POP( The Pillaging Of The People )

September 18, 2012

As we speak, the chairman of the Federal Reserve Ben Bernanke is embarked on a policy of print baby print, billions of dollars are being created out of air and injected into the US financial system to keep the financial engine of the economy stoked and burning.

Central banks across the US are queuing up arms proffered out to receive the cash and no doubt the bonuses attached to the cash. Financial markets are being lured into the run incentive of more profit and bonuses, but its a double-edged sword.

The bankers and the markets know the money is not reaching the people. While unemployment rates in the financial services world rates are being maintained and many large banks are profiting on risky investments, in the real world things are becoming a tad more difficult.

There are no flashpoints revealing how people’s lives are being screwed with, but they are bound to come sooner or later. As the amount of money increases in the world, the value of goods and services is consequently increasing in cost. People need higher wages to chase the bottom line and pay for more expensive goods and services. The cost of commodities is on the rise, food is becoming more expensive, oil and oil based energy products are becoming more expensive.

Because a loaf of bread cost €1 last year with x money in circulation, now the same loaf costs €2 with 2x print, baby print in circulation. This is called INFLATION.

In some circumstances inflation can be good. One circumstance relates to borrowing and lending. Consider the €1 you borrowed last year in real terms to buy that loaf of bread this year is only nominally worth 50 cent. OK a little more to pay the interest the bank charged you.

Firstly, there are vast swathes of people who cannot afford to borrow. The banks refuse to lend them money, so there is no benefit to them. But they will be pillaged by the rising cost of a loaf of bread.

Plus the stimulation of the current global financial services industry only stimulates a redundant economic model that leads to stagnation and eventually an imploding financial black hole when confidence in the ability to service debt disappears. The financial service industry of smoke and mirrors cannot by itself stimulate the real jobs in goods and services that progress requires. It has become a vampire sucking blood from debt redundant economies it strangles with its indebted coils.

One of those indebted economies is Ireland. http://www.independent.ie/business/irish/now-merkel-dampens-irish-hopes-of-bailout-cut-3233259.html As predicted in earlier blogs, Ireland would gain little or nothing in negotiations to reduce its debt burden with the ECB.

Humiliated in earlier negotiations over the Promissory notes and Ireland’s unconscionable bailout, useless and weak negotiators out of their depth would return empty-handed from their begging bowl alms exercise with the ECB. The Germans will not agree that their banks take up the tab for the Irish.

Ireland’s best boy in the class attempts to appease its minder and lenders at ECB level has run up against Weimar, Germanic opposition and because our negotiators are glove puppets of the troika, those same negotiators on our behalf, Noonan, Honahan, Kenny, now yield results on par with the three stooges on a window washing job.


“Yah nitwit, you’re ‘sposed to be washin’ windows, not taking dives off the scaffolding…GET UP SLEEPING VENUS! YAH’VE BEEN ON YOUR BACK SINCE WE GOT THE JOB!”

Indeed north-west in the evening skies Venus can be seen, it has more effect on dealing with our debt than the current crop of Irish leaders.

But there is a tragic irony behind the comic analogies above. The truth is the Irish economy is being pillaged from both within and without. Incompetent political leadership, a failed Dept of Finance, a financial services industry that has spawned the monster of NAMA and looks for further incentives at every turn is only one side of the coin.

The other side is the ECB and the tyrannous troika hell-bent on bringing Ireland to its knees. Financial services are protected from taxation, money is attracted into financial speculation on the markets and promised a safer haven than return on investment in industry, manufacturing and the development of the real economy.

Germany and the ECB, like a larger version of the world’s worst bank, Anglo (IBRC) find itself surrounded by bankrupt and broken economies PIIGS such as Ireland, soon to be joined by France as it tries to implement cuts of €30 bn in the coming years, targeting the destruction of its own middle class, the more ECB imposes austerity, the more ECB and Germany build  black holes sucking Germany and its euro to perdition.


It’s hard not to consider with the current policy of ‘print baby print’ embarked on at ECB level, to provide unlimited funding for banks through the support of government bonds across the beleaguered economies of the PIIGS (excluding Ireland of course as it has its bailout and Germany wants its money back), that mindless hyperinflation is now on the cards for Europe.

“Many of the dramatic and unusual economic behaviors now associated with hyperinflation were first documented systematically in Germany: order-of-magnitude increases in prices and interest rates, redenomination of the currency, consumer flight from cash to hard assets, and the rapid expansion of industries that produced those assets. German monetary economics was then highly influenced by Chartalism and the German Historical School, and this conditioned the way the hyperinflation was then usually analyzed.[1]

John Maynard Keynes described the situation in The Economic Consequences of the Peace: “The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance.”

It was during this period of hyperinflation that French and British economic experts began to claim that Germany destroyed its economy with the purpose of avoiding reparations, but both governments had conflicting views on how to handle the situation. The French declared that Germany should keep paying reparations, while Britain sought to grant a moratorium that would allow for its financial reconstruction.

Bernanke’s and Merkel’s road to inflation can lead to Weimar hyperinflation and is the road to perdition.

The Pillaging Of The People, the destruction of the middle class in Europe through taxation and the erosion of the value of assets, is on target to pay for the debt of banks, poor political leadership. Public services, education and health are now the target of stooges, Fine Gael and Labour Thatcherite policies, who would have believed it, puppets of the financial service industry?

The ECB are worried about those Promissory notes. They do not like the prospect of an Irish government deciding we are not going to pay them. They do not like the prospect of dealing with Irish negotiations looking for debt reduction through writing down the PN’s.

Expect to see the Irish negotiation stooges return home with a new Promissory Note Bond renamed Irish Recov40Yr Bond, with a tiny amount written off the annual repayments of €3.1bn for the IBRC unconscionable extortion of Irish people, but the overall amount to be repaid back increasing and Thatcherite Labour and Fine Gael aiming for people with disabilities to pay for it all.

No wonder the young are emigrating.


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