In the world of finance, when a lender has to accept that a loan will not be paid back, the lender then must write the loan off as a loss. This is called taking a “haircut”. So, it’s understandable that the banksters don’t like haircuts. When the potential haircut is very big, the banksters panic and run to their friends, the central bankers, looking to get bailed out. Since the central banks are owned by the banksters they are only too eager to help. The central bankers then turn to the political elites and the play the FEAR CARD. The FEAR CARD says in big bold letters that if the banksters are not bailed out immediately, the entire banking system will collapse and their economies will collapse with them and there will be chaos. (Think Paulson, Geithner, Bush and 2008.)
Now, the thing to understand is that the FEAR CARD does not lie. Without the bailouts, the banking system would collapse, the economies would collapse and, there would be chaos. But, my friends, that is exactly what should have been allowed to happen. If we had forced the banksters to take their haircut, we would have went through a couple of tough years; but we would now be back on the road to recovery. This is what Iceland did and they are now doing fine. Instead, the US and European countries came to the rescue of the banksters. How has that worked out? Not so good.
Europe is much worse off than the US, which I’ll explain in a moment. The world’s central bankers gathered in Poland over the last several to try to figure out how they are going to keep the European economy afloat and their biggest problem right now is, of course, the basket case that is Greece. Please watch this video that borrowed from Grant Davies of the What We Think and Why blog. I’m sure you will enjoy it and it will help to understand why the central banker and the banksters are in such a tizzy.
It should be clear to any rational person that bailing out Greece one more time is buying them no more than a few months abt best. There is no way that Greece will ever ba able to pay off their debts. The Greeks have been rioting in the streets for months due to the austerity programs their government has already imposed and even if they can avoid civil war all the austerity and taxing will be to no avail because their economy keeps shrinking with each round of austerity. In the end, Greece will have to default and will have to exit the European Union and return to their own currency.
So, if the Greek default is inevitable and it’s such a small part of the European economy, why are the central banks and the political elites driving themselves crazy trying to save Greece for a little while longer? The answer is because Portugal, Ireland, Italy and Spain are all in serious trouble as well. and if they see that the banksters took a haircut for Greece, they will want the banksters to take a haircut for them, as well. And, that will bring down the European Union house of cards, which in turn, will bring about a world-wide financial crisis. Someone once said that if something is inevitable, it will happen.
The question that can’t be avoided is: Who is at fault for this pending disaster? Is it purely the fault of the banksters and the central banks? Yesterday, at Silvefiddle’s Western Hero blog, a regular liberal commenter there, that goes by the handle Jersey McJones, left this comment:
“If Greece and other unstable economies collapse, Goldman Sachs and their international partners in crime would suffer catastrophic losses, and we can’t have that!”
Well, at least now you can see who and what caused all the
trouble over there – and it wasn’t “European socialism!” LOL!
Folks, I have to admit that when I read Jersey’s comment that socialism wasn’t at fault, I did Laugh Out Loud (LOL). Of course socialism is as much at fault as the banksters. The “command and control” governments have been in bed with the banksters for ever! The command and control nanny states have been paying for their programs, in large part, with borrowed money and the bankster have been more than happy to supply the credit. Banks thrive on credit. The debts have been building and building to the point, as we see with Greece, that the life is being strangled out of the wealth producing sector and they can no longer support the nanny states and the nanny states can no longer support the banksters.
So, the party is almost over for the European Union and the Euro. The US is in a little better shape but is racing down the same path. Greece is a lost cause. But if the rest of Europe can keep the game going long enough, The US, in theory, does have a chance to save itself from the same fate as Greece and eventually Europe.
The solution to our woes can be simply stated. We must phase out the command and control nanny form of government and we must put an end to allowing the banksters to control our monetary system. Easier said than done, right? Politics being what they are, we can not even hope to start the reforming until after the 2012 elections and then, only we if elect enough of the right people who know what must be done. And, even if we elect enough of the right people, the reforms wont have a chance to work unless these new leaders can convince the masses that their nanny programs must be phased out. Failing that, we will surely follow Europe over the cliff and chaos will ensue.
Well, that’s what I’m thinking. What are your thoughts?