Thursday, October 20, 2011



We are witnessing a unique period in history. All the latent divisions in Europe, present since the beginning of the EU project and papered over, are coming to the surface and Europe as we know it is being torn apart.

Citizens of the rich industrialized countries do not want to pay for the profligacy and irresponsibility of their neighbors, by increased taxes or taking over massive debts.

Why then despite all the evidence and grass roots revolt from the ordinary citizens are the politicians ignoring the voice of the people and trying so hard to hold their “Utopia” together, by further creation of massive debts?

The plain truth is that the elected politicians do not answer to the people; they simply require the people to vote periodically to get them elected. To achieve this a politician needs notoriety and most of all funding; witness the tragic spectacle of the US Presidential elections. 

Thereafter they answer to their real bosses, the business and financial elites and their lobbyist minders, whose funding got them elected. If they play the game it will ensure that they will be re-elected, step out of line, show any sign of integrity, loyalty to country, and by bye birdie.

Why would these forces, hidden in full view, wish their bought and paid for politicians to bury the wealthier nations in the debts of their poorer neighbors?

The only way to realize the dream of a truly United Europe with one government is to destroy national identity, the undeclared goal of the Euro project from the beginning. There are two ways to destroy nation states the first by War, tried and failed twice in Europe, or by debt; project ongoing!!!

Debt enslaves the poor and profligate nations for generations, and bail outs ensnare and reduce to servitude the prudent and more affluent.

The purpose of all this leveling of the playing field serves the interests of power hungry unelected bureaucrats, Brussels politicians, banks and major multinationals who see markets for their ubiquitous products increased by the transfer of your wealth into ever wider hands. None of the above parties will feel the pain of this change being insulated by fat salaries benefits packages and bonuses.

The means of implementing this transformation however, have to be subtle; otherwise the general population will wake up and really revolt as in France in 1789. Softly, softly does it. The mechanisms used include:

Quantitative Easing”QE” to be used by central banks to buy government bonds, on terms for which there would be no other buyers. This artificially keeps interest rates down, otherwise government financing costs would skyrocket and the world would see the truth.

Low interest rates, designed to strip wealth from the saver who is forced to live off capital. This is a much more effective, instantaneously implementable, completely undemocratic means of wealth redistribution, and unlike taxes, need not even be voted on. Just a grandiose non-explanatory statement from a Central banker will suffice.

Competitive currency devaluation, again achieved by money printing, is much loved by the Swiss National Bank. This is a stealth default on bonds, and also on the currency in your pocket, which due to inflation, become worth infinitely less in purchasing power.

In the face of this integrated functioning system of destruction and redistribution of wealth, over which the ordinary citizen has almost no understanding and absolutely no control, where is there a safe haven?

Traditionally the answer was Gold & Silver, where given the combined effect of all the above the prices should already have skyrocketed.

Why then has this not happened?

Because a Cartel composed of Governments, Central Banks; Global  banks, notably JPMorgan and HSBC intervene and suppress Gold & Silver prices in all markets around the world, 24/7 by a practice known as short selling. This is the practice that European Governments have tried their best to prevent concerning Government bonds and Bank shares, but apparently it is perfectly acceptable if it concerns Gold & Silver and the related shares, and the Government is doing it. This will be discussed much more in a later post.

This merging of State and Industry and Banks is the very definition of a Statist economy, and the antithesis of a free market system, and although it is masked by the bungling exterior appearances of the EU leadership, Barosso, Von Rompuy and La Baronne Ashton, the underlying trend is very sinister.

The reality is malinvestment and mismanagement has taken the system to a breaking point. Intervention in every form, QE, low interest rates, stock market, Gold & Silver and commodity price manipulation, is having less and less impact. Internal conflicts between states such as France and Germany are becoming increasingly fractious as each desperately tries to get the best deal for themselves. In short the centrally planned “Utopia” is in its death throes. Being a Scotsman I quote the immortal words of Robbie Burns which summarizes the situation perfectly:

The best laid schemes of mice and men go oft awry and leave us naught but grief and pain for promised joy”

No comments:

Post a Comment