- In order to understand how the current crisis might play
out, it were important to consider the following:
-
- 1.
- The Eurozone was created by the Brits as an operation
to destroy the sovereign nation states of Europe. That was the intention
of the Maastrict Treaty, as well as the creation of the ECB and Euro.
-
- 2.
- While the Brits and their agents forced submission of
continental Europe and Ireland to the dictates of the Treaty and the single
currency, the Brits themselves stayed apart from this system, keeping their
own currency and control over it, through the Bank of England. As was discussed
at the time, both in public and in private, this was done precisely becaue
they knew that the Euro system was foredoomed, and that its inevitable
collapse would cause pain for those participants. The intention of those
running the City, and its global apparatus, was that the painful readjustments
required by the collapse of the Euro system would leave greatly weakened
central governments, weakened central banks, who would in turn be dominated
by the City, through their global banking syndicate, the banks of the Inter
Alpha Group.
-
- 3.
- While it is correct to insist on the actual bankrupt
condition of the member banks of Inter Alpha, the current phase of
this crisis seeks to impose nation bankruptcies, through the collapse sovereign
debt. Thus, while the IA banks hold this sovreign debt, the so-called bailout,
in this phase, is directed at what remains of the nation states, declaring
nations bankrupt, then offering conditional loans through the ECB and IMF
the which will be used to pay sovreign debt obligations. This is in line
with the dictates of the Euro treaty.
-
- 4.
- Should this breakdown, as the Irish situation points
to a more generalized breakdown of the national political consensus behind
the policy, then the Euro system breaks down. Absent the immediate imposition
of a Glass Steagall like standard to handle this breakdown, it will result
in a hideous disolcation, in which the ensuing chaos will further weaken
sovreign governments, which will now enforce, or be forced by internal
pressures to enforce national sacrifice. In other words, unless debts of
the Euro system are wiped out according to a G-S principle, discussion
of which in Europe is sorely lacking, especially as applies to this crisis,
even among our own people.
-
- 5.
- While the so-called European Stability Facility, as it
is presently constituted is incapable of handling this crisis, given its
inability to generate funds except through the sale of debt instruments,
its ineptitude can quickly become the excuse for its replacement with something
more suited for the deepening crisis and the breakup of the Eurozone. If
the ECB and related structures fall aside, I would expect efforts to revive
plans for an actual bankers dicatorship, run through a Paris Club type
arrangement, and resembling Felix Rohatyn's Big MAC debt recylcing operation
of the 1974-2009 period in NYC. Some kind of Schactian recycling mechanism
would be set up, above the still existant but impotent Eurosystem and the
ECB, which would exchange sovereign debt for new instruments, with conditionalities,
whose effect while brutal, could be spread over time. This would have the
effect of bailing out the IA and other banks. This idea has been discussed
before in various councils and pubs of the City. One could hear this again,
if cotton were taken out of peoples' ears.
-
- 6.
- All this will play out at a fairly rapid pace. Meanwhile,
there is the question of the precarious state of the IA banks, which has
been characterized as desperate. Here, the potential rescue, if there is
any, in the immediate term, lies not in Europe, but in the British controlled
US central bank, the Fed, which as it now stands has the power and has
shown its labile willingness to bankrupt the US to bailout Wall Street
and the City. As I have reported from several sources, and have had no
contradicting reports from any others or heard any from anyone else, when
this crisis of sovereign debt first arose, Bernanke told the Paris Club
and the Europeans, that the US intended to support and stand behind threatened
banks, including the banks of IA. They would do so by making funds available
to cover potential losses through US bank branches of foreign banking coglomerates,
while they would make unlimited swap lines available to the ECB and Bank
of England. I have received reports that this promise has been reaffirmed
as recently as last week, and that Obama has signed off on it (although
whether this fool fully comprehends to depth of the this treason remains
to be seen). The Fed, with no one mounting any offensive to stop it, is
now the global backstop, through its power to create out of thin air, without
anyone elses approval, unlimited funds for this bailout. At some point,
this might become public, but it will be too late to stop it.
-
- 7.
- Absent the implementation of G-S here, and in Europe,
and a shutdown of the Fed, it is premature and foolish to declare the Brits
as finished. As long as they can work their treason here and can play their
games in Europe, that is far from the case, and the world is headed to
Hell. Under those conditions, even the courageous Irish play into the hands
of their Brutish enemies.
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