Monday, April 4, 2011

The self-destruction of the Euro - an example of government via finance gone wrong

Imagine that your family sell their home under the belief family members will be killed by terrorists if a bribe is not paid. Of course, the family sells the house and pays the bribe. But then the terrorists announce, now that the family lives in a tent and winter is coming, that the they will be needing the tent and their clothes as well...despite the bribe being paid. This is nearly same kind of terrorism and greed practiced by the banking cartel. Oddly enough, its implemented by innocuous looking academics who have letters behind their names and nice looking universities on their CV.

The blasphemy of academic economics is that, no matter the angle the academic wants to believe - it can exist in a vacuum. In fact, most of the time economic academia lives in a vacuum in an alterante universe. And that is how we got here where we are in this day and this time. That is how idiots like Bernanke get to rule the world while they do not understand real economics or business. That is also how charlatans like Paul KRUDman get tenure and high profile positions with which to broadcast their hyperbole.

Now Trichet, who believes that he has a single mandate targeting inflation - certainly must believe that his mandate exists in a vacuum. He has determined that he needs to raise interest rates now and perhaps for the special benefit of the very countries that are being forced to now implement taxes, austerity and banking according to the great European Union mandates and banking cartel dictum. By rights Ireland should have said "...piss off", but their elected officials were either threatened or bribed to coalesce and capitulate to their constituents. They are implementing new taxes as we speak, implementing austerity controls and supporting banking according to the ponzi scheme economics dictated by the EU. Now, mind you, the objective of this body is essentially the same as the IMF and World Bank and most of the central banks around the world, to transfer all of the wealth to the banks and therefore implement a comprehensive governance not only of the people but of the governments. When the IMF bribes officials in Uganda, for example, to take loans or "aid packages" from them they demand collateral in the form of future tax receipts (in perpetuity) or sovereign assets. Using this time tested technique, they have succeeded in taking already impoverished countries, enriching the corrupt and elite and further impoverishing most of the other citizens by stealing their assets, their work or their time. The incentives are clear, blackmail a corrupt official who would do anything to get his hands on new money and offer him a deal that he can pay for on Tuesday with a hamburger from Monday. That way it never really gets the light of day and the official is now beholden in the scam to the IMF. And we wonder why financial terrorism as practiced by the banking cartel leads us down a path to war? Is it not rather curious that right at the time that the facade is likely to start cracking in the best laid plans of this faction that the world is going to war in so many places at once? Will there be conflicts on other places as people start to get pissed off that their assets are being confiscated via a scam and seek to get control of them?

The trouble is, that the European Council and the European Central Bank has very much the same aims...transfer the wealth and control the governments. At this very point, they believe that raising interest rates is necessary to deal with inflation that they (the EU, and other central bankers like the Fed) are responsible for. The result will be to very quickly add a multitude of new taxes and collateral calls to the Irish table. Obviously this will not sit well, but, in the margin call process the assets of the country will be confiscated. Thank god the Irish can be iltempered...and I hope they are this time. It will take force, probably revolutionary and armed force to get rid of these academics who use their academic status as a weapon and a shield to implement reckless policies that end up destroying lives and cultures.

Keep in mind that Trichet is an academic who believes the banking crisis of 2009 was due to an under-valuation of risk and short-termism within the global financial community. He has implemented his view by fostering the very thing he supposedly wished to eliminate - short-termisim, undervaluation of risk and mal-investment with ridiculously low interest rates and indiscriminate and prevalent leverage and credit.
The end game is that "IF" Trichet believes that the appropriate thing to do right after forcing long-term insolvency on many European states, is to raise interest rates on debt that they can not be repay - it will only intensify the problems. But not to worry, Trichet won Central Banker of the Year in 2008. In my view, however, the central bank actions will have the effect of forcing defaults and conflicts. Yes the very ones that these geniuses are marketing they are now avoiding. Defaults of course, in this case, are a better thing than the long-term theft that has been implemented as a matter of policy.

Assumptions regarding this cycle of interest rate increases, will mark the next great explosion for the Euro on its path to oblivion and self-destruction. While many may look for the EURO to show strength due to the strenghtening of rates...don't count on it...its going to be a long hard trip down.
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