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“The Mindset”: Growing Number of Investment and Economic Analysts Grasping Reality of Eurozone Crisis

[1]

The Teu­ton­ic “Hair­cut”

Dave Emory’s entire life­time of work is avail­able on a flash dri­ve that can be obtained here. [2] (The flash dri­ve includes the anti-fas­cist books avail­able on this site.)

COMMENT: As “Europa Ger­man­i­ca” takes form and addi­tion­al sub­stance, the real­i­ty  of what Ger­many is doing is being rec­og­nized by a grow­ing num­ber of ana­lysts.

This is not to say that they are con­ver­sant with the fun­da­men­tal real­i­ties dis­cussed here–the Bor­mann cap­i­tal net­work [3], the pro­gram the­o­rized by Friedrich List [4], the Third Reich’s man­i­fes­ta­tion of List’s the­o­ries [5], the Third Reich’s plans to go under­ground [6], the West­ern Allies’ nega­tion of the de-Naz­i­fi­ca­tion edict [7] for post­war Ger­many, the Webb-Pomerene Act and the World Com­merce Cor­po­ra­tion [8], the the­o­ries of Carl von Clause­witz [9]–but they are grasp­ing the extent to which the Ger­man polit­i­cal and eco­nom­ic agen­da is bad for busi­ness.

Ger­man’s pow­er elite cer­tain­ly does not believe in col­lec­tive own­er­ship of the means of production–they believe in  Ger­man con­trol of the means of pro­duc­tion. Once termed “Nation­al Social­ism,” it might be labeled “monop­oly (or “car­tel”) impe­ri­al­ism.”

Their adher­ence to the bru­tal, thor­ough­ly dis­cred­it­ed “aus­ter­i­ty” doc­trine should be seen as what it is–waging war “by oth­er means,” as von Clause­witz put it. The post below has not­ed that: 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.” 

To those who might view this as an extreme analy­sis, recall that the fas­cist LAOS par­ty was installed in late 2011 [10] as part of the pro­vi­sion­al gov­ern­ment in Greece, installed by “the troi­ka” (read Ger­many) with no input what­so­ev­er from the Greek peo­ple.

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” [11] 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. 

Kudos to “SWAMP” for research­ing this one for us. The post is repro­duced in its entire­ty here, with empha­sis added.

“The Mind­set” by Mark J. Grant [Author of Out of the Box] and Tyler Dur­den; Zero Hedge; 3/26/2013. [12]

EXCERPT: 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.