Collapse of the Global Economy

Ron Paul: Euro Bailout Will Lead to Currency Collapse

May 10, 2010

Prison Planet.com - As Europe is bailed out to the tune of nearly $1 trillion dollars, Congressman Ron Paul warns that the constant monetization of debt, allied with taxpayer-funded bailouts, will inevitably lead to runaway inflation and the collapse of paper currencies.

Under the terms of the Federal Reserve’s credit swap deal with the EU – in addition to an additional IMF bailout of which U.S. taxpayers will be picking up 20 per cent ($57 billion dollars) of the tab, Paul pointed out that not just taxpayers but “anybody that buys anything” will be funding the European bailout because of the attendant inflationary consequences.

“The prices are going up already, producer prices are going up, the cost of living will go up so everyone in American will suffer and eventually the whole world will suffer because we cannot carry the whole world with our dollar,” Paul told Fox Business, adding that eventually people will lose confidence in the dollar.

The Congressman agreed with the host that the bailouts would lead to the crash of paper currencies, noting that last week’s stock market turmoil was accompanied by gold acting as a currency rather than just reacting to the value of the dollar.

“Gold has been money for 6,000 years and it will remain that way and it will rule the roost,” said Paul, adding that the dollar was weak in comparison with the strength of gold.

“All paper currencies are under attack and this cannot be sustained,” said the Congressman.

Paul then explained how the ECB has completely reversed its promise that it wouldn’t monetize debt and how Bernanke had also gone back on his word that U.S. dollars would be use for this purpose.

“When I talked to Bernanke last time in the Committee he said they had no intention of bailing out Greece but they are, through the IMF as well as opening up these swap lines to all the central banks. So it is on the shoulders of American taxpayers and the burden of our dollar, and all we’re doing is perpetuating a very very bad system, and this is not a solution at all,” he said.

Paul agreed with the host that the bailout was merely a stunt to buy time while failing to address the underlying problem of European socialism and the entitlement culture, which is fast running out of money with which to keep itself ticking over.

Watch the clip below.

Banksters Throw a Trillion Bucks Down a Black Hole

May 10, 2010

Infowars.com - The EU apparatchiks are in crisis mode. European Union boss Jose Manuel Barroso told us not to worry, though. They’re on it.

“This morning’s agreement will ensure that any attempt to weaken the stability of the euro will fail,” said Barroso today as the EU threw around a trillion bucks at the cancer spawned by the Greek debt crisis. “We have stated that we will do whatever is necessary to defend the stability of the euro,” he said with an actor’s confidence.

Barroso’s confidence game is designed to trick investors into thinking the eurozone, with its fresh influx of IMF money, is back on the road to good health. Instead it is like Max Factor smeared on a terminal cancer patient. Don’t expect CNBC or the market talking heads with their dizzy snake oil salesman demeanor to tell you the truth.

The so-called “nuclear option” now underway will only prolong and ultimately intensify the global economic crash.

Barroso and the EU apparatchiks are throwing more fiat money down a yawning rat hole. Europe is mimicking the Federal Reserve in its effort to throw money at the inevitable collapse of the bankster edifice.

“As we have long expected, Bernanke is now willing to sacrifice the dollar at any cost to prevent the euro unwind. This is nothing than a very short-term fix, whose half life will be shorter still than all previous ones,” notes Zero Hedge.

“This may very well still turn out to be the shortest and most futile trillion dollar bailout in history yet,” predicts the ever prescient Tyler Durden.

Of course it will be shorter. The latest scheme is a palliative designed to make us think central bankers, the IMF, and EU apparatchiks along with the mighty Federal Reserve are bending over backwards to save the economy. In fact, the plan is to deliberately wreck the global economy and usher in authoritarian world government.

The debt crisis is an engineered affair that will move from Greece to Spain and Portugal and beyond. Call it Lehman Brothers II, an effort to undermine economic health and stave off any hope of recovery.

Debt, debt, and more debt. That’s how the globalists play the game. Eurozone countries with “outsized deficits and an unsustainable debt trajectory” will require the sort of austerity medicine that has Greeks in the street in pitched battles with the cops.

The devaluation bottom is now within reach. Get ready for your purchasing power to go down the tubes along with your standard of living. Prepare yourself for IMF austerity. Get ready to be merged into the New World Order and world government. Get ready for carbon taxes, value added taxes, and more wealth confiscation schemes.

Our only hope is to tell the bankster cartel to shove their snake oil where the sun does not shine.