The Watchdog

Keeping citizens in the loop

JANE BURGERMEISTER REPORT: READ THIS!!! ‘“The most flagrant violation of the law in recent European history”: the economics made simple’

“The most flagrant violation of the law in recent European history”: the economics made simple

Greece’s economy is shrinking; its national debt is soaring towards 170% of the GDP ; it now has the worst credit rating in the world.This is the result one year after the EU, IMF and ECB arranged a three-year, €110bn loan for Greece to pay its creditors – and in spite of the evidence that Greece was suffering from interminable insolvency and not a liquidity problem.

Roland Vaubel, an economist in Mannheim, has described the bankster bailout the most flagrant violations of the law in recent European history. Rainer Hank in Germany’s FAZ newspaper condemns not only the violations of the law but also the loss of our political rights.

What do they mean exactly?

Here is a  parallel in a real life so that the outrageousness of the violations can be seen more clearly through the fog of financial and economic terminology:

One of the people in your apartment block/street has run up a bill of a billion euros/dollars. You wake up to discover that your apartment/house has been put up as a guarantee for the debts of your neighbour by the local authorities in violation of every law. And it has all happened at a secret meeting of the local councillors in the middle of the night that you knew nothing about.

Now the authorities have sent you a letter telling you that you owe Redmill Bank 10 million euros/dollars and they are collecting it on the bank’s behalf. Your neighbour is not insolvent but illiquid and just needs a loan to tide him over and you have to contribute to that fund to pay his billion euro/dollar bank debts whether you like it or not, you learn.

Because you do not have the 10 million euros you are expected to pay into the fund, the local authorities tell you that they have arranged for a loan from Bank Redmill at 6%.

You calculate that the 6% interest rate amounts to 600,000 euros/dollars a year. And you only have total assets of an apartment/house and annual income of 300,000 euros. You point out the funding gap to the local authorities. They write back, telling you that their cooperative bank will lend you the 300,000 euros/dollars to make up the difference.

It turns out your neighbour should never have been given this billion euro loan by Redmill bank because they had far too little collateral consisting only of their apartment/house valued at, say, 200,000 euros/dollars.

Instead of writing down the losses as banks are required to do when they make bad loans, the banks have somehow gotten the local authorities to force everyone else in the neighbourhood to pay off the loans they should never have made in the first place.

Not only that, the banks have somehow secured an arrangement with the local cooperative community bank whereby they can hand in as security the very same apartment or house owned by your neighbour valued at 200,000 euros for another billion euro loan – and because you are a shareholder in your local community bank, you have to pay for that billion euro loan too.

If any local authority tried to behave like this, everyone in the neighbourhood would agree this is an incredible fraud.

But this is exactly what is happening today on the bigger stage of the eurozone.

The violation of the no bail out clause in the EU Lisbon Treaty allows national governments to claim all the tax payers in a particular nation are liable for the debts of their neighbours when they are not.

The violation of article 123 in the ECB statues is allowing the ECB, the equivalent of the community bank to become a bad bank, stuffing its balance sheet with bad loans while handing out hundreds of billions to Redmill Bank.

The EU/IMF and ECB have falsely diagnosed a series of eurozone countries as illiquid when they are really interminably insolvent just as the neighbour with a debt of a billion euros/dollars and assets of just 200,000 euros/dollars was falsely diagnosed as illiquid and not insolvent.

Instead of the debts being managed through an insolvency procedure, everyone in the neighbourhood (the entire eurozone) is being compelled to pay the astronomical debt off.

German government economic advisors even wrote a report in autumn 2010 telling the government that an insolvency mechanism was urgently needed in the eurozone to deal with countries like Greece and Ireland which have unsustainable debts.

But this key report was buried by the German and other eurozone governments.

Now in June 2011, the eurozone is descending into a mixture of a comedy, farce and tragedy as the local authorities (Chancellor Angela Merkel and President Nicolas Sarkozy) tell one untruth after the other to wring money from the eurozone tax payers.

As apartment after apartment/house after house is being possessed in the neighbourhood by the local authorities and the people are being thrown on the street, it is becoming increasingly clear that the original debtor was not illiquid but insolvent and that the debt the rest of the neighbourhood is expected to pay is also so huge that everyone else is insolvent.

And yet, the eurozone finance ministers, the ECB president, the banks and much of the media continue the farce.

Day in, day out, we are told that Greece which now has the lowest credit rating of the 131 countries in the world, is not insolvent but illiquid.

Eurozone tax payers are told they have to either keep paying or risk a disorderly default which will destroy the equivalent of the community cooperative bank and all their savings.

The fact that these same politicians have buried the policy initiative of an insolvency mechanism is conveniently forgotten by them.

Money, money, money. They want your money. The money you need to live, to eat, to work. They want your house, your apartment. They want the tax money that goes to pay for schools, universities, roads and medical care. They want it all.

Money, money, money. They want your money and they will lie, trick and threaten you to get it.

It gets worse.

Finally, the authorities come in with the boot and kick everyone out and claim ownership of the apartment block.

A eurozone country is taken over by the IMF/EU/ECB troika. Like a bailiff sent in by the local authorities on behalf of Redmill bank, they come and just throw you on the street and wiped their hands.

You go to your local authorities and ask for some soup and shelter. They tell you, they have no money left. Their entire budget is also going to pay off the losses of the community bank.

You are left as a serf.

You have been stripped of your rights.

You have been lied to, cheated, threatened and impoverished by a ring of thieves.

This is the truly outrageous situation the European and American tax payers are now in – and it the biggest violation of the laws since European integration as the Mannheim economist R said in an article in the FAZ.

How long before the parliaments in Berlin, in Vienna are surrounded by crowds like the parliaments in Rejkavik and Athens?

How long before the people put their politicians on trial as they have done in Iceland for their role in this crime?

How long till there is justice? How long till the leaders of our government and of the eurozone central banks responsible for this crime have to stand trial for violating all the laws in order to loot tax payers?

This year? Next year? When will the millions of people who have had their lives destroyed have justice?

For a long time, the political and financial elite have relied on their control of the mass media.

But while the Axel Springer Verlag continues to give cynical misinformation to their readers day in day out, other newspapers are becoming more frank.

The Financial Times Deutschland called German politicians liars, “lying through their teeth to such a degree that one hardly knows who should point the finger at first.”

“When it comes to the construction of the next bailout for Greece, all the stakeholders are lying through their teeth to such a degree that one hardly knows who one should point the finger at first. The thing that unites them is that none of them want a solution that will really involve private creditors, irrespective of whether you want to call that a default, rollover or debt restructuring.”

“The decision in favor of another rescue package is based more on political will than on a sober analysis of the data. To their shame, the troika did not even try to find out whether the conditions that they had previously set for help have been fulfilled. In theory, an analysis should provide information about whether Greece has any chance of getting back on its feet in the medium term with the help of loans. The fact that the troika has so far avoided carrying out that analysis can only mean one thing: The rescuers do not want to know the answer, because they fear the consequences of an inconvenient outcome.”,1518,767919,00.html

Lies, lies and more lies from the political elite.

An analysis in the FAZ looks at the many violations of the laws by eurozone politicians to carry out this looting.

Rainer Hank points out that article 123 of ECB statutes prohibits the ECB from purchasing  government debt instruments.

Hank notes that the ECB has been purchasing Greek souvereign bonds on the secondary market but calls this a legal ruse.

The ECB is there to ensure the stability monetary but has become a bad bank of Greece “in an underhand manner”.

„It’s independence is gone,“ writes the FAZ.

The estimated 70 billion euros of Greek debt purchased by the ECB have very little real value as they are backed by an insolvent government – indeed, one which now has the worst credit rating in the whole world.

If Greece now defaults on its debt as it must because it is insolvent, the ECB will have to write down the losses and these will have to be born by tax payers yet again.

“Under Jean-Claude Trichet, the ECB purchased Greek sovereign bonds on a large scale, bonds which are now rapidly losing value. It would have been better to have left the rescue effort to national governments because it has resulted in the ECB becoming a stakeholder with interests of its own to protect, just like the Greek government or Deutsche Bank,” writes Hank.

“Faced with the question of whether a restructuring of Greek debt will help the country recover from the crisis or unleash a firestorm across Europe, ordinary people need help from those whose opinions are independent because governments and commercial banks are pursuing their own interests. But the ECB is no longer independent. As one of Athens’ major creditors, a haircut on Greek debt would cost it a lot of money. As a result, it’s warning about a debt restructuring are not credible.”

Hank notes that the no bailout clause in the eurozone is crystal clear.

However, governments are violating this law flagrantly to collect and on behalf of the banks, trillions and trillions, unimaginable sums, that will bring our societies to collapse.

Banks ran up a debt far in excess of their collateral but for some reason, everyone has to pay except them.

“The balance after one year of European solidarity is bitter: billions of European and American tax payer money destroyed, Greece is still not saved, but Europe is badly damaged.

“It is the most flagrant violation of the law in the history of the European integration,” said the Mannheim economist Roland Vaubel.

In addition to the damage done by breaching contracts and the rules of institutions, comes a loss of democracy.

Greece de facto lost its autonomy a year ago. The only choice is has is to sell either the harbour of Piraeus first or the harbour of Thessaloniki

“Greece has entered into a serf like status in the EU in return for money like in the Middle Ages,” says the economist Vaubel.”

„That country in which democracy was invented has allowed ist democracy to be bought off by supposed helpers, who are behaving like debt collectors,” says Hank.

The EU/IMF and ECB are behaving worse than bailiffs because they are acting outside an insolvency mechanism, which would put some limits to their looting of the Greek people.

Under insolvency laws, a debtor is usually left enough to live on.

The German government buried a report last autumn by it a panel of government economic experts calling for an insolvency mechanism for eurozone countries whose debts are so huge they cannot hope to repay them.

The German government cynically buried, hid, concealed this vital recommendation from their own experts. They deceived the public, hoodwinked them, lied to them over and over brazenly to continue this act of outrageous looting.

Everytime some economist now calls for a debt restructuring, German and French and US government officials (Obama) appear on TV and warn the people of “dire consequences”, of “financial meltdown”, of another “Lehman.”

German Chancellor Angela Merkel Germans either pay up or face a disorderly default that will crash banks and destroy your finances.

That is not the alternative. The alternative is an insolvency mechanism.

A disorderly default is certainly the lesser of these evils compared with the complete looting and political subjugation of tax payers were are witnessing.

But the ECB, which has lent an estimated 350 billion euros to Greek, Irish and Portuguese and Spanish banks, and which is continuing these reckless practises, would be forced to write down the losses on its huge mountain of illegal debt before the Ponzi scheme has run its course.

A default would pave the way for putting the political and financial elite on trial as the people of Iceland have put their former Prime Minister on trial for his role in exacerbating the financial crisis and increasing the debt burden of the people.

This entry was posted on Wednesday, June 15th, 2011 at 4:46 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Be the first to like this post.

3 Responses to “The most flagrant violation of the law in recent European history”: the economics made simple

greenberry says:
June 15, 2011 at 5:26 pm
Rate This

It is very simple. Why all this talk about debts? No one that have not signed or agreed to any debt can impossibly have any debt. The only ones that have debts are those who have signed for it and want to pay it. And they are not so many. So all this talk about debts certainly is exactly what that little elite minority wants. Isnt it? Making some pseudo concept about it spread all over the internet and media. It is totally irrelevant to ordinary people. We have not signed any debts. Please move on and let them banksters solve their own issues and agendas. It is not our problem.
And if they wanna make that our problem. Than they will have a REAL PROBLEM not some PSEUDO BS PROBLEM. Yea let them try
and than we see what will happen.


June 15, 2011 - Posted by | Internationally significant information, Jane Burgermeister Report

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: