March 16, 2012

ZOMBIE BANKS, ZOMBIE PEOPLES AND THE END OF THE EURO



A case for the International Criminal Court? Massive Euro zone cover up. Pass the debt parcel before it blows up.


Extreme financial illiteracy. Worse to come.

Rodney Atkinson

14th March 2012

67% of Greeks STILL don't want their own currency back! Not only do we have zombie banks we seem to have zombie peoples as well. But in that case Lord forgive them for they know not what they do. They have been the victims of the most evil brainwashing of all time and like the lemming they seem to rejoice at going over the cliff.

Lombard Street Research has shown graphically in a recent report how disastrous the Euro has been - even for its most successful members. Holland has for instance fallen behind Switzerland and Sweden who are of course not in the Euro. Growth is worse, unemployment is worse, inflation is worse, budget deficits are worse and their trade balance is worse. But their sufferng is as nothing compared with the Mediterranean countries.

By offering long term (3 yrs) money at 1% to European banks (Barclays and HSBC have taken up some of the funds) the ECB is indulging in indirect quantitative easing (money printing) when direct and overt QE by the European Central Bank has been vetoed by Germany. In the dire crisis and absurd politics which is the Euro this is seen as extremely positive which is why stock markets have recovered. But this only postpones the collapse it does not solve the ultimate crisis. The process of cover up and postponement is extremely dangerous.

By making money available to the Banks the ECB has allowed Eurozone member states in trouble like Italy, Spain and Greece to sell bonds (ie raise money) offering MUCH more in interest than the Banks' artificially low cost of funds from the ECB. Those banks may be making a good "turn" on the business but they are taking on the unsustainable Euro liabilities of EU states. So instead of honest QE whereby Central Banks like the US and UK take on the risk of Government debt by creating money and buying that debt the ECB is making cheap money available to the Banking system so that the commercial Banks (already in a parlous state) buy the risky debt of countries in the Eurozone.

All this, like the Euro itself is the continuation of a gigantic confidence trick. It is passing the debt parcel before it blows up. But it does not matter who happens to be holding the debt bombs - Governments, the ECB or the Banks. When (not IF) they blow up they all go down and take with them all the businesses who need funds, all the entrepreneurs who need capital and all the consumers who want to borrow.

To these banks' liabilities must be added the credit default insurances which have been triggered by the Greek default, the massive risk aversion of those banks who have parked 80% of the ECB funny money back with the ECB and the new bank reserves rules which are causing a drawing in of lending activity just as companies need finance to survive.

This is criminal behaviour of a high order. It is economic illiteracy of the most extreme kind. There is another possible explanation - that it is a deliberate waging of war against European countries. Certainly the economic, social and democratic devastation is clear for all to see. Worse is to come.

The terms of possible indictments under the International Criminal Court assume that the crimes they consider involve deliberate intent by individual politicians in persecuting whole populations and that those populations resisted. But the extraordinary thing about the bankrupt Euro-zone countries (where unemployment at 17 million ranges up to 24% in Spain, youth unemployment approaches 50%, suicides have risen dramatically and health services are collapsing) is that they apparently voted for this slaughter and even today they wish to "stay in the Euro". In Greece where they are about to enter a 5th year of recession (in which the economy has contracted by over 20% and unemployment is over 21%) 67% of Greeks STILL don't want their own currency back! Not only do we have zombie banks we seem to have zombie peoples as well.

But in that case Lord forgive them for they know not what they do. They have been the victims of the most evil brainwashing of all time and like the lemming they seem to rejoice at going over the cliff. But we must never forget those who started the process of hypnotisation. The third collapse of Europe in 100 years is the result of deliberate policy by the French and German political class, by the British eurofanatics, by Heath, Kohl, Schroeder, Mitterand, by the German Central Bank, by the French Vichyite corporatist class and by the bureaucrat kleptocracy in Brussels.

The reckoning will be bloody. As I write the Greeks and the French look as if they will vote for new Governments which will reject the Euro-zone's poisinous medicine and the Spanish have rejected the EU's imposed limit on the Spanish annual deficit. Does the dismissive and determined tone of the Spanish attack on Germany mean the game is (at last) up?

http://home.freeuk.net/freenations/news-2012-03-14.html