Follow the… gold

Nothing has changed.

Rather, as always, there are two sides to any story. The “solutions” being devised and applied by the governing elite have not changed. From the EFSF to the LTRO to QEx to Swap Lines, the solutions have different names but the mechanics do not change. It is all based on creating new debt to buy old debt. The new debt may be generated alternatively by the ECB, or by individual central banks, or by the IMF and the newly bought debt may be placed on the books of any or other of the above entities but the mechanics do not change. We are still creating new debt to cover old debt. Some say that this is an attempt at buying time in order to allow us to make old debt go away. Our politicians certainly hold this argument although it is unclear if they do so unwittingly or if they are complicit in what is by now well documented fraud perpetrated by the highest levels of Western governments.

Hence, not much point in writing more posts going over old ground over and over again.

What is however worth highlighting is the anecdotal evidence that points to what the ultimate goal is. You know I have stated that DBFM must ultimately result in the concentration of power and the transfer of the productive capital of society into the hands of a restricted band of players in the financial sector.

Here’s what even the New York Times has been able to pick-up on although they too probably cannot fathom the ramifications of what they are reporting on.

http://www.nytimes.com/2012/02/22/world/europe/euro-zone-leaders-agree-on-new-greek-bailout.html?_r=2

Relevant excerpt:

[Ms. Katselis]… was also upset that Greece’s lenders will have the right to seize the gold reserves in the Bank of Greece under the terms of the new deal, and that future bonds issued will be governed by English law and in Luxembourg courts, conditions more favorable to creditors.

Right there, in that one sentence, the New York Times reports on the harsh reality that is the loss of sovereignty and loss of the only capital that might help Greece return to a sounder footing (albeit at the cost of a lower standard of living) at the hands of a supranational state that is now empowered to impose constitutional amendments upon member countries. And I needen’t remind you that the power of the supranational state is wielded through leaders that have been parachuted into place rather than elected (i.e. Prime Minister Papademos who is bending over backward to wax lyrical about the inherent goodness of the “deal” he has reached with the representatives of the banks).

But… but… Greece is only relevant to the extent that it is the first sovereign to succumb to the inevitable dynamic brought about by DBFM. But Greece is not alone of course. Any country that subscribes to the Floating Exchange Rate mechanism imposed along with our Debt Based Fiat Monetary system and Fractional Reserve Banking will eventually succumb in the same manner. The conclusion is inevitable. The only variable is time.

So, although Greece may be the first one to succumb to a lower standard of living, no other country that makes use of DBFM can hope to escape.

Eventually, when Spain, Portugal, Ireland and Italy will feel tangibly the banks nipping at their heels, that’s the moment that social unrest may organize across borders. When that happens, Western leaders will have an opportune foreign conflict ready packaged to divert the attention of the masses. The ensuing global conflict will serve to thin out the restive natives in the West as well as obliterate foreign industrial capacity.

I’d say this will all unfold between 2013 / 2015… we are there…

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