As early as 1976 analysts, including the author of the present article advised about the overwhelming likelihood that the European Community would develop into a European Union, that it would be expanded, and that a European Currency would be established. In 1976 it was evident that there was an overwhelming likelihood for a world wide, partly manufactured, partly blundered economic crisis which would envelop the later European Economy, and lead to drastic austerity measures that would be the seed for a new nationalism and the disintegration of European unity. What we discussed in 1976 was if it was more likely that the European Union would collapse and disintegrate before the USSR or if the USSR would collapse before the European Union. The propensity towards a collapse and disintegration, and the birth of a new European Nationalism was evident already then.What made it more likely that it would be the USSR that would collapse and disintegrate first was that plans to reduce the average income in Western nations and increase the income within the USSR so that the two economies could peacefully be fused into one market were developed at the Rockefeller Foundation that very year.
2011, austerity measures are driving the people of Britain, Greece and Spain into the streets by the tens of thousands. Some German and French politicians utter the unthinkable, that Greece should be excluded from the club or that Greece and others must loose their national sovereignty, which is a matter of fact anyways, but nobody dared to talk openly about it before. Precisely as predicted in 1976 an increasing number of Greeks begin to find new pride in their nationality, and so do Germans, of which over 50 % reject to bail out the EURO.
Germany could bear to bail out Europe if Germans were prepared to once again suffer as they did from the war reparations after Versailles. Contrary to the UK and other European neighbors, Germany has still other assets than bankrupt and corrupt financial institutions and toxic assets. Germany has production of everything from steel, cars, electronics, energy production, consumer goods, to high technology, weapons systems and science. Germany could save the Euro if it was possible to sale the idea to the German population that it has anything to gain by spending between 7 and 10 % of it´s GDP for a decade on bailing out it´s southern neighbors and the decadent and corrupt City of London. It is however very unlikely that any German party could recruit the political will to commit political suicide. The result of Versailles was ? Correct, the second world war, the great solution to save the decadent and corrupt Empires of Europe by leading Europe and the world into war and destruction. And as it was the case after Versailles, it is not at all unlikely that the Trojan Horse inside Europe, the United Kingdom, will be the Pale Horse that rides Europe into destruction in 2012. One can think about Charles De Gaulle what one wants to think about a war criminal who stood for the murder of countless Algerians, but when he proclaimed the United Kingdom to be the perfidious traitors of Europe he was on to something very true. What he meant was not the hard working and honest citizen but the City of London and all that it stands for.
The United Kingdom and the City of London are today the agents of Wall Street, planted within the heart of the European economy. Does anybody doubt it ? I would say “do your homework”. The Euro has been under attack by Wall Street for months, and US president Obama says that Europe must solve it´s financial crisis on it´s own. Right, Europe could fight back against Wall Street, but then there is that Trojan Horse in London with a David Cameron riding it on behalf of the same shadowy elite that has tried to ruin Europe since the time of Napoleon.
We just need to see one of the big banks in Europe fail, and in 2012 at least one of those to big to fail will fail. Commerzbank, Deutsche Bank, Credit Agricole, one of those who are to big to fail will fail in 2012, and as for the result it does not really matter very much which one will be the Lehmann Brothers of 2012.
Currently European banks are working extremely hard to meet the new capital adequacy requirements by June 2012. Don´t call me alarmist, but banks earn by lending money to people, and the only way to meet the requirements by June 2012 is basically by ceasing to lend anything to anyone while getting rid of some three to seven trillion USD in toxic papers.Contrary to the situation of US banks in 2008 the worlds markets have now become aware of that the time for making money by toxic papers is over. Nobody will want to buy the European Junk Assets. Not to long ago, Chinese officials unofficially told French diplomats who came begging for bailout money on behalf of the EU that China is not investing DUMB MONEY, and they are perfectly right saying and doing so. It´s much better for China to invest money in African, Asian and South American Joint ventures that develop regional markets to such a degree that a middle class that is able to import and purchase Chinese goods is established. The response of the Bully with the Bombs, the USA and NATO is to instigate crisis and war where ever China is cultivating new markets in former European colonies. So why would China want to support having it´s market potentials bombed back to the stone age, as happened in Libya.
So, what remains for desperately corrupt European leaders is austerity measures, while everyone with just a grain of sense for economy knows that austerity measures are the worst possible path. Somehow economics are similar to programming. Junk in Junk out.
Less in less out, more in more out, the Ouroborous of finance and economics. Austerity measures are a death sentence for the European finance as well as economy. And even if the banks manage to live up to the new capital liquidity and adequacy measures by June 2012 so they could begin to lend money, austerity will have made it impossible to find anyone to lend the money to. Unless of course it would be high risk loans, right? Finance and economics are bound by laws of circular motions. Is that so hard to understand? Linear thinking won´t get anyone anywhere but to a shallow grave. If lucky, one can buy a cheap used safe that can be used for burying the carcass of Europe in an indestructible container.
What about declaring Greece, Italy and who ever it may be who goes bankrupt bankrupt ? That´s at least honest and provides possibility for a fresh start. Is that not better than to issue new bonds and lend money with a 100 % interest per year, which no country in the world ever could pay, let alone the already bankrupt Greece ? Rather than austerity measures, rebuild the entire European Rail System into a Maglev System. Subsidize European car manufacturers for building Tesla Engine cars that can compete with any of the technological fossiles that still run on fossile fuel. What about not the taxing of derivatives, but declaring them illegal. What about opening the vaults of the patent offices who have those smart devices that produce almost limitless amounts of electricity, which the author of the article has seen in operation, but which are so classified that it would take an act of God or courageous politicians who are willing to be murdered for a good cause to get them declassified and into production.
But no, rather tax those derivatives that will continue to bankrupt the economy. You see, when criminals make laws the result is that they may be willing to pay a little, say one or two percent for robbing you bud naked, but they won´t cease robbing you unless you put them under the gun.They would rather implement austerity cuts that result in masses of unemployed, impoverished Europeans who are so desperate that they do not pay attention to or do not care about being led into the battlefields of the next great war. See, war is money, big time big money. In Afghanistan, Pakistan, Ivory Coast, in Libya, in Syria and Iran and Russia. As long as one of the top advisors to the US President, Zbigniev Brzezinski has the declared goal to lead the USA into a nuclear conflict with Russia, a conflict which will be carried out in the Middle East and Europe, and as long as Europe allows the Trojan Horse of the UK to dictate the course of Europe, who would be surprised that nothing in European finance and economics looks as if anyone would stop the ride towards the apocalypse.
Dr. Christof Lehmann