Regarding animosities between rich north and poor, bankrupting south I would like to show you the blueprint that leads to countries being on the brink of collapse. We have to understand that so called ‘helping or saving Greece, Spain’ is nothing else but further, perpetual indebtedness of societies. Means borrowed from those ‘helplines’ are tunneled not to help citizens but banks and corporations. These banks and corporations were on the borrowing spree which is the cause of the whole problem and after they wasted money on uneconomical projects now they want more to cover their deficits.

 

Instead of letting those private corporations go bankrupt – just like Iceland did – we are indebting our countries saving zombie-banks. We raise taxes to pay the interest on this debt. We destroy economy to take over worthless junk assets and we sell ‘crown jewels’ built through generations’ hard work for pennies.

The pattern repeated now and again:

1. With the help of apparatchiks and bankers lower the interest rate to create a bubble in the real estate. Let people borrow money to buy artificially inflated-overpriced houses.

2. Raise the interest rates. Economy suddenly crashes. Unemployed don’t have money to pay back their debt.

3. Increase public debt to save private banks who idiotically handed out credits in the years of prosperity to nearly every living soul.

4. Lower the credit rating justifying it by increasing debt to GDP ratio.

5. Block financing of the debt and force the state to accept the so called ‘austerity measures’ (increase the taxes and slash expenditure) to further increase unemployment and push the state into a carousel of snowballing debt and unemployment.

6. Hand in more credit to the state on ever worsening conditions. The country finally achieves the status of bankrupt.

We have seen that and next:

7. Make sure technocrats from Brussels (and their Goldman Sachs affiliates) take over the government in an undemocratic coup.

8. Force country to hand over to the IMF all assets: motorways, public companies, gold reserves, mines and mining licences. Everything of course, as a security for a new debt – freshly printed currency.

9. Finally, when the state is on the brink of collapse, buy everything else through the stock exchange. Prices? Extremely low.

10. Make the country to accept new currency (EUR and USD are doomed) based on the gold standard in exchange of a debt relief.

Last decades this scheme was used multiple times in third-world countries. Since 2000 we are seeing it happening among the Western democracies –  executed by the EU and the US.

 

Trader21