Debunking Some Myths
Youri Carma Excerpt: First let me state , with a certain calmness, that there is a Transfer Union underway in Europe. This is the subject, you may recall, that Germany has tried to avoid at all costs which is why Eurobonds and other similar schemes have not been implemented. Europe, however, has found a clever way of implementing such a program and keeping it under the radar from the German citizens. I will explain:
In Greece, Spain, Portugal and Italy the ECB has implemented a program where the sovereign guarantees some bank’s bonds. The bank then pledges them as collateral at the ECB and gets cash. The bank then turns around and lends the money back to the sovereign nation and provides liquidity and economic sustenance. The Transfer Union is completed as Germany guarantees 22% of the ECB and the European Central Bank is nothing more than a conduit to lend money to the various nations. This contrivance is also not sterilized so that the ECB is, in fact, printing money which is another part of this subterfuge that no one in Europe wants you to know anything about. This strategy is what has kept all of these various countries alive while the political entity, the European Union, tries to decide what to do about the future of the troubled nations. In a very real sense the ECB is the only fully operational part of the European construct at present as the European Union does not have the “political will” to carry out its mandate.
“The tears I have cried over Germany have dried. I have washed my face.”
Marlene Dietrich – last performance
Given what is happening, it then must be declared that the ECB is the lender of last resort and that they are printing money on a daily basis. Sterilization may take place in some instances and for some programs but it is not universally applied or even discussed. The program also gives the ECB tremendous leverage because any threat to turn off the spigot will force any of these troubled nations to turn to the Troika and ask for aid. The assistance does come with a price tag though and it is costly; the nation is audited, reality arrives, and the country gives up the total control of their finances and their budget to the EU/ECB/IMF. In effect, the nation no longer governs itself. The IMF, of course, is nothing more really than a cover for some kind of legitimacy beyond the politics of Europe and it has become the arm piece of the Continent so that Europe can point to them and say, “it is them; not us.”
It turns out that Jens Weidemann, chief of the Bundesbank, is a huge fan of Greta Garbo. Apparently he got to use her famous line recently at the ECB meeting:
“I want to be alone.”
He got his wish.