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Economic Rape of Europe Nearly Complete, Part III

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In Part I of this series, I reviewed the campaign of U.S. “economic terrorism” which has ravaged many of the economies of Europe – and set the stage for their economic destruction. In Part II, I identified three of the most important strategies which will be used to “finish the job”, and discussed one of them: either to steal the national gold reserves of these nations, or to hide the fact that those national hoards of gold were already squandered.

In this installment I will focus on the second strategy for completing the looting of Europe. It is a mere two-word phrase, and arguably the most-odious two-word combination in the realm of 21st century economics: “loss guarantees”. It is the ultimate form of “welfare” for both the banker Oligarchs and the bond parasites, and the principles behind it are extremely simple:

1) Direct hand-outs are the visible part of any/all welfare for the “elites”. Indeed, that component of welfare-for-the-rich is essentially the only part of these schemes which is understood and thus noted by the general public – and so they must be kept to a minimum (the proverbial “tip of the iceberg”).

2) In order to steal the $10’s of trillions which these Vampires are currently in the process of plundering from us, it is necessary to lie about (and thus hide) most of what is being stolen.

It is in this respect that our political leaders are “earning” the campaign-bribes which these Oligarchs used to buy our governments. In fact “lying about things” and “hiding things” are arguably the only two “talents” possessed by the current crop of Western political “leaders”.

We got our first real exposure to “loss guarantees” after the Crash of ’08, and the multi-trillion dollar extortion campaign which Wall Street based upon that deliberately created “crash”. Naturally when the (banker-friendly) propaganda machine writes about the “costs” of all of the Wall Street welfare they only ever point to “the tip of the iceberg”: the direct hand-outs – totaling somewhere around a paltry $1 trillion. However, once the “0% interest loans” and “loss guarantees” are added in, suddenly the Wall Street hand-outs swell to roughly $15 trillion (and counting).

It is a testimony to the monumental stupidity and apathy of the average Western citizen (in this case Americans) when we see how easy it was to dupe the American people. Understand first of all that both the banksters and the politicians (at least those at the very top) have known all along that the Wall Street fraud-factories are all hopelessly insolvent – and hiding countless $trillions in losses.

It is common knowledge that Wall Street was leveraged by an (insane) average of more than 30:1 at the time that their Ponzi-schemes imploded. The arithmetic is simple: a loss of roughly 3% on the underlying assets which were leveraged would take the entire paper-empire of Wall Street to zero. Most of the Wall Street scam-products were based upon the U.S. housing sector. Prices for U.S. homes have now plummeted in excess of 30% - ten times what would be necessary to make all of Wall Street insolvent. Even worse, many of the “exotic” products (i.e. bets) devised by the Wall Street Vampires were so unstable and/or heavily leveraged that losses well in excess of 100% are possible.

In this respect, the example I like to use is when one bankster sued another – in this case, Citigroup suing Morgan Stanley to force Morgan Stanley to honour its losses on just one “credit default swap”. Even after liquidating the so-called collateral which “backed” this contract, Morgan Stanley was faced with not a mere “100% loss”, but rather a 300:1 loss (or 30,000%).

Upon examining these facts, we discover the cruel, horrifying truth about these “loss guarantees”: what they are really are guaranteed losses. Thus in typical deadbeat fashion, the U.S. government immediately committed itself to more than $10 trillion in Wall Street losses – while not actually “paying for” thoses losses…at least not right away.

Here is how the shell-game which the U.S. Treasury Department and the Federal Reserve are running actually operates. The Treasury Department signs “Uncle Sam’s” name to the loss guarantees/guaranteed losses – irrevocably committing U.S. taxpayers to covering the $10+ trillions in bad debts. Meanwhile, the Federal Reserve has been spending the last three years stuffing $trillions in “0% loans” into the vaults of the Wall Street fraud-factories.

Of course, as anyone with even a glimmer of brain-function will immediately realize, a “0% interest loan” is not a “loan”at all - merely a very thinly-disguised gift (i.e. welfare). If one never has to pay interest on a “loan”, one simply is never foolish enough to make any payments on that loan(s). So the Federal Reserve has already given Wall Street somewhere near $15 trillion to cover its guaranteed-losses (a sizable “down-payment” on their total losses).

To finish the shell-game (and the scam) over the next one/ten/twenty(?) years, the Treasury Department will (very quietly) announce it is “covering” various Wall Street losses – as per its “guarantees”. And (best of all) should Americans belatedly decide to complain about their own economic rape, the welfare on these guaranteed-losses is a fait accompli – as the money is already sitting in the banksters’ vaults (assuming they haven’t already gambled-it away too).

And now these “loss guarantees” (guaranteed losses) are being used to help complete the economic rape of Europe.

We see exactly the same pattern forming with Europe’s deadbeat-debtors as we saw in the U.S. with the deadbeat-bankers. Hide and lie about the magnitude of losses. Attach binding “guarantees” to those losses – which are nothing but pre-approved hand-outs – and then plunder every last drop of wealth out of these economies in (relatively) small installment payments. Just as the “math” associated with the Wall Street welfare proves that these are “guaranteed losses” rather than mere loss-guarantees, so too do the numbers from Europe tell the same story.

After two years of “fixing” and “rescuing” the economies of the Euro debt-sinners, every one of those economies is less-solvent today than it was when this farcical process began – except for Iceland, which refused to capitulate to the banksters with its own loss-guarantees, and has thus escaped from the banksters’ choke-hold.

Note that only part of the problem here was the original losses caused by the crime-spree of Western multi-national bankers. Much (most?) of the damage has in fact been caused by the scorched-Earth “austerity” preached by economic neo-Nazi, Milton Friedman. As the eminent Naomi Klein chronicled in her critically-acclaimed body of work titled The Shock Doctrine”, any/every economy exposed to Friedman’s rape-and-pillage “capitalism” has been destroyed by it.

The notable exceptions to this are the two “champions” of Friedman’s fascist doctrine: the U.S./UK “Axis of Evil”. Klein first lays-out how these two disciples of this sadistic ideologue were implementing his (literally) “bankrupt” policies on one nation after another. Frequently, Friedman’s economic rape was imposed on its victims through overthrowing the legitimate democracies of these nations; installing brutal, military dictatorships; and then torturing the local populations into submission. Economically, however, the chronologies are all identical: total economic collapse.

Klein then notes how Friedman’s two, most-devoted “crusaders”, Ronald Reagan and Margaret Thatcher refused to “prescribe” Friedman’s toxic, fiscal “medicine” for their own economies. Inadvertently, Reagan and Thatcher exposed the entirely predatory nature of Friedman’s “vision”: Friedman-economics was something you perpetrated upon the masses, so that a tiny core of economic elites could make themselves filthy-rich on what they “harvested” from those masses.

In the case of the U.S. and UK, they came to the “reasonable” conclusion (roughly 40 years ago) that if they raped-and-pillaged a large enough number of other economies with Friedman’s fascism that they would be able to loot enough to satisfy their own greed – without needing to risk the bloodshed/anarchy/revolution in their own nations which generally accompanies “Friedman economics”.

We see this “harvesting” process fully underway in Greece, where the traitor-government has committed itself to selling-off any/all state assets coveted by the Oligarchs. The “problem” for these greedy banksters and bond parasites is that they will have looted every last drop of wealth from Greece long before they have satisfied the mountain of debts under which they have buried Greece. Enter the loss guarantees/guaranteed losses.

Greece may have absolutely no possible way of ever paying-off these $100’s of billions in debts (much of it fraudulent), but still-wealthy Germany can certainly be blood-sucked enough to cover those losses. Having now seen these “loss guarantees” from multiple perspectives, it becomes obvious what they really symbolize: a “yoke” of economic slavery.

The problem with trying to fashion such a “yoke of slavery” purely through piling one massive debt atop another is obvious: at some point the “mountain” becomes too large, default occurs – and the debts are swept “clean” (ending the slavery). In this respect loss guarantees/guaranteed losses are a far superior means to engage in long-term blood-sucking as they are literally “blank cheques”.

Each time one of these debt-slave economies accumulates a little revenue in their coffers (or rather is able to find a “chump” willing to lend them more money), the banksters instruct their servants in government to fill-in one of the blank cheques via “covering” a small portion of these guaranteed-losses. Thus the loss-guarantees are designed to keep these economies perpetually on the verge of bankruptcy, where the debt-slavery can be maximized – without ever actually “pushing” one of the debt-slaves into formal default.

At this point many readers may conclude that the banker Oligarchs and bond parasites have already devised “the perfect rape” of Europe. However, as was demonstrated by the example of Iceland, these nations still retain enough sovereignty so that they can choose to sever these chains of economic slavery. In particular, the still relatively-wealthy economies of Northern Europe can detach themselves from the “loss guarantees” for Southern Europe which are intended to suck them dry.

The Oligarchs thus have one more necessary step to irrevocably cement this campaign of economic slavery: the full, economic integration of all Euro-zone economies. In the final chapter of this series, I will look at the last/latest scheme to permanently enslave the peoples of Europe with the Oligarchs' yokes of debt.

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Jeff Nielson
...
written by Jeff Nielson, July 30, 2011
Bobbbny, this dyanmic is as misunderstood by those on top as it is by those on the bottom.

The "little people" will ALLOW themselves to be exploited AGAIN and AGAIN - but only as long as they have plenty to eat and a roof over their heads. Thus when the wealthy START their stealing they are completely unopposed.

The problem is that for THOUSANDS OF YEARS those on top have NEVER been able to restrain their stealing. They ALWAYS steal too much - and then at that point the masses rise up and engage in a LITTLE "wealth redistribution".

So it's not surprising that they "get away with it" (throughout history), since no one EVER tries to stop them until the stealing reaches an extreme.
bobbbny
...
written by robert berg, July 29, 2011
Another excellent and insightful series, Jeff.
The amazing thing, to me, is that the international banksters have been able to pull this off over and over again through the centuries, with virtually no objection.
It was the Medici, the Barings, and the Rothschilds who learned how unrivaled fortunes could be made by loaning to both sides in a war, and then collecting from both. From the victor from their spoils, and from the vanquished by hollowing out their economies.
I continue to reflect on how much this period resembles the period between the Great Wars.
It was the United States who lent so much to the British and French during WWI, in exchange for their gold as collateral, and then waited to enter the war until they had 90% of the worlds gold, and a fistful of IOU's.
The war reparations demanded of Germany by the Treaty of Versaille were unpayable from the word go. So were the war debts owed by Britain & France. As negotiations went on for over a decade, virtually nothing was repaid.
So the US kept all the gold, and a strongman emerged in Germany, repudiating the debt.
The IMF and World Bank have been doing this for decades, sucking the wealth out of countries like the Phillipines,
Argentina, Nigeria, and Peru, to name just a few.
Now, their eyes are on the prize: Europe & the United States.
The vampires demanded, and got a reprive from the death they suffered in 2008/2009.
They are back in the saddle again, and stronger than ever.
They will not stop until they have won completely.

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