US economy and financial crisis in Europe
One of the key conclusions from the Bilderberg meeting: The U.S. will manipulate the FALL of the US dollar in value against the Chinese yuan. The thinking behind is that a devalued dollar will inflate away America´s debts and obligations. Bilderberg is not particularly concerned that the people are the guinea pig in all of this. What is being sacrificed is the purchasing power of the US$.
It’s all part of their deal with Beijing to help Washington inflate away its debts, and give Beijing more say in the global economy. That´s why Ying Fu, China´s Vice Minister of Foreign Affairs was invited to the Bilderberg conference this year. That´s why Yiping Huang, Professor of Economics, China Center for Economic Research, Peking University was also invited to Bilderberg 2012. Collusion between the US government and the Chinese government is in progress. Others who have actively participated in the debate on the destruction of the US dollar at the expense of the Chiense yuan are Cheng Li, Director of Research and Senior Fellow with John L. Thornton China Center, Brookings Institution and Robert Rubin, Co-Chair of the powerful Council on Foreign Relations and Former Secretary of the Treasury.
Bilderberg group is made up of former NATO alliance members, USA, Canada and Western Europe. After the fall of the Berlin Wall, former members of the Warsaw Pact minus Russia have been incorporated into the organisation. In the 1950s, Bilderberg Group was a very important element of the oligarchical structures of the cold war period because it was a vehicle through which private financier oligarchical interests were able to impose their policies on what are nominally sovereign governments.
Today, Bilderberg is a medium of bringing together financial institutions which are the world´s most powerful and most predatory financial interests. And at this time, it is that combination which is the worst enemy of humanity.
Thus, the presence of Chinese Communist Party leaders is an extraordinary phenomenon which must be understood in terms of a US-China conspiracy meant to deflate away the value of the US dollar. Now, it´s only a matter of time before the U.S. dollar loses its role as the world’s reserve currency. Bilderberg knows it is going to happen. The US government knows it is going to happen. And the mainstream press knows it is going to happen. They WANT the dollar devalued so that the US government can try and default on Washington’s domestic and international obligations through inflation.
Furthermore, Bilderberg is concerned with yet ANOTHER Lehman-type megashock - a very real possibility of bank runs. As one Bilderberger said: “Europe and the U.S. are now on a collision course with a second Lehman-type megashock.”
As one European bankers present at the Bilderberg conference stated, “If you think Europe’s crisis and its deflated currency is going to help support the U.S. $, think again.” In fact, there was a general agreement at the Bilderberg meeting that the FED will be called to the rescue to prop up Europe’s system failure by printing even more money, and thus weakening the dollar in the long run.
PS According to Spain´s President, Mariano Rajoy, “or Europe saves Spain or get ready to spend 500 billion euros on Spain´s rescue and 700 billion on Italy´s rescue.” This is utter nonsense.
Italy is not Spain. First of all, Italy never had much of a real estate bubble. Second of all, Italy, unlike Spain, has very little private debt. According to European Banking Authority, McKinsey Global Institute, Spain´s net direct exposure to debt by banks participating in ECB stress test is 140 points (Private:35, Sovereign:105). Italy´s exposure is 15 points (Private:14, Sovereign:1).
Thirdly, Italy is home to the Venetian Black Nobility and its far reaching, first rate banking apparatus stretching back some 750 years as well as hundreds of first-rate companies with secure niches in world export markets. Most of these corporations, such as Assicurazioni Generali S.p.A, Italy´s largest insurance company form an important part of some of the world´s most powerful secret societies and private organizations such as the Bilderberg Group. Then there is an interlocked relationship between the Mafia, the State, the corporate world and the Clergy, which isolates Italy from any impending crisis. Finally, Italy is home to a little known institution called THE VATICAN.
Italy is not Spain. Please understand that the alleged 100 billion euro hand out is the first step in the take over and full ownership of Spain by the world´s financial institutions. Spain is no more.
A few days ago, none other than Lyndon LaRouche, the world´s foremost statesman stated in a press release that “Spain´s Unpayable Trillion Dollar Hole Calls the Question.” We reproduce EIR´s press release in its entirely.
June 1, 2012 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee.
“I don’t know if we are on the edge of a precipice, but we are in a very, very difficult situation,” Spanish Economy Minister Luis de Guindos stated Thursday night, adding that the future of the euro is at stake in Spain. Spain’s Deputy Prime Minister Soraya Saenz de Santamaria huddled with Timothy Geithner and chief IMF tax cheat Cristine Lagarde in Washington, D.C., on Thursday; press reports, that an agreement was reached on the creation of an IMF-EU bailout fund for Spain’s banks, were then denied by both the IMF and Treasury, which only lent credence to the report. Geithner agrees, Saenz told the Financial Times, that the next round of bailouts should be given directly to European private banks, instead of using the governments as pass-throughs. Germany is still opposed to that openly hyperinflationary approach.
Gold shot up $50 on Friday morning; yields on Spanish bonds soared, while German, U.S., and U.K. bonds fell to record lows, with investors actually paying to buy German 2-year notes at negative yields, because it is stupidly being considered “safer” paper.
Adding to the “real sense of impending panic” (the words of a Bank of America “strategist” sitting in London), was the simultaneous report on May 31 from the Bank of Spain that €97 billion euros had fled the Spanish banking system in the first quarter of 2012, €62 billion of it in March alone. That was before the early May nationalization of Bankia.
But what is even more revealing than the total that has fled, is the fact that a full 80% of it was reported to have been pulled out by Spanish and foreign banks—i.e., the banks themselves are trying to jump the sinking ship.
Lyndon LaRouche warned on May 26 that the rate of collapse of the trans-Atlantic monetarist system is now outrunning the rate of any attempt to salvage it, and there are only two outcomes immediately possible: imposition of Glass-Steagall regulation internationally, or Weimar hyperinflation.
EIR’s rough estimate of what is known of Spain’s debts which must be covered in the immediate period ahead makes the point. The total is in the ballpark of €one trillion, give or take: €600-700 billion for the private banks (€300 billion is now being admittedly publicly); about €50 billion for the country’s regions (Autonomous Communities), and some €200-250 billion for the national government. In other words, about a quarter of Spain’s estimated total public and private debt of €four trillion, as of the end of 2011.
And, mind you, none of this takes into account the uncharted amounts of derivatives that are piled on top of each of these categories.
Also, no one knows what the actual bad debts are, not least because the private banks are lying through their teeth about their assets, holding repossessed real estate properties on their books at prices way above what they could get if they had to sell them. By such gimmicks, the largest private bank in Spain, London-run Banco Santander, is the biggest real estate property holder in the country! EU spokesman Amadeu Altafaj on Thursday demanded that Spain “come clean” on what the real debt is, and European Central Bank chair Mario Draghi demanded that Spain stop readjusting the amounts needed every day, claiming that to be the cause of the market crisis.
Say EIR’s one-trillion-dollar ballpark figure is over by a couple of billion, even tens of billions, or even a couple hundred billion—although more than likely, the real total is probably even higher than a trillion. The point is the same: the debt piled on Spain cannot be paid.