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FTR #788 Greek Tragedy, Part 2: “Clausewitzian Economics–The Continuation of War by Other Means”

Dave Emory’s entire life­time of work is avail­able on a flash drive that can be obtained here. [1] (The flash drive includes the anti-fascist books avail­able on this site.)

Listen: MP3

Side 1 [2]  Side 2 [3]

This description contains information not contained in the original broadcast.


Greeks protesting austerity

Introduction: Further developing material presented in FTR #746 [5], this program details the horrifying developments unfolding in Greece. Being hailed as a “success,” due to its recent re-entry into the bond market, Greece is actually a cruel and depressing example of the long-standing strategy of German/Underground Reich geopolitics.

Realizing a strategy for German political domination of Europe and the world, the EU and EMU are direct manifestations of the strategy first advocated by Friedrich List in the 19th century.

List advocated a pan-European economic union–dominated by Germany–as a means to control first Europe and then the world. Implementing the List strategic doctrine through a series of military adventures and subsequent economic and political consolidation, Germany has utilized the concepts formulated by Prussian military theorist Carl von Clausewitz in order to do so.

Having originated the concept of “Total War,” [6] von Clausewitz posited the fundamental importance of a “post-war” to successful realization of strategy.


Austerity advocates inspecting Greek assets

In All Hon­or­able MenJames Stew­art Mar­tin high­lighted an impor­tant aspect of von Clausewitz’s phi­los­o­phy, that war and diplo­macy are two sides of the same coin. When diplo­macy is no longer effec­tive, the pol­icy goal is pur­sued through the use of armed force. When war and mil­i­tary power have reached the lim­its of their effec­tive­ness, diplo­macy con­tin­ues the pur­suit [8] of the goal.

Gen­er­a­tions of Ger­mans have under­stood this and incor­po­rated that con­cept [9] into the method­ol­ogy of Ger­man power structure.

All Hon­or­able Men by James Stew­art Mar­tin; Lit­tle, Brown [HC]; Copy­right 1950 by James Stew­art Mar­tin; p. 235. [10]

. . . . The end of bat­tle in 1945 had sig­naled the start of a new kind of war–a  post-war. Germany’s clas­si­cal  mil­i­tary the­o­rist, von Clause­witz, is famous for hav­ing declared that “war is the con­tin­u­a­tion of diplo­macy by other means.”  In deal­ing with a Ger­many which had gone to school with von Clause­witz for gen­er­a­tions, we knew that, con­versely, a post-war is the con­tin­u­a­tion of war by other means.  Since Bis­marck, wars and post-wars have formed a con­tin­u­ous series, chang­ing the qual­ity of the events only slightly from year to year, with no  such thing as a clear dis­tinc­tion between  heat of  bat­tle and calm of  peace.  This  post-war of  the Ger­man occu­pa­tion was  dif­fer­ent from the  “cold war”  between the United States and Rus­sia, which broke out at about  the same time. The lat­ter com­pli­cated  the  diag­no­sis, like a man get­ting typhoid fever and pneu­mo­nia at the same time. . . .

[11]Having inflicted enormous damage on the infrastructure and populations of Europe and having appropriated the liquid capital of those countries and secreted it into the Bormann flight capital network [12], German corporate structure cemented their control over the remaining wealth of the continent through licensing agreements and corporate alliances.

Not conceptualized as an economic theorist, von Clausewitz’s doctrines of “total war” and “post-war” apply directly to the political/economic domination of Europe by Germany.

Greece is but one example of that policy, albeit one of the most salient and shocking. We present what has been done to Greece as representative of “Clausewitzian economics.”

Program Highlights Include:

1. We begin by noting that the pro­vi­sional Greek “aus­ter­ity” gov­ern­ment includes the Greek neo-Nazi LAOS party, installed with no input what­so­ever from the pop­u­la­tion of “the cra­dle of democracy.”

“Europe Adrift (1)”; german-foreign-policy.com; 12/21/2011. [13]

. . . Recently, a rightwing extrem­ist party was again made a direct coali­tion part­ner in a country’s gov­ern­ment — in Greece. The newly installed tran­si­tional gov­ern­ment — imposed under the super­vi­sion of Berlin and Brus­sels — includes not only the con­ser­v­a­tive and social demo­c­ra­tic par­ties but also the LAOS Party (Laikós Orthó­doxos Synager­més, “Ortho­dox People’s Alarm”). The LAOS Party musters also par­ti­sans of the for­mer mil­i­tary dic­ta­tor­ship and is known for its racist and anti-Semitic invec­tives. Gior­gos Karatzaferis [33], LAOS Party Chair­per­son, is quoted to have pro­claimed that he is proud “not to be Jew­ish, homo­sex­ual and com­mu­nist,” which “only few can claim.“[5] He is said to have called out to the Israeli ambas­sador: “Jew ambas­sador, watch out where you tread! Let’s dis­cuss the Holo­caust, let’s talk about all the fairy tales about Auschwitz and Dachau.“[6] Makis Voridis [34], a mem­ber of the LAOS Party and min­is­ter of trans­porta­tion in the Greek gov­ern­ment, imposed by Berlin and Brus­sels, began his polit­i­cal career as the leader of a youth orga­ni­za­tion of the party presided over by Geor­gios Papadopou­los. Papadopou­los had been the mil­i­tary com­man­der of the junta. He founded that party after he had been released from prison, in the after­math of the over­throw of his dic­ta­tor­ship. The Ger­man gov­ern­ment evi­dently con­sid­ers the LAOS Party help­ful for imple­ment­ing its aus­ter­ity dictate. . . .

2a. The first of several articles notes that the issue of German war reparations owed to Greece has come back into focus in connection with the austerity package imposed by the Troika.

Note that, according to Albrecht Ritschl, Germany is the greatest debt transgressor in the world, as a result of World War Two debts.

“Protectorate-Like”; german-foreign-policy.com; 2/13/2012. [15]

Last night, under strong pop­u­lar protests, the Greek par­lia­ment accepted the lat­est “aus­ter­ity pack­age,” that the Ger­man gov­ern­ment had pro­moted in the form of an ulti­ma­tum. This “aus­ter­ity pack­age” will lead to a 20 per­cent cut in pri­vate rev­enue and the min­i­mum wage, there­fore also in the pub­lic sec­tor wages, which are depen­dent on the min­i­mum wage. One hun­dred fifty thou­sand gov­ern­ment employ­ees will be laid off. Crit­i­cism of Berlin has become sharper because of its efforts to trans­form Athens into a de facto EU finance pro­tec­torate, using so-called aus­ter­ity com­mis­sion­ers. Demon­stra­tors burned Ger­man flags; Greek par­lia­men­tar­i­ans have announced an ini­tia­tive to remind that Ger­man World War II repa­ra­tions are still out­stand­ing. Since 1945, the Fed­eral Repub­lic of Ger­many has con­sis­tently refused not only to pay repa­ra­tions, but also Nazi debts, even those undis­puted by the Ger­man Reichs­bank at the end of the war. These would amount to more than three bil­lion Euros today. But, the debate con­tin­ues in the Ger­man cap­i­tal about the sus­pen­sion of democ­racy in Greece.

Protests against Berlin

Berlin’s bru­tal aus­ter­ity dic­tate and the Ger­man media’s on-going rabble-rousing anti-Greek (“bank­rupt Greeks”) pro­pa­ganda has enflamed Greek protests against Ger­many for quite some time. Last sum­mer, Greek demon­stra­tors chanted “Ger­many out of the EU!”, and dis­played “Merkel = Nazi” ban­ners at ral­lies. EU flags with a swastika in the cen­ter were occa­sion­ally seen. The mem­ory that this is not the first time that Berlin has dic­tated Athens’s poli­cies, has recently been accom­pa­nied by ref­er­ences to Nazi rule in occu­pied Europe. Last week demon­stra­tors out­side of the Greek par­lia­men­tary build­ing again chanted “Nazis Out!” while burn­ing a Ger­man flag. Trade union­ists also occu­pied the Athen­ian offices used by the Ger­man Horst Reichen­bach and his “task force Greece,” mon­i­tor­ing Athens’s aus­ter­ity mea­sures, in the name of the EU Com­mis­sion. These protests against Berlin’s hege­monic dic­tate are defamed in the Ger­man media sim­ply as “anti-German propaganda.”

Old Debts

A few days ago, a group of twenty-eight Greek par­lia­men­tar­i­ans, from var­i­ous par­ties, reacted to Berlin’s per­sis­tent pres­sure by tabling a res­o­lu­tion, call­ing on the par­lia­ment to debate Nazi Germany’s plun­der of Greece, which has never received indem­ni­ties. The indem­ni­ties not only refer to repa­ra­tions in gen­eral, but also to the com­pul­sory loans to the Reichsbank’s clear­ing account. Shortly before the end of World War II, Nazi bankers were still in pos­ses­sion of Greek assets worth 476 mil­lion Reichs­mark, which has never been repaid by the Fed­eral Repub­lic of Ger­many. Accord­ing to experts, this would today amount to 3.4 bil­lion Euros with inter­ests included. Greece is not the only coun­try that has waived Germany’s old Nazi debts with­out receiv­ing any­thing in return. As the econ­o­mist Albrecht Ritschl, who teaches at the Lon­don School of Eco­nom­ics, con­firmed, Nazi Germany’s unpaid debts to its wartime adver­saries would today range between 700 bil­lion and 1.4 tril­lion Euros with inter­ests included, depend­ing on the method of calculation.[1] This does not even include the repa­ra­tions for war damages.

Debt Can­ce­la­tion

Because of the Fed­eral Repub­lic of Germany’s long­stand­ing pol­icy of refusal, even totally indis­putable Nazi debts have never been paid. Bonn scored a deci­sive suc­cess in 1953 with the so-called Lon­don Debt Agree­ment, achiev­ing a gigan­tic debt can­ce­la­tion, in the frame­work of which Greece also waived its for­mer occupier’s enor­mous debts. That agree­ment per­mit­ted the Fed­eral Repub­lic of Ger­many the expunc­tion of enor­mous debts, cre­ated both before and since World War II. The agree­ment also stip­u­lated that the ques­tion of the pay­ment of Nazi debts and repa­ra­tions would first be solved with a peace treaty con­cluded with a “reunited” Ger­many. [The Fed­eral Repub­lic of] “Ger­many has been in a very good posi­tion ever since, even as other Euro­peans were forced to endure the bur­dens of World War II and the con­se­quences of the Ger­man occu­pa­tion,” says the econ­o­mist Ritschl. This has made the resur­gence of the “great­est debt trans­gres­sor of the 20th Cen­tury,” namely, Ger­many, possible.[2] . . . .

2b. According to STERN magazine, Germany owes Greece the equivalent of 300 billion Euros from World War II.

“Germany’s STERN – Germany Owes Greece 300 Billion Euros from WWII” by Hellas Frappe; hellasfrappe.blogspot.uk; 9/27/2012. [17]

The weekly German “Stern” magazine this week dedicated one of its columns to the issue of German war reparations to Greece, while it also at the same time notes that Berlin has only given Greece 37 million Euros to save the almighty Euro. The article said reveals that Greeks wish Germany would finally pay the war reparations because it believes Berlin owes much to the country for the damages and atrocities it caused during World War II.

The issue of war reparations appears regularly in Greek newspapers, claims the article, but notes that no such discussion (or claim) has been raised by both Athens and Berlin. The magazine also blasted the decision by the German government which said two weeks ago that the issue of war reparations to Greece has lost its meaning. A spokesman for the German Ministry of Foreign Affairs said that “the federation of German believes that after many decades, the issue of war reparations has lost its meaning.” The statement was made of course after Athens established a working group in order to study old documents and estimate the exact amount of the reparations.

“The fact is, the Greeks are among the nations that suffered the most under Nazi occupation. Their will to resist was fatal. First up was a legendary telegram that the Athens dictator General Metaxas sent in October 1940 to Fascist Italy – in response to Mussolini’s ultimatum to surrender. It contained the plain text “ochi” (no), which is why the Greeks celebrate to this day every October to “Ochi Day”. Shortly thereafter, the Italians attacked Greece and although numerically more superior, were totally pushed back behind the Albanian border.

Then Hitler sent his troops and was also met with massive opposition. When the Nazis finally triumphed, they set up a brutal occupation regime in order to show the world what can happen when small countries do not submit. In Crete, which was particularly competitive, an order was given that said that for every fallen Wehrmacht soldier, ten Cretans should die. (As a result) 30 island villages were destroyed. On the overall, more than 80,000 Greeks. or 7.2 percent of the population died between 1941-1944.”

The article then speaks about the “interest-free loan” to Hitler.

The fascists, claims the same article, attacked, pillaged and destroyed Greece’s industrial production equipment, crops, etc. Hitler, it adds, even forced the National Bank of Greece, to lend Germany interest-free money. The total amount “of these government bonds totaled 476 million Reichsmarks, which today corresponds to ten billion euros.”

The subject of war reparations was first negotiated in the autumn of 1945 in Paris. At the time, adds the same article, Greece was asking for ten billion US dollars, which was viewed by all conference participants to be a little over exaggerated, especially the US, so Greece was apparently awarded with 30,000 tons of German industrial goods with an estimated value of approximately US $25 million (or two billion euros at today’s rates). But, the same article writes “these products have never made it to Greece.” . . .

2c. Tagesspiegel maintains that the damage done to Greece “destroyed” the country.

Tagesspiegel Says Nazis Destroyed Greece” by Maria Korologou; Greek Reporter [Europe]; 4/11/2013. [35]

The classical liberal German newspaper Tagesspiegel, criticizing Germany’s refusal to pay more war reparations to Greece for World War II, said the Nazis did more damage there than in any other country.

Tagesspiegel catalogued the horror and suffering that Hitler’s forces brought to Greece: “130,000 civilians, women and children, were executed in retaliation for rebel attacks. 70,000 Jews were taken to concentration camps, 300,000 suffered frostbite and hunger, because the Germans confiscated food and fuel. Fifty percent of the country’s infrastructure and 75% of industry were destroyed”. . . .

. . . . The paper said that if Germany paid Greece what it is alleged to owe, it would dramatically improve Greece’s likelihood of overcoming its crushing economic crisis.

“The Greek government appears to pushes the issue away. After the conclusion of a group of experts on the topic, the Greek Ministry of Foreign Affairs will ask the opinion of the state’s law officials, in order for the decision to be postponed in every way,” it added.

2d. The Greek parliament has unanimously voted that Greece must ask Germany to pay war reparations.

“It’s A Miracle – Greek Parliament Unanimously Agrees – Greece Must Ask Germany To Pay War Reparations” by Hellas Frappe; hellasfrappeblogspot.gr;   4/12/2013. [14]

For the first time in decades every single party in the Greek parliament is in unanimous agreement. Greece needs to formally ask Germany to pay back the money owed from the Second World War. This includes the war reparations as well as a forced occupation loan. A provocative statement made by German Finance Minister Wolfgang Schaeuble on Thursday noting that Greece should avoid the issue of war reparations and rather concentrate on reforms only ignited the flame which is now growing into a fire.

Schaeuble was referring to a top-secret report compiled at the behest of the Finance Ministry in Athens. Leaked by To Vima newspaper on Sunday, the report suggested that Germany owes Greece 162 billion euros in World War II reparations.

In essence, the political parties are urging the government to take the necessary legal steps to claim the 162 billion Euros (without the interest), that are due to Greece as a result of Nazi occupation and a forced war loan. (The 108 billion for Greece’s infrastructure and 54 billion for the forced loan).

Responding to Schaeuble’s statements, Foreign Minister Dimitris Avramopoulos said that the reforms being carried out in Greece bear no relation – and can bear no relation – to the issue of German reparations, adding that the Greek state has been raising the issue for many years.
“Whether this case has been resolved or not is determined by international justice, given that, by its nature, this issue concerns international law and the international justice organs,” Avramopoulos said.

“Greece is not ‘losing its focus’ on the reform policy, despite the great sacrifices the Greek people are shouldering,” he added.

In comments made to Germany’s Neue Osnabrucker Zeitung newspaper, Schaeuble said the issue of war compensations has already been “settled.”

Meanwhile, the German Tagesspiegel newspaper, slammed the Berlin government’s stance on the issue noting that the Nazis did more damage in Greece than in any other country they occupied. The newspaper said that Hitler’s forces were responsible for the death of many men, women and children.

Specifically it said 70,000 Jews were taken to concentration camps, 300,000 suffered frostbite and hunger because the German forces confiscated all food and fuel, 50 percent of Greece’s infrastructure and 75 percent of the country’s industry were totally destroyed.

The issue of war reparations has been a contentious and legally complicated one for decades. Nazi Germany, which occupied Greece from 1941-44, forced Athens to extend it loans and give up gold reserves. There was also the question of the destruction of infrastructure and compensation claims filed by individuals who survived Nazi atrocities. As a result, Greece suffered greatly and unlike every other country Germany went to war with, only Greece has never been paid compensation. [This is not entirely correct. The former U.S.S.R. was never compensated either–D.E.]

Campaigners say the Paris Reparations Agreement of 1946 obliges Germany to pay Greece around billions of Euro.

There has long been a vociferous lobby calling for war reparations from Germany, with the so-called “National Council” calling for more than 500 billion Euros in war reparations (with interests), as well as the forced loan (with interest), but also for other commodities such as stolen art work and the loss of 50pc of economic output over almost four years. . . .

2e. The Greek citizenry is in agreement with that country’s parliament.

“Most Greeks Want Government to Pursue Germany for War Reparations” by Katerina Nikolas; Digital Journal; 4/17/2013. [18]

Eight out of 10 Greeks believe the government should pursue Germany over war reparations, following a classified report by the Greek Finance Ministry indicating the debt stands at €162 billion.

Ekathimerini reported almost 90 percent of Greeks consider damages should be sought. Last week Digital Journal reported leaked details of the classified report commissioned by the Greek government concluded “the outstanding debt is comprised of €108 billion for damage to infrastructure and €54 billion for the forced loans demanded by the Nazis.”

German Finance Minister Wolfgang Schaeuble responded to the issue of war reparations by dismissing the issue as already settled, saying: “I deem that such statements are irresponsible. Instead of misleading the people in Greece it would be better to show them the road to reforms.”

His words drew a strong response from Greek Foreign Minister Dimitris Avramopoulos who stated: “The reforms being carried out in Greece bear no relation – and can bear no relation – to the issue of German reparations. Whether this case has been resolved or not is determined by international justice, given that, by its nature, this issue concerns international law and the international justice organs.”

According to Hellas Frappe (which outlines the details of the reparations due) every single party in the Greek Parliament is in unanimous agreement that Greece should ask Germany to pay back the money owed.

DW [Deutsche Welle] reports German historian Hagen Fleischer argues the issue is not settled but believes Greece should focus on the forced occupation loan, estimated to be €7 billion without interest. Fleischer says that whilst Germany will not allow Greece to set a precedent over reparation demands, the loan should be pursued. . . .

2f. Note that Germany itself defaulted on the bonds it issued to revitalize its economy after World War II.

“Germany Defaults–and Lies about It;” Germany Watch; 4/17/2013.  [20]

. . . . It started in the 1920’s when Germany issued series of bearer bonds in the USA for revitalisation of its economy following the devastating effects of WWI. Acting as trustees, financial institutions such as JP Morgan and Lee Higgins & Co. produced and sold bonds in America raising funds that would be invested in Germany.

These bonds corresponded to Agricultural Loans signed by 14 German banks and guaranteed by the German government. Of these 14 banks four are still active and are part of the troika mechanism.

From 1933, Germany defaulted on interest repayments to Bondholders, as the new Nazi leadership considered the debt that Germany faced following WWI as illegal and issued a moratorium on bonds owed to foreign investors.

In 1953 following years of German debt crisis, the London Debt Agreement restructured Germany’s debt to be sustainable by the agreement of its creditors.

The way this deal would function was to provide the option to the bondholders of German debt, to either accept the repayment terms of the LDA, or to forego attempts to claim their debt until 1993. The rationale being, that you can cash in today from a weak Germany, or wait for a full settlement after 40 years of German growth and development.

Assenting Bondholders: For bondholders who wanted to cash in their bonds immediately, they could receive partial payment, and new bonds, with a discount on the value of their bonds (depending on the issue, between 20% – 60%). For this to be implemented correctly, a procedure of Validation was set up to ensure that anyone presenting bonds for payment, could prove that they were indeed the beneficial owner. This would guarantee that all of the disbursements paid went directly to Germany’s creditors in the correct manor.

Non Assenting Bondholders: For bondholders who chose to wait for full settlement by their next generation in the future, their course of action was to maintain the debt instruments (the bonds) safely, and not request a settlement until the 40-year grace period had expired.

Validation boards were established in the three US states (where the bonds were initially sold) to carry out the compliance requirements for the bondholders who chose to accept the option presented in the LDA. Having performed their role, these boards were subsequently closed a few years later.

By 1993 the German government had succeeded in revitalising its economy and began to respond to requests for payment. Unfortunately, they chose not to honour their debt. To the surprise of many bondholders, Germany would receive payment applications with the physical bonds attached, perforate the bonds, and stamp them as invalid.

The reasons given by the German Government and its subsidiary bodies are: Germany has compiled a list of Bond serial numbers that Germany considers stolen, and hence invalid. The procedure of validation must be complied with.

The German government claims that during WWII Russian soldiers looted the Reichsbank vault, where many bonds were kept, and that these bonds were reintroduced into the market for payment. The simple problem with this claim is that the only bonds that were in the German vault, had already been paid off or pledged, for which there is a public record, and no active bondholders had their bonds physically in Germany. Furthermore, the building which housed the Reichsbank had been completely destroyed, the contents of which had been removed by Germany before the arrival of Russian soldiers to Berlin.

The bonds were “bearer” instruments, and bondholders would cut off the coupons from the papers for their interest repayments. This claim however, was acceptable in the few years immediately following the war, as it was obvious bondholders would not be able to recover their principal or interest at the time, and was the reasons for the Validation Procedure outlined in the London Debt Agreements.

The so-called ‘Validation Procedure’ which was intended to apply to bonds that would be submitted for payment in 1953 added additional security requirements for the bondholder to comply with. Not only was it clear in the legislation that this only applied to Assenting Bondholders in 1953, subsequently indicated by the closure of the Validation boards, but it would be simply impossible for any bondholder to comply with them 40 years later.

When bondholders and creditors have asked to see this list, the German government categorically denied access, stating that it is not in their national interest, and has classified this list as a “national secret”.

What followed was a series of lawsuits in the US where German legal defence has never denied the liability for its debt, but has systematically used technical issues and delayed court cases, to the point that many bondholders have paid millions more in legal expenses. Many of these claims continue today, by some of the surviving bondholders, and the acquirers of that debt, and will be making appeals to the European Courts in the near future.

There is no question in the minds of the many experts in banking and law, with substantial knowledge of international financial instruments, that these bonds represent unpaid debt of the German government and its subsidiary bodies. . . .

3. The details of the agree­ment to which the Greeks are being sub­jected might be politely described as stun­ning. The coun­try is being used as a vehi­cle for shoring up weak­ened Euro­pean financial institutions!

“Scan­dal: Greece to Receive ‘Neg­a­tive Cash’ from ‘Sec­ond Bailout’ as It Funds Insol­vent Euro­pean Banks” by Tyler Dur­den; zerohedge.com; 2/22/2012 [19]

Ear­lier today, we learned the first stun­ner of the Greek “bailout pack­age”, which cour­tesy of some con­vo­luted trans­mis­sion mech­a­nisms would result in some, poten­tially quite many, Greek work­ers actu­ally pay­ing to retain their jobs: i.e., neg­a­tive salaries. Now, hav­ing looked at the Eurogroup’s state­ment on the Greek bailout, we find another very cre­ative use of “neg­a­tive” num­bers. And by cre­ative we mean absolutely shock­ing and scan­dalous. First, as a reminder, even before the cur­rent bailout mech­a­nism was in place, Greece barely saw 20% of any actual fund­ing, with the bulk of the money going to Euro­pean and Greek banks (of which the for­mer ulti­mately also ended up fund­ing the ECB and thus Euro­pean banks). Fur­ther­more, we already know that as part of the lat­est set of con­di­tions of the sec­ond Greek bailout, an’ ‘Escrow Account” would be estab­lished: this is sim­ply a means for Greek cred­i­tors to have a senior claims over any “bailout” cash that is actu­ally dis­bursed for things such as, you know, a Greek bailout, where the money actu­ally trick­les down where it is most needed — the Greek cit­i­zens. Here is where it just got sur­real. It turns out that not only will Greece not see a sin­gle penny from the Sec­ond Greek bailout, whose entire Use of Pro­ceeds will be lim­ited to fund­ing debt inter­est and matu­rity pay­ments, but the coun­try will actu­ally have to fund said escrow! You read that right: the Greek bailout #2 is noth­ing but a Greek-funded bailout of Europe’s insol­vent banks… and the Greek con­sti­tu­tion is about to be changed to reflect this! . . .

4a. Just how acute is the sit­u­a­tion in Greece? So bad that phys­i­cal edu­ca­tion teach­ers are excus­ing chil­dren from par­tic­i­pat­ing due to the fact that mal­nu­tri­tion pre­vents them from exer­cis­ing with­out becom­ing dizzy. These chil­dren may very well expe­ri­ence long-term effects from their “aus­tere” diet.

This is a text­book exam­ple of pol­i­tics as the con­tin­u­a­tion of war by “other means”–applied von Clausewitz.

“Greece on the Bread­line: Chil­dren of Athens too Hun­gry to Do PE” by Jon Hen­ley; The Guardian; 3/13/2012. [22]

. . . It has been a com­mon secret among PE teach­ers for some time now that they don’t expect pupils to do PE any more, because many of them are under­fed and get dizzy. . . .

4b. Statistical analysis of the toll of austerity on the health of the Greek citizenry is staggering.

“Squeeze Dry and Obscure”; german-foreign-policy.com; 12/17/2012. [23]

. . . . A trauma ther­a­pist, fol­low­ing his trip to Athens, has described the social con­se­quences and the total col­lapse of the Greek econ­omy, pro­voked by the Ger­man aus­ter­ity dic­tate. The ther­a­pist pro­vided sup­ple­men­tary train­ing for his Greek col­leagues, which was deemed exceed­ingly nec­es­sary because of the con­se­quences of the cri­sis. In the process, he also became acquainted with the Greek social sit­u­a­tion and since has been com­plain­ing of the “gigan­tic obscu­ran­tist capac­ity” of West­ern Europe, where the aus­ter­ity pol­icy is being con­tin­ued, in spite of the cat­a­strophic sit­u­a­tion in Greece. For exam­ple, “entire res­i­den­tial blocks (…) are deprived of oil deliv­er­ies for finan­cial rea­sons.” Ille­gally felled trees are the sole source of heat­ing. Who­ever must go to the hos­pi­tal, “must bring his own sheets and bed cov­ers, as well as the own food.” “Since the clean­ing per­son­nel was fired, doc­tors, nurses and order­lies, who, for months, have not been paid, are clean­ing the toi­lettes.” The EU is warn­ing of “the dan­ger of an out­break of infec­tious dis­eases because of the dev­as­tat­ing hygienic con­di­tions.” The trauma ther­a­pist reported that “women, in their late preg­nan­cies, have to beg from hos­pi­tal to hos­pi­tal, because, hav­ing nei­ther health insur­ance nor enough money no one wants to help them.” The elderly, whose pen­sions have been cut in half, can­not even afford impor­tant med­i­cine. Since the cri­sis began, the rate of sui­cides, on the other hand, has not been cut in half, it has doubled.[3]

Tremen­dous Rage

Accord­ing to the report, one need be “nei­ther a pes­simist nor an expert, to imag­ine what this means for inter­per­sonal rela­tions” as well as “for the cohe­sion of Greek soci­ety.” Rage against Greek politi­cians and “inter­na­tional pol­icy of finan­cial install­ments flow­ing into bail­ing out the banks, but not the peo­ple,” is “tremen­dous and con­tin­ues to grow.” A soci­ety that can pro­vide at least pro­tec­tion from the worst, would be able to absorb this rage, but Greece no longer has even this pos­si­bil­ity, explains the trauma ther­a­pist. In Greece “the func­tional soci­ety was pro­gres­sively under­mined until it col­lapsed like a dilap­i­dated house,” because “the cri­sis has destroyed the wel­fare state.” Rage is now turn­ing into aggres­sion and vio­lence. As a mat­ter of fact, in tra­di­tion­ally hos­pitable Greece, attacks — par­tic­u­larly against migrants — have suf­fered a vast increase. “The num­ber of vio­lent mobs that attack minori­ties is growing.“[4]

Racist Vio­lence

Human rights orga­ni­za­tions have already been com­plain­ing about this for months. For exam­ple, fol­low­ing the mur­der of an Iraqi refugee in Greece, Amnesty Inter­na­tional dis­cerned a grow­ing fre­quency of racist-motivated attacks.[5] The UN High Com­mis­sion on Refugees reported in Octo­ber that between Jan­u­ary and Sep­tem­ber, alone, 87 xenophobic-motivated attacks had been counted. This is “excep­tion­ally alarm­ing,” par­tic­u­larly in con­sid­er­a­tion of the fact that the actual num­bers are likely to be far higher, since vic­tims were either too scared to report attacks to the police or were turned away, when they did.[6] The repres­sive forces are also using exces­sive force against migrants. In mid-November, the US Embassy in Athens issued a travel warn­ing against a rise in vio­lent attacks against per­sons who, because of their com­plex­ion, are per­ceived to be for­eign migrants.[7] Cer­tain neigh­bor­hoods of Athens are con­sid­ered “no go areas” for migrants.

Plans for a Putsch

In the throes of the cri­sis, the rapid rise of xeno­pho­bia that has over­come Greece is flanked by a just as rapid rise of the extreme right. The neo-Nazi Chrysi Avgi party (“Golden Dawn”), which is par­tic­u­larly known for its vio­lence against migrants, won 18 seats in par­lia­ment in the last elec­tions and — accord­ing to opin­ion polls — could win 12 per­cent today. Last fall, one of their par­lia­men­tar­i­ans declared that the party is wag­ing a “civil war” against migrants and the left. Accord­ing to pub­li­cist, Dim­itris Psar­ras, who, for the past 20 years has been doing research on the Chrysi Avgi, “the esca­la­tion strat­egy (…) has a pri­mary sig­nif­i­cance” for that party. “It is sim­i­lar to the strat­egy of Ital­ian neo-fascists in the 1970s and 80s: esca­late the con­flict on the streets, between the right-wingers and left-wingers — and in the case of Greece, the migrants — to cre­ate a cli­mate of inse­cu­rity, so that a putsch can be jus­ti­fied.” Psar­ras points out that not only the Greek neo-Nazis, but even “seri­ous media organs (…) are spec­u­lat­ing on pos­si­ble plans for a putsch.” He finds, “if the polit­i­cal and eco­nomic sit­u­a­tion becomes even more insta­ble and the soci­ety, more polar­ized, any­thing is possible.“[8]

4c. Greek families can no longer to bury their dead.

“Greek Poverty So Bad Fam­i­lies ‘Can no Longer Afford to Bury their Dead’” by Helena Smith; The Guardian; 10/18/2012. [24]

Vanna Men­daleni is a mid­dle aged Greek woman who until now has not had vehe­ment feel­ings about the cri­sis that has engulfed her coun­try. But that changed when the softly spo­ken under­taker, clos­ing her family-run funeral par­lour, joined thou­sands of pro­test­ers on Thurs­day in a mass out­pour­ing of fury over aus­ter­ity poli­cies that have plunged ever grow­ing num­bers of Greeks into poverty and fear.

“After three years of non-stop taxes and wage cuts it’s got to the point where noth­ing has been left stand­ing,” she said draw­ing on a cig­a­rette. “It’s so bad fam­i­lies can no longer afford to even bury their dead. Bod­ies lie unclaimed at pub­lic hos­pi­tals so that the local munic­i­pal­ity can bury them.” . . .

4d. The toll on the health of the Greek citizenry stems from the fact that the requirements for Greek health expenditures are being calculated as an abstract budgetary requirement, rather than as what is actually needed to sustain the health of the Greek population.“Aus­ter­ity Kills”; german-foreign-policy.com; 7/25/2013. [36]

The reor­ga­ni­za­tion of the Greece’s health sys­tem, under Ger­man direc­tion, is advanc­ing. “A final timetable is to be pre­sented in the sec­ond half of this year,” declared the Ger­man Health Min­istry (BMG). The Ger­man gov­ern­ment sees deficits also in the lack of an “effec­tive cost man­age­ment,” but most of all in the lack of “com­pet­i­tive ele­ments.” In a “Mem­o­ran­dum of Under­stand­ing” (MoU), the BMG and the Task Force for Greece (TFGR) have reached an agree­ment with the Greek gov­ern­ment on the intro­duc­tion of the highly crit­i­cized German-modeled so-called case flat-rates. The crit­i­cisms stem from the fact that patients are not being treated in response to their med­ical needs but on the basis of eco­nomic effi­ciency. The mas­sive con­se­quences the aus­ter­ity mea­sures are hav­ing on the pub­lic health in Greece are becom­ing more evi­dent. A grow­ing num­ber of Greek cit­i­zens are los­ing their health insur­ance, due to unem­ploy­ment and there­fore must pay med­ical costs them­selves. The short­age of med­ical aid, for exam­ple, has caused an increase of 40 per­cent in the child mor­tal­ity rate since 2009. Dis­eases such as malaria or AIDS are spread­ing more rapidly. The Ger­man gov­ern­ment con­tin­ues to insist on its aus­ter­ity course in spite of these ramifications.

Within the frame­work of the EU aus­ter­ity dic­tates, Ger­many took the lead in the reor­ga­ni­za­tion of the Greek health sys­tem back in March 2010. “The Ger­man Min­istry of Health is in sup­port of the Greek government’s mea­sures to increase the effi­ciency and effec­tive­ness of long-term health care, by sub­stan­tial and effec­tive trans­for­ma­tions in the orga­ni­za­tion of its health sys­tem,” declared the State Sec­re­tary in the Min­istry of Health, Ste­fan Kapferer in Feb­ru­ary 2011, on the occa­sion of the sign­ing of the cor­re­spond­ing “Dec­la­ra­tion of Intent.” [1] The con­crete mea­sures had been spec­i­fied by the Ger­man Min­istry of Health and the Task Force for Greece (TFGR) in the April 2012 “Mem­o­ran­dum of Under­stand­ing” (MoU) with the Greek gov­ern­ment. These mea­sures include the intro­duc­tion of case flat-rates, a change in hos­pi­tal man­age­ment struc­tures, the reor­ga­ni­za­tion of the National Orga­ni­za­tion for Health­care Pro­vi­sion insur­ance (EOPYY) and new pric­ing mod­els for med­i­cine. The Ger­man GIZ devel­op­ment aid agency was given the respon­si­bil­ity of the final elab­o­ra­tion of these plans, which thereby opens “new mar­kets in indus­tri­al­ized coun­tries.” .. . .

. . . . These pro­posed trans­for­ma­tions are being imple­mented within the frame­work of the aus­ter­ity mea­sures being enforced by Berlin. Accord­ing to the stip­u­la­tions handed down by the Troika, Greece’s health expen­di­tures should not sur­pass six per­cent of the country’s gross national prod­uct — in Ger­many these expen­di­tures were at 11.3 per­cent in 2011. Since, as a result of the aus­ter­ity pol­icy imposed on that coun­try, the Greek GNP has been on the decline for years, the expen­di­tures for the health sys­tem are sink­ing dras­ti­cally. By 2012, these expen­di­tures were reduced to around 9.5 bil­lion Euros, from 14 bil­lion Euros in 2009.[5] The Greek gov­ern­ment has already shut down 46 of its 130 hos­pi­tals and cut the bud­get by 40 per­cent for those remain­ing. This has added thou­sands more to the unem­ployed cre­ated by the dev­as­ta­tion of the health sec­tor. . . .

. . . . Dr. Gior­gos Vichas, speaks of a “human­i­tar­ian crisis.“[7] Since 2008, the child mor­tal­ity rate has risen by 40 per­cent. The num­ber of HIV pos­i­tive drug users has risen from 10 — 15 in 2007 to 314 in the first eight months of 2012 alone — mainly due to the dras­tic cut­backs in pre­ven­tive pro­grams. Malaria and tuber­cu­lo­sis, the West Nile and dengue fevers are con­tin­u­ing to spread. . . .

. . . . “The inter­ac­tion between aus­ter­ity pol­icy, eco­nomic shock treat­ments and defi­cient social pro­tec­tive mea­sures seems to ulti­mately lead to an esca­la­tion of the health and social crises in Europe,” con­cluded a study by sev­eral schol­ars pub­lished in the renowned “The Lancet” med­ical journal,[8] Epi­demi­ol­o­gists, David Stuck­ler and San­jay Basu drew the same con­clu­sion in their book “The Body Eco­nomic — Why Aus­ter­ity Kills.” . . .

6. Charging that Germany deliberately exaggerated analysis of the Greek debt, Zoe Georganta noted that Greece was experiencing “a new kind of occupation by the Germans.”

“Greece Revamps Sta­tis­tics Ser­vice Board after Row” by George Geor­giopou­los; Reuters; 9/16/2011. [21]

Greece said on Fri­day it would replace the board of its inde­pen­dent sta­tis­tics ser­vice (ELSTAT) after two mem­bers resigned and another was quoted as alleg­ing that 2009 deficit data had been arti­fi­cially inflated.

It said ELSTAT chief Andreas Geor­giou would keep his post.

The upward revi­sion of Greece’s bud­get deficit in 2009 to 15.4 per­cent of gross domes­tic prod­uct exposed the scale of the country’s fis­cal derail­ment and sped up the debt cri­sis which is still rock­ing the euro zone.

“The 2009 deficit was arti­fi­cially inflated to show that the coun­try had the biggest fis­cal short­fall in all of Europe, even higher than Ireland’s which was 14 per­cent,” ELSTAT board mem­ber Zoe Geor­ganta was quoted as say­ing by the Eleft­herotypia news­pa­per. Geor­ganta said the inclu­sion of a num­ber of util­i­ties under the gen­eral gov­ern­ment inflated the deficit. She said this had not been han­dled accord­ing to Euro­stat guide­lines and that the chair­man rejected the board’s objections.

“We have a new kind of occu­pa­tion in Europe by the Ger­mans,” Geor­ganta told Real FM radio, adding that Ger­man offi­cials at Euro­stat put pres­sure on the gov­ern­ment to inflate the 2009 deficit to jus­tify harsh aus­ter­ity measures. . . .

8a. The program reviews the European Monetary Union as the realization of the theories of Pan-German theoretician Friedrich List.

Writing in 1943, Paul Winkler foresaw that the Prusso-Teutonics would realize their goals through the creation of a German-dominated central European economic union (bearing a striking resemblance to today’s European Monetary Union.) One of the principal influences on List’s thinking was the “continental” concept of Napoleon, who attempted to economically unite Europe under French influence.

The Thousand-Year Conspiracy; by Paul Winkler; Charles Scribner’s Sons [HC]; 1943; pp. 15-16. [25]

Charles Andler, a French author, summed up certain ideas of List in his work, The Origins of Pan-Germanism, (published in 1915.) ‘It is necessary to organize continental Europe against England. Napoleon I, a great strategist, also knew the methods of economic hegemony. His continental system, which met with opposition even from countries which might have profited from such an arrangement should be revived, but, this time, not as an instrument of Napoleonic domination. The idea of united Europe in a closed trade bloc is no longer shocking if Germany assumes domination over such a bloc—and not France. [Emphasis added.] Belgium, Holland, Switzerland, willingly or by force, will enter this ‘Customs Federation.’ Austria is assumed to be won over at the outset. Even France, if she gets rid of her notions of military conquest, will not be excluded. The first steps the Confederation would take to assure unity of thought and action would be to establish a joint representative body, as well as to organize a common fleet. But of course, both the headquarters of the Federation and its parliamentary seat would be in Germany. [Emphasis added.]”

8b. List’s doctrine was in full swing during Germany’s prosecution of the First World War:

“WW1 Cen­te­nary — His­tor­i­cal Revi­sion In British Gov­ern­ment Cir­cles”; Ger­many Watch; 6/11/2013. [26]

. . . . This is a direct trans­la­tion of [Ger­man Chan­cel­lor] Bethman-Hollweg’s inter­nal memo on Germany’s war aims, from Sep­tem­ber 1914. . . .

“. . . . We must cre­ate a cen­tral Euro­pean eco­nomic asso­ci­a­tion through com­mon cus­toms treaties, to include France, Bel­gium, Hol­land, Den­mark, Austria-Hungary, Poland and per­haps Italy, Swe­den and Nor­way. This asso­ci­a­tion will not have any com­mon con­sti­tu­tional supreme author­ity and all its mem­bers will be for­mally equal, but in prac­tice will be under Ger­man lead­er­ship and must sta­bi­lize Germany’s eco­nomic dom­i­nance over ‘Mid­dle Europe’ . . .”

9a. The Listian model was put into effect by the Third Reich, as can be gleaned by read­ing Dorothy Thompson’s analy­sis of Germany’s plans for world dom­i­nance by a cen­tral­ized Euro­pean eco­nomic union. Ms. Thomp­son was writ­ing in The New York Her­ald Tri­bune [37] on May 31, 1940! Her com­ments are repro­duced by Tetens on page 92.

Germany Plots with the Kremlin; T.H. Tetens; Henry Schuman [HC]; 1953; p. 92. [27]

. . . . The Ger­mans have a clear plan of what they intend to do in case of vic­tory. I believe that I know the essen­tial details of that plan. I have heard it from a suf­fi­cient num­ber of impor­tant Ger­mans to credit its authen­tic­ity . . . Germany’s plan is to make a cus­toms union of Europe, with com­plete finan­cial and eco­nomic con­trol cen­tered in Berlin. This will cre­ate at once the largest free trade area and the largest planned econ­omy in the world. In West­ern Europe alone . . . there will be an eco­nomic unity of 400 mil­lion per­sons . . . To these will be added the resources of the British, French, Dutch and Bel­gian empires. These will be pooled in the name of Europa Germanica . . .

“The Ger­mans count upon polit­i­cal power fol­low­ing eco­nomic power, and not vice versa. Ter­ri­to­r­ial changes do not con­cern them, because there will be no ‘France’ or ‘Eng­land,’ except as lan­guage groups. Lit­tle imme­di­ate con­cern is felt regard­ing polit­i­cal orga­ni­za­tions . . . . No nation will have the con­trol of its own finan­cial or eco­nomic sys­tem or of its cus­toms. [Italics are mine–D.E.] The Naz­i­fi­ca­tion of all coun­tries will be accom­plished by eco­nomic pres­sure. In all coun­tries, con­tacts have been estab­lished long ago with sym­pa­thetic busi­ness­men and indus­tri­al­ists . . . . As far as the United States is con­cerned, the plan­ners of the World Ger­man­ica laugh off the idea of any armed inva­sion. They say that it will be com­pletely unnec­es­sary to take mil­i­tary action against the United States to force it to play ball with this sys­tem. . . . Here, as in every other coun­try, they have estab­lished rela­tions with numer­ous indus­tries and com­mer­cial orga­ni­za­tions, to whom they will offer advan­tages in co-operation with Germany. . . .

9b. The European Economic Community was formally articulated by Reich officials during the war, with the clear design to extend and amplify the arrangement after the war. Below, we quote Gustave Koenigs, Secretary of State at a 1942 conference about the European Economic Community.

Europaische Wirtschafts Gemeinschaft (European Economic Community–translation). [28]

. . . At the moment the so-called “European Economic Community” is not yet fact; there is no pact, no organisation, no council and no General Secretary. However, it is not just a part of our imagination or some dream by a politician – it is very real. . . .

. . .  Its roots are in the economic co-operation of the European nations and it will develop after the war into a permanent European economic community. . . .

9c. A  captured German document from April of 1945–a few weeks before the end of World War II–that very succinctly lays out the plans for postwar Europe.

Germany Plots with the Kremlin; T.H. Tetens; Henry Schuman [HC]; 1953; p. 240. [27]

Document II


1. Liberation of the German people from suppression and occupation.

2. Repatration of the expellees (Heimholung der Verschleppten) [These are the vertriebene groups and the German ministry for Expellees–D.E.]

3. An integral German racial community.

4. Elimination of all arbitrary acts by the enemy.

5. European Union on a federalistic basis. [That IS the EU–D.E.]

6. Right to racial autonomy. [Note that, in the most recent German election, Polish citizens of German extraction were allowed to vote–D.E..]

7. European Common-Weal (“Gemeinnutz”).

8. European Court of Arbitration [The ICC is funded by Germany and is essentially a realization of this!–D.E.]

9. Community of related peoples with the final aim to create a Germanic Reich.

10. Common-wealth between Germany and Bohemia and Moravia.

11. Guaranteed protection of racial groups (“Volksgruppen-recht”).

12. Economic integration of Europe. [That is the EMU–D.E.]


10. As noted in the remark­able piece repro­duced in its entirety below, the pro­gram Deutsch­land is impos­ing on Europe under­mines the secu­rity of any wealth invested in the afflicted nations. Any­one or any­thing fool­ish enough to invest in Europe should be pre­pared to have their assets appro­pri­ated and/or negated at some point.

In addi­tion, one should not lose sight of the fact that the “Final Solu­tion to the Greek and Cypriot Crises” [38] will, like pre­vi­ous, super­fi­cial steps to resolve the cri­sis, keep the Euro weak, benefiting Germany’s export-driven economy.

One won­ders how much expo­sure U.S. banks have to Euro­pean finan­cial insti­tu­tions. If the fears of a con­ta­gion of bank runs and cap­i­tal flight destroys banks in the weaker Euro­zone coun­tries, how will that affect Amer­i­can lenders?

The “Europa Ger­man­ica” is delib­er­ate and, to any hon­est ana­lyst famil­iar with the his­tor­i­cal record, preconceived.

The post below also notes the rel­a­tive eco­nomic weak­ness of Ger­many itself. Suf­fice it to say that most Ger­mans have not shared in the largesse of the past decade, although they have been spared the trauma vis­ited upon other Euro­pean cit­i­zens. They are exceed­ingly vul­ner­a­ble to the pro­pa­ganda of their own media establishment.

“The Mind­set” by Mark J. Grant [Author of Out of the Box] and Tyler Dur­den; Zero Hedge; 3/26/2013. [29]

In all of the tor­tu­ous moments that have taken place with the Euro­pean Union the one thing that has become appar­ent is a rad­i­cal change of mind­set. In the begin­ning there was a kind of demo­c­ra­tic view­point. All nations had a voice and while some were louder than oth­ers; all were heard. This is no longer the case.
There is but one mind­set now and it is decid­edly Ger­man. It is not that this is good or bad or even some­place in between. That is not the real issue. The crux of the mat­ter is that not all of the peo­ple in the EU are Ger­mans and so they are not used to being treated in the Ger­man fash­ion, they do not live their lives like Ger­mans and, quite impor­tantly, they do not wish to be Germans.

There is the problem.

The Ger­mans will do what is nec­es­sary to accom­plish their goals. There is noth­ing inher­ently bad or evil about this but it is tak­ing its toll on many nations in Europe. In the case of Greece they went back and retroac­tively changed the covenants of the bond con­tract. They did not actu­ally admit this of course and they called it other names but that is what they forced on Greece. In doing so they got the bond hold­ers to shoul­der a good deal of the expense of the bailout of Greece. You can say, “Right,” you can say, “Wrong,” but that is what they did. They accom­plished their goal.

Always remem­ber that the Ger­mans are under severe finan­cial pres­sure. They are still pay­ing the bill for the East Ger­mans. They sup­port Target2 and their econ­omy is just $3.6 tril­lion which is a frac­tion of the entire Euro­zone. They are try­ing to sup­port a house with less than desir­able supports.

Then we come to Cyprus and they make it com­pli­cated and put one bank with another bank and take money from depos­i­tors and call it a “Tax” and say that peo­ple and insti­tu­tions are liable for where they keep their money when it is more than 100M Euros. All true of course but they do not allow for any “Rule of Law” or “Due Process” by the judi­cial sys­tem but just man­date that the money will be used to help pay Europe for a loan to the sov­er­eign gov­ern­ment. Then they also tagged senior bond hold­ers revers­ing their posi­tion of the last years so now, so that it can now be said with accu­racy; every­one is at risk. Con­se­quently they have to pay less and they have accom­plished sev­eral goals which are to pun­ish a “Casino Econ­omy,” to put Cyprus in the same posi­tion as Greece, which is not only bank­rupt but a ward of the Euro­pean Union, and finally to insist, by the use of money, that Cyprus suc­cumbs to the Ger­man demands. Note that CDS in Europe (Markit iTraxx Finan­cial Index) has jumped 22% in just one week.

It is the occu­pa­tion of Poland in a very real sense just accom­plished with­out tanks or blood­shed as money is used instead of arma­ments to dom­i­nate and con­trol a nation. Polit­i­cally you may “Hiss” or you may “Applaud” but there are con­se­quences here for investors that must be understood.

First and fore­most is that they will not stop. Noth­ing will be allowed to get in their way. It can be senior bond hold­ers one day, bank depos­i­tors the next, the dis­man­tling of some Par­lia­ment on the day after that, a wealth tax on cor­po­ra­tions on Thurs­day, the dis­al­lowance of div­i­dends on Fri­day; with every announce­ment to come on Sat­ur­day evening. The next week can be a cap on bank bonuses, a demand that the cap on bank bonus sav­ings be returned to the State, a finan­cial trans­ac­tion tax that gets expanded and taxes all bond coupons and the list goes on.What might be, could be, and noth­ing, absolutely noth­ing, will be allowed between Ger­many and her desire to con­trol all of Europe.

I do not speak of moti­va­tion here. I am not bash­ing Ger­many in the fur­ther­ance of their desires. That is a use­less and unnec­es­sary exer­cise. How­ever, what is pro­foundly nec­es­sary, if you invest in Europe, is to under­stand the risks that you are tak­ing. If you place money in secu­ri­ties on the Con­ti­nent then what is yours is theirs when they want it. I sug­gest you clearly under­stand that propo­si­tion and allow for that occurrence.

You no longer have any excuse after Greece and Cyprus. Every­thing may be called “one-off” but noth­ing is “one-off” as Ger­many expands its power wher­ever they can and by any means nec­es­sary. If you believe the pro­pa­ganda, if you believe what you are told every day by the Press then I can vir­tu­ally assure you that you will suf­fer dire con­se­quences at some point and you will now have no one to blame but yourself.

There is also one “unin­tended con­se­quence” of Cyprus and Greece. No one is going to invest in the local banks. Keep­ing money in the Ger­man banks, the Swiss banks or maybe even the French banks may go on but the local banks in each coun­try are fin­ished. In a clever move, the prob­lems with Greece and Cyprus will drive the money from the local bank­ing insti­tu­tions in the trou­bled coun­tries. Watch for cap­i­tal flights in Spain, Por­tu­gal and Italy as their banks will be found unsafe and with good reason.

It is unknown, as of yet, if Ger­many can win this game. What can be said though is that, nation or investor, you will put your­self at peril by get­ting in their way. The cur­rent risks, in my opin­ion, are dra­mat­i­cally more than imag­ined by many or gen­er­ally thought to be the case. There is no more invest­ing in Europe just gam­bling and spec­u­lat­ing and suf­fer­ing the con­se­quence of either. Any­thing can be changed, any­thing can be mod­i­fied, and when the for­fei­ture of people’s sav­ings is trum­peted as a “Tax” then even the Eng­lish lan­guage has lost some of its meaning.

“Bet­ter to be safe than sorry,” has never had such impor­tant con­se­quences as it does now in the Euro­pean arena of the Great Game.

11. For those who con­sider our analy­sis to be extreme and man­i­fest­ing hyper­bole, we present a dev­as­tat­ing cri­tique of Ger­man EMU pol­icy vis a vis the periph­eral economies of the euro­zone. Dis­cussing Cyprus as exem­plary of Ger­man method­ol­ogy and intent, Christo­pher T. Mahoney couches his cri­tique in alto­gether unam­bigu­ous language.

Mahoney is a for­mer Vice Chair­man of Moody’s! In the arti­cle below, he sounds very much like–well–Dave Emory!

“Cyprus: Vic­tim Of Ger­man Colo­nial­ism” by Christo­pher T. Mahoney; Project Syn­di­cate; 7/26/2013. [30]

ENTIRE TEXT: “We antic­i­pate the bank­ing res­o­lu­tion mech­a­nism for the Cypriot bank­ing sec­tor to result in a sig­nif­i­cant down­siz­ing of banks’ activ­i­ties and there­fore to severely affect the eco­nomic per­for­mance of the island from 2013 onwards. We expect an accel­er­a­tion in the con­trac­tion of the Cypriot econ­omy in 2013, with a neg­a­tive real growth rate in the low double-digits and no return to pos­i­tive growth before 2016. Our view is fur­ther sup­ported by the neg­a­tive feed­back loop that expen­di­ture cuts may have on the econ­omy given the impor­tance of pub­lic ser­vices, hence poten­tially chal­leng­ing future con­sen­sus on fis­cal strat­egy. We note that large uncer­tain­ties remain regard­ing the mag­ni­tude of fur­ther recap­i­tal­iza­tion needs for the finan­cial sec­tor given the expected sharp dete­ri­o­ra­tion in the oper­at­ing envi­ron­ment which will erode asset qual­ity, as well as the behav­ioural responses of all eco­nomic actors to the shocks expe­ri­enced by the finan­cial sec­tor (includ­ing risks of finan­cial dis­rup­tion related to the tim­ing and approach for lift­ing of cap­i­tal con­trols). In light of all the down­side risks and the lim­ited num­ber of upsides, we view Cyprus as likely to default again in the com­ing years, as reflected by the rat­ing level and neg­a­tive out­look. Although it is not its cen­tral sce­nario, Moody’s also sees a mate­r­ial risk of a Cypriot exit from the euro area which is cap­tured in the Caa2 coun­try ceil­ing. As a result of the imme­di­ate down­siz­ing of the bank­ing sec­tor and the expected spillovers to rest of the econ­omy, espe­cially in terms of weak­ened con­sumer and investor con­fi­dence, we fore­cast that the econ­omy will con­tract by 12% this year and another 6.4% next year.”

–Moody’s, 15 July 2013

The pur­pose of EMU is to reduce the occu­pied states to penury in order to make them more like Ger­many, or Ethiopia. Ulti­mately the ques­tion is is: how low can per capita income decline until “Europe” becomes a dirty word, and “lib­erty” becomes the pop­u­lar desider­a­tum. Cyprus is the lab­o­ra­tory of this exper­i­ment, along with Greece and Por­tu­gal. Here is the exper­i­ment: How many peo­ple must eat out of garbage cans before the euro elites under­stand that EMU is destroy­ing lives?

It must be pleas­ing to be ingest­ing a nice Brus­sels din­ner while dis­cussing how sub­hu­man the Cypri­ots are, and how they must be “taught a valu­able les­son”. That was how Stalin felt about the “rich peas­ants” of the Ukraine: sur­plus empty mouths to feed. Wouldn’t the world be a bet­ter place with­out so many peasants?

Per­haps, in a per­fect world, Cypri­ots wouldn’t exist, like the kulaks and the Crimean Tatars. All Cypri­ots do is enable Russ­ian plu­to­crats. Why should they exist? Liq­ui­date them. Indeed, liq­ui­date all of the par­a­site states of the Eurozone.

So we now know that the pur­pose of EMU is not to enrich the vas­sal states, but to occupy them and to make them penu­ri­ous colonies of the hege­mon. Periph­eral Europe is Germany’s Latin Amer­ica. But there is a cru­cial dif­fer­ence: the US has not forced its Latin Amer­i­can colonies to join the dol­lar zone. Latin Amer­ica, despite its colo­nial sta­tus, retains mon­e­tary sov­er­eignty. Aside from the Bol­she­vik lab­o­ra­to­ries of Argentina and Venezuela, Latin Amer­ica is out­per­form­ing its colo­nial par­ents. Por­tu­gal and Spain should have mon­e­tary union with Brazil and Mex­ico, instead of Fin­land and Germany.

What Ger­many is doing to Cyprus is a crime.

12a.  A very omi­nous pro­posal has been floated by the Greek gov­ern­ment [39]. (See text excerpts below.) Not only does it sug­gest the pos­si­bil­ity that the stag­ger­ing unem­ploy­ment rate among Greek youth be solved by “unpaid” employ­ment, [39] but floats the pos­si­bil­ity that job­less young peo­ple be shipped abroad!

We won­der to where they will be shipped? What are they sup­posed to do when they get there?

All is not well in the “Cra­dle of Democracy!”

“Europe’s Mod­est Pro­posal To End Unem­ploy­ment: Slav­ery” by Tyler Dur­den; zerohedge.com; 1/24/2014. [31]

EXCERPT: Hav­ing spent weeks talk­ing amongst them­selves about the chronic and dan­ger­ous rise of youth unem­ploy­ment in Europe (as we warned here), the Cen­ter of Plan­ning and Eco­nomic Research in Greece has pro­posed a con­tro­ver­sial mea­sure. As GreekRe­porter reports, the mea­sure includes unpaid work for the young and unem­ployed up to 24 years old, so that com­pa­nies would have a strong motive to hire young employees.

“Unpaid” work sounds a lot like slav­ery to us… but it gets bet­ter; the report also sug­gested “export­ing young unem­ployed persons.”

“Cen­tre of Plan­ning and Eco­nomic Research in Greece has pro­posed a con­tro­ver­sial mea­sure in order to deal with the prob­lem of increas­ing unem­ploy­ment in the country.

The mea­sure includes unpaid work for the young and unem­ployed up to 24 years old, so that com­pa­nies would have a strong motive to hire young employ­ees. Prac­ti­cally, what is pro­posed is the abo­li­tion of the basic salary for a year. At the same time the “export” of young unem­ployed per­sons was also pro­posed to other coun­tries abroad, as Greek busi­nesses do not appear able to hire new per­son­nel.“

Whether it’s Europe in the 1930’s or the US dur­ing the same period (con­flicts between strik­ers, the National Guard and armed mili­tias), unem­ploy­ment can cre­ate a pow­er­ful cock­tail of unrest. But turn­ing your nation’s young into slaves does not seem like a good solu­tion to us. . . .

12b. More about the proposal for de facto slavery for Greek youth:

“Con­tro­ver­sial Pro­posal for Tack­ling Unem­ploy­ment” by Niko­leta Kalmouki; Greek Reporter; 1/24/2014. [39]

EXCERPT: Cen­tre of Plan­ning and Eco­nomic Research in Greece has pro­posed a con­tro­ver­sial mea­sure in order to deal with the prob­lem of increas­ing unem­ploy­ment in the country.

The mea­sure includes unpaid work for the young and unem­ployed up to 24 years old, so that com­pa­nies would have a strong motive to hire young employ­ees. Prac­ti­cally, what is pro­posed is the abo­li­tion of the basic salary for a year. At the same time the “export” of young unem­ployed per­sons was also pro­posed to other coun­tries abroad, as Greek busi­nesses do not appear able to hire new personnel.

Accord­ing to the National Con­fed­er­a­tion of Hel­lenic Com­merce, unem­ploy­ment espe­cially hits the ages between 15–24. The unem­ploy­ment rate in Greece stands at 24.6% while 57.2% of young peo­ple are with­out a job. The major­ity of the unem­ployed (71%) have had no work for 12 months or more, while 23.3 % of the total have never worked. There were 3,635,905 peo­ple employed and 1,345,387 unemployed. . . .

13. Boding ill for Greek citizens, former LAOS party member and dedicated fascist Makis Voridis has been appointed Health Minister.

“Yacht Apps and Anti-Semitic Min­is­ters in the Birth­place of Democracy” by Mark Ames; Pando Daily; 6/15/2014. [32]

Good and bad eco­nom­ics news out of the birth­place of democracy.

The good news: Accord­ing to the Wall Street Jour­nal, Greece is see­ing a boom in tech star­tups. Of course, that boom starts from a very low num­ber, as the Jour­nal reports [40]:

“there were 144 star­tups in Greece in 2013, up from just 16 in 2010. The money invested in them has climbed to €42 mil­lion ($57 mil­lion), com­pared with just €500,000 three years ago.”

Most of the fund­ing is geared towards ser­vic­ing the sec­tor of Greece that hasn’t been ruined by the past few years of EU-imposed aus­ter­ity, which rules out a large per­cent­age of under-35s, the pre­sumed Inter­net gen­er­a­tion. The unem­ploy­ment rate for young Greeks aged 15–24 is 58.3%, while for 25–34 year old Greeks, the unem­ploy­ment rate is 35.5%. Excit­ing new Greek star­tups attract­ing out­side VC cap­i­tal, like incred­i­blue [41]— an online yacht book­ing ser­vice — and Tax­ibeat [42], a mobile taxi­cab hail­ing app — aren’t going to be much use to them.

Still, Greece’s “boom­ing” tech sec­tor is the good news.

Now, the bad news: Greece’s pro-EU rul­ing con­ser­v­a­tive party, the New Democ­rats, just named an actual neo-Nazi [43], Makis “The Ham­mer” Voridis, as Greece’s new Health Min­is­ter [43]Jew­ish groups are outraged [44] over the news that Voridis—a long­time neo-fascist [45] activist and anti-Semite [43] who has pub­licly pro­moted the Pro­to­cols of the Elders of Zion as wor­thy of schol­ar­ship, and doubted the authen­tic­ity of the Diary of Anne Frank—is serv­ing as a promi­nent min­is­ter in the rul­ing party’s cab­i­net, in charge of an impor­tant min­istry at a time when Greece has been gutting [46] its health care bud­gets, caus­ing wide­spread misery.

I wrote about Voridis in Novem­ber 2011 [47], because I was shocked that a gov­ern­ment coali­tion essen­tially imposed on Greece by the EU and West­ern cred­i­tors would demand that the allegedly tech­no­cratic [48] “aus­ter­ity coali­tion” included mem­bers of Greece’s anti-Semitic, neo-fascist LAOS party [49]Includ­ing Makis “The Ham­mer” Voridis [50], who served as min­is­ter of infra­struc­ture and trans­port [51].

I call him “The Ham­mer” because photographs [52] sur­faced show­ing Voridis as a Uni­ver­sity of Athens law stu­dent, car­ry­ing a makeshift stone ham­mer in hand which he used to bash sus­pected left­wing stu­dents with. That was in 1985, when Voridis was in a fas­cist group called “Stu­dent Alter­na­tive” which sup­ported Greece’s bloody mil­i­tary coup [53] and mil­i­tary junta that ruled from 1967–1974 [53].

Voridis was expelled from law school for club­bing left­ist stu­dents, and went on to Big Things in the world of neo-fascist Greek pol­i­tics. In 1994, he founded the far-right Hel­lenic Front, which in 2004 formed a coali­tion with a self-described Nazi, Kon­stan­ti­nos Plevris [54], who openly advo­cated for the exter­mi­na­tion of Greece’s remain­ing Jews. In 2005, Voridis merged his party into the LAOS party, whose leader, Geor­gios Karatzaferis, pub­licly mocked Auschwitz and Dachau death camps as “myths,” blamed Jews for 9/11 dur­ing a speech in par­lia­ment, and said “the Jews have no legit­i­macy to speak in Greece.”

In late 2011, as Greece pol­i­tics col­lapsed under the weight of its debts and the harsh EU-imposed aus­ter­ity mea­sures, the EU imposed a new “aus­ter­ity” gov­ern­ment that included “The Ham­mer” Voridis and other mem­bers of the neo-fascist LAOS party. The aus­ter­ity gov­ern­ment ran Greece until new elec­tions were called in mid-2012. In those interim months, the aus­ter­ity coali­tion pushed through rad­i­cal aus­ter­ity mea­sures that caused LAOS’ fas­cist vot­ers to desert them for an even more vio­lent, more extreme neo-Nazi party, the Golden Dawn Party. One would’ve thought that’d be the end of Makis Voridis.

But Voridis is one of the slyer fas­cists. He joined the aus­ter­ity cab­i­net and served from Novem­ber 2011 through June 2012. In the June 2012 elec­tions, after LAOS was oblit­er­ated for par­tic­i­pat­ing in the aus­ter­ity gov­ern­ment, Voridis aban­doned LAOS and joined the new rul­ing party that won the elec­tions, the respectable right-wing New Democ­racy party.

And now New Democ­racy is pay­ing back the favor to their favorite aus­ter­ity fascist.