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Update on the EMU/Euro as Vehicle for Conquering Europe, World

[1]

Greeks protest­ing the EMU

COMMENT: We believe very strong­ly in what we are doing here. Nonethe­less, it gets (exple­tive delet­ed) frus­trat­ing at times. We sure wish more folks would take to heart what we do here.

We sure wish more of you would post links to this  mate­r­i­al on oth­er websites/chat groups.

One who clear­ly gets it is the vig­i­lant “Pter­rafractyl”, who alerts us to the two sto­ries below.

We have not­ed many times in the past that the Euro/EMU is the real­iza­tion of a Ger­man blue­print [2] for con­quer­ing first Europe and then the world.

It is appar­ent from the Bloomberg News arti­cle below that, as far as Europe is con­cerned, “Mis­sion  Accom­plished.”

With Amer­i­can banks poten­tial­ly vul­ner­a­ble to a Euro­pean bank­ing cri­sis, we may see the U.S. econ­o­my brought down in time to see “ver­MIT­Tler” Rom­ney [3] installed as U.S. Pres­i­dent. (Although such a bank­ing cri­sis would not be Oba­ma’s fault, the dam­age to the U.S. econ­o­my from fail­ing Euro­pean banks will inevitably be blamed on the incum­bent. This  elec­tion, already shap­ing up to be much clos­er than it should be, will be decid­ed by the econ­o­my.)

You can bet that the “Occu­py” move­ment [4], already man­i­fest­ing the agent-prova­ca­teur, street jack­ass char­ac­ter­is­tics that I fore­cast at its birth last fall, will help to heap the blame on Oba­ma. (“Occu­py Wall  Street,” [5]like  Wik­iLeaks [6],  like the  “Arab Spring,” [7] like Amer­i­cans Elect [8], like the Naderoids of 2000 [9], are, basi­cal­ly far-right wing/Underground Reich/intelligence oper­a­tions dressed up to look like “pro­gres­sive” move­ments.)

“As Euro­pean Aus­ter­i­ty Ends, So Could the Euro” by Peter Boone and Simon John­son; bloomberg.com; 5/13/2012. [10]

EXCERPT: The euro cur­rency is a mal­ady that con­demns at least a gen­er­a­tion of Greeks, Ital­ians, Spaniards, Por­tuguese and Irish to the eco­nomic infir­mary.

In these nations, unem­ploy­ment rates are now at their high­est lev­els in recent decades, and there are few prospects for recov­ery in sight. The econ­o­mists and politi­cians who cre­ated the sys­tem still pro­claim it can sur­vive. Their time would be bet­ter spent rec­og­niz­ing they made a bad mis­take and prepar­ing for an order­ly dis­man­tling of the euro before the dam­age spreads and fur­ther under­mines Euro­pean uni­ty.

The prob­lem isn’t just the region’s lack of com­pet­i­tive­ness or its bud­get deficits or the high stock of exist­ing gov­ern­ment debt, which the Inter­na­tional Mon­e­tary Fund now puts at 90 per­cent of the euro area’s gross domes­tic prod­uct (see Table 5 in this report). It is all of the above, com­pounded by five years of com­plete polit­i­cal denial.

For three years, cap­i­tal has been flee­ing Europe’s periph­ery for Ger­many. That country’s liq­uid banks, com­pet­i­tive labor mar­kets and sound fis­cal poli­cies have made it the ide­al loca­tion in Europe for invest­ment. The periphery’s illiq­uid banks are sharply con­tract­ing cred­it to the pro­duc­tive sec­tor, even as their gov­ern­ments are cut­ting back and polit­i­cal protests are mount­ing. Wages are too slow to adjust to dent these pow­er­ful forces: Ger­many looks ever more attrac­tive for investors, fur­ther exac­er­bat­ing the imbal­ances that brought us to this point.

“Euro­dammerung” by Paul Krug­man; The New York Times; 5/13/2012. [11]

EXCERPT: Some of us have been talk­ing it over, and here’s what we think the end game looks like:
1. Greek euro exit, very pos­si­bly next month.

2. Huge with­drawals from Span­ish and Ital­ian banks, as depos­i­tors try to move their mon­ey to Ger­many.

3a. Maybe, just pos­si­bly, de fac­to con­trols, with banks for­bid­den to trans­fer deposits out of coun­try and lim­its on cash with­drawals.

3b. Alter­na­tive­ly, or maybe in tan­dem, huge draws on ECB cred­it to keep the banks from col­laps­ing.

4a. Ger­many has a choice. Accept huge indi­rect pub­lic claims on Italy and Spain, plus a dras­tic revi­sion of strat­e­gy — basi­cal­ly, to give Spain in par­tic­u­lar any hope you need both guar­an­tees on its debt to hold bor­row­ing costs down and a high­er euro­zone infla­tion tar­get to make rel­a­tive price adjust­ment pos­si­ble; or:

4b. End of the euro.

And we’re talk­ing about months, not years, for this to play out. [Just in time for the U.S. elections–D.E.]