDP.
Here’s the bottom line. Merkel has no better answer for how dropping $96 billion of new debt on a country with a 200% public debt ratio will save the euro than did Major Booris when he dropped approximately 10,000 gallons of napalm on Ben Tre in order to “save” the town. In both cases, a doomsday machine had been set in motion, and the designated officers of the state mechanically and blindly carried out a mindlessly destructive next step.

In the instant case, the doomsday machine is the Euro and, more precisely the rogue central bank in Frankfurt that stands behind it. In fact, the real ill is not a common currency per se—-something that Europe actually had on a de facto basis before 1914 under the fixed exchange rates of the gold standard. The latter, in effect, was a common currency because French francs, British sterling, Dutch guilders and the rest were interchangeable at a constant rate—-an arrangement which helped produce a multi-decade spurt of prosperity that the old continent has not seen before or since.

No, the problem is the rampaging printing press of the ECB. The latter has fundamentally falsified the price of debt, and thereby unleashed throughout Europe a deadly brew of phony economic growth in the early years and then egregious fiscal profligacy when the growth bubble cratered after the 2008 crisis.
During its initial eight years, the ECB expanded its balance sheet at a torrid 14% annual rate. And that’s ironic because the original remit of the ECB was a Friedmanesque “price stability” single mandate.
Historical Data Chart
That didn’t happen, of course, as the European consumer price level rose by 21% during the same eight years (2.4% per annum) in which the ECB’s printing press was running red hot. Uncle Milton would have been rolling in his grave, and, in fact, beforehand had pronounced the euro a disaster waiting to happen.

Jul 14, 2015

Versailles Treaty 2.0: Cabal Unapologetically Shows How Modern Plundering is Done

“Do unto others as you would have them do unto you.”

The Troika has shown its true colors with its latest demands to Greece. This now includes direct veto authority over the government’s budget and spending programs. And there’s nothing ambiguous about the foreclosure clause. This nasty feature applies new the debt slavery template on current and future generations. With the continuation of sanctions against Russia and now this, it is becoming obvious that Germany is clearly and shamefully in the pockets of the Cabal.

Under this Versailles Treaty version 2.0, €50 billion worth of “assets” will be deposited with a Luxembourg trustee (cabalist) to be held as “available for sale” should the Troika not get whatever it wants both now and in the future. This has absolutely nothing to do with the welfare of the Greek people. The purpose is to “recapitalize Greek banks.” On the menu of assets to be liquidated and offered up to Parasite Guild: airplanes, airports, ports, tourist concessions, infrastructure and most certainly banks.
Elsewhere on Monday, Ukraine Puppet Prime Minister Arseniy Yatsenyuk revealed more of the Cabal’s agenda during a U.S.-Ukraine Business Forum in Washington, D.C.:
We ask American business to participate in a large scale privatization of Ukrainian state-owned enterprises.
Next up, more plunder via bank bail-ins, and of course more and more you-are-next, we-can-pull-the-plug intimidation of other debt saturated countries is to be expected. This will really wake people up.
What incredibly evil intent and error! This is the wake up call: Versailles 2.0 coming to your country and community. With the abject failure and sellout by leftist politicians in Greece, look for politics in the debt slave countries of Europe to swing far right and for countries to form new “axis” blocs and strive for national independence from Brussels and the Cabal. The basic Versailles 2.0 template and cabalists are the same as version 1.0. And there will be a public reaction.

With the gauntlet thrown down, the message from emerging European politicians will look a lot like this video, just with different faces. This went viral in Europe, and has been continually “taken down” from YouTube and is often banned throughout Europe, only to pop up again and again.
Do you really think this man was just talking completely out of context and to a wall? In fact, I doubt anybody today has the slightest idea about what he addressed. Incredibly, history repeats, so start getting used to this message.

The Euro Is A Sick Joke

From a worthwhile comment on Zerohedge:

Even if debt is offered completely interest free, Greece is running perpetual Current Account Deficits (CAD) so nothing is solved.

A haircut is useless. TARGET2 already provided one for YEARS by treating PIIGS sov-debt as AAA (ridiculous) to avoid market haircuts. It doesn't work.

The Euro cements in place Greece's Current Account Deficit because it is impossible to disadvantage imports via loss of international purchasing power under a devaluing currency.

No amount of reform can ever make the Greek economy superior to Germany's so the CAD will continue forever.

Selling assets provides temporary relief but then exports positive revenue streams meaning that future CADs will be even worse.

A single nation United States of Europe solves this by making Greece equivalent to East Germany following reunification. That was always Soros et al plan, but EUROPEAN PEOPLE DON'T WANT IT!

German banks lent to Greeks who used the money to buy German goods and services. The money just shifted internally within Germany from banks to industrials. The black hole left in the German banks following a Greek default is covered by deposits of German industrials meaning that it's Merkel's reversal problem now, not Greece's. Did Greece really think it was going to earn money back from German Industry to pay debts to German Banks? LOL! Does Greece have a BMW, Volkswagen, Siemens, etc? Nope and it never will.

Open market FFA is bullshit. The players have different skill levels which is why, if you want a competition, you must have a handicap system or skill-based separation of leagues, something that every professional sports administrative body on the planet understands. Unless Major League Germany accepts a big handicap, Little League Greece can NEVER be competitive.

Seeing as that's never going to happen, it's time for Little League Greece to stop showing up to the Major League games. Only an idiot keeps playing an unwinnable game.

Default and leave the Euro already. If Germany insists on kicking the shit out of Greece while it's down then that just shows the world what a collection of cunts German leaders are. Like a heavyweight boxer knocking down a child opponent then jumping around celebrating like he's some kind of fucking hero. Only YOU think it you prick.

The Euro puts kids in the ring with heavyweights and lambasts the kids for not being "competitive". It's a sick joke.

Jul 11, 2015

"Bold Proposal" to Screw European Taxpayers Again

Proposal to Screw European Taxpayers

You never know who's reading your blog, until you receive emails. I received a pair of them this week from Father Joseph Fessio, S.J., Founder and Editor of Ignatius Press.

While I am quite certain we disagree on many issues, Father Fessio is dead on accurate in his analysis of the New York Times DealBook article A Bold Proposal to Offer Greece Some Financial Relief.

The DealBook article was written by written by Landon Thomas Jr.

Thomas trumps up a plan written by Mitu Gulati and Lee C. Buchheit, two debt lawyers who played a central role in the restructuring of Greece’s debt in 2012.

The Proposal

A few snips from DealBook shows the master plan to be nothing but a gift to hedge funds and vultures at the expense of eurozone taxpayers and Greece.
European governments do not want to lend Greece any more money, nor do they want to have their debts written down, Mr. Gulati said. So the trick, he argued, is devising a mechanism that can persuade private sector investors to pick up the slack.

They say, private-sector bond investors should be granted a powerful incentive to load up on risky Greek debt by being awarded seniority over public sector debt holders.

That means these nongovernment lenders would jump to the head of the line of creditors in terms of who gets paid first if, in the future, Greece does not have enough money to pay all of its lenders.

“This is not a substitute for debt relief,” Mr. Buchheit said. Nor, he added, should it be seen as a way for Greece to escape the tough reforms it needs to put in place to make the economy more functional and efficient.
Father Fessio Analysis

Father Fessio writes ....
Hello Mish,

Please blast these people. The same people who helped shaped the 2012 Greek bailout now have a new proposal: that private investors loan money to Greece in return for senior debt position!

So the private investors who unloaded all their debt (at huge profits) onto European taxpayers are now going to offer more debt financing, but senior, so they can make more money off the deal when Greece defaults.
Bold Ripoff

I responded to Father Fessio that I did not have to blast anyone out of the water because he just did.

Granting hedge funds and vulture capitalists senior rights is precisely the wrong thing to do. Moreover, the results speak for themselves.

The IMF: Don’t Listen To The IMF (We’re Crazy!)

by Jeff Nielson, Bullion Bulls:

Most readers are familiar with the colloquial definition of insanity: repeating a (failed) policy/plan, but expecting a different outcome. Then we have the International Monetary Fund: it makes a mistake, explains that mistake to the entire world (twice), but still keeps repeating that same mistake, year after year – (supposedly) expecting a different outcome.

The hopeless/incurable/corrupt insanity of the IMF can be illustrated with absolute clarity by simply looking at two nations: Iceland and Greece. Following the Crash of ’08; the International Monetary Fund (and its other partners-in-crime) issued “advice” to all of the governments of the corrupt West, advice which, in the case of Greece, has now turned into demands.

1)  “Bail-out” all of the Big Banks (i.e. cave-in to their pay-me-or-else extortion).
2)  Designate these Big Banks as being “too big to fail”, so that they can play their pay-me-or-else extortion game forever.
3)  While rewarding the Big Banks for their extortion (and reckless gambling), punish your people with crippling/suicidal Austerity.

One nation – Iceland – didn’t listen to the IMF. Instead of submitting to the extortion of its Big Banks; it ignored their demands. Instead of dubbing them “too big to fail”, and permanently protecting the Big Banks; it put them to death. Instead of taking care of the Big Banks (who caused the economic crash/crisis) and punishing their people; it took care of its people – and punished the Criminals.
Read More

Jul 8, 2015

The Globalists Are Racing to World War III Before the American Sheeple Wake Up

From Global Research,
By Joachim Hagopian
If you think the globalists are pushing pedal to the metal now, you’re absolutely right! Rapid acceleration toward their one world government has humanity on a fateful collision course to Armageddon. Just look at the unfolding events in 2015 so far with barely half the year over. The Charlie Hebdo attack in January came right after France moved to recognize a sovereign Palestinian state. Clearly Hebdo was a false flag payback that only escalated movement toward more Orwellian tyranny and draconian police state oppression, not only in France but around the world.    

Hebdo’s aftermath in Paris with world leaders gathered arm-in-arm flanked by a duped million plus strong waving their false freedom flags reeked of foul stench – a hideous pretense of staged mockery defiance. The pathetic irony is the very same terrorist acts they were protesting against are regularly and deceitfully perpetrated by those very same international crime cabal leaders who diabolically profit from their state-sponsored terrorism. Afterwards their ratings in popularity only surge (in the wake of the recent South Carolina mass killing, Obama recorded his highest approval ratings of over 50% since 2013) while their corrupt power only tightens the NWO noose of absolute control around the necks of the global masses as their treasonous leaders celebrate arm-in-arm liberty’s death march.

Meanwhile also by design, the West’s created Frankenstein monster on steroids ISIS spreads its reach of lustful destruction not only throughout the Middle East but into Africa, Europe and Eurasia as well. It’s now partnering up with Boko Haram and al-Shabaab terrorist groups in Africa and beyond. Despite this fact, flanked by his generals Obama just lied [again] claiming that “ISIS is losing ground.” The Islamic State on display staging their Christian beheadings provide weekly shock and awe theater for an aghast world audience. All the while a coalition of the willing that’s always been ISIS’ life support system – the US-NATO-Israeli-Saudi-Turkish governments – secretly finance, arm, protect, train and maintain the Islamic State’s expanding supply line.

The allied air campaign consisting of 15,245 air strikes from last August to May 2015 that is supposed to have wiped out the jihadist terrorists has likely killed as many innocent civilians and soldiers fighting against ISIS as killed ISIS terrorists. If nothing else, the extensive US bombing and drone attacks only create new enemies from victims’ families. Of course Obama and the Pentagon are fully aware of this fact. But then it fits right into their true agenda. A US Navy F-18 pilot anonymously went on record reporting that, “There were times I had groups of ISIS fighters in my sights, but couldn’t get clearance to engage.” This telling admission goes far in explaining both why the secret US agenda is to actually protect ISIS as the mercenary ally it created as well as why the US air campaign has “failed.” It’s all a demonic charade failing to hide US Empire’s true agenda to keep their fake war on terror a forever war of terror against all of humanity.

Have you ever seen the Islamic State enemy actually attacking and killing any Israelis?