Bankers have seized Europe
On November 25, two days after a failed German
government bond auction in which Germany was unable to sell 35% of its offerings
of 10-year bonds, the German finance minister, Wolfgang Schaeuble said that
Germany might retreat from its demands that the private banks that hold the
troubled sovereign debt from Greece, Italy, and Spain must accept part of the
cost of their bailout by writing off some of the debt. The private banks want to
avoid any losses either by forcing the Greek, Italian, and Spanish governments
to make good on the bonds by imposing extreme austerity on their citizens, or by
having the European Central Bank print euros with which to buy the sovereign
debt from the private banks. Printing money to make good on debt is contrary to
the ECB's charter and especially frightens Germans, because of the Weimar
experience with hyperinflation.
Obviously, the German government got the message
from the orchestrated failed bond auction. As I wrote at the time, there is no
reason for Germany, with its relatively low debt to GDP ratio compared to the
troubled countries, not to be able to sell its bonds. If Germany's creditworthiness is in doubt, how can
Germany be expected to bail out other countries? Evidence that Germany's failed
bond auction was orchestrated is provided by troubled Italy's successful bond
auction two days later.
Strange, isn't it. Italy, the largest EU country
that requires a bailout of its debt, can still sell its bonds, but Germany, which requires no
bailout and which is expected to bear a disproportionate cost of Italy's, Greece's and
Spain's bailout, could not sell its bonds.
In my opinion, the failed German bond auction was
orchestrated by the US Treasury, by the European Central Bank and EU
authorities, and by the private banks that own the troubled sovereign
debt.
My opinion is based on the following facts. Goldman
Sachs and US banks have guaranteed perhaps one trillion dollars or more of
European sovereign debt by selling swaps or insurance against which they have
not reserved. The fees the US banks received for guaranteeing the values of
European sovereign debt instruments simply went into profits and executive
bonuses. This, of course, is what ruined the American insurance giant, AIG,
leading to the TARP bailout at US taxpayer expense and Goldman Sachs' enormous
profits.
If any of the European sovereign debt fails, US
financial institutions that issued swaps or unfunded guarantees against the debt
are on the hook for large sums that they do not have. The reputation of the US
financial system probably could not survive its default on the swaps it has
issued. Therefore, the failure of European sovereign debt would renew the
financial crisis in the US, requiring a new round of bailouts and/or a new round
of Federal Reserve "quantitative easing," that is, the printing of money in
order to make good on irresponsible financial instruments, the issue of which
enriched a tiny number of executives.
Certainly, President Obama does not want to go into
an election year facing this prospect of high-profile US financial failure. So,
without any doubt, the US Treasury wants Germany out of the way of a European
bailout.
The private French, German, and Dutch banks, which
appear to hold most of the troubled sovereign debt, don't want any losses.
Either their balance sheets, already ruined by Wall Street's fraudulent
derivatives, cannot stand further losses or they fear the drop in their share
prices from lowered earnings due to write-downs of bad sovereign debts. In
other words, for these banks big money is involved, which provides an enormous
incentive to get the German government out of the way of their profit
statements.
The European Central Bank does not like being a
lesser entity than the US Federal Reserve and the UK's Bank of England. The ECB
wants the power to be able to undertake "quantitative easing" on its own. The
ECB is frustrated by the restrictions put on its powers by the conditions that
Germany required in order to give up its own currency and the German central
bank's control over the country's money supply. The EU authorities want more
"unity," by which is meant less sovereignty of the member countries of the EU.
Germany, being the most powerful member of the EU, is in the way of the power
that the EU authorities desire to wield.
Thus, the Germans bond auction failure, an
orchestrated event to punish Germany and to warn the German government not to
obstruct "unity" or loss of individual country sovereignty.
Germany, which has been browbeaten since its defeat in
World War II, has been made constitutionally incapable of strong leadership. Any
sign of German leadership is quickly quelled by dredging up remembrances of the
Third Reich. As a consequence, Germany has been pushed into an European Union
that intends to destroy the political sovereignty of the member governments,
just as Abe Lincoln destroyed the sovereignty of the American
states.
Who will rule the New Europe? Obviously, the
private European banks and Goldman Sachs.
The new president of the European Central Bank is
Mario Draghi. This person was Vice Chairman and Managing Director of Goldman
Sachs International and a member of Goldman Sachs' Management Committee.
Draghi was also Italian Executive Director of the World Bank, Governor of the
Bank of Italy, a member of the governing council of the European Central Bank, a
member of the board of directors of the Bank for International Settlements, and
a member of the boards of governors of the International Bank for Reconstruction
and Development and the Asian Development Bank, and Chairman of the Financial
Stability Board.
Obviously, Draghi is going to protect the power of
bankers.
Italy's new prime minister, who was appointed not
elected, was a member of Goldman Sachs Board of International Advisers.
Mario Monti was appointed to the European Commission, one of the governing
organizations of the EU. Monti is European Chairman of the Trilateral
Commission, a US organization that advances American hegemony over the world.
Monti is a member of the Bilderberg group and a founding member of the Spinelli
group, an organization created in September 2010 to facilitate integration
within the EU.
Just as an unelected banker was installed as prime
minister of Italy, an unelected banker was installed as prime minister of
Greece. Obviously, they are intended to produce the bankers' solution to the
sovereign debt crisis.
Greece's new appointed prime minister, Lucas
Papademos, was Governor of the Bank of Greece. From 2002-2010. He was Vice
President of the European Central Bank. He, also, is a member of America's
Trilateral Commission.
Jacques Delors, a founder of the European Union,
promised the British Trade Union Congress in 1988 that the European Commission
would require governments to introduce pro-labor legislation. Instead, we find
the banker-controlled European Commission demanding that European labor bail out
the private banks by accepting lower pay, fewer social services, and a later
retirement.
The European Union, just like everything else, is
merely another scheme to concentrate wealth in a few hands at the expense of
European citizens, who are destined, like Americans, to be the serfs of the 21st
century.
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