Euro Bond Issues: A Different Point of View

content by:  Grant Cagann

Whether you have been following the eurozone collapse closely or not, surely you have noticed all those beautiful media types informing us that it’ll all be ok since:

a.  the technocrats are here to help

b.  the euro must and will be saved, since it is the duty of her people to do so

…get used to that last one, since it’s on a boat to America as I write this…

Well if you haven’t figured it out by now, the technocratic “installations” throughout the erozone are ALL goldman sachs and/or trilateral commission members.  This should tell you all you need to know, especially since the PEOPLE WHO HAVE BEEN SIGNED ON TO ALL THIS DERIVATIVE DEBT HAD NO VOICE IN ELECTING THESE PEOPLE.  Fiat regime change is so IN this season omgwtfbff!

There are quite a few educated opinions on last week’s German and Italian bond issues, and NOT included in this list are those that believe more debt will do anything other than kick the can down the road for a couple months and make the coming implosion that much more devastating.  What really stood out from these specific events, however, was that the Italian bonds sold out and the German bond issuance was a “disaster”:
On the surface, a 2 year 8% yield (Italy) vs. a 10 year 2% yield (Germany) would be a no-brainer for institutional investors.  Considering that the goal is to never let any nation, state, or megabank fail, why WOULDN’T you opt for the Italian paper even when Italy is teetering on the brink of complete failure?  A different but related assumption is made by Paul Craig Roberts (former head of policy @ the department of treasury), who suggests that rates have nothing to do with it…it’s all about pulling back from the cliff whatever euro nation is closest to the edge to hide US exposure.

He writes:

“Strange, isn’t it. Italy, the largest EU country that requires a bailout of its debt, can still sell its bonds, but Germany, which requires no bailout and which is expected to bear a disproportionate cost of Italy’s, Greece’s and Spain’s bailout, could not sell its bonds.

In my opinion, the failed German bond auction was orchestrated by the US Treasury, by the European Central Bank and EU authorities, and by the private banks that own the troubled sovereign debt.

My opinion is based on the following facts. Goldman Sachs and US banks have guaranteed perhaps one trillion dollars or more of European sovereign debt by selling swaps or insurance against which they have not reserved. The fees the US banks received for guaranteeing the values of European sovereign debt instruments simply went into profits and executive bonuses. This, of course, is what ruined the American insurance giant, AIG, leading to the TARP bailout at US taxpayer expense and Goldman Sachs’ enormous profits.

If any of the European sovereign debt fails, US financial institutions that issued swaps or unfunded guarantees against the debt are on the hook for large sums that they do not have. The reputation of the US financial system probably could not survive its default on the swaps it has issued. Therefore, the failure of European sovereign debt would renew the financial crisis in the US, requiring a new round of bailouts and/or a new round of Federal Reserve “quantitative easing,” that is, the printing of money in order to make good on irresponsible financial instruments, the issue of which enriched a tiny number of executives”.

Full article here:
While this analysis shows just how close we are to a global crisis (since all resources must be used to keep the scheme moving forward regardless of fundamentals), I don’t want anyone reading this to miss the BIGGER picture here, that as long as debt issues, quantitative easing, and other forms of fiat printing can be used to prop up the system, these instruments will be used to fleece the taxpayers, small investors, and “savers” of the planet.  If the endgame is global receivership, the purchasing power of everyone must be eroded prior to orchestrating the final collapse, bankruptcy, and asset fire sale of each nation and state  back to the banks.

Why else would more debt always be the answer?  Watch for the banking cartel to offer up another trillion dollar debt solution as early as Monday…

Midnight Edit: oh wait…


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