Editor Note Correction #1:
A note of correction from at least four HTL clients in the medical profession. The June story about suspicious surroundings toward the Kerry hospitalization seem exaggerated by the Jackass, and in error. A broken leg on the femur does not typically require a cast, but rather well-placed pins and strong adhesives during the healing process. Therefore the suspicion aroused for no cast present at the press conference was off the mark. Other elements to the story still do not fit, like being unconscious for three days, unavailable to the press, from a broken leg while falling off a stationary bicycle, indicative possibly of significant blood loss. Also, as a bicycle enthusiast myself, falling off a bicycle in a stationary position offers insufficient force to fracture the large femur bone. If indeed Kerry was the target of an assassination attempt, and his upper leg was the location of the bullet, then the only hole in the story as presented in the report was the need for a plaster cast on his leg. The Jackass remains undeterred on a much bigger incident than reported to the public. Thanks to the several clients for their notes.
Editor Note Correction #2:
A note of clarification from HTL follower in Spain. "I am from Spain, on the last interview of 11th of june, you said that in Spain the banks are based on the Euribor rate for mortgages, which is completely true. You stated that the banks were obligated now to pay to the home owners because of the negative Euribor rate. This part is incorrect. In Spain the banks created a clause on the mortgages contracts, which is called the floor clause. It limits the falling interest rate down to a given point. It will not go lower on the mortgage even if the Euribor goes negative. This floor rate normally is over 1%, so it will not get below that level. Another key point. Remember Spain is the only country in the world where home loan debt must be satisfied, even if foreclosed upon and you are thrown out of the home. The person still owes the bank the amount of mortgage not paid on the loan, even if the value of the house is much higher of the standing debt. I hope this is useful information. Thank you for your work, since it is very interesting."
Editor Note #3:
Please cease and desist all invitations to FaceBook or LinkedIn, plus the other minor social networks. I delete them all, and refuse membership in firm terms. After the 2006 death threats, it was simple to conclude that any such network would be used with harmful motives. They can all die off in dissolved networked banks of disk drives, and make the Jackass a happy man, since they are used for human cattle tracking in the most insidious manner. My hope is that Zuckerberg dies homeless and broke. In 2013-14, the Jackass did an experiment and only 25% to 30% of all invitations came from the people involved. They were automatically generated by the scum at FaceBook and elsewhere to produce an unsolicited growing monitor base. Sure, people enjoy the sharing of photos and lives. Fine, but not me, the basic email attachments work well. With a virtual private network and judicious online usage, I prefer to stay safe and to have nobody in positions of authority know what my sweet face even looks like, and definitely not my location from GPS tracking or internet protocol address.
## KEY QUOTES
"Scientific societies are as yet in their infancy. It is to be expected that advances in physiology and psychology will give governments much more control over individual mentality than they now have even in totalitarian countries. Fitche laid it down, that education should aim at destroying free will, so that, after pupils have left school, they shall be incapable, throughout the rest of their lives, of thinking or acting otherwise than as their schoolmasters would have wished. Diet, injections, and injunctions will combine, from a very early age, to produce the sort of character desirable, and any serious criticism of the powers that be will become psychologically impossible." ~ Bertrand Russell (1953)
"To save [farm output] is completely natural. By that I mean saving is part of nature. Dogs bury their bones. Squirrels hoard nuts. Even plants set aside some excess solar energy for a rainy day by producing and storing sugar. For us humans, agriculture was our earliest form of savings, and it was the key ingredient to civilization. With a vast pool of food savings at his disposal, early man could put down roots and build societies without having to worry about where the next meal would come from. It was this sense of savings that formed the dividing line between primitive man and civilized man. This reminds me of that old criticism about gold being a barbarous relic. John Maynard Keynes first coined the term when he denounced the gold standard, and Paul Krugman has echoed this sentiment in our own time. Both men are champions of government spending and the inexhaustible creation of paper money. It is a curious statement, though, given that gold is an acknowledged form of savings. Even governments and central banks around the world continue to hold gold as part of their official reserves. Owning gold is saving, which by definition is civilized, not barbarous. Debt, on the other hand, is the exact opposite. It is a lack of savings that shows a complete disregard for the future. It is the modern equivalent of gorging on some wild beast with no thought to tomorrow's meal, or in this case, no thought of tomorrow's generation. Debt is the barbarous relic, not gold. Governments are up to their eyeballs in it, continuing to engage in this primitive, uncivilized behavior with wanton abandon. Do not expect them to change their ways. Our society awards our most respected prizes for intellectual achievement to faux-scientists who encourage these barbarous acts. They create complex mathematical models, proving why our neanderthal governments should print more money, borrow more debt, and stage fake alien invasions to boost the economy. No doubt future anthropologists will find this to be a curious and savage system." ~ the Sovereign Man
"If the European Union wants Greece to pay its debts, it should be interested in growing the Greek Economy, helping it to pay its debts. The European Union should be applauding us. What is wrong with creating jobs in Greece?" - Vladimir Putin (at the St Petersburg Economic Forum, June 2015)
"Greece will now be required to implement a series of reforms, target specific budget surpluses, and submit to oversight from its creditors. The package Greek Parliament approved on Wednesday night does not include debt relief, which the IMF's report indicated will likely be needed in Greece, and was also the major sticking point between Greece and its creditors over the last six months of negotiations. So while Greece is far from out of the woods, a few things are likely to happen in the next few days and weeks. The European Central Bank is likely to either raise its emergency liquidity assistance (ELA) to Greece, or through other means provide Greece's banking system with fresh liquidity. Greece will begin to work towards the 50 billion Euro privatization that the draft agreement calls for." ~ Business Insider (privatization means national asset sales to Euro bankers, as in the gutted seizure sale of Greece, also known as foreclosure)
"Those who listen to Lindsey Williams are lost, confused, deluded, and on the wrong track. Let me explain in the most simple terms. The majority of Big Oil executives are Satanist, led by Rockefellers. Similar followers of Lucifer are found in British Petroleum and Royal Dutch Shell. Their handiwork was seen in the Gulf of Mexico contamination and the Yeltsin puppet strings in Russia, respectively. Enter Williams. So the rational thinking person is told they follow a Christian preacher named Lindsey Williams who guides them spiritually in the remote northern fields. Yeah yeah, that makes sense. Huh? I got a Tennessee ocean front property to sell you." ~ wise Hat Trick Letter follower
"It is amazing when you think about it. This little tiny nation 2300 years ago had established a model Democratic Republic, which gave us Socrates, Plato, Olympia (Alexander's Mother), and Alexander himself (who created the basis for the Roman Republic). The nation has set into motion since last Thursday, necessary changes in the European governments that probably will not be able to be stopped. It is also equally amazing, when you think about it, that the environment in which these changes occurred are completely to the credit of, and were changes exclusively created by, Russia and China under the BRICS initiatives. As the people watch their Parliament contradict their vote, expect full blown anarchy." ~ JohnD (Hat Trick Letter client)
"The stock market wealth effect in China is smaller than many assume, as stocks represent less than 15% of household financial assets and equity issuance accounts for less than 5% of total social financing. For the average household, consumption growth is driven primarily by income growth, not changes in wealth. Also, most households put their wealth in cash and deposits, not in stocks." ~ Qu Hongbin (HSBC chief economist for Greater China, who left out the other savings vehicle in gold)
"If the accomplishments of the Obama Admin can be summed up in three words, those words would be failure, scandal, and treason. The president and his toadies had to repeatedly lie to the people of the United States in order to pass the massive failure known as ObamaCare. They have been lying to the American people and stonewalling Congress over what really happened in Benghazi for the last 18 months. They are currently lying and/or pleading the fifth over the IRS targeting of Tea Party groups. Let us not forget Operation Fast & Furious [gun running in Mexico], the NSA spying on American citizens, the targeting of journalists, unconstitutional recess appointments, illegal military actions in Libya, and the unconstitutional and extra-judicial civilian killing [by drones] in Pakistan." ~ Anonymous Mags
"That the BRICS Bank VP is former IMF Executive Director Paulo Nogueira Batistadoes does not matter. The highest amount of money has been put by China at USD 41 billion, equal to 39.5% of total funds. In addition, the HQ is located in Shanghai. China apparently does not have a veto power, but for all practical purposes China will have a majority say in this forum where its GDP is largest, like 5 times higher than India or Russia or Brazil, and about 28 times larger than South Africa. In the next 10-12 years, China's GDP will rise to USD 20 trillion, further dwarfing all the members. It does not matter if 2 or 3 people were previously a part of Davos or IMF or another Western banker body. They have to follow China's rules because China is the king who put the highest amount of money on the table. It is that simple." ~ The Voice
"Russia needs to launch our own plastic [national payment cards] this year. We need to do it so that [a payment card] will be available for our citizens. We need to develop it not only on the territory of Russian Federation, but also abroad. Is it a normal situation? No!" ~ Russian President Vladimir Putin (at BRICS/SCO summit meetings in Ufa, where he responded to a remark that at least 97% of clients in Russia have MasterCard and VISA)
"In an odd way, the only European politician who was really offering Greece a way out of the impasse was Wolfgang Schauble, the German finance minister, even if his offer was made in a graceless fashion, almost in the form of diktat. His plan for a five-year velvet withdrawal from EMU (a euphemism, since he really meant Grexit) with Paris Club debt relief, humanitarian help, and a package of growth measures, might allow Greece to regain competitiveness under the Drachma in an orderly way." ~ Ambrose Evans-Pritchard
"In doing so they reverted the nationalist European power struggles of the 19th and early 20th Century. They demoted the EuroZone into a toxic fed exchange rate system, with a shared single currency, run in the interests of Germany, held together by the threat of absolute destitution for those who challenge the prevailing order." ~Wolfgang Munchau (European economic analyst and author)
"In the case of Greece, my reaction was that Greece is being hit. There is no question about it. Sure, Greece made mistakes, your leaders made some mistakes, but the people did not really make the mistakes, and now the people are being asked to pay for the mistakes made by their leaders, often in cahoots with the big banks. So, people make tremendous amounts of money off of these so-called mistakes, and now, the people who did not make the mistakes are being asked to pay the price. That is consistent around the world. We have seen it in Latin America. We have seen it in Asia. We have seen it in so many other places around the world. Sure, [failure of a nation] is part of the game: convince people that they are wrong, that they are inferior. The corporatocracy is incredibly good at that, whether it is back during the Vietnam War, convincing the world that the North Vietnamese were evil. Today it is the Muslims. It is a policy of them versus us: We are good. We are right. We do everything right. You are wrong. And in this case, all of this energy has been directed at the Greek people to say 'YOU ARE LAZY; YOU DID NOT DO THE RIGHT THING; YOU DID NOT FOLLOW THE RIGHT POLICIES.' When in actuality, an awful lot of the blame needs to be laid on the financial community that encouraged Greece to go down this route. I would say that we have something very similar going on in the United States, where people here are being led to believe that because their house is being foreclosed that they were stupid, that they bought the wrong houses, that they overspent themselves." ~ John Perkins (the notorious economic hit man)
"I believe more likely than a Gold Disclosure from the Chinese or Russian Govts is their inaction and motivated sidestepping. They are very likely to permit the USTreasury Bond market to collapse. Let it die on its own. Let it collapse from its own weight. Let it fail from its own insolvency. Let it be killed by QE and the empty room of legitimate investors. The Eastern powers do not wish to be blamed for the USDollar collapse, which is exactly the present course. The Eastern pair of superpowers will simply get out of the way, continue with RMB-based trade settlement in the Eastern Hemisphere, ignore the USDollar in trade while dumping it in infrastructure deals, and thus isolate the insolvent United States. The death of the USDollar is a guaranteed event, a lock." ~ Jackass
"No doubt the acceleration in the paper physical war is gathering momentum. Something must have happened in the background after China revealed its official holdings and GLD cracked below 700 tons on Friday. Physical availability is running on fumes and paper market is completely out of control. The Demand vs Supply curve is way past the breaking point. Gold & Silver [mispriced with shortages] could turn out to be the straw which breaks the cabal's back. China will be ruthlessly efficient, happily dumping its worthless dollars for prize distessed gold assets, knowing full well where the price is going. I have no time for daily analysis by talking heads of the gold price. It might hit $800/oz in the short term, all the better. Many simply have no idea what is going on. The current overnight smash gives further credence to the view that the inflection point in PMs is very close now. The race to the bottom is accelerating at breakneck speed. I suspect the Giga-RESET could even happen late autumn, but we shall see. The cabal are in total disarray and enormous infighting is now underway. Hopefully the various factions will destroy each other soon, which would make the clean-up job far easier." ~ London Paul
"The US Republican Party morphed into a Fascist pack of banker theives and warmonger killers, set upon war across the world as distraction for gold thefts. The Democrats morphed into Marxist morons and street level thieves, whose foreign policy architects are the same NeoCon fascists in the pack. Both political parties are dominated and run by the banker elite, their military complex, and key corporations, with policy of war to defend the USDollar more transparent than ever before. Take away the narcotics, and the big US banks would enter failure in 60 days." ~ Jackass
"My advice to Franklin Roosevelt would have been the same. The only practicable solution was to adopt a hybrid two-tier monetary system with gold for international trade and paper dollars for domestic use. What most people fail to understand is that traditionally the gold coin's intended use was for trade, not for domestic circulation. The City of Florence had riots during the 14th century, burning the palaces of the bankers when the Silver/Gold ratio went nuts because gold was for international accounts and labor was paid with silver domestically." ~ Martin Armstrong (unwittingly might be confirming the Gold-backed RMB for US trade, fake paper new Scheiss Dollar for domestic commerce)
"In a way, the economics have almost become secondary. But still, let us be clear. What we have learned these past couple of weeks is that being a member of the EuroZone means that the creditors can destroy your economy if you step out of line. This has no bearing at all on the underlying economics of austerity. It is as true as ever, that imposing harsh austerity without debt relief is a doomed policy no matter how willing the country is to accept suffering. This in turn means that even a complete Greek capitulation would be a dead end. The European project, a project I have always praised and supported, has just been dealt a terrible, perhaps fatal blow. And whatever you think of Syriza, or Greece, it was not the Greeks who did it." ~ Paul Krugman (finally something wise to say, instead of his usual erudite stupidity)
"In the 1967 coup d'etat, the choice of weapon used in order to bring down the democracy then was the [military] tanks. Well, this time it was the [predatory] banks. The banks were used by foreign powers to take over the government. The difference is that this time they are taking over all public property." ~ Yanis Varoufakis (recently resigned Greek Govt finance minister, who opened the door for collateral seizure in a continued national foreclosure)
"We shall see Silver at $400 per oz, Gold at $10,000 per oz, with the Au/Ag ratio going to 25:1 in guaranteed fashion. Once the Reset shock hits on a global scale, we shall see the price of gold go through the roof, with silver in tow. The Great Reset will occur in early 2016, while the systemic breakdown will continue through the remainder of this year. The financial markets will all gradually suffer decay, lost liquidity, as well as much lost integrity. Market seizure events will become regular events, which will indicate running out of time generally. A great challenge is being seen for making it to next year with the existing financial structure still standing. When the Reset finally comes, it will slam the Western nations and the USEconomy worse than all others. I foresee significant feces hitting the fan next year, in a tremendous disruption to the global economy. The main survivors will be owners of precious metals, as all owners of paper assets will suffer huge painful losses. Let it be known, the Chinese and the Russians never disclose any of their gold reserves publicly. To drive home the point, 98% of all Chinese precious metals transactions are done in off-market transactions." ~ The Voice
"Certain gold sources can still provide supply. Several global vaults have been emptied. However, there is demand on multiple levels. It is now all a matter of timing if one is at the gold window placing an order to buy. Things can change any moment, whereby the gold supply could dry up overnight. Not all the leading bankers in control of the paper gold price understand this. If a buyer moves too aggressively, it only causes unnecessary waves. Staying off the radar screen is key in this business, not having buying behavior noticed. It is like the world is constantly at the edge of a default on one side, and a stampede on the other." ~ The Voice
"Germany is deploying a complex system of shifting their official gold East into Chinese hands, as a strategic reserve placement in order to guarantee export trade and capital investment, in return for technology transfer. The Germans are not dumping gold as some analysts suggest. Instead, they are shifting gold eastward. That is where the action is, the future is, where the next chapter of significant capital investment and commercial development lies." ~ Hat Trick Letter client from Germany (which implies his nation is strengthening ties to Eurasian Trade Zone)
## INTRO SHORT SUBJECTS
◄$$$ US-CITIES FACE GROWING PROBLEMS WITH PENSION OBLIGATIONS, AS DEBT RATINGS ARE SET TO BE DOWNGRADED... ACCOUNTING GIMMICKS NO LONGER MASK THE SHORTFALLS, WHILE CITIES EAT THEIR CORE NUT... THEY SUFFER OVER A $1 TRILLION SHORTFALL... THE MUNI BOND PROBLEM WILL NOT GO AWAY, NOT AIDED BY TARP FUNDS, NOT RELIEVED BY QE PROGRAMS, JUST FESTERING... THE US-NATION IS DEAD BROKE, AND WILL FALL INTO THE THIRD WORLD. $$$
US cities carry a grand debt burden, an ongoing deficit annually, for their pension funds. The cities are strapped for cash in a neverending crisis that finds no relief, and surely none from the banker elite who control USGovt aid programs for their own ilk. The focus is recently directed at Houston, which was warned by Moodys Investors Service in July that it may be downgraded because of mounting pension payouts. The debt rating agencies are not fooled by accounting gimmicks that let cities mask the size of their debt for years. The pension shortfalls are swelling to great heights, and gathering attention. The US cities will soon be forced to cut their payouts or announce a plan for future cutbacks, in response to their grotesque insolvency founded in labor deals and insane annual pensions. They are collectively over $1 trillion in the hole. They should bark at the USFed for higher rates, and hear why it is impossible, as in broken system and bond trap. They might make an urgent formal request for a QE4 through their USCongressional representatives, to cover the muni bond and city obligation in pure Zimbabwe style. Doing so would capture very bad global attention at a Third World nation.
Jeff Lipton is head of municipal research in New York at Oppenheimer & Co. He stated, "If you are AAA or AA rated and you have significant and visible unfunded pension obligations, you have only one direction to go in terms of rating. That is potentially down. It is the presentation on the balance sheet that is now going to drive urgency." Cities refuse to force hikes to worker contributions, while they suffer from small USTreasury Bond income yield. They seem not to have benefitted much from the stock market that has tripled since early 2009. The cities are eating their nut, draining their core fund, unable to replenish from contributions or market gains. Janney Montgomery Scott called the growing retirement overhang the largest cloud over the $3.6 trillion municipal bond market. One more facade of insolvency within the US nation, having festered for several years. See Bloomberg (HERE).
◄$$$ ISOLATION FOR THE UNITED STATES IS THE NEW REALITY, AS USGOVT POLICY WITH RESPECT TO IRAN, LIBYA, SYRIA, UKRAINE, THEN RUSSIA HAS RESULTED IN A BACKFIRE OF EFFECT... EVEN EUROPE IS REBELLING AGAINST WASHINGTON... THE WORLD IS FED UP WITH THE AMERICAN HEGEMONY AND OPPRESSION... THE NEW EASTERN ALLIANCES ARE GAINING GLOBAL FAVOR AND MOMENTUM, EVEN PRESTIGE. $$$
Phil Butler is an American journalist, editor, and analyst. He calls the USGovt foreign policy a disaster marked by clear backfire, as Putin of Russia is the new star of the East. The Russian leader faces 70% to 80% approval ratings, while Obama faces 20% to 25% approval with his own people. Butler believes that Putin has secured a substantial victory. The BRICS/SCO meeting in Ufa Russia brought together the heads of 15 countries from three continents to announce their individual and collective alliance, coming out from beneath the shadow of the United States and its destructive leadership. The SCO along with the Eurasian Economic Union are also making significant progress on USDollar dethroning.
Butler stated, "Putin's meetings in front of and behind closed doors culminated in concrete agreements not only to situate these associations onto the international stage, but to establish a framework for cooperation in foreign policy, establish expanded mutual trade, and for a vast array of investment and technology exchange potential. Without declaring it so, Russia and these other countries effectively excluded the United States and her allies from a immeasurable potential. [The imminent end of the USDollar as global reserve] is a clear enough sign my countrymen are in big trouble. Sooner or later Americans and Germans are going to have to face facts. Most Western democracies have been feeding off other countries at the core level of society. Subsidized gas prices, rampant and unsustainable consumerism driven by greedy corporations, and a collective dumbing down of the citizenry will soon have catastrophic consequences. After more than 18 months of open economic and political warfare against Vladimir Putin and Russia, the winner is emerging." As the months pass, even with possible detente with both Russia and Iran, what has emerged is the irreparable harm done to Americans by the Obama Admin, having taken the low road and the path of war. See English Pravda (HERE).
◄$$$ THE PETROBRAS SCANDAL HAS BLOSSOMED UGLY, LOSSES PILED UP, WHICH HAS FORCED A REACTION... BUDGET CUTS AND OUTPUT CUTS AND JOB CUTS HAVE CAUSED A HUGE CONTROVERSY... A STAGGERING DEBT HAS COMBINED WITH SCATTERED CORRUPTION TO FORCE A REVIEW OF THE BRAZIL-ONLY BID PROCESS IN THE RICH PRESALT OIL DEPOSITS. $$$
The Petrobras woes grow worse in Brazil, far more extensive than a falling oil price consequence. Petrobras is staggering under the weight of a massive debt burden, with the executive corruption scandal not yet over. The sprawling firm was recently forced to slash spending and to drastically lower its production target for 2020. The Brazilian oil giant has failed to live up to high promise following major oil discoveries in the Atlantic Ocean over the past decade. The oil, known as presalt for being trapped underneath a thick layer of salt in deepwater, remains in place. Petrobras has struggled to tap the reserves due to the engineering complexity. The declared debt is a hefty $132 billion at yearend 2014, making it badly over-stretched. The officials at the firm finally slashed its production outlook from 4.2 million barrels per day by 2020 down to just 2.8 mb/d, a painful decision. Spending cuts result. Each year, Brazil loses about 200,000 barrels per day as fields mature. To meet the 2020 target of 2.8 mb/d, Petrobras could be required to drill around 300 deepwater wells, according to Douglas-Westwood, an energy research group. The group mentioned the Petrobras history of setting ambitious targets, with a poor record of meeting them.
Petrobras is in line for further fines and penalties, which would raise the estimated R$6.2 billion (=USD$1.9 bn) losses stemming from the corruption scandal. The prosecutors view the actual losses to be significantly larger those announced. Arrest of Jorge Zelada, another Petrobras executive, occurred amidst charges that he received bribes from more than a dozen international companies, including Vantage Drilling from the United States and Ensco from Britain. The company's troubles are not over. Some analysts expect Petrobras to be forced into spinning off its distribution arm to raise cash. A series of divestitures might ensue in order to reduce debt, including sale of its 36.1% stake in Braskem, a Brazilian petro-chemical firm. The firm plans on selling $15 billion worth of off-shore presalt blocks over the next two years. Petrobras could put up several fields for sale, including Sagitario, Jupiter, Pao de Acucar, and Carcara. There is reported interest from Sinopec and CNOOC in China, Royal Dutch Shell, and Statoil in Norway. The bid process begins possibly this month.
The entire situation surrounding the Petrobras debt and corruption might force changes in the country's energy laws. Brazil ponders reform legislation that would open up the presalt to international oil companies for the first time in nearly a decade. After the major discoveries of presalt oil in 2007, Brazil mandated a national monopoly which has not been successful. Petrobras has been the sole operator on all oil development projects. In addition, a requirement stands that the state owned firm hold at least a 30% stake as well in partnerships. The Brazilian Congress regards the monopoly feature as a contributing factor to its many problems. The door might swing open to private companies, as local content requirements are pushed aside. See Wolf Street (HERE).
◄$$$ BEHOLD THE FIRST SIGHTING OF THE NEW GREEK DRACHMA, FOUND ON A HOTEL BILL... THE TRANSITION IS INEVITABLE, DESPITE ALL MACHINATIONS AND PREDATORY ACTIONS TO SUSTAIN THE DEBT SERVICE... THE NEW DRACHMA (WHEN IT ARRIVES) WILL COME AT EURO PARITY, THEN SUFFER DEVALUATION QUICKLY WHEN RELEASED. $$$
Between June 28th and July 4th at a Hilton Hotel in Athens, transactions on a Bloomberg reporter's VISA credit card issued by Citigroup were posted on the billing statement in Drachma EQ (stands for equivalent). Imagine a When Issued stock or bond showing up (with WI marker) on the market ticker for trades in much the same manner. The inexplicable notation was given, despite the Euro remaining Greece's official currency. The hotel was frustrated to provide a reason for the accounting detail. It depicts a currency changeover that the Greek Govt and European officials have been working to avoid for over six months. The exchange rate is implied at 1:1 but wise people should expect a 30% to 50% devaluation, once the new Drachma returns. The economic ruin, the deep debt, and the unwanted demand for support will lead to huge devaluation but actual stimulus finally. The Greek Economy must break free from the common Euro currency shackles.
## CURRENCY TURMOIL & CONFLAGRATION
◄$$$ CANADIAN DOLLAR IS DOWN TO 77 HANDLE PER USD AS IMPACT FROM FALLEN OIL PRICE HITS THE ENERGY DEPENDENT ECONOMY... THE CANDOLLAR RETURNS TO WHERE IT CAME NEAR 70 FLAT, AND THE EURO MOVES TO 100 PARITY... THE EURO IS DOWN FOR DIFFERENT REASONS, SUCH AS THE BREAKDOWN OF THE UNION AND CRIPPLING SOUTHERN MEMBER NATION DEBT...
THE SURGING USDOLLAR HAS ENTERED ITS RISING DEATH SPIRAL... THE USD SAFE HAVEN IS A SEWER PIT OF TOXIC PAPER AND TINDER BOX OF OILY RAGS, MARRED BY BANK & BOND FRAUD, MARKET RIGGING, ABSENT INDUSTRY, WAR IN DEFENSE, AND MORE... RECALL THE FASCIST BUSINESS MODEL WRECKS EVERYTHING IN ITS PLACE WHEN APPLIED, WHILE GUTTING THE ASSETS FOR ELITE GREED. $$$
The Canadian Dollar is returning gradually to its former range, down to 77 per USD. When the Hat Trick Letter was first launched in 2004, the CanDollar was just below 70 and rising due to its vast energy and mineral wealth, coupled with gold mine output. It still possesses the same wealth, but the rigged broken markets no longer properly value anything. Some bigtime import price inflation has come to Canada. The proximal cause is impact from the fallen oil price. The energy sector is a big part of the Canadian Economy, as has been seen with Alberta job cuts and project abandonment. The sturdy industry of Ontario is also ineffective capital, since the global economy is rotting from under the grand QE tree. As the world moves toward a gold-backed currency regime, Canada will find itself on the wrong team with the US Fascist Banker jackets worn. The nation sacrificed its gold reserves to the Wall Street altar boyz, and must replace it. Not to be an easy task.
The Euro currency suffers from different factors linked to extreme weakness. Its very foundation was fraudulent, seen in White Dragon repatriation of 25,000 tons gold since March 2012, sent back to Asia. Their gold hoard was illicitly used in the Euro Monetary Union creation, with Greek Govt debt falsification plainly laid out. The Maastricht Treaty rules were violated, trampled, and abused by Goldman Sachs, who will see the court room for challenges to their ill-gotten gains. The European Union is fracturing, and naturally its continental currency will be blown off the table. It will be more clear when the big European banks enter failure from the inexorable debt default chain of events. Italy and Spain have 11 times the population of Greece, and 7 times the debt. The Euro will seek 100 parity, from whence it came, then die a horrible death. The Greek debt crisis is a mere nexus, whose model will be repeated in Italy and Spain next, then across Southern Europe in entirety. The Euro will be the panic meter to take on damage. The entire PIGS region has deep insolvency and debt that cannot be resolved. Gold will be the new safe haven, all in time. Witness a case of back to origin, back to sender, fraud from start to end, which warrants return to starting point.
The union experiment has failed, unless the fascist state goals were foremost in the Elite minds. They would call the continental destruction of the economy, with a war chaser, a resounding success. The Euro will surely break down below the 105 support, maybe not before some additional false debt patches are applied. Each application of a debt patch has less value, in FOREX market effect. The cyclical indicator shows a hint of a big downturn soon, but it is early to conclude. The only gold foundation for the Euro might have resided in London, long gone. The burning of Prince Draghi at the stake could cause a radical Euro rise, but maybe not. Advocates of sound money would find a simple hanging acceptable also, since he was a primary actor in the Greek debt accounting fraud back in 1999.
The crowning irony is evident in the rising USDollar index, at an absurdly exorbitant 97 handle this week. It will surely test the 100 level which was resisted in March and April. The Jackass forecasts a breakout over 100, complete with all the bad attention to a broken USEconomy. This stage sees the USDollar serving as safe haven. Next stage will see Gold as the ultimate safe haven, when the USD is rejected by the Eastern Alliance at the trade window. A USGovt debt default is written, yet to be acted out. Recall that hot air balloons will rise and rise until they burst from low pressure at the highest altitudes. The rise in the US DX is not confirmation of a strong USDollar, but rather a broken fiat paper FOREX regime. It also confirms the dismantled Petro-Dollar system, complete with vast derivatives.
The US DX will rise and rise then die, when the replacement US Scheiss Dollar is launched. It will serve as a significant step toward Third World entry. The USDollar is rotten rancid dead meat, with its replacement to suffer big devaluation. The USD is toxic and kills all banking systems and economies it touches, due to the QE open spigot. The Eastern nations realize this point well, since their banking reserves are locked mostly in USTreasury Bonds. The BRICS Alliance is working feverishly to construct the alternative non-USD systems, with good success, but a seeming slow pace.
◄$$$ MEXICAN PESO HAS FALLEN BY 23.5% YEAR OVER YEAR, BREAKING THE 16 LEVEL PER USD FOR THE FIRST TIME IN HISTORY... BLAME GOES TO THE FALLEN OIL PRICE, FAILED PEMEX OIL BLOCK AUCTIONS, AND HARSH ECONOMIC DECLINE... MEXICO IS NO LONGER A MAJOR OIL EXPORTER. $$$
The Mexican Peso dropped to 16 per dollar for the first time since its 1993 revaluation. The exchange rate had been between 12 and 13 for several years. The primary cause is the rout in commodities, in particular the oil price. The nation no longer is a major oil exporter, given the depletion of Cantarell oil field. In addition, PEMEX has conducted an auction of oil blocks which has been widely declared a failure. A lower crude prices environment served as discouraged backdrop for the auction. The Mexico Govt took its first step toward dismantling the state oil PEMEX monopoly, with only two blocks attracting sufficient bids last week to warrant contracts. Adding to the disappointment is an economy in dreadful condition, coming well below forecasts. A big fat asterisk is put on the national billboard, due to the escape from prison of the drug trafficker Joaquin Guzman. El Chapo remains at large, as search missions continue in Mexico, Guatemala, and Bolivia. Maybe the Langley Boyz arranged for his escape, since he might be a partner of theirs.
◄$$$ THE JAPANESE MONETARY POLICY FINALLY HAS A VICTIM, THEIR OWN ECONOMY... INFLATION IS HITTING JAPANESE HOUSEHOLDS HARD, AS PRICES RISE MUCH FASTER THAN WAGES... THE USGOVT THEFT OF JAPANESE PENSION FUNDS AND THE NATIONAL SALES TAX HIKE HAVE BOTH CAUSED GREAT HARM... A SOCIAL EPIDEMIC OF ELDERLY CRIME HAS HIT THE NATION. $$$
Prime Minister Shinzo Abe came to power vowing to drag Japan out of deflation and stagnation. But his strategy was flawed, led by the bankers, without benefit of any learning from over 23 years in the ZIRP/QE stranglehold. His errant logic was that rising prices would drive higher salaries and increased consumption. He overlooked QE effect of capital destruction. He overlooked the Chinese industrial presence as competitors. He overlooked the demise of the USDollar. Inflation as an economic policy is a recipe for disaster, which the United States also follows, on the dead end road. More than two years later, prices are rising, hardly a victory. Worker wages adjusted for inflation have sunk to the lowest level since at least 1990.
A record 62% of Japanese households described their livelihoods as difficult last year in a survey on incomes. The lunatics in charge instituted a sales tax increase in 2014, and actually expected a positive result. These are economic morons at best and banker stooges at worst. The cost of living rose naturally, and did so much faster than wage gains. At the same time, the emergency Bank of Japan quantitative easing pushed drove down the currency, causing a jump in the cost of imported energy. Little told, the renewed QE thrust was in response to the USGovt stealing $1.2 trillion in Japanese official pension funds. The BOE merely wished to replace it with supposedly free money. To be sure, money is never free. The abuse of money with free dispensation destroys capital and economies, with no exception. Witness stagflation heading towards hyper-inflation, all due to the interminable QE policies at BOJ. See Bloomberg (HERE).
A social consequence has come for the QE transgressions, coupled with the rise of China as an industrial power. A new phenomenon has taken root, a shameful one. The elderly are committing more crimes than teenagers in Japan. The Kyodo News Agency recently cited police authorities that people aged 65 or older have exceeded the young in crime data since 1989. The nation's elderly crime rate doubled between 2003 and 2013, and is six times the rate from 20 years ago. Even as murder rates declined in Japan, homicides committed by the elderly were rising. Most crime is non-violent, as 70% of their crimes as of 2012 were acts of shoplifting by impoverished pensioners. These are the effects of welfare cuts combined with stagnant economic conditions, in a new era marked by a rising proportion of Japan's population entering their twilight years. Most jailed elders see almost no visitors, usually out of family shame. See Washington Post (HERE).
## CLASH OF NEW WORLD ORDERS
◄$$$ THE TALE OF TWO WORLD ORDERS UNFOLDS WITH FULL DRAMA, AS THE WESTERN STRUCTURES CRUMBLE WHILE THE EASTERN STRUCTURES ARE CONSTRUCTED... THE SOUTHERN EUROPEAN DEBT CRISIS HAS NO SOLUTION EXCEPT FOR DEFAULT AND RESTRUCTURE, IN A DRAMA LACED BY MISERY, PREDATION, AND RUIN... THE EURASIAN TRADE ZONE SERVES AS A GLOBAL SOLUTION TO THE DYING FIAT CURRENCY BASED SYSTEM (USDOLLAR CORE), IN A DRAMA FILLED WITH HOPE AS MUCH AS LACK OF INFORMATION... THE WEST DEPLOYS A NEWS BLACKOUT ON EVENTS FROM THE EAST... TWO WORLDS COLLIDE, COMPLETE WITH WAR, CONFLICT, LIES, AND CLASHES OF CULTURE, WITH HIGH DANGER AND RISK. $$$
Two historical summits took place in early July, which point out the extreme contrast in worlds. It is like the Dickens novel "Tale of Two Cities" except of two worlds, with West clashing with East. The West is stuck in fascist models, using debt as a banker predatory method. The East is committed to fair commercial models, working to create a better trade settlement system, reliant more on Gold and less on the USDollar. The rise of the Chinese RMB appears to serve as an important transitional tool. The July meetings featured the negotiation talks in France and Germany over the Greek Govt debt crisis and the simultaneous meeting of the BRICS and Shanghai Cooperation Organization (SCO) countries in Ufa Russia. These two meetings could not be more different, one of wreckage and hostility, the other of construction and hope.
The European bureaucrats are scrambling to prevent a domino effect in which Greece would leave the EuroZone and set a precedent model for other Mediterranean countries such as Italy, Spain, Portugal, even France. The credibility and future of the entire Euro project (its union and currency) is at stake, and thus the future of the hidden oligarchy which created it by force without popular approval. They next work to create a fascist trade union by force, led by the Obama Admin, again without popular approval. The EU elites (castle dwellers) have put an immense amount of political capital and personal investment into the creation into the Bilderberger Europe, a primary structure for their attempted New World Order. It depends upon economic ruin as political seed bed. Just like the US elites have put their full credibility behind the official 911 narrative against all empirical evidence, so the European have put their full credibility behind a Grand EU project even though it was obvious that this project was not viable and is now not successful. The European Commission and armada of banker agents refuse to accept its failure, despite glaring evidence staring them in the face. They chant on. Reality with its breakdown is hitting with a vengeance.
The EU is actually the artificial assembly of a Mediterranean Europe and a Northern Europe, striving to mix like water and oil, or like Catholics and Protestants (rarely viewed as such). The EU is way too big. Its debt structure is imbalanced. Its economic engines are out of gear. Its currency is destructive with respect to national financial differences. Its bankers are abusing the crisis with debt predation and asset seizures, mixed with military hardware coercion and debt consequences. The EU is going through a bankruptcy event on a grand scale, in a very ugly unflattering manner. Even while in failure mode, the EU attempts to expand toward the East in a finesse of the encroaching Eurasian Economic Union. It is awkward and another failure. The Euro elite and their squire bureaucrats in Brussels are fighting to keep their dying project alive as long as possible. It seems failure does not deter them, since ruin is a pre-requisite for the fascist state. Besides, failure and ruin lubricate the process for important asset seizures which will be difficult to reverse. New owners emerge in a race with Eastern entities committed to asset purchases.
The BRICS joint conference with SCO held in Ufa Russia is the exact opposite in almost every conceivable manner. It can be seen as a construction project by willing participant nations, to build a new economic zone, and to engage in vast capital formation, with a sense of cooperation. The simultaneous meeting of the BRICS (Brazil, Russia, India, China, South Africa) and the SCO countries (China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan) marks the gathering of a future world order, not one directed at the United States, England, or the West. It is a new multi-polar world, not the old unipolar world. In sharp contrast, the Eastern Alliance is being built without the typical everpresent Western uber-lord marshalls. To be sure, in a direct challenge, complete with some humiliation, the BRICS/SCO combination is a real nightmare for the Anglo-American Axis that stretches across Western Europe. The Eastern project excludes the banker cabal from the power structure. It is a distributed system in economic and financial form, even for security. The USDollar is being challenged, along with NATO. Gold and SCO will be pitted against the USD and NATO in the final battle. The US$-based financial platforms are being challenged. The Jackass bets that Gold wins.
The core of this alternative New Silk World Order are the superpowers Russia and China, which have been busily joining at the hip with firm handshakes in numerous projects. Without them, neither the BRICS nor the SCO would make any sense. The Russian-Chinese nucleus have become symbiotic systems in constant evolution toward a positive goal, with an interdependence upon each other. China has agreed to become fully dependent on Russia for energy and high technology (even weapons and space) while Russia has agreed to become fully dependent on China economically and for financial structural development, with finished product export later on. It is precisely because China and Russia are so different from each other that they form the perfect match, a symbiotic pair much stronger together. Their glue is oil & gold, tied by infrastructure.
For centuries the Anglo-Saxons have feared the unification of the European landmass as a result of a Russian-German alliance, and they have been very successful at preventing it. See the two world wars in the 20th Century, and more recently the roadblocks in both Cyprus (financial) and Ukraine (economic). For centuries the major sea powers have ruled the world, the actual Oceania dominating over Eurasia, as George Orwell depicted the uber-conflict in his prescient "1984" novel. Not to be deterred, Russia turned Eastward in its development and evolution. Few Western geostrategist (like US think tanks, NeoCon shops) had ever envisioned is the possibility that Russia would simple turn East and work steadfastly toward a symbiotic relationship with China. The sheer size of what The Saker calls the Russian-Chinese Strategic Partnership (RCSP) makes not only Germany, but even all of Europe somewhat irrelevant. Germany is a key player, a nation which has a tremendously powerful capability to overcome adversity, to make compromise, to build commercial ties, to avoid damaging its own terrain, and to forge practical beneficial partnerships. Germany has huge Russian commercial ties, as well as newer strong Chinese development. It will not lose both, and so far has only lost some Russian connective tissue.
Curiously and with intrigue, the Anglo-American Axis (aka the King Dollar Empire, the Empire of Chaos) has no means to influence this dynamic in any significant way, or to alter its evolution. To their credit for innovation and adaptation, Russia and China have no standing formal alliance, just partnership, cooperation, commitment, and mutual assistance. A remarkable symbiosis has been created, as the two giant become inseparable, joined not only at the hip, but also at the heart and circulatory system, all the while keeping their own separate brains in the form governments and planning ministries. The alliance has further advantages. The rest of the world regards the BRICS/SCO alternative is an alliance with neither Russia nor China having any imperial ambitions like in the US-EU unipolar world heading toward fascism. The BRICS Alliance with SCO security flag offer free trade, ample commerce, with a gold chaser that rushes the toxic destructive USDollar off the stage. The two Eastern superpowers are stepping away from their own imperial past, and carefully observe how the United States has arrogantly overstretched itself over the entire planet resulting in a dialectical anti-American reaction worldwide, as the Saker describes.
The USGovt relies on scare tactics, decrying the Resurgent Russia and the Assertive China, often with elaborate tall tales. The Washington gangsters criticize any nation for wishing not to be vassal states under the exceptional nation's rule, better described as debt fiefdom. The reality is that the two nations have no ambitions to replace the United States as global hegemon, but they do wish to replace the USDollar as trade vehicle and banking reserve device. The USGovt uses over 700 military bases to control its vast empire, even abusing its embassies as weapons munition depots (see Libya). The USGovt spends more on its military budget than the rest of the world combined. Do not expect the Russian-Chinese duo to imprison the planet earth with USD chains, or SWIFT linkage, or any space gun held over the planet like its megalomaniacal project called Prompt Global Strike. Do not expect the R&C Team to use micro-nuclear bombs in concealed manner like in Ukraine, a new US-NATO feature and plague. Do not expect the R&C Team to put in place a vast system of banker agents in the financial offices like IMF (Impossible Mission File?) or World Bank. Do not expect the R&C Team to label independent minded countries as rogue nations, like the US does with Iran, Syria, and Russia.
What Russia, China, and the BRICS/SCO member nations strive for is an international order in which commerce is fair, the medium of exchange is untethered to debt, security is truly collective, and the invitation is given to other nations to join the train on the New Silk World Order. Gold will be its center. Growth will be its outcome. Solution will be its result. Emergence from the USD debt ruin will occur. They wish to push aside the banker cabal which controls the central bank franchise system, the money creation greed, the military abuse, the debt predation, the vaccines laced with virus, the new network propaganda, and the insolvency that abounds. They wish to install a fair and just system, without the abuse of power and military might. This is an Eastern revolt that attempts to halt the movements and power structure which has prevailed since the Crusades, even to reform the Vatican itself. The Roman Holy See (hardly holy, since Satanic bankers in residence) hold a tremendous control over the system in several respects, in banker aid via gold lease, in coordinated security agency (fascist) operations, and in narcotics cartel business. Leave alone the protected pedafile interests and global communications center linking thousands of covens.
The New Silk World Order offers an alternative to the fascist NWO complete with its most obscene extensions of the most vile side of inhumanity. The new order promises justice, working order, proper currency (gold), and rule of law that stands in sharp constrast to the insidious fascist trade pacts being proposed under the same toxic USDollar shadow with NSA espionage rule of archipelagos and obscene CIA prisons. The irony is that the Russia-Chinese Team do not appear to strive toward power and control, but rather mutual benefit and broadbased progress through cooperation and interdependence. These used to be American ideals, but not since the 1980 decade when outsourcing commenced, and especially not since 9/11 when the Fascist Business Model began to flourish with its coming out party.
The contrast of Greek Govt debt battles and TPIP trade pacts versus the development of the Eurasian Economic Union is stark, one of fascism versus capitalism. It is old world decay versus new world promise. It is best described as the Old Toxic Dollar Regime versus the New Fair Gold Standard. Russia's Putin and China's Xi are building an anti New World Order. The entire planet is watching. The BRICS Alliance grows while the European Union splinters on the periphery. The Jackass urges to continue watching Germany, as the core center of the EU. It is gradually agitating and slowly moving toward the East in its heart and arms. The West relies upon propaganda which becomes more ludicrous and untenable with each passing month. Two Germanys are in conflict internally, in an important struggle between banker politicians versus industrial commercial captains. The Jackass bets on the captains in winning the battle ultimately, with damage suffered.
What comes in the next chapter is the USDollar gradually being pushed off the geopolitical stage and out of the merchant temples. The BRICS/SCO zone will not challenge the USMilitary power, which will continue to suffer from asymmetric attacks and insolvency. Due to its failure and irrelevance, it will fall victim to the completely changed international environment. Debt default will come to the entire Southern Europe distress zone, then to the USGovt. The meeting in Ufa Russia will be remembered as the moment in history when the so-called West completed its crumble, much like the Roman Empire fell into ruin and flames. The US flames are from debt and money debauchery, which parallel Caligula of Rome with gold removed from coinage. The Wall Street narcotics abuse and the White House sex parties also parallel the times of Nero and Caligula. See The Saker (HERE) for an excellent treatise, originally written for the Unz Review (HERE).
After observing the vile disgusting gambits for the Trans-Atlantic Trade Partnership in wide disputes, absent debate, and hidden votes, the flag makes a lot of sense. The Jackass prefers a flag with blood as red stripes, cocaine as white stripes, and swastikas as stars. To be sure, world domination by banker elite is at stake in Greece, as a flash point. Their central bank franchise system is weighed down by big bank insolvency and small nation debt ruin. War and predatory asset seizures will not prevail. The USDollar is no longer defensible, not after several wars, numerous bank sanctions, and QE for over four years that resembles Zimbabwe in monetary policy. The banker cabal is on the defensive, in greater exposure, and faces a grand fall from their perch. Printing money to cover federal debt, to cover absent industry in trade deficits, to grant elite loans for further predation, and to finance war will not prevail and cannot be sustained. See the Rob Kirby interview on YouTube (HERE).
## CONTROVERSIAL FASCIST TRADE PACTS
◄$$$ THE AUSTRALIAN PARLIAMENT SLAMMED THE TRANS PACIFIC PARTNERSHIP TRADE DEAL, CALLING IT AN ATTACK ON INTERNET FREEDOMS, IMPLYING AN ATTACK ON DEMOCRATIC PROCESS... THE CRITICS POSTED A SCATHING REPORT, WITH FURTHER CRITICISM OF THE ABSENT DEBATE AND REFUSAL TO REVIEW ITS CONTENTS UNTIL PASSAGE (LIKE FASCISTS). $$$
The Blind Agreement report was fashioned by the Foreign Affairs, Defence, and Trade References Committee for the Australian Govt. It sharply criticized the secrecy of the negotiations crafting the deal, which would bind 12 Pacific Rim countries in the Trans Pacific Partnership. The report denounces the propsed all-or-nothing choice (true to fascist dictums) that Parliament has been given to approve or reject a deal. Curiously, the details of the trade deal cannot be reviewed or examined until after the deal is passed. The policy is straight out the USCongress, fascist and corrupt to the core, as seen also in the ObamaCare Bill. The report criticized the inadequate level of oversight and scrutiny. It stated, "Parliament should play a constructive role during negotiations and not merely rubber stamp agreements that have been negotiated behind closed doors." The only parts of the Trans Pacific Partnership drafts made public so far have come to light via WikiLeaks, which published leaked partial drafts like the chapter on intellectual property rights. The leaked power of the people is decried by political forces, the essence of fascism. The IP chapter alone has the power to attack internet freedoms and criminalize downloading, as commented by one of the Blind Agreement report critics. The periphery of the Anglo-American Axis is splintering. See Sputnik (HERE).
◄$$$ US-SENATE APPROVED FAST TRACK TRADE AUTHORITY IN A TACTICAL WIN FOR THE OBAMA ADMIN... THE PRESIDENT PROMISED JOB SECURITY AND JOB GROWTH, WHEN THE REALITY IS THE EXACT OPPOSITE, FOR THOSE WHO RECALL THE NAFTA PACT WITH MEXICO... FASCIST STRUCTURE MOVES FORWARD, COMPLETE WITH CORPORATE BRIBERY, BLIND ALLEGIANCE, AND PROFOUND IGNORANCE... FAST TRACK AND NO DEBATE ARE FASCIST TOOLS USED UPON THE STILL ASLEEP SHEEP. $$$
A critical aspect of President Obama's economic legacy devoted to near total fascism received a strong supporting move in early July when the US Senate voted to approve Fast Track authority to negotiate a 12-nation trade pact. Complete with stunning huge bribes from the pharamaceutical industry, Obama does not have to worry about the threat of added amendments, deletions, or filibuster toward the final deal. The vote was 60-38 in what will later be called a shameful event. Obama wishes to use the dictatorial authority on a massive trade accord, known as the Trans Pacific Partnership (TPP), between the United States and 11 other nations. Fast Track ultimately passed as a standalone bill absent the Trade Adjustment Assistance, a measure intended to shield workers who might be adversely affected by the trade deal. The hotly contested proposed trade pact would be the largest since the North American Free Trade Agreement, which few recall undermined the entire domestic blue collar labor front on a massive scale. To be sure, the AFL-CIO union opposes the trade pacts, just like they did the disastrous NAFTA. The union voiced concerns that the trade deal will cost American jobs and result in lowered middle class wages, correctly so.
More important, the TPP would give Big Pharma, Monsanto, and Big Corporations near total powers over patents, food, and the internet. Worse still, the patent dispute mechanisms outlined within the trade union provisions stipulate that the big corporations can dictate what a patent infringement is, and control the outcome of disputes. For instance, generic drugs after patent expiration might vanish, with forced extensions. Or imagine that clever inventions like Magic Jack might have been challenged on flimsy infringement claims, resulting in much less invention at all. The betrayal to the American people is so clear, so obvious, so blatant, but they are fast asleep as usual. Lord Action said a century ago that a nation gets the government it deserves. The creeping fascist state is clear to see, except for the bored, distracted, dumb, busy, and blind. See MSNBC (HERE).
◄$$$ EUROPEAN UNION PARLIAMENT BACKS THE TTIP TRADE PACT IN A NON-BINDING RESOLUTION... THE TRADE UNION WILL PROCEED DESPITE HARSH POPULAR OBJECTIONS... CORPORATE POWER AND INTERESTS ARE TO PREVAIL OVER POPULAR DESIRES AND NATIONAL PRIORITIES... THE FASCIST DICTATORSHIP MOVES ON APACE, JOINING NORTH AMERICA TO WESTERN EUROPE... ITS DETAILS ARE ABOMINABLE... TINY ST GILLES IN BELGIUM HAS REJECTED THE TTIP PACT. $$$
Despite universal dissent, vocal criticism, demonstrations in the street, open outcry among members, the EU Parliament has approved a non-binding resolution on the controversial Trans-Atlantic Trade and Investment Partnership (TPIP). They have thus bridged a gap in protracted negotiations on the secretive trade pact between the European Union and the United States. The people do not want it, but the elite and their corporations insist on it. The resolution was approved by the majority of the parliament with 436 YES votes versus 241 NO votes in Strasbourg on a dour early day in July. One key item. The resolution seeks to replace the Investor State Dispute Settlement (ISDS) mechanism with a new more transparent system of dispute resolution, instead of using private arbitration panels to challenge government in any trade disagreements.
Time will tell whether democratic scrutiny, transparency, public hearings, or appellate mechanisms will be part of the trade union. However, the rest of the provisions install a fascist state with almost unbounded corporate powers. Critics point to how it would allow US companies to challenge European food and environmental regulations on the grounds that they restrict trade. Critics backed by broadbased popular support dislike intensively the food labeling provisions, which open the Monsanto door for genetically modified organisms and dangerous chromosome alteration (as yet not well understood). All claims of increased trade volume, increased investment, and widening export industries are pure bullshit, rubbish, and nonsense. Such open doors all exist now, while the difference lies in the expanded corporate power. The laxity includes compromise on health, safety, and environmental regulations in favor of big business profit.
While TTIP between the US and Europe would create the world's largest free trade zone, many Europeans believe that the agreement will elevate corporate interest above national interest. As a result, demonstrators have taken place all across Europe, including in France, Germany, Italy, Spain, Greece, Netherlands, Poland, the Czech Republic, and Scandinavia. The proponents are using the false claims of amplified trade to drive a fascist stake in the continental heart, in clear terms. See Russia Today (HERE).
For mere symbolic amusement, notice the town of St Gilles in Belgium has opted out of the TTIP, seeing it as a threat. It will continue as a TTIP-free Zone, a symbolic gesture. The town officials wish to build trade ties with Russia, not just North America. Parliaments, national, regional and local authorities would lose their autonomy under the trade union structure, they complain. Town council leader Alain Maron leads the charge of the tiny light brigade. This town is smart, alert, vigilant, and wise, a veritable model. Arbitration boards are criticized for their upholding of corporate interests. In fact, companies would be able to file lawsuit claims against all levels of government, thus putting the corporate structure equal or higher than political structure. This is Rollerball theater mentality and deep fascism, with a giveaway of power to corporations. See Sputnike (HERE).
The TTIP is central to the establishment of a fascist global state in the West. It must be stopped in its tracks, while the ramrod devices like Fast Track and No Debate must be exposed and halted. When the Eurasian Trade Zone is in full gear, it will eclipse the US-EU zone since it will include more than Europe and Asia. Think Australia & New Zealand, the Pacific Rim, the Middle East & Gulf region, and Africa.
## CHINESE & US STOCK MARKET ATTACKS
◄$$$ CHINA HAS REACTED TO EXTREME ASSAULT ON ITS FINANCIAL MARKET... THE SOURCE OF ATTACK HAS SOME USUAL SUSPECTS, NAMELY LANGLEY COMPUTER SYSTEM HACKERS... THE CHINESE STOCK MARKET IS A CASINO LIKE A GRAND NASDAQ, SUBJECT TO THE HUGE SWINGS OF EASY MONEY SINCE LINKED (NOT PEGGED) TO THE EASY USDOLLAR POLICY... CHINA WILL RECOVER QUICKLY. $$$
The Chinese stock market has endured a massive plunge. Put aside the accusations of Langley secretive attacks, and focus on the reaction. China scrambled to put in place a Plunge Protection Team, which should have been done a few years ago after the Lehman death knell signal. Beijing's new stabilization fund will become the Chinese version of USDept Treasury's Exchange Stabilization Fund, with its own Working Group for Financial Markets. The China Securities Regulatory Commission (CSRC) has set up a team to look at clues of illegal manipulation across markets. The Peoples Bank of China also rolled over 250 billion Yuan of medium-term loans to banks to ensure adequate liquidity in the system. Their big banks have pledged widespread support for the crashing stock market, called by some veterans as a falling knife. Even Art Cashin of the New York Stock Exchange calls China far more critical an event site than Greece. In reality, the number of critical sites grows by the month. See Zero Hedge (HERE).
The response from the big Chinese banks has been to organize for support of the sliding equity market. The country's largest brokerages have teamed up to invest neary $20 billion in blue chip Chinese equities. Such is not a very large amount. Furthermore, 28 Chinese companies have suspended IPO stock events. They cited relatively big market volatility. The market officials have urged brokers to work together toward the end of a market rout. Separately, 25 Chinese mutual funds announced they would also commit their own capital into stocks. See Reuters (HERE and HERE).
The financial impact is tremendous. Almost $3 trillion in market value, a sum greater than the entire economic output of Brazil, has been wiped out since markets went into reverse last month. The event overshadows those of Greece with its debt service woes. The main Shanghai Composite Index (SSEC) has lost around 30% of its value in three weeks, a dramatic end to an equally impressive rally that saw it more than double in just seven months, fueled by official interest rate cuts. The rise was predicated upon a huge array of speculative loans. Some analysts estimate total margin lending, both formal and informal, could be nearly CHY 4 trillion (=US$645 bn). The crisis widens in China. To be sure, the nation succumbs to a property downturn, factory overcapacity, a few empty cities, and high levels of local government debt. Its economic growth had already been expected to slow to around 7% in 2015, robust by Eastern standards and enviable to the sclerotic Western nations. However, the growth is its weakest annual expansion in a quarter of a century. The endemic risk to China is that its currency is virtually pegged to the USDollar, within a tight range, and thus it shares a liberal monetary policy without the QE blemish label.
The direction is moving slowly toward more focus on precious metals. Very likely the Chinese nation, both leaders and financial officials, will turn with more motivation and direct action toward Gold & Silver as a solution. Consider Fu Xuejun, strategist at Huarong Securities. He said, "The Government must rescue the market, not with empty words, but with real Silver & Gold. It is a disaster. If it is not, what is it?" See Investment Watch (HERE).
The stock market, the capitalization process, and credit policy are issues to be handled internally by the Chinese. The impact internationally is minimal. The Chinese citizens have a much smaller portion of their wealth tied up in stocks, compared to the United States. The big Chinese companies are down between 5% and 20%, but they will quickly recover. The psychological impact will be more severe that any damage to the actual economics.
◄$$$ THE NYSE TEMPORARY SHUTDOWN WAS CLEARLY DELIBERATE, A DEFENSIVE MEASURE... WHETHER FROM LIQUIDITY STRAINS OR EXTERNAL (HACKING) FACTORS, IT IS UNCLEAR... REDUNDANT SYSTEMS SHOULD PREVENT SUCH EVENTS FROM OCCURRING... THE NEW YORK MOMENT OCCURRED IMMEDIATELY FOLLOWING A CHINESE STOCK PLUNGE FOR THE WEEK. $$$
The New York Stock Exchange took action in a temporary shutdown, blaming it on a technical glitch. What paralyzed the NYSE was likely deliberate, and far more serious than what officials concluded. The feeble explanations from NYSE officials are not credible. Enter a systems engineer, a former Infrastructure Architect with Hewlett Packard. He stated, "We design around these potential system failures through what we call highly available systems. This means that there is redundancy in all systems that could fail. There are multiple power sources, multiple paths for physical data flow, multiple connections to brokers worldwide, multiple pathways to the internet, multiple devices that control all trading activities, and copious monitoring systems alerting on any condition that can threaten the enterprise. Be assured that the NYSE with its critical systems has the best equipment and networks that money can buy. One single gateway, a device that connects two different networks together, is not likely to create the havoc experienced today. There would be more than one gateway to a critical network and a faulty one could be routed around in a heartbeat. I do not know whether a hacker may have been involved. Also I find it curious that the very first reports about the problems include the conclusion that no hacking was involved. I do believe that the duration of the outage was deliberate to slow the momentum of the selloff." Expect to see more of these glitches in the future. Notice the quick conclusions on no hacking, before any proper investigation could take place. It reminds the Jackass of the Ukraine airliner crash and the conclusion to blame Russia before any proper investigation could take place. Mere propaganda drivel. It smells like a major hacking incident and a system shutdown to avoid further damage.
◄$$$ BEN FULFORD COMMENTED ON THE CHINESE STOCK MARKET ATTACK, MAKING DIRECT ACCUSATION OF A LANGLEY ROLE... HE REGARDS THE NYSE SYSTEM SHUTDOWN TO BE THE RESPONSE TO A COUNTER-ATTACK BY CHINA... WE COULD BE SEEING THE FIRST SIGNS OF SEVERE BLOWBACK, OR NASTY GAMES BROUGHT HOME TO THE UNITED STATES IN GRAND COUNTER-ATTACK. $$$
Consider Ben Fulford, who seems to offer solid information 2/3 of the time, the rest subject to possible fantasy, but surely entertaining. He wrote, "The Greek default has triggered major cyber and information warfare that raged across the world last week. The warfare involved banks, defense firms, major stock markets, telecommunications firms, and more. For example, the July 8th cyber-attack that shut down the New York Stock Exchange, the Wall Street Journal, United Airlines, and several mobile phone companies was retaliation for an American attack on the Shanghai Stock Exchange, according to Chinese and Pentagon sources. 'THIS WAS JUST A DRY RUN,' the Pentagon sources said. The Khazarian [Western central banker cabal] controllers of the Federal Reserve Board, angered by the BRICS bank, were the instigators of the attack on the Chinese stock markets, Pentagon sources say. This burst a bubble, leading to a 40% decline in Chinese stocks before the government intervened and suspended most stock trading. The Chinese counter-attack shut down the New York Stock Exchange. This was then, according to Pentagon sources, followed by weather warfare as a major typhoon was sent crashing directly into Shanghai, forcing the evacuation of a million people." The Fulford explanation appears to be consistent with most facts. As for a HAARP attack, it could be the case, but with several weeks in planning. Southeast China did suffer twin typhoon storms, with large scale evacuations in the Shanghai area.
Clearly the East vs West financial war zone is expanding beyond the FOREX, SWIFT, and sovereign bond markets. The Langley super cyber crew are experts at hacking into massive frameworks on a global scale. They have often blamed their work on Iran, China, and Russia, with no possible defense in the US controlled press. The Jackass has long reported the deep divisions, even schism, within the USGovt. The good guys (White Hats) have been pitted against the bad guys (Black Hats) for some time, even within the same agencies. However, the USDept Treasury is deeply divided. The Pentagon is divided. Langley is divided. Wall Street is divided. Military contractors are divided. Regulators are divided. The USGovt is fracturing. There are far too many many moving evil parts in USGovt and USMilitary to keep straight, and to make conclusions. Fulford cites a Pentagon source for information, with clear implication that they oppose Langley engagements and deep cover projects. Consider the USGovt is a vast network gone out of control long ago, which includes many malevolent elements, like NSA, FBI, the Bush Gang, Homeland Security, Drug Enforcement Agency, Alcohol Tobacco Firearms, Coast Guard, and more. These are without question uniformly evil. Most above listed agencies (the infamous alphabet soup) are dedicated to narcotics, valued at $800bn to $1200bn per year.
Then the sprawling Pentagon and Langley establishments have many good elements and many bad elements. The nasty games played by Langley might be coming home in full circle. What the US criminal groups sow, the US will reap as nations work both to attack the US and to isolate it, even to quarantine it. The big risk in my book is for USMilitary drones to be hacked, and re-directed at rich US targets.
## EUROPEAN CHAOS & BIG BANK ROLE
◄$$$ AMIDST THE GREEK DEBT CRISIS, SUPER CRIMINAL GOLDMAN SACHS COULD BE SUED FOR COLLUSION IN HIDING GREEK DEBTS WHEN IT JOINED THE EURO... GSAX USED ACCOUNTING FRAUD TO MAKE PROFITS IN SERVICE TO THE EUROPEAN ELITE CABAL WHEN FORMING THE FRACTIOUS EUROPEAN UNION... GSAX AIDED IN CIRCUMVENTING THE MAASTRICHT RULES FOR ENTRY, A HIGH CRIME OF FRAUD... PROOF WILL BE COMPLEX BUT POSSIBLE. $$$
The European Elite wanted the European Union to form, despite any member nation wishes. They hired the giant squid agent from Wall Street, the protected criminal center. Goldman Sachs is the object of court actions for Athens to recover some of the vast profits made by the investment bank. Goldman Sachs faces the prospect of potential legal action from Greece over the complex financial deals in 2001 that led to its debt crisis. The Maastricht rules were violated by GSax, complex contracts used to hide debt, to make it look like a currency swap, and gain entry with falsified debt on its books. Athens might claw back some of the bank's ample profits. The bank was consultant in the initiative to secure a position in the common Euro currency region. The Greek Govt managed to conform to the rigid Maastricht rules for EuroZone membership largely because of complex financial deals created by the investment bank which disguised the country's outstanding debts. Goldman Sachs is reported to have earned $500 million from the transactions known as swaps. The banker who fashioned the accounting fraud, Oxford-educated Antigone Loudiadis, was paid $12 million in the year for his expert work.
Enter Jaber George Jabbour, who formerly designed the swaps at Goldman (not for Greece). He has informed the Greek Govt in a formal letter that it could correct historical malfeasance as part of its plan to reduce Greek debt burden, to right the wrongs in his words. Jabbour has victories in Portugal in similar complex swaps, where London banks made restitution payments to their government coffers in Lisbon. His work resulted in many lost jobs for senior officials and politicians. Jabbour has been instrumental in exposing criminal actions by Goldman Sachs and Societe Generale against Libya. The Athens claim will be based upon deals having been executed for the sole purpose of concealing the country's debts. Down the path, Greece's membership into the Euro gave it access to enormous easy credit which it was then incapable of paying back, leading to its current crisis. Lenders took its Euro membership as a stamp of creditworthiness, much like a falsified credit application for a home loan. The EU economic statistics agency Eurostat in 2008 looked the other way. The Greek Govt had its foreign denominated debts reduced by EUR 2.37bn, a decline of 1.6% in terms of debt-to-GDP ratio, significant to reach compliance to the Maastricht rules. According to British MI-5 intelligence, former Goldman Sachs employee and now European Central Bank Governor Mario Draghi was the mastermind behind this Greek looting plan. See UK Independent (HERE) and the Greek Debt Truth Commission (HERE).
Standard & Poors has warned of severe consequences of a Greek exit from the European Union and common Euro currency, the infamous Grexit. In fact, S&P warned that an exit would cause the Greek Economy to decline by another 20%. Chiming in was Fitch, which regards a Greek default on their debt held by private creditors at 90% probability. Fitch downgraded the Greek banks to RD on capital controls. See ABC News (HERE) and Fitch Ratings (HERE).
◄$$$ MERKEL AND HOLLANDE URGED UKRAINE LEADER TO GIVE REBELS SELF-RULE IN THE DEFIANT EASTERN PROVINCES WHERE INDUSTRY IS LOCATED... NOTICE HOW FASCIST POROSHENKO CALLS SEPARATIST GUERRILLAS AS TERRORISTS, THE FAVORITE LABEL USED BY THE NEO-CON FASCISTS IN THE USGOVT... FORMER FRENCH PRESIDENT GISCARD D'ESTAING SUGGESTED THAT GREECE BE SUSPENDED FROM THE EURO CURRENCY UNION. $$$
In an expected blunt message, the German and French leaders called on Petro Poroshenko to ensure partial self-rule for the pro-Russian provinces in the eastern separatist region. German Chancellor Angela Merkel and French President Francois Hollande took the rare step of lecturing Ukraine's Western backed fascist leader to grant more independence for the pro-Russian separatist east. The most important allies display deep European impatience with Kiev for the endless war and trampled truces. The mostly Russian speaking regions marred by shattered steel mills and wrecked coal mines that once fuelled Ukraine's economy, want their special status delineated in constitutional amendments. The Kiev leaders continue to obstruct any and all efforts. The Western alliance is fracturing, not just with Greek debt but with Ukraine war. Putin stated that Ukrainian peace efforts were stalling because of Poroshenko's refusal to hold direct talks with the emerging leaders of Lugansk and Donetsk. "Yet I still tend to think that [the truce] is more likely to succeed than fail," Putin claimed on the sidelines of a BRICS summit in Ufa Russia. See UK Telegraph (HERE). The US flag still flies alongside the Ukraine flag at the security agency building in Kiev, a symbol of partnership.
Former French President Giscard had already called for a friendly exit for Greece from the EuroZone back in February. Giscard cited Articles 108 and 109 of the union founding Maastricht Treaty for justification. The articles apply to countries that wish to join the EU without adopting the Euro currency. But Giscard would choose to use the articles in a reverse manner, for placing Greece on hold. The former president, who governed from 1974 to 1981, called the adoption of Greece in 2001 a big mistake. He went further, stating that leaders neither wanted nor planned to follow EuroZone policies on limiting debt and deficits. His views are shared by former prime minister Alain Juppe, a leading candidate for the French presidency in 2017, who urged that Greece should be helped to leave the Euro without drama. The Jackass adds, no drama but with Drachma. It always makes for good entertainment to see politicians speak, without knowledge of certain banking contagion outcomes. See Ekathimerini (HERE).
Even the IMFund has told the European Union official that the Euro currency does not work. Keeping Greece in the union makes the situation unbearably expensive for other countries. It is a failure, more widely recognized with each passing month. To be sure, the IMF has become a thorn in the banker elite ribs. Clearly, the IMF equals China, its new boss and funder, if not lead dog. See World Net Daily (HERE).
◄$$$ ITALY AND SPAIN APPEAR TO HAVE FUNDED A BACKDOOR BAILOUT OF FRENCH BANKS, OR URGENT RELIEF... THE GERMAN AND DUTCH BANKS HAVE ALSO SEEN A REDUCED GREEK EXPOSURE... THE DATA TELLS THE STORY, AS FRENCH COMMITMENT HAS DECLINED, WHILE ITALIAN AND SPANISH COMMITMENT HAS RISEN SINCE 2010. $$$
◄$$$ LIFE OUTSIDE THE EURO CURRENCY IS THRIVING, BUT THE BRUSSELLS GANGSTERS REFUSE TO TELL THE TRUE STORY... THE EUROPEAN COMMISSION TRIED TO BLOCK THE OFFICIAL IMF DEBT REPORT ON GREECE... THE EURO CURRENCY IS FINISHED, BUT THE RAPE OF GREECE CONTINUES... NATIONS OF EUROPE OUTSIDE THE COMMON EURO CURRENCY HAVE THRIVED BY COMPARISON, A SQUELCHED MESSAGE... GREECE MUST EXIT IN ORDER TO DEVALUE THE CURRENCY AND WRITE OFF DEBT. $$$
The IMF Debt Sustainability Analysis report on Greece that came out in early July. A grand controversy ensued, a major political stir. The EU Commission has egg on its face. Finally in the open is the document where the IMF fund analysts confirm what Syriza has been saying ever since they came to power in Athens five months ago. Greece urgently requires debt relief, claims the IMF. Refer to debt forgiveness or partial default. The European Commission had until now, succeeded in snuffing out and silencing the report. EuroZone nations also tried in vain to stop the IMF from publishing a gloomy analysis of the hopeless Greek Govt debt burden. A deep dispute between Brussels and the IMF has been simmering behind closed doors for several months. The key players have sat on the report during all the debt negotiations with Athens. The Greek Parliamentary Debt Committee reported three weeks ago that it has in its possession an IMF document dated from 2010. They were aware of a string of bailouts, which would push Greece even further into debt. Vile intentions and motive for asset seizure are evident.
The decision to release the IMF report was done without a vote. Its board members wanted the release. The US played a substantial role in that decision. The timing smacks of high level orders given by China, which controls the IMF. The fall guy might be director Christine Lagarde, since under her (his) leadership the fund has lost its prestige. Mario Draghi's hands are also dirty. By shutting down the Greek banks in a gesture to instill fear, the EuroCB head violated a key directive of central banks to ensure liquidity and funds access. Regard the actions by Lagarde and Draghi, along with the EU Commission, to run parallel with the accounting fraud conducted by Goldman Sachs. Fraud, corruption, deceit from start to finish.
The bullies in Brussels and Frankfurt warn the Greek people that if they refuse aid subject to yet more leeches with forfeited assets, their national economy would suffer, flounder, and fail. The data proves such badgering tactics to be false. Compare the economic performance of Greece inside the Euro currency with European rivals outside the Euro. Those other nations cover a wide range like rich stable Denmark, to former Soviet Union countries, to Greece's neighbor Turkey. The Eastern European nations should halt all EU or Euro admission decisions, since a certain ball & chain. The real growth is clear to see. Note 15 years of suffociation by a common Euro currency in the Greek Economy. By contrast Romania, Turkey, Poland, Sweden, and Croatia are thriving by comparison. The data shows growth per person after stripping out price inflation. An amazing phenomenon is stark clear, that Euro-fanatics seem not to care about facts. They keep repeating the same claims about the alleged miracle cure of their currency, with no concept of data. Smack them across the head with the IMF outlook report, as they carry on like drones, better described as political morons and voodoo specialists.
This Euro currency is strangling Greece. Whether Greek leaders (bankers) fight hard to retain its usage, or whether German banks insists on continued usage, no matter. The Euro currency is strangling Greece. Member nations cannot adapt to changing circumstances. They cannot devalue the currency in order to stimulate exports. They cannot write down debts in order to restructure with a fresh picture. Athens finds its nation in an economic straitjacket. Nations require flexibility, and the Euro offers none to its members, only unity. They are a heterogeneous bunch. The Euro currency is finished. It will not survive the rampant ongoing scandal that Greece has become. Greece is the victim of a structure that makes it possible to unload its losses from imbalance in output. A nation whose economy is dotted by agriculture and shipping and tourism cannot compete with the diverse industrial powerhouse like Germany. The smaller, poorer, less industrialized countries in the EuroZone must exit while they can, and quickly. If not, they will face a national foreclosure and endless collateral loss, such as prized assets. They will lose more, like national sustenance, integrity, and identity. See Zero Hedge (HERE).
◄$$$ USMILITARY COMPLEX STANDS TO BENEFIT FROM THE ARMS RACE IN EUROPE... THE UNITED STATES IS MILITARIZING BOTH THE EUROPEAN ECONOMY AND ITS POLITICAL FRAMEWORK, WITH A CONVENIENT CONTRIVED UKRAINE WAR... MOST DEFENSE (MORE PREDATORY) BUDGETS ARE LARGE... THE GREEK CRISIS AWAITS OTHER NATO PARTNERS AS THE UNITED STATES SPREADS ITS EXCEPTIONAL BRAND OF VIOLENCE, DISORDER, DUPLICITY, AND RUIN... HALF OF THE INCREMENTAL GREEK GOVT DEBT IN RECENT YEARS IS FROM WEAPONS PURCHASES... SEE THE FASCIST BUSINESS MODEL ON THE MILIITARIZATION CHAPTER. $$$
A significant outcome of the Ukraine conflict and the ongoing confrontation between the West and Russia is the dramatic surge in military spending among several European countries. The buildup in arms has a cost, a rise in disastrous debt certain to cripple more government budgets at a time of pervasive economic recession. Those most at risk from a future hangover of military overspend in the years ahead include the Baltic states, Poland, and the Scandinavian countries. The grand extravaganza of weapons purchases favors the USEconomy and its military industrial complex. In its latest report on military spending across Europe, the Stockholm Intl Peace Research Institute (SIPRI) stated, "Increased threat perceptions have led to calls in Europe for higher military spending and, in particular, a renewed commitment by NATO members to spend at least 2% of their gross domestic product (GDP) on the military." They noted the military spending is unprecedented for NATO members in peacetime. The US has made war a permanent fixture of the landscape.
The list of budget hikes makes the point vividly clear. Among the increasing military budgets for 2015 compared with the previous year are Czech Republic (+3.7%), Estonia (+7.3%), Latvia (+15%), Lithuania (+50%), Norway (+5.6%), Poland (+20%), Romania (+4.9%), Slovak Republic (+7%), and non-NATO member Sweden (+5.3%). They will not buy weapons from Russia. Other nations are reducing or freezing military outlays, like Britain, France, Germany, Italy, and Spain. Hence big nations with weapons contractors are reducing military budgets, while smaller nations are increasing theirs. The factor is blatantly clear.
One must be suspicious of motive, since the US always creates enemies to motivate weapons related spending. The NeoCon warmongers have enlisted European nations in the same deadend game. Furthermore, by putting Europe on war alert, the USGovt has essentially place the EU member states political leadership under the NATO Supreme Commander. After all, the continent is in a state of war, on high alert. The attack on the Dutch airline (clearly shot down by the Ukraine Military) only added to the high alert status. The tension fomented by the US-EU apex of power has stoked the Russian threat, in turn leading to lucrative weapons sales for the Pentagon and its military industrial complex. A dual motive is at work, to take control of the political offices and to force huge weapon sales. The new NATO Secretary General Jens Stoltenberg recently assured that the US-led military alliance would not be forced into an arms race with Russia, but that is precisely what is happening. All out war is not the agenda. Rather, the goal appears to be renewed Cold War. Rather, they create a climate of fear and insecurity from an alleged Russian threat in order to boost military spending by NATO members. Rather, they work toward a takeover of their political leadership by war rooms.
The increased debt burden from unfettered military spendthrift countries ensures their future economic duress, future austerity in budgets, future economic recession, future expropriation of economies, and future collapse into the fascist state network for the Western Elite. The process is similar to what has already befallen Greece. A factoid hardly given proper attention is that the Greek debt burden of $320 billion has largely been incurred from decades of exorbitant military spending. Some estimates put at least half of the total Greek debt as attributed to military spending. For years, Greece had been spending 7% of budget on military, while most European countries were allocating 2% merely. Of the 28-member NATO military alliance, Greece is the second highest spender after the United States. Even the new Tsipras Regime ignores cuts to military spending as an option. Any military spending cuts toward 1% of GDP would instantly result in satisfying the IMF budget demands, and avoiding painful austerity measures. Yet they are not ordered.
The motives for such wasteful destructive spending might be simple, that Athens weapons orders are an absolute goldmine for German, French, and American defense contractor industries. See German and French weapons systems, such as Leopard tanks and Mirage fighter jets, as well as on American F-16s. Back in April 2012, Greek Parliament member Dimitris Papadimoulis accused Berlin and Paris directly of hypocrisy because as he explained, "Well after the economic crisis had begun [in 2010], Germany and France were trying to seal lucrative arms deals even as they were pushing us to make deep cuts in areas like health." This is basic warmongering. In October 2013, the former Greek Defense minister Akis Tsochatsopoulous was jailed for 20 years in his part in a bribery case. The German company Ferrostaal was forced to pay $150 million for its role in sales of Class 214 submarines to Greece worth $3 billion. Washington, Berlin, and Paris, even Athens, played up the Turkish threat in order to spin the revolving door of loans and military purchases. Debt rose, then economic rape occurred, and still is at work.
Out of the $150 billion in military spending by Greece during the years up to 2010, a ripe 25% of the purchases were from Germany, 13% from France, and 42% from the US, according to SIPRI data. The creditor nations are strangling Greece via weapons purchases, then confiscating the national assets in a grand blend of banker warmonger attacks, best appreciated by Fascist Business Model students. The USMilitary industrial complex and its German, French, and British counterparts stand to rake in $billions over the coming years from the junior NATO members who are suitably frightened by the growing Russian threat and specter of war. Thanks to Finian Cunningham of the Strategic Culture Foundation for the analysis. See NSNBC Intl (HERE).
◄$$$ OVER 92% OF GREEK GOVT BAILOUT FUNDS WENT TO EUROPEAN BANKS, NOT THE PEOPLE... THE GREEK PEOPLE ARE BADLY MALIGNED... A GERMAN INSTITUTION CHAIRED BY SCHAUBLE IS TO TAKE CONTROL OF EUR 50 BILLION IN GREEK ASSETS IN THE MOST RECENT DEAL, IN A SINISTER CONSPIRACY... THE KFW GROUP WILL TAKE CHARGE. $$$
The pattern is the same as in the United States, where the TARP Funds of 2008 went to the big US banks, where between 2011 and 2015 the QE funds went as backdoor bailouts to the big Wall Street banks again. The Jubilee Debt Campaign has tracked the trail of the Greek bailout funds which have totaled $284 billion since the PIGS sovereign debt explosion hit the scene in 2010. They concluded that 92% went to the big Greek and European financial institutions, the rest (crumbs) went to the Greek people. The gutting of Greece continues. Bailouts are for bankers, even in Ukraine. In the most recent Greek Govt debt bailout, the assets drained from forfeit in Greece will go to a certain cloaked Luxembourg institution. However, it is a wholly owned subsidiary of KfW Group, for which Schauble is chairman. This is not a crime, but business as usual. See KfW Group (HERE).
◄$$$ THE TRUTH IS COMING OUT NOW THAT GERMANY IS NOT A SOVEREIGN COUNTRY... THEREFORE MERKEL AND THE BUNDESTAG HAVE ABSOLUTELY ZERO AUTHORITY TO SIGN OFF ON ANY OF THE AGREEMENTS CONCERNING GREECE AND OR ANY OTHER EU AND NATO RELATED ISSUES... THE STATUS OF GERMANY IS COMING TO LIGHT, A CAPTURED OCCUPIED NATION WITH NO INDEPENDENT LEADERSHIP... GERMANY IS A BANKER CABAL STATION. $$$
The Greek drama, better called a tragedy, has more suprises in hidden acts. Leaked documents mention Tsipras and how Germany cannot act as sovereign nation. These are banker vassal camps. A set of documents disseminated to German and other EU member States through members of Parliaments has arrived on the table. They were designed for internal use only, but have been leaked to the South Germany daily Suddeutsche Zeitung. The documents reveal that the EUR 35 billion for Athens, even if proposed austerity measures were followed, would be unable to achieve solvency by 2030. Omitted from the discourse is aN EU vs Anglo-American discussion, which included the fact that Germany could not act as sovereign nation with regard to Greece, even if it wanted to. The leaked documents also showed that a credit repayment stop was not part of the proposals made to Tsipras and the Athens government either. See NSNBC (HERE). The chaotic disorder continues, as 260,000 Austrians demand exit from the European Union. See 20MIN (HERE).
## GREEK DEBT CONFLICT SYNOPSIS
◄$$$ THE 'NO' GREEK REFERENDUM VOTE PROMPTED TALK OF SYRIZA FORCES DEMANDING A REQUISITION OF GREEK CENTRAL BANK. $$$
As of 10pm on Sunday July 5th of 2015, the Greek Interior Ministry reported the following of the Referendum: 9,858,508 eligible voters with 6,044,251 voted, the results being 61.31% NO to continue debt payment to Euro bankers (to default instead). A major faction of the defiant Syriza party had plans to declare a state of emergency and to invoke the Treaty of Lisbon against the Euro Central Bank, then to take control of their central bank via nationalization. They wanted out of the union, with some legal ground to stand on. It was a popular vote against predatory bankers. The enemy was perceived as the European Commission in Brussels, the European Central Bank in Frankfurt, their partners at the Intl Monetary Fund in Washington, and the base German big banks. However, the powerful factions among the European oligarchs will oppose a rational solution with vigor. The Euro Central Bank for its part shut down many Greek banks, a measure that spread fear and trepidation. The hegemon powers are soon to face guerrilla warfare, as Ambrose Evans-Pritchard warns. Violence in the Athens streets will continue, and even escalate.
◄$$$ BETTER DESCRIPION IS TIME BOUGHT WITH NO GREEK DEAL YET. $$$
Graham Summers warns that no Greek Govt debt deal has taken place at all, just a ruse with press network support, laced with more deception. Greece has not signed or committed to any new bailout deal for debt service continuation. Their Prime Minister agreed to try and push a new austerity program through the Greek Parliament, thereby betraying the popular referendum. The finance minister resigned in protest to the powerful coercion. If it succeeds with passage, then negotiations (not a deal) can begin for further loans or grants. Expect endless extensions. Also, the German Parliament must grant Merkel the power to negotiate a new deal, and its government must sign off. The outcome up north is hardly clear. Then a new round of negotiations can begin. In the balance lies 25% of Greek assets valued at EU 50 billion. Renewed negotiations for the next bailout might begin in a few weeks. Expect German bankers to be willing to make Greek debt service payments, in order to prevent a rash of bank failures. The parties simply bought time, ballyhooed as a clinched deal falsely. Financial markets rose on hot air with deceptive tones.
◄$$$ BRITISH QUEEN ORDERED SCHAEUBLE ON GREEK CRACKDOWN... THE PECKING ORDER FROM LONDON TO GERMANY IS ILLUMINATING. $$$
It was Queen Elizabeth II who personally ordered German Finance Minister Schaeuble to change course and demand austerity instead of an honorable debt relief negotiation. The path of an exit from the Euro Union in stages was averted. During the same period when the negotiations were interrupted for the Greek referendum, Britain's Queen Elizabeth made a rare state visit to Germany over June 23-25. She met with Chancellor Angela Merkel and other ministers, along with ranking bankers. It is not known yet whether she also met with German Finance Minister Wolfgang Schaeuble, probably so. But on June 25th, the last day of the Queen's visit, Chancellor Merkel complained that Greek negotiations had lost ground, and Schaeuble warned that the sides were moving apart. Suddenly, Schaeuble and the German delegation showed up with new more stringent demands, which even their allies complained were unexpected, surprising, and seen as highly provocative. The summit participants were taken off guard by the change in German position. Apparently, Schaeuble had received and carried out the Queen's marching orders. The pecking order was made very clear.
The rape and pillage of Greece continues. The controversial but sometimes accurate Lyndon LaRouche commented, "This makes it very clear, Schaeuble is barking for the Queen." Yet the German Finance Minister still insists on a Greek exit from the Euro, which he recommended be done in stages. Athens has agreed to pursue austerity once again. Conclude that Germany is not a sovereign state, one which takes orders from both Washington and London. See LaRouche (HERE)
◄$$$ GREEK ATM MACHINES WILL RUN DRY, JUST LIKE FOOD STORES... THE ENTIRE SUPPLY CHAIN SUFFERS FROM SCARCE LIQUIDITY AND FROZEN SUPPLY CHAINS... GREECE FACES RUNNING OUT OF ESSENTIAL FOOD SUPPLIES... THE GREEK SUPERMARKETS ARE BEING BLED DRY DURING THE FINANCIAL MORASSE... HOUSEHOLD STOCKPILING HAS BEGUN IN EARNEST... THE GREEKS SEE THE GERMAN LEADERS AS THE ENEMY. $$$
Moments of levity can be enjoyed amidst the wreckage, financial warfare, asset predation, and bad faith shown toward resolution. It seems Angela has been enjoying more than her share of bratwurst. The Greek banks will stay closed for a month. When they do reopen, capital controls will almost certainly still be in place. See Bloomberg (HERE). Over 45,000 Germans live in Greece. They sympathize with the Greek people and dislike the German-led debt deals. See Wall Street Journal (HERE).
The referendum outcome led to massive queues for ATMs across the country. They expect more shuttered banks with strict cash withdrawal limits placed on its citizens. Meanwhile, people have stocked up on food because the immediate fate of Greece has been left uncertain. Ekathimerini cites supermarket chains and food industry sources, to the effect that Greece faces a massive shortage of fresh meat and fish. Supermarket turnover soared 35% in the first two days after the referendum was announced. The report added that demand for non-perishable foods such as pasta, rice, and beans are expected to result in shortages. The national Confederation of Hellenic Commerce reported that imports, exports, factories, firms, and transport are all frozen. The ability for stores to replenish stocks has been impaired. Expect widespread shortages. The dependence by Greece on imports for food is significant: 29.4% meats, 17.0% dairy, 8.4% cereal & animal foods, 4.9% vegetables & fats. The empty shelves in the Greek supermarket shown below will become a regular scene at Wal-Mart in the United States, all in time, but hardly foreseen. See Business Insider (HERE).
◄$$$ YANIS VAROUFAKIS PROVIDED A SUMMARY UPON HIS EXIT, AFTER RESIGNING IN STRONG PROTEST... HE EMPHASIZED THE REFUSAL FOR DEBT RESTRUCTURE, THE STUMBLING BLOCK IN NEGOTIATIONS... THE GREEK GOVT APPEARS WITHOUT A LEADER. $$$
Yanis Varoufakis resigned in protest. The referendum of 5th July 5th will mark in history a unique moment when a small European nation rose up against debt bondage. China, Russia and the BRICS are accelerating the RESET. See Zero Hedge (HERE) and his full speech (HERE).
Recently resigned Greek Finance Minister had much to say. "With Grexit reinforcing the ECB-induced bank run, our attempts to put debt restructuring back on the negotiating table fell on deaf ears. Time and again we were told that this [debt restructure] was a matter for an unspecified future that would follow the program's successful completion, a stupendous Catch-22 since the program could never succeed without a debt restructure. And there is the rub. After the crisis of 2008-09, Europe did not know how to respond. Should it prepare the ground for at least one expulsion (that is, Grexit) to strengthen discipline? Or move to a federation? So far it has done neither, its existentialist angst forever rising. Schauble is convinced that as things stand, he needs a Greek Exit to clear the air, one way or another. Suddenly, a permanently unsustainable Greek public debt, without which the risk of Grexit would fade, has acquired a new usefulness for Schauble. Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French, and have them accept his model of a disciplinarian EuroZone."
◄$$$ GREECE'S THIRD BAILOUT IS BOUND TO FAIL FOR THE SAME REASONS THAT THE LAST TWO PROGRAMS DID: THE SAME DEBT BURDEN WITH NO ECONOMIC VITALITY... THE INTERNAL PRESSURE WAS ENORMOUS, BORDERING ON CRIMINAL, WORKING AGAINST ANY HINT OF DEMOCRATIC PROCESS... WITHOUT REDUCE DEBT BURDEN TO SERVICE IN A FORMAL DEBT RESTRUCTURE, NO SUCCESS WILL COME, BUT MAYBE ASSET SEIZURE IS THE TRUE MOTIVE. $$$
Even if the new bailout makes it through the Greek Parliament in coming weeks, its economic incoherence will lead to further failure. Structural reforms will only work if there is sufficient economic demand in Greece. The agreed austerity will reduce that demand. In effect the fiscal policy will destroy the bailout's chances of success. A government who foolishly claimed to be ending austerity will now be forced to do the opposite, which guarantee lowering GDP, raising unemployment, emboldening radicals, and fostering further political instability. Moreover, a fresh round of consolidation will raise the Greek debt-GDP ratio, not lower it.
The creditors may hope that the Syriza coalition collapses, and a national unity government replaces it. The nation's third bailout (if indeed a bailout) is bound to fail for the same reasons that the last two programs did, namely no formal debt relief. The agreement, and possibly the coalition government, will unravel eventually. Greeks are stuck in a position to cede further economic sovereignty to creditors whom they despise. Any failed government would most likely result in a more defiant and more radical coalition to follow. The current path features nothing but marginal adjustments of the failed strategy. When the mooted structural reforms fail to lead to recovery, a certainty because fiscal policy is pushing the other way, the agreement will fall apart. Grexit (a Greek Exit from the EU) is still very much on the table. The nation must be given debt relief in the form of partial debt forgiveness or take action to force partial debt default. See Centre for European Reform (HERE).
Resentment is growing with anger. Greek Energy Minister Lafazanis said in an online statement, "[Germany treated Greece] as if it were their colony and behaved like brutal blackmailers and financial assassins." Some harsh words. Greek Defense Minister Kammenos described the agreement and the pressure to Greece at the summit "as an attempt to overthrow the government. The night before last, there was a coup. It was a coup in the heart of Europe. They want the government to fall and to replace it with one that has not been voted on by the Greek people." More harsh words. Additional editorial diatribe is offered from independent analyst Pepe Escobar, always refreshing. In his usual elaborate logical and astute manner, he shows great anger over the Greek debt rescue. The Jackass wrote accidentally Greed debt rescue, how appropriate (not Freudian slip since valid). See Sputnik (HERE).
◄$$$ RESOLUTION DETAILS IN GREECE INCLUDE PLANNED FORFEITURE OF AIRPORTS, AIRPLANES, INFRASTRUCTURE AND MOST CERTAINLY BANKS... MANY ASSETS WILL BE HANDED OVER TO EUROPEAN BANKERS... THE STATED PLANS FOR FUNDS USAGE APPEAR TO BE GRAND LIES... GREECE MUST SIPHON OFF 50 BILLION EUROS OF PUBLIC ASSETS TO MEET DEBT... THEY MUST SELL THEIR COUNTRY IN A FORCED FIRE SALE. $$$
The plan laid out by the Troika up north (EU Commission, Euro Central Bank, Intl Monetary Fun) as part of the Greek capitulation, called for the placement into escrow of EUR 50 billion in Greek assets. It will become a vast liquidation fund. Europe will take control and enjoy first refusal rights over Greek properties. In the process, Athens will be in line to hand over about 25% of Greek GDP (along with sovereignty) over the Brussels. Witness a mass liquidation of a nation, the asset pillage by creditors, and no hint of debt resolution, only asset seizure. The actions run totally contrary to capitalism and its full spirit of rebirth.
The independent fund will feature designated assets such as airplanes, airports, infrastructure, and most certainly banks. The European Troika is full of deception and lies. They promise that with the funds, the plan is to replenish the banks with capital, and to reduce the Greek national debt. Expect neither action to be taken, but instead for the funds from any liquidation of major asset sales to end up north in German bank portfolios. The proceeds from the Third Greek Bailout will surely not reach the Greek people. More to the point, Greece will have to sell itself in pieces to top off the creditor funding needs. Stooge Dijsselbloem, the Dutch Finance Minister pitched in a nice glop of propaganda and bank-speak. Jeroen Dijsselbloem concluded, "That is good for Greece, but also good for us. We are in the end the ones from whom the money is borrowed." It was not exactly clear why this would be good for Greece. Buying time by economic bleeding with no hope of debt relief or resolution is not a benefit. No end is in sight for the gutting of Greece and removal of its assets. See Sputnik (HERE).
◄$$$ JOSEPH STIGLITZ URGES GREEK CREDITORS TO ABANDON AUSTERITY OR FACE GLOBAL FALLOUT... THE REALITY IS HARSH, AS DEPARTING THE EURO CURRENCY WITH RECOVERY WOULD ENCOURAGE OTHER PIGS NATIONS IN SOUTHERN EUROPE TO FOLLOW SUIT... RISK RISES FOR COLLAPSE OF THE EUROPEAN STATE... HE SUGGESTS A REBUILDING EFFORT IN GREECE, NOT MORE AUSTERITY WITH CONTINUED LIQUIDATION. $$$
Economics Nobel Prize winner Joseph Stiglitz is an expert worthy of respect. He runs against the grain often. He speaks his brilliant mind. Stiglitz sees two possible outcomes to that scenario, neither of them pleasant for the European Union. First, if the Greek Economy recovers after abandoning the Euro, it would certainly increase the impetus for anti-Euro politics, encouraging other struggling economies to drop the common currency and go it alone. Refer to Italy, Spain, and Portugal, whose population is 11 times the Greek population and whose debt is 7 times larger. Second, if the Greek Economy collapses without the Euro, you have on the edge of Europe a failed state, where the geopolitics become very ugly. Stiglitz offered comment on the Eastern powers stepping to the table and into the fray more formally. By providing financial aid, Russia and China would then be able to undermine Greece's allegiance to the EU and its foreign policy decisions, creating an enemy within. The consequences of lost political cohesion could end up being more costly than offering Greece a break on its loans. He argues for debt restructure as the lesser of two painful routes. Such could be the Putin strategy, pushing the banker cabal toward debt forgiveness.
Stiglitz believes the Euro banker creditors have failed. He wrote, "The creditors should admit that the policies that they put forward over the last five years are flawed. What they asked for caused a deep depression with long-standing effects, and I do not think there is any way that Europe's and Germany's hands are clean." He suggests the bankers up north recognize their complicity, admit the failure of austerity, and attempt to build a better path to the future. The most reasonable solution Stiglitz sees is a write-off of Greece's debt, or at least a deal that would not require any payments for the next 10 or 15 years. In that time, Greece should be given additional aid to jumpstart its economy and return to growth. It should come in the form of cash grants, liquidity injections, and capital formation, not liquidation. Anything else is predatory. See Time (HERE). Review what Oxford Economics regards as next for Greece, in a detailed thoughtful cogent analysis. It includes politics, banks, leaders, creditors, debt restructure, and exit from the union. See Zero Hedge (HERE).
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