Eurozone capitulation to the Federal Reserve: 29th of November 2011, Washington D.C.
Astonishing how little Europeans are aware of this.
29th of November 2011 is the day when the Federal Reserve added the Eurozone countries to their “plantation”.
On one side, from the mid 2011 the frequency intensifyies of separate reports iin the the media underlying the “lender or last resort” role that the Federal Reserve (Fed) gladly assumes not only for the US monetary space, but also for Europe. On his visit to Europe mid September 2011, Treasury Secretary T. Geithner promoted this idea like he were a Fed salesman. On 16th of September 2011 he even boasted that the Fed is ready to supply any monetary quantity needed by Eurozone banks. Later this sales pitch was joined by another Fed/Wallstreet dedicated servant, B.H. Obama, who not only preaches the “lender of last resort” capacity of the Fed, but also boasts that the US is committed to “help Europe avoid collapse”.
Meanwhile, without any clear connection with the kind of information mentioned above, the signals coming from the ECB are invariable: ECB will not create liquidity, no matter what.
And the Eurozone crisis deepens very fast also because of an acute shortage of liquidity.
Here is one of these pieces:
09.NOV.2011 Washington Post
http://www.washingtonpost.com/blogs/ezra-klein/post/is-this-how-the-euro-ends/2011/08/25/gIQAEFBa5M_blog.html
“…But a week ago, in his first news conference, Draghi dismissed the ECB’s role as lender of last resort. “I don’t really see that as the remit of the ECB. The remit of the ECB is price stability over the medium term,” he said. ”
Putting all these pieces together only leads one to the simple conclusion:
1. someway, somehow, the ECB voluntarily decides not to do what is essential to keep the Intensive Care Unit patient alive: pump some liquidity in the Euro system.
2. someway, somehow the Fed not only decides to “help” the Eurozone with liquidity, but is also very eager to do so.
Well, for an observer understanding the monetarist world, it’s deception and ineption, the picture is clear. It will be the Fed, NOT the ECB, to produce liquidity with the computer to be lended for interest. It is a re-enactment of the 1913 Federal Reserve Act but this time for Europe.
This is of course carefully camouflaged by the “analysts” in the mass-media. The smokescreen looks like “a set of swap arrangements” or “an agreement between central banks of all relevant Western countries”, “a covert bailout of the Euro” and stuff like this BUT: no word of the newly acquired Federal Reserve control over Eurozone! All lips tight about the takeover.
Just one example out of very many:
“Fed’s Covert Bailout of Europe”
http://online.wsj.com/article/SB10001424052970204464404577118682763082876.html
It looks like a fairytale: only the Fed possesses a magic computer to produce electronic liquidity, the ECB simply does not have that piece of hardware and thus “solution” is to dollarize the Eurozone by one decision of the Eurozone leaders, Fed, Obama & company on the 29th of November 2011 in Washington D.C.
One interesting exception to the deceiving and disinformation effort in the mass media bombardment is this comment posted on 02nd of December.2011:
” In a stunning worldwide move, the U.S. Federal Reserve in coordination with the European Central Bank, Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Swiss National Bank and China’s Monetary Authority agreed to temporarily “dollarize” the euro. Facing a vicious bank liquidity crisis and a political nightmare; the German dominated European Central Bank (ECB) agreed to the virtual outsourcing of Europe’s monetary policy to the U.S. Federal Reserve. Although described as a precautionary arrangement for political cover; the “dollarization” of Europe has re-established the U.S. dollar as the world’s only reserve currency. ”
“The ECB may have called itself the “Central Bank of Europe”; but it virtually no ability to act as “lender of last resort”, like the U.S. Federal Reserve that prints unlimited amounts of money in an American banking crisis. As fear of potential defaults caused large depositors to pull money out of European banks and convert euros to dollars; the ECB was incapable of stopping a system-wide run on the banks.
In desperation; the ECB was forced to surrender its sovereignty back to the U.S. Federal Reserve by agreeing to engage in 90 swaps of euros for dollars.”
…“But whatever happens; it seems clear that from now on decisions regarding European monetary policy will now primarily be made in Washington D.C.”
http://www.chrissstreetandcompany.com/2011/12/united-states-dollar-triumphs-europe/
However I must add to the comments above that the cataclysmic consequences of 29.NOV.2011 can better be realised by people understanding the monetarist trickery. This is indeed the CAPITULATION of the Eurozone to the Federal Reserve, 17 times National Treason. Even an American observer is stunned by the ease with which the Federal Reserve got hold of Europe as a monetary colony.
For some of those unaware of the monetarist trick, there is a legend in the air that creating money out of nothing would create a “Weimar”-type of inflation.
First of all, a part of the liquidity the Eurozone needs so much is already created anyway by the Fed. This money mass is created ouf of nothing by the Fed to be lended to Eurozone banks at a derisory interest. And there was no time lost: already in december 2011 a first tranch ot $ 500 billion has been already injected by the Fed in Eurozone banks for interest at 0,5% or less, the money went directly to deposits at the ECB for interest at 1,5% or higher while Italy borrows at 7%… That’s monetarism in action! This is how trumpeted “bailout of Europe” looks like.
The second aspect of the “Weimar” inflation is that it’s cause is not irresponsible money printing, but the aberrant war damage claims imposed by the winners of the war on Germany after the First World War, For more details see the LPAC-TV production: “Firewall: In Defence of the Nation State” – http://www.larouchepac.com/firewall (everybody should watch this movie carefully at least once.).
Fact is that the new liquidity in the Eurozone, instead of being created by own means, it is produced by a non-European entity and this demonstrates this proves the presumed European sovereignity to be a fiction. There are simply no levers of democratic control from the Eurozone to guide or to influence the Fed, but the reality is that the Fed is controlling the monetary policy of the Eurozone.
The timing of a remark from a top German government adviser is also interesting. On 27th of November 2011 (just two day before the Euro Capitulation) the remark is made that the ECB should consider releasing liquidity in the Eurozone. Did this adviser “smell” the upcoming Capitulation of 29th of November 2011?
Here are some excerpts:
“German wise man sees real disaster if ECB doesn’t act”
“…Bofinger said there was a risk of deflation from the ECB’s lack of action and said Germans were irrationally fearful of it stepping in.
‘This is not a rational debate. The Germans are simply scared,’ he said.”
http://news.yahoo.com/german-wise-man-sees-real-disaster-ecb-doesnt-151245862.html
The consequences of 29.NOV.2011 are catastrophic for many generations yet to be born in Europe.
29th of November 2011 will live in infamy in the European history as the day when the Federal Reserve added the Eurozone countries to their “plantation”, the day the Eurozone has been dollarized.
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