New World Order University Forum

We have been hoping that the most indebted nations would declare their independence from the international bankers and socialist controllers who compete with each other to rob the treasuries of every nation. Unfortunately, it looks like Greece is about to knuckle under to EU control committees that will monitor Greece’s monthly spending while continuing the policies that drove Greece into unsustainable debt. Interest rates on Greece’s bonds have risen from about 3.5 percent to 7 percent in a few months. The EU bailout proposal is hazy on details, but Greece will be required to cut its budget deficit by 4 percent this year as a condition of receiving aid. Greece must further cut its debt-to-GDP ratio from 12 percent to 3 percent in future years. By itself this is not a bad plan, but let’s take a closer look inside Greece to assess the economic and social factors that will affect Greece’s recovery. The situation isn’t pretty.

First, Leo Kolivakis offers standard background analysis and an optimistic scenario based on Greece’s ability to recognize that it needs “radical” budget cuts plus Greece’s continuing commitment to the EU. Kolivakis believes that government union strikes will fail to influence the government or paralyze the economy, and Greece will figure out how to tax its underground economy. Note the Turkey threat and Greece’s military spending. This optimistic scenario hangs on assumptions that may prove to be wrong.

Greece hits back at the EU for failing to monitor the previous corrupt Greek government. This scandal should continue to make headlines in the days ahead, perhaps culminating in exposure of corrupt bankers. The Wall Street Journal reports on a credit proposal by Goldman Sachs that would give Goldman control over Greek government revenues far into the future while keeping the deficit off of Greece’s accounts.

“Greece owes the world $300 billion, and major banks are on the hook for much of that debt. A default would reverberate around the globe.”

Off-balance-sheet accounting makes an honest determination of sovereign debt very difficult. The game is crooked, and the uncertainty confuses financial markets.

The original sin: Countries such as Italy and Greece entered the EU with bigger deficits than the EU treaty terms allowed. These debts were hidden in the derivatives market, the same market that masked bad U.S. mortgage debt.

The Greek government essentially sold off future government revenues to J.P. Morgan and Goldman Sachs for short-term credit, then hid their future revenue losses. This is called “creative accounting.”

U.S. banks are on the hook for $176 billion of Europe’s sovereign debt.

Germany opposes formation of EU bailout fund. (Because polls show that the idea is unpopular in Germany, and Merkel is slipping in the polls.) Germany’s Supreme Court just handed Chancellor Merkel a big bill for underpayment of welfare benefits. Polling aside, there is the fundamental problem that every weak player can’t be bailed out, so why throw good money at other countries’ bad debt? Every cost/benefit scenario relies on economic growth to service the debt. So far, there’s no economic growth. And, the bailout money ultimately ends up at Goldman Sachs and J.P. Morgan.

Why regional economic unions are a very bad idea.

There is no mechanism for withdrawal from the EU. The prestige of the EU would take a blow if it kicked Greece out. But Europe’s cash-strapped big countries don’t want to pledge their support for Greece’s debt. This would set a precedent for bailing out Spain, Portugal, Ireland, and Italy. This is called contagion, and “opening Pandora’s box.” The way forward for EU integration is formation of an economic council with power over all of Europe’s governments. More dictatorial control as the EU becomes the Soviet Union. But further forced integration proposals must now deal with rising nationalist sentiments, anti-bailout populism. Other countries don’t want to be drawn into a Greece debt bailout when they themselves are going broke.

“Millions of people in the euro’s weaker economies now face years of misery and hardship…For a long time to come, the people of Greece, Italy, Spain, Portugal and Ireland will pay a terrible price for buying into the euro dream. If the euro itself did not die last week, the dream certainly did.”

How the Communist unions have assumed leadership of popular resentment against the southern governments and bankers, blocking reform. The general strike in Portugal is planned for March 12. Note that governments are extending their unemployment benefit payments in an attempt to tamp down worker revolts. This makes it even harder to enforce government spending cuts.

The argument for Greek debt default. There are many negative consequences for a debt default, but clearly the crisis is at a point where no good solution is apparent.

Developments outside Europe

Let’s back up a bit and assess big-picture global debt trends. As the biggest holder of U.S. treasury debt, China can expect to have more control over the United States. China’s banks are now dumping all non-treasury and non-agency debt.

Paul Farrell’s “economic anarchy” scenario of debt default is increasing in probability. The leading bears chime in. Tyler Durden believes China is in bond boycott. The absence of bidders at treasury auctions should send interest rates higher.

Bill Gross assesses debt risk for the leading economies.

Why there won’t be financial reform in the United States:

From Washington’s blog, the IMF and the head of the Dallas Federal Reserve bank warn that America is ruled by a financial oligarchy and must break its power to survive. But the oligarchy’s representatives are Obama’s economic advisers, and leading congressional Democrats.

And, how the World Trade Organization prevents America from reforming its financial system.

And, how national security is used as a reason for keeping financial maneuvers secret. Kudos to Washington for essential reporting. What are the odds that America is going to reform its financial system? About zero. So far we have not seen a single positive sign of real financial reform.

Why the U.S. economy isn’t going to recover.

Well, the grimmest scenario probably won’t play out. There will be statistics of economic recovery. But the long-term trends don’t point to an American Renaissance.

The world financial system has individual countries in a stranglehold. The global financial crash did not lead to the breakup of the New World Order. Instead the controllers shifted more power to the IMF, the World Bank, and the World Trade Organization. Increasing national debt levels have the most indebted nations suffering under more socialism, more immigration, and more globalist financial controls. As China wages economic war against the U.S. dollar and the euro declines, international currency fluctuations dominate market trends. The more bearish investment advisers are warning investors away from the British pound, the euro, and the dollar. 2010 should be the year of currency wars and transfer of financial assets from the weakest to the strongest economies.

Now back to Greece. Christos has a post at Henry Makow’s website on life inside Greece. It’s just one man’s opinion, but we smell more truth here than in a hundred EU or IMF press releases.

Let’s assess the tensions inside Greece. The unions want wage guarantees and job guarantees. They will try to paralyze the economy to get the government to accede to their demands. The immigrants want jobs. Their best bet for a job is to get hired by the Greek government. The native Greeks are split. Some want more government hiring and spending so they can have an income. Others want Greece to cut spending and remain in the EU to preserve the existing political and economic situation. Still others want to escape from Greece to find an economic opportunity and avoid the chaos that multiculturalism causes.

Let’s call these positions the Communist, socialist, and conservative positions. Notice that the conservative position is flight from socialism and multiculturalism rather than taking back power.

Now compare the competing forces in Greece with the situation in the United States. This is a homework project.

It’s OK to stop your analysis if you get too sad or depressed to continue.

Now a quick snapshot of other European countries for perspective. 42 percent of Brits would like to emigrate. Fine, but where? Multiculturalism isn’t going to suddenly end in Europe. Britain’s homeschoolers are heading to Scotland to avoid persecution.

Of interest: Labour tries to cover up its plan to replace white Brits with black Moslem immigrants.

How about emigrating to Spain? Sorry, too late. Spain is Greece.

Why the financial crisis is spreading to Spain and Portugal.

“Portugal has been in crisis since the Maoist-Trotskyist bloc won 10 per cent of the vote last year. This is rapidly turning into a market crisis as well as investors digest a revised budget deficit of 9.3 per cent of gross domestic product for 2009, much higher than expected. A €500 million ($791 million) debt auction failed on Wednesday. The yield spread on 10-year Portuguese bonds has risen to 155 basis points over German bunds.”

A frog eater at Guy White reports on what is happening across Europe.

Now back to the United States. Vicente Fox’s Mexican immigration plan bankrupted California but brought the Democrats to power. The Democrats are going to shore up their immigrant base to ensure their continued electoral support, regardless of the costs to American society and economy, because that is the only way they can win elections.

Now note the parallel: Immigrants target Greece as main point of entry into Europe.

There would be no crisis in Greece threatening other nations if there were no EU. Greece would simply devalue its currency and limp along with a weak economy. Greece is at the center of a bigger financial crisis because it is not an independent country that can control its currency. It doesn’t have a currency. The EU took it away. The EU is also hostage to Greece because the euro falls in value when Greece’s debt declines in value. The Greek tail wags the EU dog. The weakest economies threaten the stronger economies under regional integration. New World Order regional integration schemes always end in financial crisis.

The “let the euro decline” scenario actually helps Europe’s big exporting corporations, so they will favor insuring Greece’s debt.

The stronger European nations don’t want to set a precedent in Greece that they may have to repeat for Portugal and Spain. But the socialists who control the EU don’t want to let Greece drift out of their control orbit, either. This line of thinking leads to various “break-up” scenarios, but let’s not get ahead of ourselves. This Greece problem is going to fester for a long time. There is no quick fix. Even in the most optimistic scenario, Greece doesn’t return to “economic health” for decades. There is a lot of time for the tensions in Greece to play out in different ways, destabilizing Greece and destabilizing Europe.

We don’t forecast, but we do note trends and offer geopolitical analyses. The global debt bomb has the potential to crack New World Order financial integration and spread to every nation, destabilizing world stock and bond markets and throwing every country into recession. We think that is why the world’s central bankers are meeting in Australia, to brainstorm about a growing crisis that could break into a world crisis at any moment.

How to save Greece

Saving Greece for the European Union socialist prison keeps Greece under continuing pressure from multiple sources — immigration, the necessity to service debt, and the destabilizing street terrorism of the Communist unions. Saving Greece for the EU is a recipe for continued tensions along the same trendlines.

Global integration doesn’t solve any problem, it causes continuing crisis. Globalist leaders cannot solve any problem. All they can do is apply the same old band-aids to make the problems worse. Globalism is a criminal enterprise.

Greece matters more at the moment than Iceland because Greece has massive immigration and Communist unions undermining its government’s austerity policies. Greece will continue to “make news” because so many actors are playing on the Greek stage.

Why is this? Why do so many parties focus on the government of Greece (and by extension other bankrupt governments) as the focus of their energies, demands, and hopes? Because they think that Greek government policy is a profit opportunity for them. It’s all about getting money. We are going to call this attitude, “continuing to feed on the corpse of corrupt socialism.”

All high-debt nations must move into austerity and experience increasing social tensions as the debt burden forces taxes and interest rates higher. This means, more people will be wanting to emigrate — for economic opportunity, to escape multiculturalism, and to escape the grim future that high debt service under socialism enforces.

Suppose that Greece exited from the European Union, adopted its own currency, repudiated its debt, cut government spending, outlawed unions, expelled black Moslem immigrants, and begin to govern in the interests of Greek citizens. We call this scenario “saving Greece.”

Now let’s have a look at the dilemma of the white American. What do white Americans want to do? Flee from socialism and multiculturalism. Emigrate. From the reporting in this post, the best target countries appear to be Canada, Germany, and Scotland. Imagine how much a failing socialist country could be improved by white conservative Americans immigrating in large numbers, reinvigorating their economies, their culture, and their democracies.

Now if just one of those failing, high-debt nations sees the possibility for white European renewal, we would have a really attractive escape line from the New World Order controlling the United States. All Greece has to do to become the prime destination for European renewal is to announce, “We would like to restore the greatness of Greek culture and Greek democracy. We apologize for our socialist errors. We promise to have nothing more to do with Communist unions, socialist government, regional EU integration schemes, or global bankers. White people suffering under multiculturalism everywhere, come on over. Let us rebuild Greece from the ground up.”

If Greece did that, it would become the bright spot on the globe, the model for smashing socialism and regional integration under monopoly capitalism. Greece could become greater than Athens, greater than Rome. It could end up being the brightest beacon in human history, the occasion of a white European cultural and economic renaissance that reverses the bad fate the world faces under the New World Order.

But Greece’s socialists won’t think of that because socialists don’t think.

Tags: Bill Gross, China refuses to buy U.S. debt, declining euro, European Union, financial reform in United States, General strike in Portugal March 12, German opposition to Greece bailout, Greece budget deficit, Greece financial crisis, Greece government debt, Greece immigration, J.P. Morgan and Goldman Sachs loot Greece, multiculturalism in Britain, no financial reform inside U.S., Vicente Fox sponsors Mexican immigration into United States

This entry was posted by Director on Tuesday, February 16th, 2010 at 1:22 pm and is filed under European Union, Global Communism, Global Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.