SOVEREIGNTY: BACK TO WESTPHALIAN PRINCIPLES

October 5th, 2014 LAIGLESFORUM Posted in Banking and Finance, Europe, european union, France, Freedom, Global governance, International, Islam, Politics, World Affairs No Comments »

 

BACK TO WESTPHALIAN PRINCIPLES

By Bernard CHALUMEAU

The treaties of Westphalia and the genesis of International law.

 

Like all French school children, we are aware that the Treaties of Westphalia ended the Thirty Years War, which began with the defenestration of Prague in 1618, giving France the Three Bishopricks of Metz, Toul and Verdun  of the Holy Roman Empire.

However, let us take a closer look because there was much more to it than this:

These treaties are constituted of several agreements signed between the parties to the various conflicts:

– On January 30th, 1648, in Münster, the treaty between Spain and the United Provinces ended the war of Eighty Years.

- On October the 24th, in Münster, the treaty between France and the Holy Roman Empire ended the Thirty Years War, to which was added an act by which the Holy Empire gave to France the three Bishopricks of Alsace, Brisach and Pignerol, and another by which Emperor Ferdinand III, the archdukes of Austria, Charles, Ferdinand and Sigismund gave Alsace to France.

– On October 24, in Osnabrück, it also ended the 30 Years War.

-On July 2,1650, in Nuremberg, the two agreements between the Holy Empire and France and between the Holy Empire and Sweden relating to the enforcement of the peace.

These treaties were the bases for the organization of Germany up to the end of the Holy Roman Empire in 1806.

Unfortunately, most school texts fail to indicate that the principles of international law were born on the date these important treaties were signed.

The object of this article is not to describe the very complex progress of the Thirty Years War (1618-1848) where many conflicts pitted the Hapsburg of Spain and the Holy German Empire, supported by the Roman Catholic Church, against the Protestant German States of the Holy Empire allied with the nearby European powers with Protestant majorities, United Provinces and Scandinavian countries, as well as France, which intended to reduce the power of the Hapsburgs on the European continent.

However, one must bear in mind that it was the most dreadful slaughter of the entire 17th century, which killed several million men, women and children.

Since the demography of Europe was seriously affected, the belligerents thus looked for ways and means to avoid a recurrence of such horrific massacres.

The negotiations of these treaties lasted a long time (from 1644 till 1648), because it was necessary to establish new modes of relations between States with a view to limiting wars and to strengthen “the law of nations.”

In his work “The six books of the Republic”, published in 1576, the famous French lawyer Jean BODIN (1529-1596), had published his thoughts on public law, “res publica,” and on the powers of the king, as the first legal principles of sovereignty: “Sovereignty is the absolute  and perpetual power of the State, which is the greatest power to command. The State in the person of the monarch is supreme inside its territories, independent of any high authority, and legally equal to the other States”

Further, the Dutchman Hugo Grotius published in 1623 a work entitled “De Jure Belli et Pacis,” which proposed the establishment of a “mutual association” between nations, that is to say an international organization, thereby laying the groundwork for a code of public international law. Their ideas were intended to guide the negotiators of these treaties in establishing what has conventionally been called since that time “the Westphalian system” as a guideline for the concept of modern international relations.

– The balance of powers, meaning that any State, large or small, has the same importance on the international scene (For example, see the Article CXXII of the Münster Treaty in Old French below)

– The inviolability of national sovereign power (See article CXII of the Treaty below).

– The principle of non-intervention in the affairs of others (see article LXIV of the Treaty below).

Since the treaties of Wesphalia, a new actor succeeds the division of the power between villages, duchies and counties, namely, the modern State.  The world is organized with States whose sovereignty must be respected by the bordering states by virtue of the Westphalian concept of the border. International relations become interstate and the respected borders guarantee the peace.

These treaties proclaim the absolute sovereignty of the State as the fundamental principle of international law.

Europe becomes a set of States, having precise borders, recognized by others, in which the prince or monarch exercises his full and complete sovereignty. The characteristics of these modern States include the constitution of permanent armies and the expression by the elites of the fact of national existence. In these States, language appears as a factor of unity.

The Westphalian principles subsequently contributed to the emergence of the idea of the Nation States in the 19th century, as well as the principle of nationalities, where every National State enjoys, within its own borders, complete independence, being provided with the highest possible form of sovereign power with its own army, its own currency, its justice system, its police and an economy, allowing it to live as independently as possible of the other States.

Later the Montevideo Convention on the Rights and Duties of States, signed on December 26th 1933, would add four essential elements:

 

“To be sovereign, a State must have :

–          a permanent population.

–          a defined territory.

–          an operational government.

–          the capacity to enter directly in relation with other states.” 

 

It added a fundamental clause:

The political existence of a state is independent of its recognition by other states.

The United Nations, undoubtedly horrified by this measure, which it considered too Westphalian for its taste — since it paved the way for the emergence of multiple large or small States — then hurried to add notions of “internal sovereignty” and “external sovereignty,” so that, to be sovereign, States must have, in addition to their capacity to exercise their power over the population inside their territory without any outside constraint, the need to be recognized as sovereign States by the other States of the international system.

 

The law of nations (Jus gentium ) or public international law:

Established under the Treaties of Westphalia, this law governs the relations between the subjects of this legal system, which are States and international organizations.

A subject of international law must comply with this law and must be able to benefit from it. In the beginning, the State was the only subject of international law. But this concept became obsolete, because, after1815, the States found it necessary to join together in international organizations, gradually acquiring the status of legal subjects. Thus, the United Nations became, like the EU and other international organizations, subjects of derived law (generally referred to in American English as case law).

Introduction of the right of intervention in international relations:

Unfortunately, since the end of World War II, the increase in the number of treaties between States of the western world tended to suppress Westphalian principles by considerably developing their military, economic and financial interdependence.

At the end of the Cold War, the United States of America, an enormous consumer of energy and raw materials, desiring to extend its hegemony throughout the planet and to get energy and raw material at the lowest possible prices, noticed that the Westphalian ban on intervention in other States thwarted its designs.

The United States of America felt obliged to find a way to by-pass Paragraph 7 of Article 2 of the UN Charter, which stated:

“Nothing contained in the present Charter shall authorize the United Nations to intervene in matters which are essentially within the domestic jurisdiction of any State,” summing up the very Westphalian-sounding article 8 of the Agreement of Montevideo, which banned intervention in the internal affairs of a State.

Based on the ideas of persons such as the philosopher Jean-François Revel in 1979 and of Bernard Kouchner, a new “right” called the “right of intervention,” was concocted, i.e., the recognition of a right of one or more States to violate the sovereignty of another State, within the framework of a mandate granted by a supranational authority.

It was a wondrous invention which allowed:

–          to abolish Westphalian principles,

–          to add the notion of supranationality,

–          to intervene on the territory of any State even against the will of that State,

–          to establish world governance under the aegis of ad hoc international organizations,

–          to subjugate the weakest States to one or more stronger States,

–          to establish the hegemony of the US government.

The precious Westphalian principles were thereby overturned and the whole world returned essentially to the monstrous situation of the Thirty Years War.

The desired ad hoc international organization in the hands of United States of America was found, namely, the UN. All that was needed was the pretexts for war.

No problem:

– The US oligarchy rushes to the target State to be destabilized, a CIA team, which will increasingly include, or be supplanted by, a Soros foundation, USAID or the like, providing camouflage in the form of “private” intervention.

– This team, relying on existing opposition or opposition to be created from whole cloth in the current regime, develops a “National Liberation Front” or the equivalent thereof.

– It equips it with the necessary weapons and bolsters it with troops, usually drawn from the Islamic sphere of influence.

– Thanks to mass media under its control, it floods public opinion with information and images, often doctored, that overwhelm the government in power.

– All that remains is for the UN to pass a “resolution” allowing the armed forces of several States, mainly of the EU and the US, to come to the aid of the young “National Liberation Front” and oust the current regime.

This system worked very well for the interventions in Romania, Kosovo, Afghanistan, Iraq, Syria, Darfur, Ivory Coast, Libya, Syria, Nigeria, Ukraine, etc., spreading war throughout the planet.

The right of the bankers replaces the right of the people :

Thanks to the “legality” of the UN ad hoc resolution, the armed forces deployed in the target State destroy a maximum of infrastructure, such as power plants, factories, bridges, roads, railways, airports, runways, and so on…

Thus, when the target State is “pacified,” American companies share in the juicy reconstruction contracts. The new leader of the regime, set up by the “liberators,” is very helpful in awarding these contracts to said companies. At that point, the target State, its population and resources are under the control of the US oligarchs.

These operations are managed behind the scenes by bankers, generally US bankers. The bankers finance both belligerent parties, enjoining the winner to honor the loser’s debts. They finance the military-industrial lobbies committed in the conflict and manage the process in such a way that it is drawn out as long as possible.

So, the bankers win every time!

The superiority of the right of the bankers over the right of the people was established in Europe by the Maastricht Treaty of 1992 by the introduction of a single currency, the “euro,” controlled by the European Central Bank, completely independently of the Member States’ governments under Article 108 of that treaty.

ARTICLE 108

 

When exercising the powers and carrying out the tasks and duties conferred upon them by this Treaty and the Statute of the ESCB, neither the ECB, nor a national central bank, nor any member of their decision-making bodies shall seek or take instructions from Community institutions or bodies, governments of the Member State or from any other body.”

All European treaties since then have reinforced those provisions, resulting in an impoverishment of populations subject to this single currency and complete submission to a new slavery for the benefit of bankers.

It is no longer states that control the banks, but the banks that control the states.

Evidence of this is on flagrant display throughout the world, notably in Cyprus where depositors were ruined by bankers with the support of the International Monetary Fund, the European Commission in Brussels and the Central Bank of the EU.

 

The objective of Mayer Amschel Rothschild, founder of the Rothschild banking dynasty, expressed below:

 

“Let me produce and control the issue of currency of a state, and I do not care who can make laws”

 

has been achieved!

Having succeeded in removing Westphalian principles from international law, the bankers rule the planet, start wars wherever and whenever they want and enslave the people of the world.

Conlusion:

The Westphalian system described herein clearly shows that whoever advocates it, in France or elsewhere, i.e., patriots and the sovereignists, are peace activists! They are the future of nations. That is why the banker-controlled mass media are bent on either contradicting them with outright lies, or silencing them.

To secure peace in the world, Wesphalian principles must be restored!

History in fact shows that, as long as these principles were respected, the world (ie, Europe initially and then throughout the world from the 19th century onward) experienced overall stability, but when they were abandoned by a State or group of States, horrific conflict occurred again.

Many historians believe that the Treaty of Versailles in 1919 was responsible for World War II by violating Westphalian principles, substituting a collective security.

That is why I urge all patriots and French sovereigntists, particularly French youth, to enter into Resistance.

I invite them to partner with the youth of Europe and the rest of the world to fight by all possible means to restore Westphalian principles everywhere based on respect for the inalienable sovereignty and independence of States.

There is not only an absolute necessity to recover their freedom, their way of life, the kind of society they want to live in to escape this new slavery, but also and above all, the need to preserve their property, their lives and those of their descendants, who are, as we can see today, physically threatened.

As for me, I remain at their disposal to help them while strength and breath shall last.

French patriots!

The wind of hope is rising! It is bringing back our France! It is bringing back our freedom!

Bernard CHALUMEAU

Translation by Bernard Chalumeau, translation editing by Don Hank

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Why the West is deliberately failing

July 15th, 2012 LAIGLESFORUM Posted in Banking and Finance, Christian, Culture, Economics, european union, Gay agenda, Uncategorized 7 Comments »

by Don Hank

The prophets prophesy falsely, and the priests bear rule by their means; and my people love to have it so…

The scientific method, while still used in scientific experiments in the laboratory and clinic, has long been abandoned in the persuasive arts, notably journalism, but also in politics. Any journalist analyzing facts based on logic and science instead of accepting the interpretation of our universe handed down from above would soon lose their job. We have long lived in an anti-scientific, and hence, an anti-natural, world and are now reaping the inevitable rewards of our denial of truth.

If we were to be honest with ourselves for just a brief moment, we would admit that Western society is deeply sinful (or in secular terms, unwholesome) and even worships sin, celebrating it with carnivals and gay parades, and teaching young children how to perform sex acts in schools. And of course, the Western world routinely commits infanticide. Romans 1:25 describes the Western world to a “t” (Paul uses homosexuals as an example but this issue ranges far wider than that):

Who changed the truth of God into a lie, and worshipped and served the creature more than the Creator…

The end of that discourse on sinners describes the outcome.

…men with men working that which is unseemly, and receiving in themselves that recompence of their error which was meet.

A graphic depiction of some of that recompense for this particular group of sinners can be found here. I referenced that site in my commentary “The recompence of their error.”

So why do people deliberately engage in self-destructive practices that our otherwise superior intelligence should be telling us to avoid for the purposes of self preservation? Or for that matter, why do they pursue Keynesian economics amassing mountains of debt that no one could ever repay in a headlong rush to destroy our economy, our means of survival? No animal species would do that.

The answer is right there in Paul’s discourse, and this is the part Christians need to focus on when analyzing the causes of Western society’s failure to manage its laws, its immigration, its social ills, its fruitless wars, its finances and economy, its moral code, etc:

Because of this, God gave them over to shameful lusts.

And several verses later:

God gave them over to a reprobate mind.

Did you ever consider what that means?

GOD facilitates the destruction of the disobedient and the ungrateful by abandoning the disobedient to their own sinful desires. Paul is talking about people who worship nature instead of the Creator because they were ungrateful to Him for the blessings of life. Why would people who once worshipped nature turn around and do something unnatural, as Paul calls this behavior in this same passage? A person analyzing this without spiritual discernment might say this incongruence makes no sense and would be at a loss to explain it in rational terms. Some spiritually blind (but otherwise intelligent) analysts say that for this reason, Paul couldn’t really have meant “unnatural” when describing this behavior, and they therefore tweak the translation from the original Greek to make it say something else. (They forget that in the 4th Century, Jerome, a fluent speaker of koine Greek, rendered this term as “contra naturam” in his translation  of the Vulgate Latin Bible).

The fact is, God routinely allows people to do the unnatural—committing acts outside the laws of nature that can’t be explained by any scientific (e.g., psychological) laws. Once you turn your back on God, He abandons you and you fall into a behavior pattern designed by Satan. There is nothing natural about sinful behavior because it was not designed by God.

So if it is not natural, then is it supernatural?

No, it is not. Since God performs supernatural works—that is, works that are above nature—then Satan’s works and the works of humans gone over to the dark side might best be considered as infranatural, or beneath nature. An animal would not destroy its own economy – its food stores, for example – the way Westerner “leaders” are now doing, most notablyin the Euro Zone and the US through irrational banking practices and eradication of home industry and cheap energy by legal and regulatory means (even as they encourage other nations, notably China, to use cheap energy and high carbon combustion in competing with the West). Nor would an animal devote itself almost solely to the pursuit of sex, especially homosex, the way many humans do (although bisexuality is known in the animal kingdom, there are no known strictly homosexual animal individuals that eschew all individuals of the opposite sex).

Such infranatural phenomena are exactly why we face an imminent worldwide economic collapse. Economists, supposedly specialists in math, no longer use mathematics in their convoluted Keynesian calculations. Likewise, otherwise educated people who understand human anatomy deliberately and routinely utilize as an inlet a bodily organ designed as an outlet, a lifestyle that often leads to horrific diseases and death (see here).

But as Paul says, amazingly, GOD facilitates this mindlessness by abandoning those who abandon God — including His scientific laws. Because people stopped trusting in Him and thought they could come up with their own answers. Look around you. How do you like the results of Western secularist, humanist political, diplomatic, economic, social, military, etc, behavior? Vote for either candidate and you will get more of the same. Look at Europe. An entire continent that thinks it is smarter than God is now drowning in debt and fighting for its economic life. If this is not sufficient evidence of the God that Paul describes, i.e., a God who deprives disobedient humans of their cognitive faculties, then I can’t imagine what is.

This is why the West does not need more laws or a better government.

It needs a spiritual revival. And that revival will not happen without Westerners accepting the love, forgiveness and righteousness that Jesus taught, making a sincere attempt to do what is morally right as dictated by our God-given conscience. Americans, including the best and otherwise most civil and decent of us, are beating each other up because we think this is about people or the lack of wisdom of individuals or leaders. If people do this or that, or if we make this or that law or elect this or that politician, then we can get back on track. “How can this group or that group be so stupid?” they say of those who disagree with them.

But again, they ignore Paul’s teachings, as recorded in another letter of his:

For our struggle is not against flesh and blood, but against the rulers, against the authorities, against the powers of this dark world and against the spiritual forces of evil in the heavenly realms.

If you think this is too lofty and ethereal to relate to your life and the world around you, consider the antithesis, for example, in this article on John Maynard Keynes, a homosexual and pedophile who authored our current failed economic system (bailouts rewarding bad business and banking practices and other government interventions that kill free enterprise were his brain child):

http://www.keynesatharvard.org/book/KeynesatHarvard-ch09.html

If we take to heart Paul’s message in Romans 1:25-27, we can easily see it was no coincidence that Keynes was both a sexual deviant (pedophile, homosexual, etc) and the author of the most perverted economic system known to humankind.

There can be no logical or scientific explanation for Keynes’ self-destructive lifestyle and destructive teachings, or of an entire civilization deliberately patterning itself after him, destroying itself economically and morally with no apparent justification. These examples of a West deliberately weakening and sabotaging itself are the best examples of unqestionably infranatural phenomena.

As incredible as it may seem to those imbued with the rigid doctrinaire humanism that is foisted on Western society by an incessant drumbeat in media, schools and universities, in cinema and on the street, Paul’s brief discourse on a God having given people up to a reprobate mind is emerging as the default explanation of a civilization marching resolutely to its utter economic and moral ruin.

So why is this explanation for Western civilization’s failure never raised in the churches of our nation?

Perhaps because God is giving our clergy over to the very same reprobate mind that Paul spoke of. They interpret the scriptures as though they were hopelessly outdated when  in fact, these ancient writings offer the only glimpse of sanity–and hope–that is left in our reprobate world.

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Greece: No denouement, just more misery on the way

June 19th, 2012 LAIGLESFORUM Posted in Banking and Finance, Economics, Europe, european union, Global governance, Uncategorized No Comments »

Don Hank

The news of Greece’s poll results, widely construed as a decision not to immediately exit the euro, is all over the foreign cable news programs, and Brussels is shouting for joy. They fail to see what’s coming! The markets responded favorably for a little over an hour, than plunged again when people woke up to reality: Endless bailouts for Greece until Germany and the others go bust.

To give you some perspective, here are some figures on the contributions of the various member countries to the EU, and hence to the bailouts:

http://www.redicecreations.com/article.php?id=7925

Briefly, at the time of that report, Belgium’s Flanders paid top euro per capita, 282.6 euros per Flemish person, for a total of 1 billion 780 thousand euros.

But it is widely believed that Belgium will soon need a bailout of its own. That’s a double whammy for the EU. Not only would it lose the net contribution from Belgium but it would also have to take more from the remaining countries that are just barely above water to pay the Belgians. A net loss instead of the current net contribution.

Italy contributed 2 billion 938 million at the time of that writing, or about 49.7 euros per capita.

But Italy will eventually need a bailout, despite the phony optimism of Super Mario Monti.

That is another loss of a contributor, which becomes a net liability for the EU.

Spain will also need another bailout, and so will Greece.

And the more needy countries line up at the trough and stop being net contributors, the harder it will be for those few economically sound nations to pull their weight. Further, Angela Merkel, Chancellor of the German powerhouse, is demanding — and will eventually get — full-scale “green” energy to replace all of the traditional cheap nuclear and fossil fuel plants that have so far made Germany the no. 2 exporter in the world. Once this transformation is complete, Germany too will line up at the trough, but the trough will be empty by then.

It may seem as if the EU has spun out of control. But the founders of the EU were men imbued with the socialist vision. Their idea from the start was that the rich nations should pull the weight of the poor, ignoring the vast difference in work ethic between them that drives some to work while others consume the fruits of their labor. This is socialism in drag, since in traditional socialism, there is roughly a wealth transfer of rich individuals to poor individuals, while in the more sophisticated version, the transfer is from rich nations to poor nations. You’d think Europe would have noticed, after all these years of being duped, that the EU is just a sophisticated version of the Soviet Union, but it is as if someone had taped their eyes shut. As time goes on it becomes increasingly clear that this transfer was never intended to be temporary. It has been a de facto systemic state of wealth transfer, always propped up with a new crisis and hence a new pretext to prolong the outright daylight robbery.

Thus, as long as the EU’s power masters can continue to strike fear in the hearts of the serfs who do their bidding, they will continue to steal the wealth of the rich nations, whose workers work longer hours with less pay, and send it to the “poor” nations, whose workers work less, retire earlier and demand — and get — more of everything. Meanwhile, the only win-win group is the bankers. Italy, for example, recently paid a handsome 7% for its credit. Good money for folks who sit like vultures at a carrion feast.

Socialism hasn’t changed one iota in its gross unfairness to the productive. But it has changed its guise and has trained its propaganda machines full tilt against the working men and women of nations unfortunate enough to be “rich,” warning that if their plan is not followed, there will be chaos, tanks in the streets, starvation, rioting, war, etc. So keep your noses to the grindstone. Arbeit macht frei.

Yet, these dread social phenomena are precisely what the EU and its policies are leading to. But they are the unintended consequences, and as stealthy and crafty as the EU power masters are, they have no good moves left for this end game, because the final outcome belongs to God, not to them.

Just as the populace didn’t see their machinations, the power masters didn’t see Him at work.

Don Hank

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Remembering the prime cause of the economic crisis

November 9th, 2011 LAIGLESFORUM Posted in Banking and Finance, Economics, The Left 5 Comments »

Most Americans are puzzled and, of these, most are angry that Tim Geithner and Obama keep forking over our cash to a failing Europe via the IMF.

In fact, these politicians are some of the few who realize that the US Left actually triggered the world economic crash and therefore, in a sense, owes Europe and everyone else an apology at the very least.

It is interesting that even the most conservative authors, writing on the economy, rightfully blame the banks, the Fed and the 1999 repeal of Glass-Steagall for the economic crash, but most of them fail to look back at the prime cause, the bleeding heart giveaway policies of the CRA (Community Reinvestment Act). True, these other factors were absolutely key and no one is denying that. But without the CRA, it would not have happened, at least not in the same way.

“Most people do not realize this, but derivatives were at the center of the financial crisis of 2008,” states an article at theeconomiccollapseblog.com.

Nothing wrong with that statement. (This blog is in fact one of the best sources available on the progress of the West’s current economic suicide attempt.)

Indeed, neither party noticed the enormous destructive power of these instruments back when the market was bearish.

But let’s be more specific. In the case of the current crisis, it was not just any old derivatives that caused the initial tremor in the markets. It was mostly a derivative known as MBSs, or mortgage backed securities, that got the avalanche rolling. And the repeal of Glass-Steagall (which had denied banks the right to act as both investment houses and banks) was the enabler.

However, we need to look back further to find the root cause. To recap for those who have forgotten: Back in the 70s Carter, always the bleeding heart and skeptic of the free market, decided banks were deliberately refusing to service blacks, Hispanics, etc, on the basis of race. That assumption was in itself unproven at best and maliciously phony at worst. Nonetheless, the CRA (Community Reinvestment Act) became the law of the land in 1977. No one tried to seriously enforce this law until Clinton became president because Republicans used to know that forcing banks to lend to the insolvent would inevitably lead to ruin. Ironically, by the founding of the Clinton Dynasty, businesses were even more conscientious than before about eliminating racial considerations from their lending practices. A well-off black men could secure a loan just as easily — if not more easily (thanks to affirmative discrimination) — than a white man.

But Clinton had declared himself the “first black president” and he had to live up to his absurd title. So his HUD secretary Henry Cisneros, with equal absurdity, started to put teeth into the law that had, mercifully, lay fallow in the intervening years:

Here is what the CATO Institute says:

In 1992, HUD was given regulatory authority over these government-sponsored enterprises, and it began pushing the two firms into the subprime lending business.

The ensuing horrors we see all around us could perhaps have been mitigated, or even averted, had GW Bush not tried so hard to be a “compassionate conservative” (code for socialist in sheep’s clothing). In fairness, Bush had initially warned against these policies, but by January 2004, his HUD web site was trumpeting:

“Offering FHA mortgages with no down payment will unlock the door to homeownership for hundreds of thousands of American families, particularly minorities,” said HUD’s Acting Secretary Alphonso Jackson. “President Bush has pledged to create 5.5 million new minority homeowners this decade, and this historic initiative will help meet this goal.”

It was the serious enforcement of a less-than-serious law, coupled with the repeal of another law that would have prevented the securitization and sale of mortgages that indirectly led to a debacle that has engulfed the entire world and has led to a situation in which derivatives with an estimated notional value of $1.4 quadrillion have flooded the world market – a value of about 23 times world GDP. Not only the issuance of MBSs, but the practice of creating and selling these potentially lethal instruments, is what threatens every inhabitant of our globe.

So keep this in mind: without the repeal of Glass-Steagall and without the “compassionate conservatism” and outright socialism of our past governments, you and your friends would have reasonable job security and/or a job.

Good reasons to avoid voting for a RINO or a Democrat next year.

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That Greek “haircut” will HURT!

October 29th, 2011 LAIGLESFORUM Posted in Banking and Finance, european union, Global governance, Socialism No Comments »

Hey, that ain’t hair you’re cutting. It’s our kids’ future!

by Don Hank

My mom used to give me haircuts, but she was always a little nervous and often nicked me in the ear with the scissors. That really hurt.

This haircut on the Greek bonds will hurt a LOT MORE.

Quote (see link below):

In essence, the haircut on Greek debt [haircut: partial default, in this case, decreed by law. DH] is a signal to investors that they should require a much higher rate of return on the debt of all of the PIIGS.  This is going to make the financial collapse of all of the PIIGS much more likely.

Absolutely. Not only that, the Greek government officials and Greeks benefitting from government largesse have lived high on the hog for years, and for them, that is an unalienable entitlement. Many of them get nasty when someone touches their entitlements. They burn tires, wreck vehicles, throw stones through windows, etc, breaking things they can’t afford to replace.

Now that Europe has given a 50% haircut on their sovereign debt, many will figure they can continue to live like kings and the next time around, good old Germany and the ECB and EFSF will just bail them out again, with more “haircuts” for their bonds and more leverage. Dream on. The German people are already PO’d! And with good reason.

As this author points out, the party can’t go on forever. They are tightening the noose around Europe’s neck.

“Leverage” in this context means that the banks will be able to lend 4-5 times more than before simply by issuing more credit — NOT MONEY, because they have no money at the bottom line of the balance sheets, only debt. Now even before this re-leveraging, they were leveraged to the max and already issuing loans against nothing but hot air. That’s the same as printing money, as they did in the failed Weimar Republic. Weimar failed BECAUSE they did this, but the money printing was sold as a “solution” to their problem. Now they’re trying a little — no a LOT — of hair of the dog that bit them in the butt before, except not just Germany but most of Europe. How short their memories are.

This money the banks are lending is money they don’t have. It is debt, the opposite of money. They are dealing in red numbers, paying off red numbers with more red numbers. That is like climbing higher up the mountain to reach the bottom. GUARANTEED it won’t work and when the crash comes it will be dramatic, people will get hurt and Greeks will be back burning tires again.

Maybe someone will hire them to do that. They’re getting pretty proficient at it.

 

Europe Tries To Kick The Can Down The Road But It Will Only Lead To Financial Disaster

 

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