New Moon 1/9/34120

The crisis in Europe is gathering momentum. The Euro is under threat and the problem appears unable to be solved. What is the Achilles Heel? Was the problem there from the outset?

The answer is that it was always part of the plan that the Euro would fail as it was only a stop gap measure to the New World Order’s “One World Economic System.”

The Euro has to make way for the IMF and World Bank’s system of Special Drawing Rights or SDRs that will take the place of national and regional currencies.                                                                       

The Euro was created in 1999 with a fatal flaw in its structure. The governments that shared the Euro as their single currency continue to have their own separate bond markets. This is an impossible situation to regulate and reinforces structural flaws and the instability of markets and the stupidity of investors.       

The Bonds issued by national governments are IOUs issued by these governments in order to borrow money when they desire and investors are prepared to lend to them. Investors can trade in them and buy and sell bonds on the open market. Selling them drives their price down and hence governments then have to pay higher interest to borrow funds using them. This often speculative process in turn, for regional economies, has the inherent ability to destabilise the economic system to which they belong, in this case the Euro. 

As a nation with a national currency it affects only that nation and its sovereign debt crisis is met by insolvency of its national currency and capacity to borrow. It goes bankrupt, or in printing too much currency through its central bank, which is normally tasked with that responsibility, the currency becomes worthless and the other investment banks and people silly enough to invest in them lose their money in real terms. That was the way it was supposed to work. The experience in Germany prior to WWII was a major reason they resisted losing control of their economy and the Euro currency under those conditions.

The banks however have taken over control of the ship and it appears that this crisis is engineered as was the Global Financial Crisis (GFC) for 2008. 

Greece came into the Eurozone under false pretences as France now admits. They cooked their books to use the financial term. They were insolvent and politically they had no will or intention of regulating their behaviour and system to pay their own way.  The same was true of Italy which is controlled by criminal elements and its structure is corrupt. Portugal, Spain and Ireland have also suffered and their economic system was wrecked by corrupt banking officers and politicians.

The inherent imbalance in the system of nations raising their own bond markets allows the banks to raise and manipulate the prices of the interest paid on national bonds. Banks thus invest in the higher yielding but proportionally unstable areas such as Greece and Italy, precisely because they are a greater risk.

The more stable Northern European economies, such as Germany, are regarded as more secure, and so investors are placing their funds in German bonds at rates that are at 0.25% which is less than the inflation rate. Hence they are given money for nothing in real terms simply because they are perceived as being more stable.

Banks that sought to make money out of the unstable markets such as the French banks have exposed their national economies to the same high risks and now France is going to be downgraded as a sovereign risk by the banking system itself, and may go under as a result when it too is perceived as a risk.

The European Central Bank (ECB) has the capacity to print enough money to keep the situation going but Mario Draghi, the Italian head of the bank, (perhaps under German but more likely NWO influence) has ruled out printing money to sustain the Euro as necessary. Thus it may well collapse and has to collapse under those circumstances, given the attitude of the Southern European economies.

The Euro had only one chance of survival and that was to have a single bond rate system raised through the European Central Bank so that the Euro was controlled centrally and could not have been manipulated as it has been. However, that would have put off the collapse for a longer period and would have prevented the reorganisation of the One World Economic System. Thus it had to be created as it was, to allow the insolvency to be generated by the bank activities behind the scenes.

Thus the Euro is now seen as a risk and sovereign governments such as the US and Japan or the UK are seen as much safer investments in their respective currencies. If people don’t like the government’s policies and debts they not only sell bonds, they sell the currency as well. That pushes the value of the Dollar, Yen or Pound down as well. Usually the currency is repurchased and invested back in that nation’s bonds.

That devaluation of the currency assists in the international competitiveness of the country and increases their capacity to export and trade which increases growth and raises tax revenue.
The problem with Greece was that it had no central bank and no drachma to sell and so the investment moves to safer bonds within the Eurozone such as Germany.

That movement of cash into Northern Europe made the value of Greek bonds and other weaker and more suspect nations’ bonds collapse. Greece is largely irrelevant to the Eurozone. It is Italy and France that are key players that have feet of iron and clay. To a lesser extent that is also true of Spain Portugal and Ireland.

Eurozone economies that raise their wage levels and costs of production rise to uncompetitive levels during a process of speculative elevation or boom and then are unable to compete and cannot devalue the Euro in order to improve its terms of trade and to reorganise.

This is the inherent problem of a regional and international currency. It locks the nation into the value of the regional (or international) currency and has the capacity to ruin its terms of trade in relation to the more competitive nations of the economic zone.  Raising taxes and cutting spending under such a system is counterproductive and self defeating. It merely drives the economy into recession reducing income from taxation and increases expenditure in welfare.

The only way out may be for that member to leave the regional currency and in this case the Eurozone, where exit may be the only real option for Greece and others in a similar situation.

The real horror is not Greece but Italy and it is about to collapse or sink. Money is beginning to flood from Italy into German bonds. It now costs Rome more than 6.1% to borrow money for just one year. By contrast, Germany pays a mere 0.25%. Italy cannot sustain those costs and the investors know it. The investors have forced the rate to an unsustainable level and the banks simply are killing the host like any parasite eventually does. The basic problem is the banking system itself and the levying of usury against the Laws of God. The inability to pay by the nation state is induced by the parasites themselves and the failure of the states are just like a self-fulfilling run on any bank.

If Italy goes, as seems imminent, then so will the nations that are heavily involved with it through their banking systems. So also we see Spain, Portugal, Ireland and even France about to collapse. Germany will simply not be able to hold such a collapse together. The alternative is that Germany may be able to use the relocations of investment to entrench its inequality in the short term.

The more problematic nations must work harder for the Euros they do have and so are unable to control the inequality.  Rebellion and then war will result.

Germany cannot take any consolation in this rush of funds into Germany. Whilst it appears to be a gesture of confidence in Germany it is simply indicative of the failure of the Euro as a system and Germany is tied to that system. Germany will go down with it. The bailout simply is beyond their capacity. The bailout fund is simply trying to transfer money into the critical areas, which is unsustainable. Inflation will follow the transfers and will pass on to the rest of the world as will the “quantitative easing” from the US and UK.

Credit Suisse said in a note: "We seem to have entered the last days of the euro as we currently know it." It continued, "Some extraordinary things will almost certainly need to happen - probably by mid-January - to prevent the progressive closure of all the euro zone sovereign bond markets, potentially accompanied by escalating runs on even the strongest banks."

Keynesian economics as developed by John Maynard Keynes in the depression era stated that the options were to cut interest rates and to increase government spending. If that was not done by borrowing it was essentially financed by printing money. The ECB is reducing interest rates (now to 1.25%), which has to be further reduced. However, it is not enough to save the Eurozone. Much more has to be done. The governments need to spend also to save this situation and the real problem in that regard is Germany itself. It does not believe in Keynesian economics and even though it is being given money for nothing it will not spend to the levels required to save the Eurozone and the nations that need to do so cannot raise the funds and are being prevented from doing so by the banking system and the ECB itself. In those circumstances the Eurozone cannot survive and is not intended to survive.

External Economies

The investments from UK and the US and Japan are also enormous in this system and raise very serious questions as to flow on effects. It may collapse economies across the world.
In addition the US is in a self imposed crisis which is affecting world markets. The so-called super committee of twelve people in the US congress failed to cut $US1.22 trillion from the US budget over 10 years caused by partisan feuds.

Their failure means draconian automatic cuts will be made to social security programs and the military from January 2013 - unless lawmakers repeal those cutbacks.

President Barack Obama warned Congress he would veto any legislative attempt to escape the automatic cuts and said Republicans had “refused to listen to the voice of reason and compromise”.

This also appears to be part of the induced economic crisis. This has caused large scale drops in world markets. Curiously it has caused a rise in the US dollar which is seen as a safe haven in spite of the crisis.

China is also not immune. Moreover, China has a major element of underprivileged and disaffected people which will create their own pressures. The collapse of the West will see China’s capacity to export evaporate. The economic collapse will have severe flow on effects throughout Asia and the Pacific also.

This glaring example of the Eurozone crisis and the implications for world economies then raises serious questions for investors in the face of such government debts within the Eurozone. It may be insoluble as a problem. The logic of this horror is only now starting to sink in to the investment world. The logic of the New World Order is a horrific possibility.

Thus the New World Order with a one world currency will inherently suppress the less powerful or competitive of the nations and entrench inequality with no escape for those trapped within its system. More importantly it will destroy investment itself except for the privileged few within its autocracy.

What is the Solution?

The first and temporary answer is to try to create the single European bond market, but that solution is not only considered too late, the more powerful Germans will not agree unless it is forced upon them by total collapse.

The real problem is not so much debt but the capacity of Europe and its nations to stimulate growth which is being destroyed by its own banks and the NWO. The consumers are not spending. The banks are indebted and have to meet higher capital ratios which limit their capacity to lend. Spending is being deferred by consumers. Governments in Europe are being forced to pay the costs of the bureaucracy in Brussels while Brussels is ordering them to cut spending and get their finances “in order”. Half of them are being forced to pay higher and higher interest on borrowings and they are finding it harder to borrow.

Europe is heading into recession and then into depression. The result is that the debts cannot be repaid and the world is pushed to the point of giving up national sovereignty and taking up this international bureaucratic system under ten regions controlled by a bureaucracy that is unelected and controlled by the financial system behind it.

That is the aim of the NWO so that the one world system under the IMF and World Bank can be introduced over the objections of the national systems.

Eurasia and other areas

External to the Eurozone disaster the Eurasian zone is being formed by the Russians and former Soviet satellites.

In 2008 we discussed the formation of this system in the Last Days

“East of the Caspian Sea we see the former Republics of the Soviet Union that border Iran, Afghanistan and China with a small section of Tajikistan bordering northern Pakistan and the northern border of the disputed area of Jammu and Kashmir.

These areas are, running from West to east, Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan with Khazakstan spanning the northern borders of all the others and with China in the South east and the entire Russian Federation in the Northern borders from West to East.

It does not take much imagination to see that the news that alarms the King of the North, that is the Beast power, is mobilisation of the entire Russian Federation to move into and reclaim all the old Soviet Socialist Republics and restore the so-called Russian Empire. This will be encouraged by the Communist Chinese who seek expansion to the West also and will use the Russians to achieve it.”

Last Friday it was announced that: “Several neighboring countries of Russia, Kazakhstan and Belarus demonstrate their interest in participating in the Eurasian Union” by Russian President Dmitry Medvedev, who is prepared to consider their requests.

"Experience shows us that our cooperation, carried out on several levels, is a huge resource, as partners of the EAEC and the CIS they are interested in this new integration structure," said the head of Russian state after the signing of the Declaration on the establishment of the Eurasian Union.

"We are delighted. This shows that the tendency to expand multilateral cooperation on an equal footing, and advantageously for everyone, is becoming stronger. We are, of course, open to all those who understand the potential benefits to join. We will work with it (...), "said the Russian president, adding that the Eurasian Economic Union was able to avoid the problems currently facing the euro area.

In turn, Belarusian President Alexander Lukashenko said that a special procedure, as a "road map" would be developed for all countries wishing to join the EAU.

From the perspective of geopolitics, the Eurasian Union is "an important new structure of integration," said the President of Kazakhstan Nursultan Nazarbayev, informs ITAR-TASS.

"Three countries with a population of some 170 million inhabitants, is a domestic [area] self-sufficient in case of any problems, provided proper management," he said in an interview published Saturday by the Journal the Russian television channel Rossiya 1.

Responding to a question about a possible appearance in the Eurasian Union positions as president or prime minister of the Union, he has stated:
"If we follow the trend of the European Union, one can think in the long term."

"Strategically, it all depends on the development of the structure," he added.

He believes that the crisis in the European Union was caused by a hasty accession of new members and widening too fast in the euro area.

"However, we must be very careful in making decisions on the expansion of our common economic space," he added. "There is no question of political union," said Nursultan Nazarbayev.

"It is about preserving the sovereignty and political independence of our country. Although, as I said before, each of our countries strengthens (the Union) the sovereignty of others and makes them stable because if I trade with you, I would like the order and stability”

Thus they see that they can overcome the instability in the Eurozone, no doubt because of their planned economic controls. Given this new union, the union of Russia and Belarus as a state will be rendered superfluous. Belarusian President Alexander Lukashenko said on Friday.
“The project of the Union State could perhaps vanish without any development if the current project of the Common Economic Space develops quickly. The CES project may overtake the moves to further integrate Russia and Belarus and will call into question the need for the Union State,”

Lukashenko said this at a news conference after talks with his Russian counterpart Dmitry Medvedev and Kazakh counterpart Nursultan Nazarbayev. The Belarusian president also said that the new union could stop the so-called trade wars between the states.
“The main thing is that some of our conflicts and misunderstandings, the milk, sugar and other (trade) wars will no longer exist. We have declared freedom of trade, services and capital flows. Is this not for the people? Of course it's for the people,” he said.

During the talks, Medvedev, Lukashenko and Nazarbayev signed an agreement to establish the Eurasian Economic Commission, a supranational body to manage the countries’ integration into the new union.

This process is also extending to other areas of the former Soviet system.

Russian President Dmitry Medvedev has signed laws on ratifying customs cooperation agreements with the former Georgian republics of Abkhazia and South Ossetia, the Kremlin press office reported on Sunday.

The laws were adopted by the State Duma, the lower house of the Russian parliament, on November 2, and approved by the Federation Council, the upper house of Russia's parliament, on November 9, 2011.

The agreements aim to intensify cooperation between Russia and the former Georgian republics of Abkhazia and South Ossetia in customs control and the fight against smuggling, the facilitation of passenger and freight carriages and customs payments in full, and ensure compliance with bans and restrictions on the movement of goods across the border in accordance with the legislations of these countries.

These agreements follow on two weeks after Russia and Georgia finally signed a Swiss-brokered agreement clearing the way for Russia's admission to the World Trade Organization, including deployment of international observers to monitor the movement of goods across sections of Russia's borders with the former Georgian republics of Abkhazia and South Ossetia.

Abkhazia, along with another former Georgian republic, South Ossetia, broke away from Georgia in the early 1990s. Georgian forces attempted to bring South Ossetia back under central control in August 2008, but were repelled by the Russian military. Russia subsequently recognized both republics as independent. Since then, Russia has deployed thousands of troops and border guards to the tiny republics, which Georgia considers part of its sovereign territory.

Russia, Nicaragua, Venezuela and the tiny island nations of Nauru and Vanuatu are the only other countries to have recognized the republics.

These unions are part of an expected regional grouping system that will occur worldwide over the coming period ahead of us. These will more or less accord with the Club of Rome agreements of 1956 and as determined from 1997. The aim is to eliminate the nations and form the NWO under the ten kings or bureaucratic satraps as foretold by Scripture.

It is becoming obvious to most observers that not enough is being done to prevent the crisis or economic meltdown.

 “If you add up what’s going on in terms of the supercommittee’s failures and what’s going on in Europe, it all tilts toward austerity and cutting the legs of support out of the economy going forward,” Steve Blitz, senior economist at ITG Investment Research told the Washington Post. “The inability to get anything done reflects poorly on the ability to get any kind of political cohesion to do something to help the economy in the next year.”

It is obvious that the instability and lack of cohesive strategy from politicians have sparked the panic in markets. Equities are driven lower and bond yields higher and the Eurozone teeters on the brink of collapse. Governments are being fired successively but it still does not stabilise the markets, indeed it adds to the problems.

Spain's Socialists became the fifth government in the 17-nation single currency area to be toppled by the debt crisis this year, following Portugal, Ireland, Italy and Greece. France’s downgrading will cause further serious problems.

Chinese Vice Premier Wang Qishan warned a long-term global recession was certain and China must focus on domestic problems. This statement delivered a fresh blow to European leaders hoping China would use its financial clout to help the Eurozone combat its debt crisis.

The IMF is now set to step in to take up its planned place in the NWO reorganisation. It will expand its lending tools and the aim will be to implement this one world currency and take over from the induced crisis. The IMF’s  “Precautionary and Liquidity Line” (PLL) (replacing the Precautionary Credit Line (PCL) is designed to help countries with "sound economic fundamentals" meet short-term financing needs and can be used as an “insurance against future shocks.” To qualify, countries must also have "sound policies". In other words their policies will have to comply with the rules of the IMF bureaucracy. Funding through the PLL will be capped at five times an individual country's contribution to the IMF, known as its quota, for six-month arrangements and 10 times for two-year facilities.

Welcome to the NWO. What is amazing is that the banks are getting away with it and the nations are handing the sovereignty of their people over to this last Empire of the Beast without a murmur.

Wade Cox
Coordinator General