Geithner Plan for Europe is Last Chance To Avoid Global Catastrophe! Yeah Right !

• “It was a carefully contrived occurrence. International bankers sought to bring about a condition of despair, so that they might emerge the rulers of us all.“
  Louis McFadden on 1929 Stock Market Crash. Louis McFadden died of poisoning shortly thereafter.
  –
• Whatever CFR snake Tim Geithner comes up with I seriously doubt it will avert the coming global collapse. The US$600T derivatives market (some say US$1.5 Quadrillion) is imploding. How exactly do you find the money to fill up this US$600T hole? It is 9x the size of the global GDP! In the end, the Illuminist banksters will initiate QE to infinity. The Euro, UKP, Yen .. and USD will be toast! Minor currencies will not survive the onslaught of hyperinflation! Got physical gold/silver yet? They are looking awful cheap! (emphasis mine)
  –
  Geithner Plan for Europe is last chance to avoid global catastrophe
  By Ambrose Evans-Pritchard, http://www.telegraph.co.uk/
  Europe, the G20, and the global authorities have one last chance to contain the EMU debt crisis with a nuclear solution or abdicate responsibility and watch as the world slides into depression, endangering the benign but fragile order that has taken shape over the last three decades.
  –
  The threat of cascading default, bank runs, and catastrophic risk must be taken off the table,” said US Treasury Secretary Tim Geithner over the weekend. “Sovereign and banking stresses in Europe are the most serious risk now confronting the world economy. Decisions cannot wait until the crisis gets more severe.”
  –
  Euroland’s dysfunctional arrangements are no longer a local affair. As the European Central Bank’s Jean-Claude Trichet said in Washington, EMU is at the epicentre of a global sovereign debt crisis that risks engulfing all, and is more intractable than 2008 because governments themselves are now crippled.
  –
  China, India, Brazil and the world’s rising powers will not escape lightly this time if leaders let events spiral out of control. European banks have lent $3.4 trillion to emerging markets (BIS data), or three quarters of external loans to these countries.
  –
  The International Monetary Fund warned last week that emerging markets face the risk of “sharp reversals” or even a “sudden stop” if there is further spill-over from Europe. This comes at a time when Asia and parts of Latin America are already in the topping phase of a credit boom, one of epic proportions in China where loans have doubled to almost 200pc of GDP over the last five years.
  –
  Warning signs have been flashing red for the last three weeks. Shares of China’s top property developer Greentown have crashed by a third this month. The currencies of Indonesia, Brazil, Korea, South Africa, and Hungary have all buckled, and central banks have begun intervening to stop the slide. “A continued flight from risk raises the growing possibility of investor capitulation in emerging markets,” said Neil Mellor from BNY Mellon.
  –
  The reserve powers would be well advised to pull out all the stops to save Europe and its banking system. Together they hold $10 trillion in foreign bonds. If they agreed to rotate just 4pc of these holdings ($400bn) into Spanish, Italian, and Belgian debt over the next two years, they could offer a soothing balm. None has yet risen to the challenge. It is `sauve qui peut’, with no evidence of G20 leadership in sight.
  –
  Once again, the US has had to take charge. The multi-trillion package now taking shape for Euroland was largely concocted in Washington, in cahoots with the European Commission, and is being imposed on Germany by the full force of American diplomacy.
  ….
  Even if the €2 trillion “Geithner Plan” does get off the ground, it can do no more than buy time – not to be sneezed at, for sure. The root of the euro crisis is a 30pc intra-EMU currency misalignment between North and South. That structural flaw cannot be solved with debt guarantees or bank rescues.
  –
  Nor can this gap in competitiveness be bridged by austerity alone, by pushing Club Med deeper into debt-deflation and perma-slump. Such a strategy must slowly eat away at Italian and Spanish society, undercutting the whole purpose of the EU Project. It would ultimately risk trapping them in a debt spiral as well, leading to collosal losses for Germany in the end.
  –
  The Geithner Plan must be accompanied a monetary blitz, since the fiscal card is largely exhausted and Germany refuses to lower its savings rate to rebalance the EMU system. The only plausible option is for the ECB to let rip with unsterilized bond purchases on a mass scale, with a treaty change in the bank’s mandate to target jobs and growth.
  –
  This would weaken the euro, giving a lifeline to southern manufacturers competing with China. It would engineer an inflationary mini-boom in Germany, forcing up relative German costs within EMU. That would be the beginning of a solution, albeit a bad one.
  –
  Sorry Deutschland. History has conspired against you, again. You must sign away €2 trillion, and debauch your central bank, and accept 5pc inflation, or be blamed for Götterdämmerung. It is not fair but that is what monetary union always meant. Didn’t they tell you?
  –
• Quotes:
  –
  “We shall have world government whether or not you like it, by conquest or consent.”
  Statement by Council on Foreign Relations (CFR) member James Warburg to The Senate Foreign Relations Committee on February 17th, 1950
  –
  “The Council on Foreign Relations is ‘the establishment’. Not only does it have influence and power in key decision-making positions at the highest levels of government to apply pressure from above, but it also announces and uses individuals and groups to bring pressure from below, to justify the high level decisions for converting the U.S. from a sovereign Constitutional Republic into a servile member state of a one-world dictatorship.”
  Former Congressman John Rarick 1971
  –
  “The directors of the CFR (Council on Foreign Relations) make up a sort of Presidium for that part of the Establishment that guides our destiny as a nation.”
  The Christian Science Monitor, September 1, 1961
  –
  “The New World Order will have to be built from the bottom up rather than from the top down…but in the end run around national sovereignty, eroding it piece by piece will accomplish much more than the old fashioned frontal assault.”
  CFR member Richard Gardner, writing in the April 1974 issue of the CFR’s journal, Foreign Affairs.
  –
  “The planning of UN can be traced to the ‘secret steering committee’ established by Secretary [of State Cordell] Hull in January 1943. All of the members of this secret committee, with the exception of Hull, a Tennessee politician, were members of the Council on Foreign Relations. They saw Hull regularly to plan, select, and guide the labors of the [State] Department’s Advisory Committee. It was, in effect, the coordinating agency for all the State Department’s postwar planning.”
  Professors Laurence H. Shoup and William Minter, writing in their study of the CFR, “Imperial Brain Trust: The CFR and United States Foreign Policy.” (Monthly Review Press, 1977).
  –
  “The most powerful clique in these (CFR) groups have one objective in common: they want to bring about the surrender of the sovereignty and the national independence of the U.S. They want to end national boundaries and racial and ethnic loyalties supposedly to increase business and ensure world peace. What they strive for would inevitably lead to dictatorship and loss of freedoms by the people. The CFR was founded for “the purpose of promoting disarmament and submergence of U.S. sovereignty and national independence into an all-powerful one-world government.”
  Harpers, July 1958

end