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Monday, July 20, 2015

Thousands Of Refugees Flee Northward From Greece

Chickens come home to roost for EU terrorists; one positive note in an otherwise bleak future for the Greek people    

WASHINGTON'S BLOG
By Eric Zuesse
07/19/2015

The precarious situation in Greece means that thousands of refugees are making their way to northern Europe. There, the reaction is increasingly panicked: The Bavarian Prime Minister Horst Seehofer has announced plans to fend off refugees with “rigorous measures.” In Germany, there have been several attacks on asylum facilities. In Italy and the Czech Republic, there were demonstrations and riots.


On Friday, tumult came to the station from Gevgelija in Macedonia. 

Thousands of refugees flooded there heading northward due to the unclear situation and the rapidly deteriorating conditions in Greece. They try to get into the EU via Serbia from Macedonia. On Greek Islands the humanitarian conditions are unbearable. However, on the Greek mainland, refugees at the moment also have little prospect of improvement: The Greek Orthodox Church considers itself unable to cope with them in addition to the problems of their own people. 


German Economic News is informed that some monasteries have three times as many people to feed than free meals available to feed them. The problem for the monasteries is that they are the first to feel the financial restrictions. Cash is scarce because of the 60-euro limit for withdrawals — therefore in Greece, charities that were always very generous must now set strict priorities. They need the cash for their own families. Social services suffer a noticeable decline in donations, due to the economic crisis.

Reception conditions for refugees are “very precarious,” according to the Commissioner for Refugees of the United Nations, Ant├│nio Guterres. “And the conditions for integration into Greek society are also extremely precarious.”

YTD 80,000 migrants already had come to Greece before the crisis. Many were traveling through Greece to other countries, and this continues. “Therefore, we are seeing more and more a movement of refugees from Greece to Macedonia, Bulgaria, Serbia, Hungary and then continuing northward,” Guterres said.




The United Nations cooperated with the Greek government in the construction of the asylum system. Support for the refugees should “be the responsibility of the European Union,” Guterres said.

Instead, the EU follows, after the rejection of a quota by the Eastern Europeans and France, a different strategy, and prepares for the possible onslaught with defensive measures: Hungary has announced its intention to construct a border fence to prevent refugees from reaching its cities. This has also been proposed in Italy, because the refugees, according to north Italian regional politicians, interfere with tourism [an essential industry there].

On Saturday night, went up in flames in Remchingen (Baden-W├╝rttemberg) a vacant former clubhouse, after a remodeling to prepare for refugees to move in during 2016. Early Saturday morning in Lower Franconia Waldaschaff a paper trashcan burned in the garage of a refugee hostel [perhaps lit by locals]. At the time about 18 people were in the house, but no one was injured. The building itself was not damaged.

And before that, on Thursday night, unknown person(s) in Bavaria Reichertshofen set fire to two entrances at a building complex, which is planned to house starting in September, 67 asylum seekers. A motorist noticed this fire shortly after midnight. Firefighters then arrived, but already two floors and the roof had burned.


Refugees from Greece fight for a place on the train to the North at Gevgellja in Macedonia

The Messaggero and the Corriere della Sera report that in Rome on Friday occurred clashes with police because a crowd demanded the withdrawal of refugees from a camp. The atmosphere was extremely aggressive (see video at the beginning of the article)

In Prague there have been demonstrations for and against immigrants.The news portal Novinky.cz showed around a thousand people signed for a rally organized by the right-wing National Democrats, against immigration, and for separation of the Czech Republic from the European Union. A large contingent of police prevented clashes with hundreds of participants in a demonstration against right-wing extremists which had earlier begun. The protesters fought against the extremists mainly shouting matches, but occasionally there were also minor scuffles.

About a month ago numerous Czech right-wing extremists had been met in the Slovak capital Bratislava with violent incidents on the edge of a demonstration against the admission of refugees and the “Islamisation of Europe.”

CSU [Christian Social Union, rightwing Bavarian party] chief Horst Seehofer wants to further reduce the record number of asylum seekers from South Eastern Europe by using “rigorous measures.” About 40 percent of asylum seekers come from the Western Balkans, Seehofer said on Saturday at the Lower Bavarian CSU district convention in Essenbach. “The acceptance rate is zero. So it can not go on.” He was confronted daily by complaints from local politicians, that there are no more buildings and areas for accommodation. “We have found this 40 percent abuse, one can say the mass abuse, and must adjust accordingly.”

In summer, accommodation is still feasible — “but then awaits the fall and winter,” and Seehofer predicted problems during the cold season. “Therefore, we need to have these issues with the Western Balkans solved now, so that we can say to our people, We have stopped the abuse “

The issue of asylum is, in Seehofer’s assessment, so explosive that it could destabilize the established structure of German politics. “This issue can change the party,” the CSU leader said then at the district congress of the CSU at Barbing in the Upper Palatinate. At the same time, he stressed that Bavaria would continue to accept refugees from Syria and other war zones. The CSU must lead the debate in facts and should not in slogans. “We do not want to strengthen even more the seduction from the political right.”





This news bureau contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc.  We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.

FACEBOOK THREATENS TO TAKE DOWN 5TH ESTATE TIMELINE OVER GREEK CRISIS REPORTING

First Twitter, now Facebook; "Social Media" confirms it is controlled by CNN and international corporate "elites"  

THE 5TH ESTATE ASIA
By Robert S. Finnegan
07/20/2015

On this date, Facebook notified The 5th Estate that it was "spamming" news reports on social media sites and should we not cease our reporting on the Greek crisis they would take us down.


The 5th Estate responded by informing Facebook that we would not cease reporting and should we be taken down and censored we would issue media and consumer alerts on Facebook.

We believe that pressure was put on Facebook by the EU bankers, IMF, ECB and CNN over our comprehensive reporting on the crisis. 


The original complaint to Facebook originated from CNN, who took exception to our calling bullshit on their frauds and hacks.

This situation and these takedown actions are confirmation of corporate social media censorship of Independent Media news bureaus that dare report the truth while dismantling and exposing the lies of the so-called "mainstream media."

We will continue to utilise Facebook for news dissemination until we are taken down, and will subsequently issue reports on the methods and bogus Facebook excuses for any censorship of news reports should this occur.


TROIKA’s Financial Attack On Greece

Once Greek islands and assets are sold there will be no recovering them from elitist buyers    

THE 4TH ESTATE
By Michael Hudson
07/10/2015

The major financial problem tearing economies apart over the past century has lain more with official inter-governmental debt than with private-sector debt. That is why the global economy today faces a similar breakdown to 1929-31, when it became apparent that the volume of official inter-government debts could not be paid. The Versailles Treaty had imposed impossibly high reparations demands on Germany, and the United States imposed equally destructive demands on the Allies to use their reparations receipts to pay World War I arms debts to the U.S. Government.


Legal procedures are well established to cope with corporate and personal bankruptcy. Courts write down personal and business debts either under “debtor in control” procedures or foreclosure, and creditors take a loss on loans gone bad. Personal bankruptcy permits individuals to make a fresh start with a Clean Slate.


It is much harder to write down debts owed to or guaranteed by governments. U.S. student loan debt cannot be written off, but remains to prevent graduates from earning enough take-home pay (after debt service and FICA Social Security tax withholding is taken out of their paychecks) to get married, start families and buy homes of their own. Only the banks get bailed out, now that they have become in effect the economy’s central planners.

Most of all, there is no legal framework for writing down debts owed to the IMF, the European Central Bank (ECB), or to European and American creditor governments. Since the 1960s entire nations have been subjected to austerity and economic shrinkage that makes it less and less possible to extricate themselves from debt. Governments are unforgiving, and the IMF and ECB act on behalf of banks and bondholders – and are ideologically captured by anti-labor, anti-government financial warriors.

The result is not the “free market economy” it pretends to be, nor is it the rule of economically rational law. A genuine market economy would recognize financial reality and write down debts in keeping with the ability to be paid, but inter-government debt overrides markets and refuses to acknowledge the need for a Clean Slate. Today’s guiding theory – backed by monetarist junk economics – is that debts of any size can be paid, simply by reducing labor’s wages and living standards plus selling off a nation’s public domain – its land, oil and gas reserves, minerals and water distribution, roads and transport systems, power plants and sewage systems, and public infrastructure of all forms.

Imposed by the monopoly of inter-governmental financial institutions – the IMF, ECB, U.S. Treasury, and so forth – creditor financial leverage has become the 21st century’s new mode of warfare. It is as devastating as military war in its effect on population: rising suicide rates, shorter lifespans, and emigration of the age-cohort that always have been the major casualties of war: young adults. Instead of being drafted into the army to fight foreign foes, they are driven from their homes to find work abroad. What used to be a rural exodus from the land to the cities from the 17th century onward is now a “debtor exodus” from countries whose governments owe unpayably high sums to creditor governments and to the banks and bondholders on whose behalf they impose their policy.

While pushing the world economy into a state of war internationally, high finance also is waging a class war against labor – and ultimately against governments and thus against democracy.

The ECB’s policy has been brutal toward Greece this year: “If you do not re-elect a right-wing party or coalition, we will destroy your banking system. If you do not sell off your public domain to buyers, we will make life even harder for you.”




No wonder Greek Finance Minister Yanis Varoufakis called the Troika’s negotiating position “financial terrorism.” Their idea of “negotiation” is surrender. They are unyielding. Official creditor institutions threaten to isolate, sanction and destroy entire economies, including their industry as well as labor. It transforms the 19th-century class war into a purely destructive meltdown.

That is the great difference between today and 1929-31. Then, the world’s leading governments finally recognized that debts could not be paid and suspended German reparations and Inter-Ally debts. Today’s situation is using the unpayability of debts as leverage for class war.

The immediate political aim of this financial warfare in Greece is to replace its elected government (supported by a remarkable July 5 referendum vote of 61 to 39) with foreign creditor control by “technocrats,” that is, bank lobbyists, factotums and former Goldman Sachs managers. The long-term aim is to impose a war against labor – in the form of austerity – and against the power of governments to determine their own tax policy, financial policy and public regulatory policy.

Fortunately, there is an alternative. Here is what is needed. (I outlined my proposals in a presentation before the Brussels Parliament on July 3, following an earlier advocacy at The Delphi Initiative in Greece, convened by Left Syriza the preceding week.)

A Declaration Reaffirming The Rights Of Sovereign Nations

Sovereign nations have a right to put their own growth ahead of foreign creditors. No nation should be obliged to impose chronic depression and unemployment or polarize the distribution of wealth and income in order to pay debts.

Every nation has the right to the key criteria of nationhood: the rights to issue its own money, to levy taxes, and to write its laws, including those governing relations between creditors and debtors, especially the terms of bankruptcy and debt forgiveness.

Economic logic dictates what was recognized by the end of the 1920s: when debts reach the level that they disturb basic economic balance and derange society, they should be annulled. Another way of saying this is that the volume of debt – and its carrying charges – must be brought within the reasonable ability to pay.

Rejecting the “hard money” (really a “hard creditor”) position of anti-German, anti-labor economists Bertil Ohlin and Jacques Rueff, Keynes argued that creditors had an obligation to explain to Germany just how they would enable it to pay its reparations. He meant at that time specifically that France, Britain and other recipients of reparations should specify just what German exports they would agree to buy. But today, creditors define a nation’s ability to pay not in terms of how it can earn the money to pay, but rather what public domain assets it can sell off in what is a national bankruptcy proceeding. Debtor countries are to let their public infrastructure be sold off to rent-extractors to create a neofeudal tollbooth economy.

Under international law, no nation is legally obliged to do this. And under the moral definition of nationhood, they should not be forced to do so. Their right to resist this is what makes them sovereign, after all.

It is true that the principle of the European Union was that individual nations would cede their rights to a larger entity. The union itself was to exercise the rights of nationhood, democratically on the basis of a pan-European constituency.

But this is not what has happened. The EU has no common ability to tax and spend; that remains local. The one area where it does govern taxes is dysfunctional: EU ideologues insist on taxing consumers (via the Value Added Tax, VAT) and labor via pension set-asides.

More fatally, the eurozone has no ability – or at least, no willingness – to create money to fund deficit spending. What it calls a “central bank” is only designed to provide money to domestic banks and, even worse, to lobby for the interest of private bankers against the principle of public central bank money creation.




The EU does not even have a meaningful legal system empowered to fight fraud and financial crime, to prosecute or clean up insider dealing and corrupt oligarchies. In the case of Greece, where the ECB at least insisted on the need to clean up such behavior, it was only to “free” more revenue for foreign investors from public agencies scheduled to be privatised.

Furthermore, this revenue stream was to pay debts to the ECB and its crony institutions for the money they had paid private bondholders and banks in the face of economies shrinking from a combination of debt deflation and fiscal deflation.

Taken together, these defects mean that the Eurozone and EU were malstructured from the start. Control was placed so firmly in the hands of bankers and anti-labor ideologues that it may not be reformable – in which case a new start must be made.

In any event, here are the institutional reforms that are urgently needed. In view of the financial sector’s control of the main institutions, these reforms require entirely new institutions not governed by the pro-rentier logic that has deformed the eurozone. The most pressing needs are for the following institutions.

An International Forum To Adjudicate The Ability (Or Inability) To Pay Debts

What is needed to put this basic principle into practice is creation of a new international forum to adjudicate how much debt can reasonably be paid – and how much should be annulled. In 1929 the Young Plan (which replaced the Dawes Plan to deal more rationally with German reparations) called for creation of such an institution – what became the Bank for International Settlements (BIS) in 1931 to stop the economic destruction of Germany by bringing its reparations back within the ability to pay.

The BIS no longer can play such a role, because it has become the main meeting place for the world’s central banks, and as such has adopted the hardline “all debts must be paid” position that it originally was intended to oppose.

Likewise the IMF no longer can play this position. It is hopelessly political. Despite its technical staff ruling in 2010-11 that Greece’s foreign debts could not be paid and hence needed to be written off, its heads – first Dominique Strauss-Kahn and then Lagarde – acted in blatant conflict of interest to support the French bankers demands for payment in full, and U.S. demands by President Obama and Wall Street lobbyist Tim Geithner to insist there be no writedown at all. That was the price for French bank support for Strauss-Kahn’s intended bid for the French presidency, and recently for Lagarde’s support. Given the U.S. veto power by Wall Street and the insistence that right-wing anti-labor ideologues (usually French) be appointed head of the IMF, a new organization representing the kind of economic logic outlined by Keynes, Harold Moulton and others in the 1920s is necessary.

Creation of such an institution should be a leading plank of Euro-left politics.

A Law Of Fraudulent Conveyance, Applicable To Governments

The private sector has long had laws that prevent money-lenders from lending a borrower more funds than the debtor can reasonably be expected to pay back in the normal course of business. If a lender advances, say, $10,000 as a mortgage loan against a house worth more (say, $100,000), and then insists that the debtor pay or lose his home, the courts may assume that the loan was made with this aim in mind, and annul the debt.

Likewise, if a company is raided by borrowers loading it down with high-interest junk bonds, and then seize its pension funds and sell off assets to pay their debts, the company under attack can sue under fraudulent conveyance rules. They did so in the 1980s.

This lend-to-foreclose ploy is the game that the Troika have played with Greece. They lent its government money that the IMF economists explained quite clearly in 2010-11 (and reaffirmed this year just before the Greek referendum) could not be paid. But the ECB then came in and said, “Sell off your infrastructure, sell your ports, your gas rights in the Aegean, and entire islands, to get the money to pay what the IMF and ECB have paid French, German and other bondholders on your behalf (while saving U.S. investment banks and hedge funds from losing their bets that Greek debts would indeed be paid).


CNN frauds play real estate agents 

Application of this principle requires an international court to rule on the point at which debt service becomes intrusive, and write down debts accordingly.

No such set of institutions exists today.

Creation Of Treasuries As National Central Banks To Monetize Deficit Spending

Central banks today only lend money to banks, for the purpose of loading economies down with debt. The irrational demand by bankers to prevent a public option from creating credit on its own computer keyboards (the same way that banks create loans and deposits) is designed simply to create a private monopoly to extract economic rent in the form of interest, fees, and finally to foreclose on defaulting creditors – all guaranteed by “taxpayers.”

The European Central Bank is not suited for this duty. First of all, it is based on the ideology that public money creation is inflationary. The reality is that central bank money creation has just financed the greatest inflation of modern history – asset price inflation of the real estate market by junk mortgages, inflation of stock prices by junk bond issues, and central bank Quantitative Easing to create the fastest and largest bond market rally in history.

The post-1980 experience with central banks has removed any moral or economic logic in their behavior as lobbyists for commercial banks, defenders of their special privileges, deregulator of financial crime, and extremist right-wing blockers of a public option in banking to bring basic services in line with actual costs. In short, if commercial banking systems in nearly every country have become de-industrialized and perverse, their enablers have become central banks.

The remedy is to replace these central banks with what preceded them: national Treasuries, whose proper function is to monetize government spending into the economy. The basic principle at work should be that any economy’s monetary and credit needs should be met by public spending and monetization, not by commercial banks creating interest-bearing credit to finance the transfer of assets (e.g., real estate mortgages, corporate buyouts and raids, arbitrage and casino-capitalist gambles).

Summary

Every nation has a right to defend itself against attack – financial attack just as overt military attack. That is part of the principle of self-determination.

Greece, Spain, Portugal, Italy and other debtor countries have been under the same mode of attack as that of the IMF and its austerity doctrine that bankrupted Latin America from the 1970s onward. International law needs to be updated to recognize that finance has become the modern-day mode of warfare. Its objectives are the same: acquisition of land, raw materials and monopolies.

A byproduct of this warfare has been to make today’s financial network so dysfunctional that nations need a financial Clean Slate. The most successful one in modern times was Germany’s Economic Miracle – the post-World War II Allied Monetary Reform. All domestic German debts were annulled, except employer wage debts to their labor force, and basic working balances. Later, in 1953, its international debts were written down. The logic prompting both these acts needs to be re-applied today.

With specific regard to Greece, Syriza’s leaders have said that they want to save Europe. Principally, from the eurozone’s destructive economic irrationality in not having a real central bank. This defect was deliberately built into the eurozone, to enforce a monopoly of commercial banks and bondholders powerful enough to gain control of governments, overruling democratic politics and referendums.

Eurozone rules – the Maastricht and Lisbon treaties – aimed at blocking governments from running budget deficits in a way that spend money into the economy to revive employment. The new aim is only to rescue bondholders and banks from making bad loans and even fraudulent loans, bailing them out at public expense. Economies are obliged to turn to commercial banks for loans to obtain the money that any economy needs to grow. This principle needs to be rejected on grounds that it violates a basic sovereign right of governments and economic democracy.




Once an economy is fiscally crippled by (1) not having a central bank to finance government spending, and (2) by limiting government budget deficits to just 3% of GDP, the economy must shrink. A shrinking economy will mean fewer tax revenues, and hence deeper government budget deficits and rising government debt.

The ultimate killer is for the ECB, IMF and EC to demand that governments pay their debts by privatizing public infrastructure, natural resources, land and other assets in the public domain. To compound this demand, the Troika have blocked Greece from selling to the highest bidder, if that turns out to be Gazprom or another Russian company. Financial politics thus has become militarized as part of NATO New Cold War politics. Debtor economies are directed to sell to euro-kleptocrats – on terms financed by banks, so that interest charges on the deal absorb all the profits, leaving governments without much income tax.


Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of The Bubble and Beyond (2012), Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971). http://michael-hudson.com.



This news bureau contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc.  We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.

IMF Greek Laundromat Opens For Business

ECB, IMF will ensure this time around that the bones of Greece are picked clean  

WASHINGTON'S BLOG
07/19/2015

You really have to be paying attention to see what’s truly going on these days. The keepers of the system, that is the banking elites, now openly control everything — though you’d never know that by listening to the media.


Eurozone ministers have agreed to give Greece a €7bn (£5bn) bridging loan from an EU-wide fund to keep its finances afloat until a bailout is approved.

The loan is expected to be confirmed on Friday by all EU member states.

In another development, the European Central Bank (ECB) agreed to increase emergency funding to Greece for the first time since it was frozen in June. The decisions were made after Greek MPs passed tough reforms as part of a eurozone bailout deal.


How generous of the finance ministers of all those EU member states to agree to a “bridge loan” that will help Greece “keep its finances afloat”. This should provide the people of Greece with a bit of breathing room, right? Maybe access to their bank accounts (finally!), perhaps?

No, not at all. Here’s what the entirety of the “”loan”” will go towards instead:

The bridging loan means Greece will be able to repay debts to the ECB and IMF on Monday.

Ummmm…that “money” will not ever go anywhere near Greece.




This is all merely electronic window-dressing for entirely esoteric bookkeeping purposes. Servers will blink at one location in Europe as digital 1s and 0s are transmitted to another. The electronic balances at the ECB and the IMF will change, but not much else.

The people of Greece will see none of it. Nor will they see their bank accounts unfrozen.

This act of banker “largess” is, of course, of, by, and entirely for the bankers. It has nothing to do with Greece or its people, about whom the banker class cannot care less.




But, they hide this disdain under and increasingly thin and condescending veneer of graciousness. Take, for example, the recently-announced ‘generosity’ of the powers that be — that is, the banking powers that be — which will permit the long suffering depositors to…*cough*…deposit more money into the banks:

Greek banks will reopen Monday after a three-week closure, the country’s deputy finance minister says, though withdrawal restrictions will stay in place. Bank customers “can deposit cash, they can transfer money from one account to the other,” but they can’t withdraw money except at ATMs, the official says, and a withdrawal limit of 60 euros ($67) a day will stay in place, he said, though Greek authorities are working on a plan to allow people to roll over access to their funds so that if they don’t make it to a bank machine one day, they can take out 120 euros the next day.


Yeah, depositing more money into the Greek banking system is exactly what all 12 remaining Greek idiots are clamoring to do…everybody else just wants their money back, thank-you-very-much. Obviously, the only rational response of anybody in Europe watching this charade of theft continue would be to sell gold, right? 


Because, you know, nothing says “confidence” quite like selling your gold so you can then park that money in a bank that may not let you withdraw it again.

Of course, we here at Peak Prosperity hold to the view that everything, and we mean everything, in our ””markets”” is stage-managed. And that especially includes gold. The central banks are demanding and commanding complete fealty to their story line, no exceptions tolerated. We are at that all-or-nothing moment in history when everything either works out perfectly or it all falls apart.

Savers have to be punished so debtors can be saved.




Why? Because if debtors are rescued, that makes it possible for more debts to be issued in the future..

And why is that important? Because the banking system needs ever more loans in order to survive.

Why do we slavishly feed a banking system that is rapacious, insatiable and always threatening calamity whenever it doesn’t get exactly everything it wants, when it wants it? That is a question nobody in power is willing to address.


Why not? Because there’s no good reason to do it — unless you’re a bank, or one of the many proxy agents (like politicians) receiving kick-backs from the banks.

We have a banking system that feeds on the blood, sweat and tears of the public. But the public’s collective output is no longer ‘enough’ to subsidize everything that central planners have promised. 


So with a stagnating/shrinking pie – surprise! – the group that writes the rules, the banks, has decided that they should be the ones to get as much of it as possible.

Naturally, this will not work for very long. History is replete with examples why it can’t. Just consider the root meaning of “bankrupt” which has an interesting history:

The word actually comes from Italian banca rotta, a broken bench (not a rotten one, as the false friend of Italian rotta might suggest — it’s from Latin rumpere, to break). The bench was a literal one, however: it was the usual Italian word for a money dealer’s table. In his dictionary, the great Dr Johnson retold the legend that when an Italian money trader became insolvent, his table was broken.

To “break the banker’s table” means to smash the money lender’s physical place of business after they have taken or lost all of your wealth. It’s speaks of an act of anger by the betrayed. And that’s where the banking system finds itself again and again over time, for the exact same reasons all through history — today being no different in anything but scale and complexity. (1).




Conclusion

You have to read past the headlines today because they quite often say exactly the opposite of what’s actually happening. Like today’s description spinning GE’s 2Q, $1.38 billion earnings loss as a 5% rise in profits.

The bankers and financiers are badly overplaying their hands, again, and people are starting to catch on to the scam.

Real wealth is tangible things produced with tangible effort. Loans made out of thin-air ‘money’ require no effort and are entirely ephemeral. But if those loans are used to acquire real ownership of real assets, then something has been exchanged for nothing and one party is getting screwed.

That’s what has just happened in Greece. And expect it to happen increasingly elsewhere, as Charles Hughes Smith and I recently discussed in this week’s excellent Off The Cuff podcast.

If you had asked me ten years ago if there was any chance of Greece becoming a failed state within a decade, I would have said ‘No, no chance.’ But here we are. In ten years, I suspect, we’ll be marveling over all the other failed states as the rot proceeds from the outside in. Again, Charles does a wonderful job articulating why in his recent report More Sovereign Defaults Are Coming.




There’s simply too much debt and too little cheap oil for there to be any other trajectory to this story. Boneheadedly, our leadership is so out-of-touch that their best response to this set of predicaments is to sacrifice the populace of an entire developed nation (for generations to come) just to keep the status quo stumbling along for a bit longer.

We need to all prepare for the inevitability that, as the rot proceeds, the people of Greece will not be the only casualties of the banks’ attempts at self-preservation. They’ll try to throw all of us under the bus before taking any losses themselves.

Notes:

1.http://www.worldwidewords.org/weirdwords/ww-ban1.htm.




This news bureau contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc.  We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.

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ANDREW KREIG: EXPERTS REJECT FIRE AS CAUSE FOR 9/11 WTC COLLAPSES

The real truth on 9/11 slowly continues to bleed out

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Technical experts are mounting major challenges to official U.S. government accounts of how three World Trade Center skyscrapers collapsed in near-freefall after the 9/11 attacks 15 years ago.

Many researchers are focusing especially on the little-known collapse of

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The Geopolitics Of The United States, Part 1: The Inevitable Empire

The Empire and the inevitable fall of the Obama criminal regime

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STRATFOR Editor’s Note: This installment on the United States, presented in two parts, is the 16th in a series of STRATFOR monographs on the geopolitics of countries influential in world affairs.

Like nearly all of the peoples of North and South America, most Americans are not originally from the territory that became the United States.

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Geopolitics Of The United States Part 2: American Identity And The Threats of Tomorrow

A look back at 2011 predictions for the future in order to put events of today into perspective

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We have already discussed in the first part of this analysis how the American geography dooms whoever controls the territory to being a global power, but there are a number of other outcomes that shape what that power will be like. The first and most critical is the impact of that geography on the American mindset.

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By Robert S. Finnegan

This e-mail outlines and confirms the acts of espionage against Indonesia and Indonesians by Akiko Makino and the others involved both in Kobe University and in AI Lab at University of Airlangga, Surabaya; Bahasa Indonesia original follows English translation...

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UPDATED 01/07/2015 : New Analysis Challenges Tamiflu Efficacy; Hong Kong Corona Virus Outbreak

UPDATED 01/07/2015 : FOX NEWS CORPORATE PHARMA SHILL MEGAN KELLY AND FOX NEWS QUACK DOCTOR NOW PUSHING TAMIFLU FOR PREGNANT WOMEN AND CHILDREN;

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THE 5TH ESTATE UNEQUIVOCALLY WARNS THE PUBLIC NOT TO TAKE OR GIVE THIS PROVEN DANGEROUS, INEFFECTIVE DRUG TO ANYONE

Obama criminals now resulting to biowarfare in quest to destroy Chinese and ASEAN economy; "novel virus substrain" points directly to a Kawaoka / Fouchier / Ernala-Ginting Kobe lab virus weaponized and genetically altered to specifically target and infect the Asian population: Ribavirin...

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The 5th Estate has just purchased a library on H5N1 "Novel" virus pandemics, there are dozens of PDF and Exel documents we feel will assist you in saving lives following intentional releases of the H5N1 and now MERS viruses; we will begin by printing those that appear to be extremely relevant here: H5N1 Kobe-Kawaoka-Ernala series continues soon with more "Smoking Gun" e-mails from Teridah Ernala to The 5th Estate . . .

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By Robert S. Finnegan

On October 12, 2002 the Indonesian island of Bali experienced a terrorist attack that rocked the world. It was unquestionably well-coordinated and executed, the largest in the country's history.

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