I wasn’t going to write about the news coming out of Europe that they have a new plan to save Greece and, therefore, the European Union. But then I noticed in my e-mails that Larry Jackson at Political Realities had posted on the subject and I decided to take a look. Larry, as usual, always finds a way to get to the crux of any given issue. At the end of his post he asks a very important question:
So now, I ask a simple question. When will the cycle of debt and bailouts end and the era of financial responsibility begin? (emphasis added)
I have humbly decided to try to answer that question. But first let’s try to answer a different question. Has Greece been saved? In my opinion the answer is no, Greece has not been saved. I’ll explain.
An important part of Europe’s new plan is that the banks that are holding Greek bonds will be “forced to voluntarily” take a 50% haircut.(The so.called “voluntary” part of this deal is very important. Because it’s ”voluntary”, the banks can not make claims on the insurance they but against credit-default, which would defeat the whole purpose of this plan.) Well Jeez, their debt has been cut in half. This should really help put Greece back on their feet, right? Indeed it is an excellent move in the right direction; BUT, it is not enough. According to Europe’s financial wizards, after forgiving 50% of the Greek debt, Greece will still have a debt equal to 120% of their GDP. Not good! And if you believe it is only 120% of their GDP, you probably also believe in “Fairy Godmothers”. But let’s take it at face value. The only way Greece can get out of the hole they dug for themselves with the hep of the banks is to stop most, if not all, of their sacred nanny programs and put the remaining Greeks that still have jobs in indentured servitude through taxes ,for God knows how many years, to pay back their bond holders the remaining 50% that they owe. IT AIN’T GOING TO HAPPEN! Greece will default again.
So, getting back to Larry’s question: “ When will the cycle of debt and bailouts end and the era of financial responsibility begin? ” Larry’s question has two parts to it. When will the cycle of debt and bailouts end ? And, when will the era of financial responsibility begin?
The answer to the first part of Larry’s question is easy to answer. The cycle of debt and bailouts will end when the credit bubble finally bursts. It must and it will burst. Be that in two months or two years, I do not know, but it will burst. In my opinion, there will come a world-wide economic meltdown.
The second part of Larry’s question is more difficult to answer. Let’s start by rephrasing the question. How will the world, and more importantly the US, emerge from the economic meltdown? I believe there are two possible scenarios.
The first and most likely scenario is one that benefits the bankers and allows to once again control the world’s monetary system. This is what we, of the tin foil hats, call the One World Order (OWO). This means one central bank for the world and one form of money for the world and a council (government) of world elitist to enforce a world-wide fiscal policy. I say this is the most likely scenario because there will be absolute chaos in the world and people will be in a state of panic and they will, in my opinion, grasp at the straw that the elitist will be offering them. Slowly this new OWO will achieve order out of the chaos. The price for this order is that we will lose most, if not all, of our freedoms and the concept of sovereign nations will be swept away.
But, what about the other scenario; the less likely scenario? This scenario would benefit freedom loving patriots. Under this scenario the people would reject the elitist plan for a OWO and opt instead for recognizing our past errors and demand that the nation(s) reboot and start over again with a clean slate; i.e., repudiation of all debt. Only in this way will nations be able to maintain their sovereignty and people reclaim their freedom. Slowly we could bring order out of the chaos. This would require a level of unity among people that I have not seen in my adult life, which is why I see this as the less likely scenario.
Well, that’s what I’m thinking. What are your thoughts?
loopyloo305
October 27, 2011
Assuming those in power want the debt crisis fixed, it will probably happen just as soon as they find some way to take control of the governments that are degenerating into chaos, just as they are attempting to create the same chaos here Jim! I am very negative about the future of this world as we know it right now, I think that we may have passed the tipping point.
Bunkerville
October 27, 2011
Jim, I found a very thoughtful piece over at Verum Serum. I have not had time to really digest it, but if true, this would put a different light on the occupy wallstreet folks, and the angle the anarchists are taking. I would love to see your take on it.
“There is a wizard behind the curtain of OWS, but it is not Elizabeth Warren. Because OWS is not about reforming the banking industry reform, consumer rights, or even taxing the 1%. Nor is it about re-electing Obama, or other Democrats. No – it’s implicit objective is much more sinister, and its lineage traces back to someone far more radical. He is a professor named David Graeber. He is an anarchist. And he is trying to destroy America”..
http://www.verumserum.com/?p=31453
Conservatives on Fire
October 27, 2011
So, we have a new version of Cloward-Piven. I want to thank you, Bunker, for directing me to Verum Serum. I have saved the URL so I can visit the site on a regular basis. I agree that the article is very interesting. I’m going to try to fin out more about this Professor David Graeber. Like all anarchist, they want to destroy capitalism but we never learn what they want to replace it with. It’s interesting that many of the goals that Graeber lays out would appeal to leftist socialist; yet other goals, such as, ending WTO and the IMF would appeal to many conservatives. I wonder if this is the true reason that Obama and some of his backers see OWS as a useful tool for getting reelected; e.g., there are things to appeal to a broad spectrum of people. On that note, you may want to check out this Washington Post article:
http://www.washingtonpost.com/blogs/the-fix/post/how-the-occupy-wall-street-movement-could-help-democrats/2011/10/25/gIQAgIyZIM_blog.html?wpisrc=nl_pmpolitics
Thanks again for bringing this to my attention. I do appreciate it.
Update: I just watched a very interesting interview with David Graeber. You can see here
http://www.charlierose.com/view/interview/473
bunkerville
October 28, 2011
Thanks for the links. I am doing more research on this fine fellow as well. It does answer many questions. The new mantra of “consensus Building” makes sense under his scheme.
Conservatives on Fire
October 28, 2011
No problem, my friend. It was an education for me. I didn’t know what I thought I knew about the concepts of anarchy. I have much more to learn.
Infidel de Manahatta
October 27, 2011
Like it or not we are all becoming like Greece. When the bubble bursts expect Americans marching in the streets whining about income inequality and wanting more free stuff.
edge of the sandbox
October 27, 2011
This is just prolonging the Greek misery. I hope Germany bails on EU sooner rather than later.
Conservatives on Fire
October 27, 2011
I believe it is going to happen, Edge. I’m hoping that it doesn’t happen until after the election when we will have people that hopefully will respond with more wisdom than this regime would do.
silverfiddle
October 27, 2011
I think the first scenario you posit will happen, but governments will be deft about it. Most will probably not realize what is happening
Conservatives on Fire
October 27, 2011
I’m afraid you are right, Kurt. But, the fact that the Europeans are making the banks write off 50% percent of the Greek debt they are holding is, I think, a move in the right direction.
Pat
October 27, 2011
I agree… Greece will default again. I think it’ll be the second answer on the second question. As the collapse begins, people are going to wake up to the fact that the elites are right in the middle of having caused it. Why would we listen to their answer for fixing it?
Conservatives on Fire
October 27, 2011
Fear of the unknown makes people do crazy things, Pat.
MK
October 27, 2011
I’m not in favor of wiping the slate clean and forgiving of debt, why should those who worked for their money have to cough up to save pustules like greece only to have the scumbags just walk away debt free. F*** no, make them pay.
Conservatives on Fire
October 27, 2011
I understand your rage, MK, but not all Greeks supported their nanny government and they would have to pay too. Also, the banks have promoted these credit bubbles and because of greed they bought the low rated high interest Greek bonds knowing their central bank or government wouldn’t let them fail. I say screw the bankers.
Pat
October 28, 2011
“pustules”… LOL
LD Jackson
October 27, 2011
First of all, thanks for linking to my post, Jim. I appreciate you doing that.
Concerning your possible answers to the question I asked, I often wonder if this current financial crisis we are in, a crisis that looks like it will get much worse before it gets better, will lead us down the path to the one world government the Bible talks about. For all of our sakes, I hope I am wrong, but the situation in Europe is dire and it does not bode well.
Conservatives on Fire
October 28, 2011
It doesn’t bode well at all, Larry. When I explained my post to my wife (she doesn’t read English), she immediately brought the Bible prophecy that you mentioned.
Steve Dennis
October 28, 2011
All that this did, in my opinion, was stave off the problem. It didn’t solve anything and unless Greece and other countries (the USA included) solve the real problem behind the crisis–the entitlements–the meltdown is going to occur. This may put off the inevitable for awhile, but unless people get serious about solving the problem the economy will still crash. And I just don’t see anyone stepping up to the plate to tackle this issue.
Conservatives on Fire
October 28, 2011
It doesn’t look good, does it, Steve? There are so few people that seem to see the enormity of the world-wide debt crisis that is looming over us. We who do talk about it are often accused of being doom and gloomers. I think the threat is very real and it is very close. There needs to be serious discussion on how we can best deal with when it happens. I have given-up on the idea that will react in advance. We are far to divided. Will we be more unified after the storm hits? I hope so.
John Galt
October 28, 2011
It is our considered opinion that the cycle of bailouts has just begun. Gentlemen, start your engines.
We find the trickery used in the recent Europena plan to the debt crisis a bit too transparent and expect that many more “summits” and “bailout” plans will be playing soon, eventually in a bank near you. We explain why in our last piece “Europeans Leverage the Money and the Redderick”.
Conservatives on Fire
October 28, 2011
I want to see how long the German people will put up with this. I can’t wait to see what they do when it is Italy’s turn at bat.
peter
October 30, 2011
They really forgot to ask some important questions. How many banks will voluntarily execute an exchange of Greece’s obligations? And what will happen if one of the bigger countries like Italy or Portugal defaulted? The economic situation in those countries is not positive at all and the possible default would surely destroy all hopes placed in the EFSF and other rescue packages recently approved by the EU. This only shows that the countries which were in favor of looking for other solutions and refused to make their contributions were right. Now it’s too late and there clearly are no more good options that would put a halt to this crisis.
Conservatives on Fire
October 31, 2011
Peter, thank you coming by and sharing your thoughts. I agree that there is no hope the European Union much less Greece. They are kidding no one but themselves. It will get very ugly. I believe there will be a revolution in Greece before this all shakes out.