The calls for major changes to the current treaties have little to do with the debt crisis. What these two emissaries of the world elitists are up to is to tear down the legal strength of monetary and political union of this unnatural association, and replace it with a stricter budgetary discipline known as the ESM, the European Stabilization Mechanism, this ostensibly to support countries in difficulty. Within this major change is a complete shift away from the original Maastricht and Lisbon Treaties, which is being done without the consent of the public in these countries. There is one exception to that in the case of Germany that must approve the changes.
On the 9th the final proposals will be laid out and agreed upon by various heads of state, some elected and some appointed. This “leadership” could care less what the people of these countries think. There are no trappings of democracy here, just the iron fist of Illuminist world ambitions. Any thinking, sophisticated person has to look on in disbelief at what is about to take place.
The plan is to have a committee of 8, assisted by 17 immunized finance ministers control the budgeting and fiscal policies of these 17 nations, which strips them of their sovereignty.
We read writer after writer and they do not have a clue as to what is being done to the people of these nations. They don’t know these appointments are all members of the Trilateral Commission, Bilderbergers and former Goldman Sachs employees. If they do know they are ignoring its significance. This is where Messrs. Draghi, Monti and Papademos all came from appointed to take the euro zone and eventually the EU into world government.
We have studied these characters for more than 50 years and we know exactly what they are up too. It is the job of these 3 Sherpas to continue to advertise the increased risk to financial and economic conditions, if such treaty changes are not made. This is a charade to mislead and misdirect the people offering them the only way out. Unfortunately, as far as we know, our voice is the only one being heard in exposing the real intent of what is being pulled off. There is no question that there is an economic and financial debt crisis, but these treaty changes have little to do with that. Their key phrase is price stability when real EU inflation is running more than 7%.
Since July the ECB has refused to expand money and credit. A month ago control passed from the hands of Trichet to Draghi, who immediately lowered interest rates, which we predicted he would do - no one else made such a call. The ECB still hasn’t printed euros, but the Fed is going so in its stead. The ECB is buying Italian and Spanish bonds, but only about $20 billions worth. The ECB, known to few, has been sterilizing its sovereign debt buying by draining an equivalent amount of euros from the banking system. This is the antithesis what central banks do. The Trichet ECB wanted their actions not to create inflation. This is why inflation has held so well in Europe. That is all about to change as the FED takes over. The funds to purchase bonds and supply liquidity will be available to jump start Europe as inflation climbs.
All of the players knew austerity plans play well and eventually work to tear down an economy, but short term they are a loser. The only thing that works is more and more money and credit. Who wants to stop economic growth. Up until Draghi took over the euro has not been wantonly destroyed. Just be patient Draghi will end all that.
We know it’s hard to believe, but debt is not taken seriously. Many things today were similar to 19th century England, where government workers, attorneys, politicians and moneyed people made six times more that a skilled worker. That should sound familiar in today’s economy. In those days those who did not pay went to debtor’s prison, or worked off their debt. Today, few care about debt; it is usually just discharged. We mention this because since WWII the whole attitude regarding debt has changed. Accumulate it and simply walk away from it. This has become the attitude of nations, companies and individuals.
The call comes each day for the ECB to lend to sovereign states when in fact those who request these loans know under Article 101, that the ECB is prohibited from lending to any government.
We now have 5 and perhaps 6 nations that cannot service their debt and the ECB cannot legally lend to them. During the past two years, with the exception of bond purchases, which had been offset by the purchase of euros, Mr. Trichet had refused to break the rules. He is gone now and the Federal Reserve has filled the ECB’s place. It had to happen sooner or later. That is the Fed becoming banker officially to the world. The process really began more than three years ago, as we have been in the process of finding out just what the Fed was up too. They were responsible for the disbursement of trillions of dollars, which they withheld from the public. That is exactly what America needs, a privately owned central bank, that operates in secret and when asked what it is doing we are told it is a state secret.
These insolvent sovereigns are now paying yields over 7% on 10-year bonds and we know that kind of debt is unpayable, and it is a sure sign they’ll eventually default. In order to extend the time line the Fed has become the lender of last resort and that bill will be paid for by dollar holders, as the value of their dollars depreciates in value.
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