A Higher Cost of Living and A Weaker Economy The Reality

Thursday, May 19, 2011
By Paul Martin

Euro zone implosion, more bailouts, and more money for more bailouts, doubts for Euro zone, likely economic austerity to come, Goldman Sachs sold the swaps to the Euro nations now seeking bailouts, weak housing market in US.

By Bob Chapman

The problems in the euro zone continue to multiply. Greece, Portugal and Ireland are dominating the news at least in Europe, as America is mostly shut out by the controlled media. The events in the euro zone are every bit as important as those regarding US problems.
Portugal now has its first bailout package. How long that will help we do not know, but perhaps a year. The year old Greek bailout just can’t reach so more money is needed. The bankers are refusing to loan more funds unless Greece is willing to collateralize further debt by pledging their national assets, such as all national treasures, all seaports and airfields, all the islands and mineral rights, the national airline and all utilities, water, electric, gas, trains and buses. Thus, the bankers, bureaucrats and politicians had secret meetings to which only a select few were invited. Senningen Castle in Luxembourg hosted the first secret enclave attended by creditors. Germany, France, the Netherlands, Finland, Austria and Luxembourg. The attendees were more interested in whether they’ll get their money back than contemplating lending more.
The IMF and EU members and euro zone participants were arguing along with bankers how they were going to split up Greece’s assets, as Greece’s economy was about to blow sky high. The one interest rate fits all turned lower tier euro zone members into gamblers. The banks, of course, were the biggest shooters applying monstrous leverage. As we said, at Maastricht, and again at the euro zone formation, the euro zone and the EU were unnatural associations. The euro zone should have never begun and as six members skate on thin ice it should be abandoned. This was nothing less than an attempt to create a one-world currency, which has failed. Greece has received $156 billion over this last year. Greeks have lived a Draconian lifestyle of austerity that has produced little success. As a result Greece has had daily demonstrations to protest their deep economic crisis. The demand for collateral by lenders is ludicrous. It only pushes Greece further toward default. Bankers always consumed with greed could care less about that. Even with an additional bailout package Greece simply cannot make it. Greece is in an impossible position, especially next year when they have to raise an additional $60 billion in the bond market. The requirements are even bigger the following year. They are already paying more than 25% to raise 2-year money. Even if Greece gets another bailout this year, what do they do next year, default? Greece needs the best possible deal just to stay alive. It should not be surprising that lenders don’t know what to do and the Greeks are in despair. Sooner or later in order to prevent the complete collapse of Europe, the bureaucrats and one-worlders will have to break up the failed euro zone and return to sovereign currencies.

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