Atpakaļ feodālismā

Posted on December 17, 2010

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Ahead of a key meeting of eurozone finance ministers  in Brussels today on how to rescue the euro,Germany’s conservative Chancellor Angela Merkel and Austrian Social Democrat Chancellor Werner Faymann have paired up forming an unlikely Batman and Robin to try to save the people of Europe from an unprecedented economic meltdown engineered by the banks, bondholders and hedge funds for their profit.

In spite of intense pressure, Merkel and Faymann have rejected the creation of eurobonds and demands to expand the  EU’s €440bn bail-out fund, and they deserve our full support.

These measures, they rightly say, would only heap yet more debt on Germany, the eurozone’s strongest economy – and this, at a time when the country’s economic forecasters such as the IMK are predicting that the country could even enter a recession in 2012.

German exports especially to southern European countries are set to dive; these economies are contracting under punishing deflationary budgets imposed on them to service paper, bank debt.

Germany can’t begin to service the gigantic amounts of paper bank debt saddled on eurozone governments even  when it is growing, never mind when it slips into recession.

Whether eurobonds are introduced or a bigger bail out fund is created, the end result will be the same: tGermany will be expected to pay the entire outstanding debt of the eurozone. This is trillions of euros. Not even if Germany makes the deepest cuts in history, hands over all its tax revenues to banks and bondholders and sells off all its assets, can it begin to service this astronomical mountain of paper debt.

Inevitably, the markets that demanded the eurobonds to weaken Germany will pounce: the interest it will have to pay to service its debt (especially if it is denominated in eurobonds) will soar and it will have liquidity problems.

Cue IMF and EU offering a “loan” at an exorbitant interest so that Germany can stagger on a bit longer in debt bondage by selling off assets, throwing people in the streets etc.

Unless the entire EU financial and economic system is changed, G ermany is set for a complete economic meltdown and an IMF/EU takeover just like Greece and Ireland and the rest of the eurozone.

Vienna Economics Professor Franz Hörmann explained in an interview in Der Standard how the fractional reserve banking system is a model for fraud, but his analysis also explains how the euro is now being run as a model for fraud.

http://derstandard.at/1285200656759/derStandardat-Interview-Banken-erfinden-Geld-aus-Luft

The EU is currently running the eurozone like one gigantic bank – and all the Europeans owe that bank money and have to pay punitive interest rates for paper debts owed by banks to other banks that no one can keep track on in what amounts to the biggest financial fraud in European history.

Hörmann explains that banks can – thanks to the fractional reserve banking system — ask for interest for something that does not exist and so, in effect, rob them. They can create money out of thin air and pass it on asking for interest payments.

Eurozone governments have equated astronomical amounts of paper debts with souvereign debt – and tax payers are now being forced pay the interest for these debts that do not exist.

Fiscal austerity budgets are the mechanism by which the interest payments for this paper debt are being extracted from tax payers across Europe.

Painful cuts in budgets are made, taxes increased – and the banks and bondholders sit back and watch the money roll in.

Italy and Greece already hand over more than every second tax euro to service these paper debts.

Because countries are handing over capital and getting nothing in return for this, their economies are growing weaker. Tax revenues in Greece have collapsed by 4 billion euros as a result of deflationary budgets, resulting in a growing real debt burden.

When the political pain of the cuts becomes too great, the IMF/EU are called in by puppet governments to extract the payments by force as happened in Greece and also Ireland this month.

In Ireland, Fianna Fail and Greens have just voted through legislation allowing the IMF and EU to take over the essential functions of government. They will have the power to extract interest payments at a rate of 5.8% from ordinary people as part of a 85 billion euro “loan”. All this to service paper debts that the very same clique helped the banks create and saddle onto the tax payer in the first place.

The FF and Greens helped to aritifically inflate the property prices by creating liquidity bubbles in the property market. The same actors helped burst those bubbles. This allowed the banks to say they were broke and needed “tax payer bailouts.”

Franz Hörmann explains how the fair value accounting rule allows banks to set the value of their assets almost as they wish. Whether banks are solvent or not can largely depend on balance sheet trick.

Austrian authorities are currently investigating the Flick Foundation for helping to boost the assets of the Hypo Alpe Adria bank by an accounting trick before it was sold to Bayernlb. HAA then cheerfully declared itself broke soon after being swallowed by Bayernlb. Obliging politicians gave the bank – and their private share holders — 3 billion euros of tax payer money for paper, property debts.

70 charges have been filed already demanding 300 million euros of tax money back in Austria over the HAA scam.

Why is the EU and IMF not investigating?

While countries like Ireland and Greece do not have substantial assets, there is only so much the financial elite can suck from them by means of this bank debt fraud.

Germany,  by contrst, still has substantial manufacturing assets: stripping it of these is the ultimate economic prize. This can be accomplished by burying Germans in so much debt from the other European countries via bail outs and eurobonds that it sinks into a debt death spiral just like Ireland and Greece and has to accept IMF and EU control and the fire sale of its assets.

This is what the EU and IMF, Germany’s Social Democrats ganging up with the foundations like BMW clearly want. Otherwise, their push for eurobonds etc is no explicable.

The reality is that eurozone is no longer a modern economy as we understand it. It is a feudal economy.

The peasants or workers toil. The feudal lords extract the fruits of their labour via interest payments on paper debt. The peasants must labour on and hand over ever more of their produce to the feudal lords until they drop.

In the past, the feudal lords rode out with their armed gangs and just took the produceor houses by force if the people could not or would not pay.

Nowadays, they send in the IMF and EU to seize the government apparatus and turn it into an instrument for the extraction of wealth for a financial elite.

Because all the money is being drained away into the pockets of a few, the real economy is suffering from chronic under investment, low domestic consumption, unemployment.

It is grinding to a halt and going backwards. The only sectors thriving are military related.

Southern European economies have suffered most from the euro. Unable to devalue or set their own interest rates, their economies are now so weak, that they can easily captured by financial elite for plunder under the pretext of the need to pay interest on paper debt that they cannot pay.

Although every serious economist can see that the way the eurozone is being run right now is lunacy, EU and IMF officials like Jean Claude Juncker dare harangue Merkel and Faymann for refusing to hand over more money to banks (eurobonds etc) and destroy their own economies and the lives of millions of people.

We have not only a feudal economy. We have a feudal political system to match.

Unelected EU officials function as the “authority” mentioned by banker George Soros in his FT piece “Europe should rescue the banks before the states”.

They simply order national governments to implement the “architecture” to extract the punitive interest payments from their people for paper debts that governments should never have saddled on the tax payers in the first place.

A modest proposal to reduce the debt burden from 2013 has been watered down by the EU. Only in cases of insolvency – not a liquidity crisis – are governments to be able to force some banks, bondholders and hedge funds to stop demanding interest for their paper debts.

Seven of the biggest foundations in Germany, including the Schering, Bertelsmann, Allianz, BMW Herbert Quandt foundation,  – who can use cash piles to buy up assets in the battered economies for a song – have even placed advertisements in newspapers todays, urging the introduction of eurobonds showing the division between the financial elite and the people within the country.

That we are in feudal economy run by feudal lords is, however, becoming transparent to millions of people.

People are losing their jobs, houses, their pensions, and finding their path to higher education blocked. They are the ones expected to work for low wages until they drop without a pension or adequate welfare net. And they are asking why.

The protests in the UK, Greece and Italy are turning increasingly violent as people recognise their parliaments are no more than puppets of this financial elite, passing legislation that will force them to spend their working lives as debt slaves to banks, bondholders and hedge funders – before their physical lives are sacrificed in some war for the profit of the same clique.

The stage is set for unprecedented and seismic confrontation between the elite and the people on the European stage.

Greece, on Wednesday, came close to a civil war with cars burning in streets, pitched battles between protestors and police, a top politician being beaten up by a mob in the worst riots for decades.

In Italy, 100s of people as people’a anger boiled over when the Berlusconi government staggered on in power like Nero thanks to the corruption of parliamentarians.

In Ireland, the Fianna Fail and Greens that pushed through a €85bn IMF/EU loan is facing a meltdown in elections. Polls yesterday show support for the government has reached a historic low of 8%.

The next government is widely expected to scrap the deal after fresh elections. Parties like Sinn Fein are gaining support because their position – default on the debt – makes perfect economic sense.

Even opposition Fine Gael finance chief Michael Noonan criticised the deal.

“You have the obscene situation where the poorest of the poor, through their taxes and welfare cuts, are being asked to guarantee the speculation of investors in hedge funds. Ireland has no moral or legal obligation to cover this debt,” he said.

In Germany, Foreign minister Guido Westerwelle suggested that Germany might leave the euro if it is forced into debt slavery along with the rest of the eurozone.

“Anyone who talks about entering a union of financial transfers is putting support for Europe at risk, especially in the countries that must bear most of the burden,” he said.

For sure, the elite have been expecting trouble. But are they really prepared?

Protests over several days and spread out over a larger geographical area exhaust police resources rapidly. This was shown by the Castor protests in Germany as well as by the Stuttgart 21 protests. A tiny corporate clique used a technical, planning procedure  and their friends in parliament to legitimise a hugely expensive project that brought verifiably few benefits to ordinary people.

Even to this day in spite of protests and a so called mediation, the people of Stuttgart have still been refused a vote by the „authorities“ that have links to the companies profitting from the projects. Politicians in the pockets of corporations continue to make foolish decisions on how to allocate scarce resources and the tax payer continues to have to foot the bill.

Shooting protestors is allowed under the Lisbon Treaty but could add fuel to the fire.

Changing governments in Germany to put in power more compliant Social Democrat leaders like  Frank-Walter Steinmeier will help little when people recognise that guaranteeing the outstanding eurozone debt is madness – not being a good European – and push for real change.

Another alternative might be an attempt to start a false flag Islamic uprising – there are, so I was told by one Austrian, private caches of thousands of rifles in Vienna – could plunge specific regions into violence but they are unlikely to change the basic trajectory of the anger of the people across the eurozone as a whole.

Artificial wars with Russia, Iran etc will surely face intense opposition from an alienated people.

The Globalist and Bilderberg’s options are limited.

It is highly unlikely that the euro summit in Brussels starting today will produce any sound proposals to get Europe back on its feet – and out of the grip of debt imposed on the people by the financial elite.

But the real decisions about the future of the eurozone will very soon not be made at such summits at all. The people are increasingly making their voices heard.

Significant new political alliances are emerging already in Italy and are likely to wrest power from the elite as part of a broader and peaceful transition to a new system based on sound economic and democratic principles.

If this such alliances do not succeed, a change will highly likely be accomplished by unprecedented violence on the streets. Even the German philosopher Hegel accepted that people have a right to defend the financial basis of their lives from an avaricious elite by launching a revolution if necessary.

It is important to remember that the BMW foundation run by the Quandt family and calling for eurobonds – George Soros participated in a private discussion on the euro debt cris there in October – belongs to a company whose save treatment of workers during the second world war, is documented.

The characteristic attitude of the “ elite” is that people are just cattle. An ingrained habit of a lack of respect for people is the signature of the masters of the universe: whether it is Stuttgart 21 or Castor or the bank debt, the people are considered too stupid to have a voice, to be given a referendum as in genuine democracies like Switzerland. But the people are not to stupid to foot the bill for the elite’s whimsical projects.

Europe enjoys the fruits of two thousands years of civilisation and that is based on a genuine respect for the individual, which is the roots of every genuine democracy. It will not succumb to economic barbarism imposed on millions by an arrogant elite.

People like Claus von Stauffenberg, the German army officer, who attempted single handely to assassinate Nazi leader Adolf Hitler, to launch a coup and so end a war lost anyway – Army Chief of Staff General Ludwig Beck had predicted the precise course of the war and Germany’s ultimate defeat in 1938 on the basis of knowledge of logistics – personifies the ideals of justice, integrity, courage and the genuine respect for people, for their intelligence, their dignity, their rights, that are Europe’s enduring heritage.

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