The Specter of Things to Come
The road to ruin is on
plain display and the playbook is easily seen at this juncture. Let's take a
look at how that playbook will unfold. Contrary to popular outrage of the
SOLUTION being IMPOSED it is the correct one once the insured depositors
where PROTECTED. In this edition the elites suffered FIRST followed by the
private sector depositors who foolishly believed false BALANCE sheets which
were POLITICALLY CORRECT but PRACTICALLY incorrect fictions approved by fiduciarily (regulations and regulators allowed ONGOING
insolvent operations rather than protect the public by ending and prohibiting
them) challenged governments (work for the banks and crony capitalists not
for the public at large).
The pecking order of the
losses was the CORRECT one: Shareholders FIRST, bondholder's second and
lastly uninsured depositors. Have we seen this anytime since the crisis
began? It is clear that this is and what must be what's done in the future.
But for the countries in question to RECOVER they must RECOVER the ability to
PRINT and devalue their currency to competitiveness.
Ask Iceland and Greece
how the different paths turn out? Iceland (wiped out bond holders,
shareholders, prosecuted the banksters and devalued
its currency and is in RECOVERY mode), versus Greece (where the Troika holds
all the debt, refuses to take a haircut, the bank shareholders and current
bondholders (TROIKA) are intact, is forcing INTERNAL devaluations (to get
their new slaves in line) rather than external and is in a perpetual
DEPRESSION). Let's look at how this is reflected in employment courtesy of www.zerohedge.com:
Which country would you
choose to be in? One is internally devaluing (Greece) and Iceland externally.
In Greece the future is BLEAK, in Iceland freedom and a good future only
requires hard work and REAL wealth creation for the public at large. Italy,
Spain, Portugal, Cypress, Ireland are internally devaluing and firmly on the
road to ruin. France is up next.
This is why the euro is
DOOMED as internal devaluations destroy many generations of citizens and
allow unelected technocrats to gather POWER over all. Whereas external
devaluations provide the path to recovery. Beppo Grillo is a hero to those who want a future and their
freedom from the debt slave masters in Brussels, the IMF, BIS and European
central bank.
In a rare moment of
candor the Head of the Eurogroup of finance
ministers spoke the truth:
"If there is a
risk in a bank, our first question should be: 'Ok, what are you the bank
going to do about that? What can you do to recapitalize yourself?' If the
bank can't do it, then we'll talk to the shareholders and the bondholders.
We'll ask them to contribute in recapitalizing the bank. And if necessary the
uninsured deposit holders: 'What can you do in order to save your own
banks?'..."
"If a bank
can't recapitalize itself, then we will talk to the shareholders, bond
holders and uninsured depositors."
- Dutch Finance
Minister Jeroen Dijsselbloem,
who heads the Eurogroup of euro zone finance
ministers
Unfortunately the vast
majority of banks in the Eurozone will CEASE to EXIST inside this TEMPLATE.
This statement reflects reality and is practically correct but is
politically incorrect. He quickly retreated to the standard of LYING
after the proper amount of PRESSURE from Brussels was applied.
It is THE template and
since the sovereigns in which these insolvent banks
reside are ALSO insolvent themselves a belly button moment is at hand for the
European central bank and the European commission in Brussels. CLOSE DOWN
HALF of the banks (or more) within the Eurozone, stockholders, liquidate
bomb...er...bond holders and confiscate the rest
from uninsured depositors or get the printing press in HIGH GEAR!
There really is no
alternative after this TRUTHFUL statement. Human behavior has been altered to
the extent that bank runs in Italy have already begun in the weakest
institutions. As they say: fool me once shame on you, fool me twice shame on
me. The die is cast and buffoonery by the TROIKA will it gather speed and
momentum.
The average bank asset to
GDP ratio in Europe is approximately 375% of GDP.
Switzerland is not
included but its bank asset to GDP ratio is over 700% and according to the
ECB Luxembourg is 22 times GDP. If those assets are written down by 20%
(those assets are worth FAR LESS) you are still looking at a CUMULATIVE $14
trillion dollar price tag MINIMUM. The number does not include European
sovereign debt which is the elephant in the room as most WILL NEVER BE REPAID
but sovereign governments let the banks hold it as RISK FREE. LOL
"Most Europeans,
even today, probably would be better off if over-indebted governments were
allowed to default in accordance with the relevant bankruptcy precepts . But it can't happen in societies so
trained to look to politicians to overrule the laws of arithmetic and
economics whenever those laws are inconvenient."
- Holman Jenkins,
wsj.com
The losses yet to be allocated
or PRINTED AWAY by the TROIKA for the European banking systems is
probably north of $30 trillion as the numbers above do not reflect off
balance sheet and shadow banking activities. A lot of those bank assets are
SOVEREIGN BOMBS...er...BONDS and are UNPAYABLE and
inextinguishable although they are sitting on the BANK balance sheets as RISK
FREE. HA, ha!
MONETARY
monopolists who printed the MONEY out of THIN AIR and LENT IT OUT. The idea
that these central bankers, sovereign governments and the IMF can't take a
loss is a FICTION! There is no loss when the money lent was created out of
thin air!
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Look at little IRELAND
whose citizens and their descendants are in a perpetual debt slavery to
OFFICIAL (banksters of the TROIKA) bondholders as a
result of a TROIKA rescue. Once again money printed out of thin air with the
obligations sent to the public to SAVE THEM.
As Rahm Emanuel said:
never let a crisis go to waste. Think about the IRISH rescue, a panic was
created and the debt slave noose was fitted a la Cypress today!
The Germans,
Austrians and Dutch citizens are now saying NO to borrowing money to bailout
BANKSTERS and creating PERPETUAL generations of debt slaves out of themselves
and their children. These people are practicing SELF defense by refusing to
participate FURTHER. BRAVO!! This represents an impending acceleration of the
Global financial crisis in EUROPE!
Any COMPETENT and
self-respecting CFO, CEO, Family office, high net worth individuals,
institutional investor, small businessman, retiree, etc. inside the PIIGS
(Portugal, Italy, Ireland, Greece, and Spain) that is not moving or planning
to move excess funds out of insolvent banks is insane. No matter what the EU
and ECB say...
The ECB Target 2 system
is still up and running, when it crumbles and it will, capital controls will
descend in a HEARTBEAT.
Remember, Germany is on
the hook for almost $1 trillion euros of lending to PIIGS central banks
through the target 2 system. They will see this money back only in their
dreams, the money is gone and the economies which must PAY IT BACK are
COLLAPSING under Troika demands creating future crises to exploit. The
ONLY thing that will stop this from gathering the big MOMENTUM is the
OUTRIGHT MONEY PRINTING not in the form of MORE DEBT.
The ELITE leadership in
Europe is HARD CORE socialists no matter where you look and deeply entrenched
and like in Amerika the socialists are on both
sides of the aisle. Rehn, Juncker,
Merkel, Hollande, Monti, Baroso, etc. are easily revealed as SOCIALISTS to anyone
researching their backgrounds and histories. These people DON'T change their
STRIPES.
Blind ideologues,
sociopaths and psychopaths who will sentence their constituents to any amount
of destruction in their LUNGE for complete control of what wealth is left to
extract from what's left of the respective private sectors. The same is true
for the District of corruption (both sides of the aisle) and the crew in the
White house.
Although you may believe
you, your money and your property are yours. They believe it is THEIRS to allocate
and confiscate as they wish. It is no different inside Washington DC
(district of corruption). Private property ENDED at Breton Woods II in
August 1971. Developed world governments have been devising ways to
confiscate your wealth ever since, as governments which where a small
fraction of their economies then, now are most of the economies NOW!
"The elites in
the EU and IMF failed to learn their lesson from the popular backlash to
these tax proposals, and have openly talked about using Cyprus as a template
for future bank bailouts. This raises the prospect of raids on bank accounts,
pension funds, and any investments the government can get its hands on. In
other words, no one's money is safe in any financial institution in Europe.
Bank runs are now a certainty in future crises, as the people realize that
they do not really own the money in their accounts. How long before
bureaucrats and bankers try that here?"
- Ron Paul
The European Union
is itself a project of creating an unaccountable centrally controlled
socialist government OUTSIDE the grasp of its CITIZENS. It is what the European project
has been about since its inception. Control of the MONOPOLY MONEY printing
press is central to their LONG RANGE plan working. Banksters
have worked the booms and busts (caused by unsound money) for centuries to
impoverish and enslave (debt slaves) those who labor and live under their
currency monopolies. The founding fathers of the United States KNEW them
well:
"I believe
that banking institutions are more dangerous to our liberties than standing
armies. If the American people ever allow private banks to control the issue
of their currency, first by inflation, then by deflation, the banks and
corporations that will grow up around the banks will deprive the people of
all property - until their children wake-up homeless on the continent their
fathers conquered."
- Thomas Jefferson,
1802
We are QUICKLY
approaching his conclusions in the developed world. The banksters
have gathered these monopolies on money in exchange for the funding of
progressive governments. How many monopolists that you know work to the
benefit of their customers? I don't know of any...
Ask former president
Woodrow Wilson about this, in the US he is the ultimate BENEDICT ARNOLD and
traitor. Many Presidents have betrayed the public; Watergate is but an
anecdote to the betrayal of America by Richard Nixon when he stole the
"GOLD" backing off the US dollar at Breton woods II creating the
INSTRUMENT (unsound money) of the serfdoms the developed world has become.
In order to get money
printed out of thin air countries must surrender their sovereignty to
Brussels and chain current and future generations as DEBT SLAVES to the banksters. The EFSF and ESM are the means of chaining the
prudent northern countries ( debt
slaves but haven't been notified yet) to the banksters
through the indirect mechanism of GUARANTEEING the Borrowing to rescue the
south. It is the stuff of George Orwell (1984 and Animal Farm).
The Eurozone is nothing
but a group of elites (government, banksters, crony
capitalists, and trade unions) which run EVERYTHING (economy) to their own
benefit. It is a FLEECING machine designed only to prey as parasites on the
public at large, its all-encompassing confiscation (inflation, taxes, and
regulated demand to crony capitalists) of public wealth is the envy of every
progressive in Washington on BOTH SIDES of the Aisle. It is the economic and
political blueprint of the current tenants inside the Beltway!
Just today the troika
dribbled $1 trillion euros of money printed out of thin air in exchange for
DOUBLING the income tax in Cypress from 15 to 30% as if they have not done
enough to steal the futures of its citizens and future generations already.
Anyone who enters the troikas grasp hand their futures mortgaged in exchange
for being SAVED. Can you say Vile and insidious?
Just as the United States
is morphing into at LIGHTSPEED under the Chicago boys and the Chosen one in
Washington DC (district of corruption) as constant crisis combined with a
predatory government prey upon the ECONOMIC crisis which their policies have
CAUSED.
As INCOMPETENT, INEPT
socialist central planning collapses the European and US
economies things shall continue deteriorate from here in REAL TERMS. Nowhere
is there a plan for growth except in the increasing takings from the public,
runaway currency debasement and the growth of unaccountable leviathan
governments. As I said, SOCIALISTS smelling the end zone. An economic and
banking collapse (CONSTANT CRISIS, FEAR and terrorizing the public at large) allows
them to take everything to SAVE YOU and that is the PLAN on both sides of the
Atlantic. They believe they OWN YOU!
In Conclusion: The die is
CAST. The next stage of the Eurozone crisis has JUST begun! Any child with a
calculator can tell you insolvency is entrenched on both sides of the
Atlantic on ALL LEVELS of society: public and private. Some groups are within
the radius of the printing presses (banksters,
public serpents, government, crony capitalists) and others are outside (the
public).
The public has to
surrender everything (THEIR FUTURES) in exchange for the illusion of getting
to safe ground. They are actually being delivered into hell as socialism is
MISERY SPREAD WIDELY as REAL growth collapses and money is printed and lent
out to provide illusions of growth. These episodes of currency and financial
extinction events occur in waves of insolvency and the next wave is STRIKING
right now. The creation of money out of thin air is not keeping up with the
deleveraging/default of the insolvent borrowers.
This episode of the
unfolding crisis will provide the spark for the next CENTRAL BANK balance
sheet expansion. The next aggressive reflation is commencing.
FLASH: As we go to press
ABENOMICS and new BOJ president Kuroda has PRODUCED a STUNNING approach to
the Global financial crisis as it announced over $81 TRILLION dollars of
monetization of assets of all stripes PER MONTH. That is triple the size of
QE 3 in the US (Japans economy is 1/3rd the size of the US but the money
printing is about the same size, wowee). FIREHOSES
of HOT money set to roll off the printing presses into every type of assets
you can imagine. Take a look at this detail from the fabulous Gartman letter (www.thegartmanletter.com):
When I look at this I gasp in its breadth and
depth. It is an incredible escalation in a KEYNESIAN monetary experiment. The
biggest shock and awe assault on paper creation in the crisis. Between the
Bank of England, Federal Reserve, and the Bank of Japan PRINTING over $160
billion a MONTH (160,000 million) to prevent the fall of asset markets and
fund sovereign INSOLVENCIES! Hard to conceive.
Banks in Italy are under
great strain as the smart money PULLS OUT for destinations unknown. Spain and
Canada have just put into place the means (laws) for the upcoming episodes of
being CYPRESSED!
Mario Draghli
(look where he comes from: Goldman Sachs, BIS and Italian central bank,
groomed as a master predator, notice Mark Carney incoming head of the bank of
England has the EXACT SAME RESUME) in particular is playing the crisis like a
maestro to deliver the Eurozone into the grasp of the BIS (the covert owners
of all the big central banks) and their minions in Brussels.
He waits till he sees the
whites of his victim's eyes, panic/fear in their hearts courtesy of main
stream media, and then extracts their futures from them in exchange for the
printed money. Bang, bang, enslaved nations into the grasp of the troika.
Just this I am completing this missive Draghli is
REFUSING to supply capital (crisis creation) to the BANKING systems, as he
must be aware this is a recipe for Europe going to the barter system) OR a
nationalization of the banking systems (opportunity for central banksters who own the central banks) with the ECB as
OWNERS in exchange for the CAPITAL! WHICH will be printed
out of THIN AIR...
This happened in the
GREAT DEPRESSION as FED sponsored banks ROLLED up the weaklings. Think
Wachovia, Merrill lynch, Bear Stearns, Lehman Brothers (outside MONEY
PRINTING loop), JP Morgan Chase, Citigroup, Goldman Sachs, Bank of America
(inside the loop) etc. It has been documented that the Federal Reserve
printed and lent almost $15 trillion dollars during the October 2008 massacre.
That money went to banks INSIDE the MONEY PRINTING LOOP! Capiche?
This playbook has been played for centuries. Are you inside the loop of money
printing or outside, which is the question?
The NEXT question
becomes: will he blink and let the real printing press loose or miscalculate
and set off the real nuclear detonation of the Eurozone banking and financial
systems. We shall know the answer soon. He has and the troika have gathered
untold power in the PIIGS and destroyed countless lives and futures. Beppo Grillo and his
constituents are just the TIP of the SPEAR of
citizens seeking to recover their freedoms and futures from the banksters. EXPECT MUCH MORE to emerge!
This decline in the rate
of money printing is why you see silver and gold struggling in the face a
disintegrating Europe. Couple that with massive paper gold and silver selling
by the Federal Reserve and US treasury to kill the inflationary canaries in
the coal mine. Fortunately the public and foreign central banks are taking
delivery of physical gold and silver as fast as it is available at these
bargain basement prices. A clash of TITANS so to speak.
The only antidote to this
crisis, REAL economic growth, not nominal growth. In order for that to happen
private property rights must be restored, CRONY CAPITALIST regulations
repealed and CONFISCATORY taxes lowered. What's the chance of that? A
snowball's chance in hell.
Don't worry; they will
print the money... Historically the printing press has always emerged and I
believe this time will be NO DIFFERENT! Don't miss the next edition of TedBits Witches Brew, subscriptions are free at www.Tedbits.com or www.TraderView.com, may God Bless you!
