The Greek Crisis: When Thieves Fall Out

 

The fall in the price of gold. that was experienced not so long ago, was primarily caused by the rising threat of a Greek default on debt . . . which threatened the euro . . . which caused people holding euro’s to run to fiat dollars . . . which increased the apparent value of the intrinsically-worthless paper dollar (dollar-bubbles) . . . and thereby caused the fall in the price of gold as measured in “dollar-bubbles”.

That chain of events looks more like a “Rube Goldberg Contraption” than a rational application of economics.  Nevertheless, the pressures of over-population, falling national barriers, globalism, One World Government—and especially fiat currencies—have made the world mad, terrified, and increasingly corrupt.

In essence, for the past decade, Greece took advantage of a strong euro and rock-bottom interest rates to fuel a debt binge by the country’s consumers and government.  The EU treaty limits each nation’s deficits to about 3% of their gross domestic product.  So, when Greece announced that its government deficit would be 12.7% (not the 3.7% previously forecast), investors were stunned.

To put the Greek crisis in perspective, note that California also faces a budget deficit this year.  California owes about $40 billion—roughly equivalent to 2% of California’s $2 trillion economy.  That’s not good. But Greece (whose GDP is only about $400 billion) will incur a $50 billion budget deficit.  That’s very bad.  Relatively speaking, the Greek deficit crisis is about six times as bad as that of California.

How did Greek deficits rise to nearly four times the treaty limits?   Reports indicate that this treaty-violation was achieved with the help of Goldman-Sachs who allegedly showed Greece how to use derivatives to conceal its debt.  Thus, the Greek problem is not simply caused by incompetence or mismanagement—it’s caused by fraud, corruption and the kinds “crimes in high places” that would be almost unknown without the rigged, government bookkeeping systems that fiat currency makes possible.

Greece failed to persuade private investors to quickly buy billions of euros of its government debt, and thus required a bailout from the European Union and the International Monetary Fund — it was either that, or it would have been forced to default on its existing debt.

The London Times Online, correctly predicted before the crisis, that Greece’s problems were,

“precipitating an unprecedented strain on the euro. . . . other EU countries could face problems—including Ireland, Spain, Portugal or Italy. Richer eurozone countries would be expected to bail out Greece in the worst-case scenario, to prevent a disastrous crash in the value of the euro.”

UK Telegraph:

“Greek premier George Papandreou said his country had been singled out as the weak link in an ‘attack on the eurozone’ by speculators and political foes. ‘We are being targeted, particularly by those with an ulterior motive.’”

Papandreou is full of ouzo. He sounds like a conspiracy nut.  Greece isn’t being “targeted” by anything more than a flock of chickens coming home to roost.

What Does Fiat Money Mean? Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.

The truth is that the whole New World Order (New World Order.) is built on fiat currency.  In Greece, we’re witnessing the beginnings of a falling out among thieves (globalists and fiat currency advocates).  The governments and leaders of virtually every nation that support the New World Order. do so with full knowledge that their support will mean the destruction of their own nations as independent, sovereign entities.  This destruction constitutes treason and is distasteful to some globalists and terrifying to all.  If they’re caught, they could be hung.

Nevertheless, treason is tolerable so long as it can be “sugar-coated” with ample bribes.

Daily Bell:

“The great EU experiment has boiled down to compulsive, serial bribe-making to keep the unruly tribes of Europe in check.  But the tribes of Europe are very old and human culture is almost impossible to vitiate in a single generation—or even two or three.  If the money [bribes/ welfare/ unearned profits] isn’t there, we have serious doubts as to whether the loyalty will be either. The unraveling of the EU, to the degree that it occurs, could have big impacts on the price of gold, on the dollar and on world currencies in general. . . .”

In other words, treason is unnatural and sustainable only by means of bribery.  Unfortunately, due to the current global recession, the capacity for Greek (and European and American) government officials to continue to accept and provide bribes is faltering.  If the traitors who run Greece, England, the U.S. and most other countries can’t pay or receive bribes, they might abandon their treasonous support of the New World Order.

That’s why someone must “bail out” Greece.  If Greece defaults on its debt, it could cause the euro-bubbles to collapse.  But—insofar as the New World Order. is built on fiat currencies, fiat currencies won’t be allowed to fail (at least not without a fight).  Therefore, other European nations are being called upon to come up with enough money to somehow paper over the Greek crimes and bankruptcy.  In essence, Greece, like some American banks and financial institutions is deemed “too big to fail”.  Why?  Because too much is at stake.

Daily Bell:

“As country after country threatens to breach EU financial discipline, the ramifications will become increasingly obvious and severe . . . . The Greek crisis is only one of many on the way. Numerous EU countries are spending much more on social programs than they can afford.”

Bribes aren’t merely for corrupt government officials.  Those unaffordable European “social programs” are the bribes being paid to “de common folk”.  Those EU “social programs” are identical to President Obama’s Universal Health Care Plan and government employment that (according to a Rand study) pays government employees twice what they could earn in the private sector.  These welfare and overpayment programs are bribery.  They are something-for-nothing programs that “buy” the people’s apparent loyalty and their apparent assent to treason and national destruction.

However, faced with the global recession, governments are increasingly unable to deliver the bribes required as “hush money” for the New World Order..  Result?  If the bribes fail, the “bribees”—those now dependent upon government bribes (a.k.a government employment, welfare and pensions)—will riot and possibly incinerate some cities.

London Times Online:

“European officials gave the Greek government a stringent regime of budget cuts and financial reforms. The package includes demands to ‘cut average nominal wages, including in central government, local governments, state agencies and other public institutions’. It also suggests new taxes on luxury goods . . . speed up tax payments by the self-employed.”

Ohh, sure, like that’ll work.  Nothing like simultaneously cutting wages and raising taxes to boost public support.

UK Telegraph:

“Greek premier Papandreou agreed to a rise in fuel taxes and a partial freeze in public wages to stop the country “falling off a cliff“.  However, Greece’s labour federation immediately called a general strike for February 24, dashing hopes that Europe’s provisional backing for Greek crisis policies would restore investor confidence.”

“Joaquin Almunia, the EU economics commissioner, said tough measures were ‘extremely urgent’ to prevent a further flight from Greek debt. ‘The huge imbalances from which the Greek economy is suffering are not sustainable in the long run.’

(As if those debts are even sustainable in the “short run”!)

“Mr. Almunia said concerns have spread beyond Greece to other eurozone countries where public finances are spinning out of control, chiefly Spain and Portugal.”

Greece, Spain and Portugal have come to resemble the character Blanche Dubois in A Streetcar Named Desire, in that none of them can support themselves and must therefore “depend on the kindness of strangers,” (that “kindness” is the financial “credit” from foreign nations needed to support each nation’s domestic welfare bribes).  

“The external financing needs are quite big.”

Just as the U.S. government had to come up with hundreds of billions to bribe Wall St. financiers in 2008-2009, European globalists will soon have to come up with lots of cash to bribe the Greeks, Spaniards and Portuguese to continue the treasonous, suicidal destruction of their own nations that’s required to create the New World Order.

Associated Press:

“The G-7 industrial countries sought to calm jittery markets by pledging to keep providing government aid to sustain a fledgling economic rebound.  But G-7 officials . . . acknowledged their delicate balancing act. They need to revive growth, which means providing more government stimulus.”

“More government stimulus”?! “More government stimulus” necessarily means more debt.  But unpayable debt is exactly what’s threatening to bankrupt Greece, Portugal, Spain, perhaps the EU—and ultimately, even the U.S.  So, if other EU nations assume more debt to bail out Greece, et al, will Greece be saved, or will the other nations merely be dragged into their own national bankruptcies?

The desperation behind the “more government stimulus” proposal is apparent.  Yes, there’s a chance that issuing a precisely-correct sum of additional debt might somehow cause just enough “stimulus” to generate enough jobs, profits and taxes to actually reduce the total debt—but what are the odds?   When have you ever even heard of a government doing anything that was “precisely correct”?

Every EU government and central bank is reluctant to aid other debtor-countries by assuming more debt of their own.  Nevertheless, to save the EU and the euro-bubbles and the New World Order, Greece must be “bailed out”.

The Economic Times reported on a Greek high school teacher who is “a strong supporter of Greece’s socialist government” but still going on strike with hundreds of thousands of other public sector workers to fight for “the 28,000-euro pension that he expects to receive annually after he turns 60 next year.” According to the teacher, “The worker can’t be the scapegoat. So we have to defend ourselves.”

Damn.  A 28,000-euro pension is about $38,000 per year—and it starts at age 60.  Compare that to the U.S. Security “pension program” that provides about $15,000 per year starting at age 65.  It’s obvious that the U.S. can’t afford its Security program much longer, so how can Greece afford a program that’s more than twice as generous?  It can’t.

There’s no way Greek workers will accept a significant reduction in their pensions and wages and there’s no way that Greece can even hope to pay its existing debts without cutting pensions and wages.  Therefore, Greece must be bailed out.  It’s ultimately a lose-lose situation for Greece, and ultimately it’s a lose-lose situation for the euro.  Nevertheless, for now, in order to temporarily save the EU and the euro-bubbles, the powers that be will save Greece.  At least for now.

And the only way they can save Greece is to issue more debt at a time when debt is threatening to bankrupt the entire western world.

Implications: 

1) Greece will be bailed out and should avoid serious social and political disruption in the near future;

2) The EU and euro will survive—for a while;

3) Europeans should soon stop converting their euro-bubbles to dollar-bubbles;

4) As European demand for dollar-bubbles falls, the dollar-bubble’s “value” as measured on the U.S. Dollar Index should also fall;

5) the price of gold will once again begin to rise — dramatically.

In the end, the Greek crisis is not about too much debt, it’s about global fiat currencies and the correlative corruption in high places.  It’s hard to steal gold and silver dollars that actually exist.  How many 1-ounce gold coins can you hide under your sports coat?   But because fiat “dollar-bubbles” and “euro-bubbles” don’t even actually exist except as accounting entries, it’s so easy to steal fiat currency that the temptation becomes irresistible.  Unlike clunky old gold coins, you can cause $1 billion euro-bubbles to mover intercontinentally at the speed of light with just a few clicks of a couple of computer keys.  Result?  Where there’s fiat currency, there’s corruption—and inevitably treason.

All fiat currencies are based on fraud.  All are devised for the purpose of extortion.  All are promoted by conspiracies of government officials who are, in fact, criminals and traitors who seek to profit from own nations’ destruction.

Yes, Greece will survive—for now.  The EU and euro-bubbles will also survive—for now.  But what happens when Spain threatens to default, or Portugal or Ireland?  Will the EU/euro-bubbles also survive those threats?  How much longer can the EU withstand the weight of unpayable debt by issuing even more debt?

What we’re seeing in Greece may be the beginning of the end for fiat currency (paper dollar-bubbles and paper euro-bubbles, etc.) and the beginning of the restoration of a gold- and silver-based monetary system of the sort mandated by Article I Section 10 Clause 1 of The Constitution of the United States.  The death of dollar-bubbles and the rebirth of gold/silver based money won’t be quick or painless.  This simultaneous death (of dollar-bubbles) and resurrection of gold-backed currency might be accompanied by economic collapse and even a shooting revolution.

But as fiat currencies falter or even collapse under the weight their own debts, lies, crimes and injustice—the inherent honesty and integrity of gold will prevail.  In the long run, we’ll be better off.

And in the short run?  Look for gold to jump.  Dramatically.

And buckle up.

ARTICLES OF INTEREST

Fiat Currency: Using the past to see into the future The Daily Reckoning

The Average Life Expectancy For A Fiat Currency Washington’s Blog

Fiat Money History in the US Kwaves.com