Patrick Henningsen
November 29, 2011

As the old adage goes, “He who has the gold makes the rules”. Today, all you need to make the rules is the power to print fiat paper.

In this new era of euro bailouts and banker-induced austerity measures, there can be only one true winner. Led by its unelected gray technocrat and central banking stooge, ‘Super Mario’ Monti, the Italian people have been summarily marched down the economic plank with a blindfold on.

Similarly, Greece has also been put under forced banker-led administration, as avuncular technocrat Lucas Papademos is presented to Greeks as the man who will restore ‘national unity’. The truth behind these high-powered banking clerks is something much more insidious.

As if Brussell’s IMF-style third world austerity measures were not enough, Italy has now been forced to pay circa 7.814% to raise two billion euro in two-year bills. That rate is nearly double the 4.628% it had to pay during its last fund-raising auction.

The technocrats have told Italy that the reason their interest rates for borrowing are so high, is that Italians need loan-shark level interest rate in order to… “attract investment”. Doesn’t really sound like investment they are talking about, but more loans. In reality it’s an economic takeover in the works.

Based on the current dismal growth projections for Europe, and for Italy itself, it is mathematically impossible for Italy to ever pay off the new debts it is now piling up in order to tread water inside this new inflationary Eurozone. This latest planned economic crisis is also the first step in eliminating Italy’s middle class, a trend which will be replicated throughout growth-starved Southern Europe.

Permanently sitting on the Eurozone fence are countries like Britain, whose politicians often tout their seemingly neutral position with regards to the EU’s single currency, but many are unaware that any European IMF rescue packages will be partly underwritten by British taxpayers, leave them liable if Italy, Spain, Greece, Portugal or Ireland are unable to repay the IMF loan. The London Telegraph reported yesterday:

Britain provides 4.5 per cent of the IMF’s funding and would, therefore, face a potential liability to an Italian package of up to €27 billion (£23 billion).

An IMF rescue package involves a country being offered hundreds of billions of euros in return for agreeing to launch a major austerity programme to cut spending. A credit line is a more flexible arrangement which gives countries short term access to international finance.

Italy and Spain are likely to be forced to accept some international help as the cost of their debts has risen to unsustainable levels of about seven per cent.

(…) Under the scheme set to be discussed, the euro area’s European Financial Stability Facility (EFSF), would have to “insure” bonds of troubled countries by covering the first 30 per cent of any unpaid debts.

To offer this guarantee, the European bail-out fund would have to be able to raise €1.4 trillion – a threefold increase compared to the current size of the scheme.

Let us not forget that it was only weeks ago that Europeans were told by its ‘expert’ technocrats that a 50-60 billion euro bailout was enough.

The disturbing irony surrounding all these Central Banking bailouts and IMF rescue loans is that the capital they lend was never earned from the production of anything, yet technocrats will demand austerity to pay the interest, while the banks are ‘owed’ the balance that if it were repaid they could freely spend.  This is the heart of all the problems the global economies are facing today, as they fall like dominoes across the global spectrum.

If private central banks can create money out of nothing and charge interest for it, then unlike the countries being force-fed this new credit, and insuring their speculative losses along the way (their credit default swaps create the economic contagion) – the bankers’ end of any deal is actually risk-free. As long as the individual European nations devolve their sovereignty to the EU, they have virtual carte blanch to enact planned economies, dictating all terms of what is obviously a rigged economic deal.

It is pure freakonomics – because with each and every bailout commitment, in order to service the bailout, money must be borrowed from the very same financial system that was being bailed out. Like their American counterparts, European leaders will never tell their citizens that a bailout is nothing more than their government taking on another astronomical debt – pushing their sovereign nation closer to falling under ‘Chapter 11’ banking administration.

People should have noticed by now that 20 years ago, we did not have endless cycles of bailouts, and we certainly did not have banking in charge of democracies like Italy and Greece. A global casino has been erected in the last decade, and the citizens of Europe are now nothing more than cleaners and chamber maids in their hotel.

If creating a European centralised federal government was the goal of elites and bureaucrats in Brussels, then this latest financial collapse was managed to perfection, and we can expect the same with regards to any post-collapse rescue plan.

Whether the Euro stays or goes as a single currency is almost redundant now, as the nations within Europe have already been lost, completely ruled over by the very banks who took down their economies to begin with.



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