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Wednesday, 15 August 2012

Government? Is The Sovereign Debt Crisis an Engineered Excuse for World Government?

Government? Is The Sovereign Debt Crisis an Engineered Excuse for World Government?
 Mark Haynes.
The so-called sovereign debt crisis would seem to be oh so convenient for those Globalist elites who have been working away for decades for a one world government, with a World Central Bank issuing a Global currency. Indeed naming it a sovereign debt crisis is an oxymoron because how can any government be sovereign if they are in debt, and in debt to private banks. The crisis spreading through Europe at the moment effecting the Pigs – Portugal, Ireland, Italy, Greece and Spain has seen mass demonstrations and riots, governments fall, and now unelected governments of technocrats taking power in Greece and Italy as the eurozone crisis continues to worsen. Increasing pressure from various sources including opposition parties, the markets, the European Commission, the ECB, France and Germany, has recently lead to both Greek Prime Minister George Papandreou and Italian Prime Minister Silvio Berlusconi’s resignations. Both leaders have been replaced by “governments of national unity”, led respectively by former ECB Vice-President Lucas Papademos, in Greece, and former EU Commissioner Mario Monti, in Italy. One has to ask when looking at the men replacing them is this the shape of things to come, democracy replaced by rule by technocrats? Unlike the new Greek government, Italy’s new cabinet does not include any politicians at all, with several key ministries being assigned to academics. There will be early elections taking place in Greece in February, while in Italy the new government is expected to remain in office until 2013, when the next general elections are scheduled. Meanwhile, with a general election just past in Spain, that nation’s borrowing costs have topped new record levels, while France also experienced a significant increase in the interest rate it has to pay on its bonds. Greece and Italy both hold huge swathes of public debt which they are unable to service unless they get massive European Central Bank and International Monetary Fund support, as a prelude to refinancing by international banks. Greece has replaced its prime minister because he dared to say he would put a further round of harsh austerity measures to a referendum vote……the people can’t be given democracy now can they? When we look at the new Prime Ministers of these two countries we see that they are both insiders working for the Globalist elite, Greece’s new PM is Lucas Papademos, former vice president of the ECB and of Greece’s own Central Bank, and a member of David Rockefeller’s (JPMorgan Chase/Exxon) powerful Trilateral Commission. In the case of Italy, instead of Silvio Berlusconi they got the former European Commissioner Mario Monti, who just happens to be the European Chairman of the Trilateral Commission. It is funny, well maybe not really, that whenever we hear of “sovereign debt crises” – whether they be in Mexico 1997, Brazil 1999, Argentina in 2001/2, or today in Greece, Italy, Spain, Portugal, Ireland and (soon to come I‘m sure) the UK, France, or the US – what it really means is that governments cannot collect enough tax revenues from their people to pay interest and capital on debt that is mostly in the hands of private banking institutions or cartels. If we cut through the Orwellian Newspeak of the mainstream media, this means that the people of Greece, Italy, and Argentina must pay for the mistakes of bankers and corrupt governments, suffering higher taxes, unemployment, lower wages and pensions, and a deterioration in public services such as public healthcare, education, and infrastructure. Indeed, public services are to be privatised and public assets – the people’s assets sold off for a pittance to the corporate/financial vultures. So, whenever there is a public debt crisis, Austerity measures must be imposed and “we the common people” must pay for it. However, when in September 2008 a private debt crisis exploded due to the derivatives swindle which buried Lehman Brothers, Merrill Lynch, AIG and many other private institutions, the US and other governments came to the rescue of the bankers, providing bailouts for banks who were apparently “too big to fail” — in other words, Newspeak for too powerful to fail more like. Big and powerful financial institutions such as CitiCorp, Bank of America, JPMorgan Chase & Goldman Sachs were all saved with taxpayers money through the Troubled Assets Relief Program (TARP), and by having the Federal Reserve (FED) hyperinflate the US dollar known in Newspeak as Quantitative Easing I, II and III, which means passing a huge chunk of the cost of those bailouts on to the Rest of the World using the US dollar as global currency. So again, irrespective of whether debt collapses are public or private, it is always “We the People” who pay because, under the current system of crony Capitalism, all profits are privatized and all losses are socialized. Now let us get back to Messrs Monti and Papademos. Both of the men sit on the Trilateral Commission together with hundreds of other corporate Chairmen, CEOs, politicians & military such as Ana Botin (Bank Banesto/Santander, Spain), Peter Sutherland (Goldman Sachs/BP, UK), Michel David-Weill (Lazard Bank, France), Jurgen Fitschen (Deutsche Bank, Germany), Stephen Green (HSBC, UK), Nigel Higgins (Rothschild Group, UK), Lord Guthrie (N M Rothschild, UK), Klaus-Peter Müller (Commerzbank, Germany), Dieter Rampl (UniCredito, Italy), Otto Ruding (CitiCorp Europe), Lord Simon of Highbury (Morgan Stanley, UK), Emilio Ybarra (BBVA, Spain), Robert Kelly (Bank of NY Mellon) Lord Brittan (UBS, UK), Robert Zoellick (World Bank), Carl Bildt (Swedish Foreign minister), Alfonso Crtina (Rothschild Europe), Guy Elliott (Rio Tinto), Admiral Juhani Kaskeala (Former head of the Finnish defence forces), Lord Mandelson (member of the House of Lords), Lord Patten of Barnes (Chairman of the BBC Trust), Madeleine. K. Albright (Former U.S. Secretary of State), Admiral Dennis B. Blair (Former U.S. Director of National Intelligence), John D. Rockefeller IV (Member D-WV, U.S. Senate), Timothy Geithner (U.S. Treasury Secretary), Henry Kissinger, Condoleeza Rice, Paul Volcker, Dennis Ross and many, many others… In fact, the Trilateral Commission articulates and interlinks with the powerful Council on Foreign Relations (New York), Chatham House (London) and many other think-tanks forming an intricate spider’s web of private global power-brokers bringing together key players in finance, industry, media, government, academia, intelligence and the military, who run today’s global system which focuses on their elite interests, and clearly not on those of “We the People.” No doubt Messrs Papademos and Monti will do everything necessary to ensure Italy and Greece do not default on their debts – but rather that their peoples will embrace austerity, endure all the hardship, undergo all the pain, and make all the sacrifices just so that major bankers sitting on the Trilateral can all get their money back. Those same criminals who should never have made loans to Greece and Italy (and Argentina and Portugal…) the way they did. The crisis is not just a European one though, governments have certainly been in trouble with debt in the past, but what we are experiencing now is the first truly global sovereign debt crisis. Never has there been a time in recorded history when virtually all of the governments of the world were drowning in debt all at the same time. This sovereign debt crisis is never going to end until there is a major global financial collapse. The EU and the IMF making “emergency loans” to nations such as Greece, Ireland and Portugal, is only going to buy those countries a few additional months. How can lending more and more to nations which are already drowning in debt make things better? It can only make things worse and merely put off the inevitable collapse. Meanwhile, dozens more nations all over the globe are rapidly approaching a day of reckoning. All of the bailouts are doing is simply delaying the pain. The reality is that when the “emergency loans” for Greece stop, Greece is going to default. Greece is bankrupt. The game is over for them. One of the big problems for Greece is that because it is part of the Euro it can’t independently print its own money, set its own interest rates or devalue its currency. If Greece cannot raise enough euros internally Greece must turn to outside assistance. Unfortunately, at this point Greece has accumulated such a mammoth debt it is simply unsustainable. By the end of the year, it is projected that the national debt of Greece will soar to around 166% of GDP. The financial collapse of Greece is undoubtedly inevitable. If Greece keeps using the Euro they will collapse, however If they quit using the Euro they will collapse. When the rest of Europe decides that it is tired of propping Greece up the game will be over. At this point very few people are interested in lending Greece more money. Many of the nations around the world are only able to keep going because they are able to borrow huge amounts of money at low interest rates. Well, nobody wants to lend money to Greece at a low rate of interest anymore. Today, the yield on 2 year Greek bonds is back over 28 percent. Greece is just a very, very small part of the global economy, but when interest rates start spiking like that on U.S. debt or Japanese debt the entire world financial system will be thrown into chaos. The following is a portion of what Moody’s had to say when they cut the credit rating of Portugal by four notches…. “Although Portugal’s Ba2 rating indicates a much lower risk of restructuring than Greece’s Caa1 rating, the EU’s evolving approach to providing official support is an important factor for Portugal because it implies a rising risk that private sector participation could become a precondition for additional rounds of official lending to Portugal in the future as well. This development is significant not only because it increases the economic risks facing current investors, but also because it may discourage new private sector lending going forward and reduce the likelihood that Portugal will soon be able to regain market access on sustainable terms.” Basically, Moody’s is saying that the terms of the Greek bailout make Portuguese debt less attractive because Portugal will likely be forced into a similar bailout at some point. If the EU is not going to fully guarantee the debt of the member nations, then that debt becomes less attractive to investors. The downgrade of Portugal is having all kinds of consequences. The cost of insuring Portuguese government debt set a new record high last week and the yields on Portuguese bonds have gone crazy. Moody’s recently warned that it may downgrade Italy’s Aa2 debt rating sometime in the next few months. Spain is also on the verge of major problems and Ireland may need another bailout soon. Things don’t look good do they? When the dominoes start to fall the entire EU is going to go down. Big banks all over Europe are highly exposed to sovereign debt and they are leveraged to the hilt. It is a replay of 2008 in many ways. When Lehman Brothers finally collapsed, it was leveraged 31 to 1. Today, major German banks are leveraged 32 to 1, and major German banks are currently holding a tremendous amount of Greek debt. It doesn’t take a rocket scientist to see that this is all going to end in tears. So how is the European Central Bank responding to this crisis? They are raising interest rates yet again. That certainly is not going to help the PIIGS much. However, Europe is not the only one facing a horrific debt crunch. In Japan, the national debt is now up to about 226 percent of GDP. So far the Japanese government has been able to handle a debt load this massive because the citizens of Japan have been willing to lend the government gigantic mountains of money at interest rates so low that they are hard to believe. When that paradigm changes, and it will, Japan is going to be in a massive amount of trouble. In fact, an article in Forbes has warned that even a very modest increase in interest rates would cause interest payments on Japanese government debt to exceed total government revenue by the year 2019. Of course the biggest pile of debt sitting out there is the national debt of the United States. The U.S. is so enslaved to debt that there is literally no way out under the current system. To say that America is in big trouble would be a massive understatement. In fact, the whole world is headed for trouble. Right now government debt around the globe continues to soar at an exponential pace. At some point a wall is going to be hit. The Wall Street Journal recently quoted Professor Carmen Reinhart as saying the following about what we are facing…. “These processes are not linear,” warns Prof. Reinhart. “You can increase debt for a while and nothing happens. Then you hit the wall, and—bang!—what seem to be minor shocks that the markets would shrug off in other circumstances suddenly become big.” That is the nature of debt bubbles – they keep expanding and expanding until the day comes when they eventually burst. Governments around the world will issue somewhere in the region of 5 trillion dollars more debt this year alone. Debt to GDP ratios all over the globe continue to rise at a truly frightening pace. The world is so interconnected today, the collapse of even one nation will devastate banks all over the planet. If even one domino is toppled there is no telling where things may end. The combination of huge amounts of debt and huge amounts of leverage is incredibly toxic, and that is what we have all over the globe today. Almost every major nation is drowning in debt and almost all of our major financial institutions are leveraged to the hilt. There is only one way that the sovereign debt crisis can end, and that is badly. Perhaps, that is the plan of the Globalist private banking elite enslave nations in debt, engineer a collapse and out of chaos comes order – a New World Order. Maybe I will be viewed as a conspiracy theorist, however, if the facts fit! Nations have allowed themselves to be enslaved in debt by a private banking cartel when they could easily create their own money-supply‘s debt-free without borrowing from a criminal International Banking Cartel. I can see Problem-Reaction-Solution at work here, the banksters create a problem, the sovereign debt crisis, there is then a predictable reaction from the people of panic at the impending economic chaos, and then the same bankers who created the problem step forward with their pre-conceived solution, namely a World economic government, World Bank and Global currency!