The banking crisis is getting better and better.
Let's put things on a timeline here.
- Banks are lowering interest on loans and lowering the requirements for people to loan money.
- People borrow more and more money without being able to pay back.
- Banks sell those bad loans of, against higher speculation prices until someone figures out what they really are.
- Banks go bust.
- Governments bail out the banks.
- Now the EU says all countries that are over the 3% GDP eurozone limit will need to borrow from the banks. If not, austerity measures need to be taken. And this is where the protests begin...
Only because the national governments are not allowed to raise taxes because that would bring the EU's competition level in danger on the world markets.
Now hold on a second. Governments choose to bail out the banks, using taxpayers money. Banks are happy again and as a result taxpayers are now taken hostage by the EU for the bailout in the first place. Talking about being bent over and taken it in the arse twice!
So in response the EU Commission President said the following:
"Governments are not always right. If governments were always right we would not have the situation that we have today."
(source: http://www.telegraph.co.uk/news/worldnews/europe/spain/8032851/Europe-on-strike-over-austerity-measures.html)"Decisions taken by the most democratic institutions in the world are very often, or can be, wrong."
So that's why we needed a stronger EU with the Lisbon Treaty? EU has more to say undemocratically than the democratically chosen leaders of national parliaments.
I found this article that digs a little deeper into the source of this all.
Basically what the article says is that the IMF is planning all this. The problem is that the countries most steeped in public debt also have the largest voting power within the IMF:
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| (source: http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt) |
Funny thing is that most of these countries are not in public debt or have a far lower percentage of public debt against their GDP than the world average. Of course North Korea is not mentioned because it's not in the IMF and the known atrocities against their own people are known. That country must be in serious debt, despite what the leaders are saying.
By the looks of it, the western world (Europe and the US) are now ready to be swept up by IMF policies. Can't be too bad you say? We'll have to see about that...
Well they do want to help out, most of all because they see that countries are potting up and building up the reserves. Making it likely to pay off their debts all of the sudden! Like Russia did in 2005. This was a blow in the face of the IMF. About a $12 billion interest slap in the face for a period from 2005-2020. That was just interest on a $45 billion loan back in the '90ties...
Now, to see how beneficial this payback was...
Russia is doing quite well without debts from the IMF or other countries and is building a nice reserve system on top of that.
So that all needs a change. Welcome to reserve accumulation and a stable monetary system. The Bancor! A new global monetary unit.
They know it's going to have a lot of resistance. So the current demonstrations in Spain and Brussels are just a test balloon, seeing how much we resist. If we don't resist too much, they will push it a notch upwards.
Years ago I said the following, when there was a bit of a stir in NL about some measures. They where talking about going to The Hague to demonstrate.
Nowadays we rather sit behind our computer and protest, than go out on the streets. Maybe there will be riot police. And maybe they will use their batons. Before you know it, you have a bruise on your head, or worse, end up in the hospital. On Monday you can't come to work and have to explain to your boss what you where doing on Saturday. They will call it irresponsible and your own fault. Company medical policies will not pay out and you could loose your job, or be passed over a promotion. And most of us will not like that. So we stay put, behind our computer screens and protest in silence.The longer we keep doing this, the less resilience we will show. Until we're completely one world order with one political system and one monetary system. Because it seems that's what we wanted. Watch that IMF video again... It's not what we want.
Some go even further and predict a world war III And that is definitely not what we want. I know, it's a long read. Roadmaps are never short and snappy.
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I like a lot what you say, but the country in most debt is in your picture is Sudan. Not exactly a country with a lot of power in IMF. Same goes for Zimbabwe.
ReplyDeleteBeyond that, it shows that Cuba has almost no debt. Of course. Maybe according to official figures. But Cuba is making a lot of their workers redudant and are asking them to start their own businesses (which is quite radically against communism, you would think). Same goes for North Korea. So that argument just does not stick.
You write: "Now the EU says all countries that are over the 3% GDP eurozone limit will need to borrow from the banks". Where do you get that from? Your linked article shows "the European Commission proposed new measures threatening euro zone countries, such as Spain and Ireland, with multi-billion fines if they did not hold firm on budget cuts". That's quite a long way from what you said.
With all that, I cannot take this seriously.
Also from the first link: Under the plans, national treasuries of euro zone will have to deposit billions in Brussels with the cash becoming forfeit if the government then failed to convince the EU it was carrying out austerity measures. For Spain the price of disobedience would cost £1.8 billion in fines at 0.2 per cent of GDP, for France the penalty would be £3.4bn.
ReplyDeleteSo, Europe is holding Spain, Ireland and France under ransom: DO THOSE THESE MEASURES OR ELSE!
Now the economic trick is this: They have to deposit the fine on forehand.
Take Ireland for example: First they took taxpayers money and gave it to the banks. Now it has to take more taxpayers money (or worse: lend money) and deposit it at Brussels, leaving it with NO OTHER option than to do the austerity measures. It leaves the country in an even further debt. And don't think Brussels will pay interest back if they do make it back to the 3%... Result: Pay-cuts, welfare cuts, cuts in the credit rating due to more lending, leading to a vicious circle downwards. And the people can protest, elect and do whatever. Brussels has the final word because Brussels knows best because it's not democratically chosen. Barroso knows it and is damn frank in it too.
Jan, yes there are countries that are far worse than Europe, US, Canada and Japan. At the moment the western countries that are light brown of colour have just over 50% voting power in the IMF. Not counting any of the other 166 countries that have a total of 30% voting power within the IMF.
ReplyDeleteOf all those countries only the US and Spain are just below the 56% world average.
How easy it will be to push any guidelines from the IMF onto these countries? Read through the last link and also read part two of it. What the IMF wants the IMF gets, even if it affects those countries that have the most voting power...
Cuba is a total different story. The embargo helped them be more resourceful, even as an island. Same goes for Iran. Look up the interview between Ahmadinejad and Larry King.
Besides Castro is getting old. With no real successor in sight. He's loosening up to avoid a vacuum after his death. He knows he Cuba can't hold that embargo. See it as a mandatory transition from colonialism to a republic, as happened all over the world in the 50's and 60's. Good medical service is there already. An independent way of making money isn't... If Castro doesn't do anything the US and IMF will swoop up Cuba in no time.
Yes, but you did not read it properly; "Under the plans". I would go so far as saying thaat you're right in that we do not want this.
ReplyDeleteInterestingly, if governments are not to be trusted, how can we trust the EU government? That is funny. Quis custodiet ipsos custodes?